SunOpta (SOY) The 44th Annual William Blair Growth Stock Conference summary

Company overview and strategy

• Focused on plant-based beverages and better-for-you fruit snacks, with 85% of revenue from aseptic processing and 15% from snacks.

• Operates a coast-to-coast manufacturing network in North America, providing redundancy and multiple packaging formats.

• Balanced go-to-market approach: co-manufacturing, private label, food service, and limited own brands for R&D testing.

• Sustainability is integral, with efficiency gains in water and energy use and a strong community focus.

• Portfolio pruning has led to a more focused, growth-oriented business.

Growth, innovation, and customer relationships

• Achieved 13% revenue CAGR and 26% EBITDA CAGR over the last three years, with 2024 guidance at 10–11% revenue growth.

• Innovation programs with top customers drive product development in taste, caloric content, and functionality.

• R&D team of 20+ food scientists acts as an innovation arm for many customers.

• Customer relationships are long-term, with top three customers averaging over 15 years.

• Brands supported outperform the category by 300–400 basis points in retail.

Operational excellence and financial performance

• $230 million invested from 2020–2023 to expand capacity and drive growth.

• Output increased by over 20% in Q1 2024 versus Q1 2023, with ongoing efficiency improvements.

• Gross margin target is 20%+, with operational excellence programs expected to drive further gains.

• Adjusted EBITDA margin target is above 15%, with a midterm EBITDA run rate of $125 million expected by end of 2025 or early 2026.

• Leverage target set at 3x, with plans to reach this by year-end 2024; weighted average debt cost is 8.2%.