SunOpta (SOY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 16% year-over-year to $176 million, driven by 21% volume growth and broad-based strength across customers, channels, and product categories.

• Adjusted EBITDA for Q3 2024 rose 13% to $21.5 million, with adjusted earnings from continuing operations reaching $2.5 million, up from $0.5 million in Q3 2023.

• Operational initiatives and supply chain investments led to margin expansion, record production months, and improved output.

• The company reaffirmed its full-year 2024 outlook, targeting $710–$730 million in revenue (13–16% growth) and $88–$92 million in adjusted EBITDA (12–17% growth).

• Exited the smoothie bowls category in March 2024, reducing revenue by 2.3%.

Financial highlights

• Q3 2024 gross profit increased 16% to $23.6 million, with gross margin at 13.4% and adjusted gross margin at 17%.

• Operating income was $1.5 million, up slightly year-over-year.

• Adjusted EBITDA margin for Q3 2024 was 12.2%.

• For the first three quarters of 2024, revenue rose 18.1% to $530.1 million, with gross profit up to $77.2 million (14.6% margin).

• Total assets were $699.3 million and total debt $289.9 million as of September 28, 2024.

Outlook and guidance

• Fiscal 2024 outlook reaffirmed: revenue expected at $710–$730 million (13–16% growth) and adjusted EBITDA at $88–$92 million (12–17% growth).

• Midterm target of $125 million Adjusted EBITDA run rate by late 2025 or early 2026.

• Guidance for 2025 to be provided with Q4 results.

• Expectation to achieve net leverage under 3x Adjusted EBITDA by year-end.

• Long-term ambitions include annual revenue growth of 10%+, gross margin above 20%, and adjusted EBITDA margin above 15%.