SunOpta has raised its revenue growth outlook even as price cuts weighed on the US plant-based and better-for-you product maker’s positive volumes.
The Eden Prairie, Minneapolis-based supplier of plant-based snacks, milks and nutritional shakes now expects its full-year sales revenue to rise 13-16% to a range of $710-730m. The previous outlook was 9-13%, with an end print of $685-715m in US dollars.
SunOpta has initiated the upgrade based on second-quarter revenue of $171m, a 21.1% increase that was supported by a 26.9% rise in volume-mix.
Volume growth was, however, offset by a 3.9% reduction in prices, which SunOpta said was “due to the pass-through of commodity costs for certain raw materials”.
Recent disposals also negatively impacted revenue growth to the tune of 1.8%, namely the sale of the frozen açaí and smoothie bowls business in March to Sambazon and the divestment of a batch of frozen fruit assets to Canada-based Nature’s Touch.
“Revenue growth continues to be demand-driven and broad based across customers and channels,” CEO Brian Kocher said late yesterday (7 August) in his commentary of the results to the end of June.
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By GlobalData“We are increasing our revenue outlook for 2024 and maintaining our adjusted EBITDA guidance to reflect short-term investments in the supply chain.
“Given the depth of our pipeline, operational and supply chain initiatives currently underway, and strength of our overall competitive position, we continue to have a high degree of confidence in the longer-term trajectory of our business and our ability to deliver significant value to shareholders.”
SunOpta continues to expect to deliver adjusted EBITDA of $88-92m for fiscal 2024, representing growth of 12-17% over the previous 12 months.
The metric climbed 12% in the second quarter to $20.6m.
Volumes were supported by fruit snacks, protein shakes, broths, plant-based beverages and tea, SunOpta said.
The company posted a loss from continuing operations of $3.8m, narrowing from $11.7m a year earlier. However, the result turned positive for the first half at $316,000 versus a loss of $10.5m.
On the bottom line, net losses shrank to $4.7m for the quarter from $18.8m, while the six-month loss narrowed to $2.3m from $17.4m.
Revenue through the first half climbed 19.5% to $353.8m.
Jon Andersen, an analyst as US investment bank William Blair, commented in a research note: “Our thesis is that SunOpta’s distinctive capabilities in plant-based foods and beverages, coupled with a more predictable and profitable fruit-based business, can drive growth and shareholder value.
“Risks include consumer demand, competition and commodity costs.”
