Lassonde Industries (LAS-A) Q4 2023 earnings summary

Executive summary

• FY2023 sales reached a record $2,314.9M, up 7.6%; adjusted EBITDA rose 31.8% to $207.1M and adjusted profit attributable to shareholders rose 39.6% to $89.9M.

• All divisions delivered profit growth in Q4 and FY2023; 2024 priorities include rebuilding U.S. volume, commissioning a North Carolina single-serve line and assessing specialty-food growth options.

Financial highlights

• Q4 sales were $604.8M, up 8.8%; growth was 8.6% excluding a $1.1M favourable FX impact. FY sales growth was 7.6%, or 5.6% excluding a $43.8M favourable FX impact.

• Q4 gross profit was $152.5M vs. $123.6M; operating profit was $32.1M vs. $16.7M, and net profit was $20.5M vs. $10.1M.

• Q4 adjusted EBITDA was $52.6M vs. $38.3M; adjusted profit attributable to shareholders was $21.5M vs. $14.3M, and adjusted EPS was $3.14 vs. $2.09.

• FY2023 gross profit was $587.7M vs. $523.3M; operating profit was $135.4M vs. $81.3M, and net profit was $88.3M vs. $53.3M. Profit attributable to shareholders was $87.5M.

• FY2023 EPS was $12.83 vs. $7.85; adjusted EPS was $13.18 vs. $9.37.

Outlook and guidance

• FY2024 sales growth is forecast in the mid-single-digit range excluding FX, driven by pricing run-rate effects; slight H1 volume decline and H2 growth are expected.

• U.S. volume recovery, the North Carolina single-serve line scheduled for H2 deployment and demand stabilization are expected to support sequential volume improvement.

• Further pricing may be considered if inflation persists; performance-related compensation expenses are expected below 2023 levels.

• FY2024 effective tax rate is expected at 26.5%; strategy, optimization and systems spending may reach $5.0M.

• FY2024 capital expenditures are estimated at up to 5% of sales, subject to project timing and macroeconomic conditions.