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.
“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.”
