Sucro (SUGR) Q4 2024 earnings summary

Executive summary

• Achieved strong operational execution and solid results despite market volatility and macroeconomic headwinds.

• Sugar deliveries rose 61% in Q4 2024 versus prior year, with refining operations up 30%.

• Full-year revenue reached $654.4M, up 31.7% year-over-year, on 649,747 MT delivered.

• Expanded refining capacity, customer relationships, and logistics capabilities, with ongoing construction of new refineries in Illinois and southern Ontario.

• Strengthened presence in the food and beverage sector with increased long-term contract volumes.

Financial highlights

• Revenue reached $654.4 million, up 31.7% year-over-year, driven by 36% higher volumes and expanded refinery output.

• Adjusted Gross Profit was $56.6 million, up from $49.6 million in 2023, reflecting a focus on higher-margin business.

• Adjusted EBITDA rose to $35.7 million from $34.7 million, with higher SG&A expenses offsetting some gains.

• Interest expense increased to $24.7 million, up 8.1% year-over-year, but below the revenue growth rate.

• Free cash flow increased 60% year-over-year to $10 million; operating cash flow rose by $60 million.

Outlook and guidance

• Anticipates 2026 as a pivotal year with new refineries bringing significant additional capacity to market.

• 2025 capital expenditures expected to be approximately $25 million, focused on completing and commissioning new refineries.

• Expects SG&A as a percentage of revenue to decrease as scale increases.

• 2024 adjusted EBITDA ($35.7M) and EBITDA ($61.7M) fell below prior guidance due to lower refining volumes and higher SG&A.

• Management is monitoring trade and tariff developments between the U.S., Canada, and Mexico.