CANADA – SunOpta Inc. has reported a strong year-over-year revenue growth in the third quarter, driven by increased sales volumes and a strong pipeline of new business opportunities.
Despite the surge in revenues, the company reported a net loss of US$5.5 million for the period ending September 28, 2024, marking an improvement over the previous year’s loss of US$145.82 million, which included significant losses from discontinued operations.
The revenue growth of nearly 16% for the third quarter, totaling US$176.22 million, up from US$152.54 million in the same period last year, highlights SunOpta’s progress in driving innovation and expanding its customer base.
Adjusted earnings for the quarter totaled US$2.5 million, a significant improvement from the US$452,000 reported in the same period a year ago. Adjusted EBITDA from continuing operations rose to US$21.5 million, up from US$19.09 million in 2023.
Brian W. Kocher, SunOpta’s CEO, who is nearing his one-year anniversary at the helm, stated in a conference call on November 5 that the third quarter played out as expected.
Kocher emphasized the company’s ability to generate significant growth while continuing to focus on key metrics, such as revenue and volume growth, margin expansion, and increasing adjusted EBITDA.
He also noted that temporary operating expense investments in the supply chain were made to accelerate future efficiencies, capacity growth, and margin expansion.
SunOpta’s recent performance was bolstered by impressive operational achievements. The company reported an 18% increase in output from its aseptic facilities and a 49% increase in its fruit snack facilities compared to the same quarter in 2023.
This growth can be attributed to the efficiency gains from existing lines, as well as the deployment of new capacity over the past 18 months.
In particular, SunOpta reached a milestone in September with a second consecutive record-breaking production month at its fruit snack facility in Omak, Washington.
Additionally, the company achieved its highest operating uptime metrics of the year during the same month.
A key development for SunOpta in the third quarter was its partnership with a major coffee chain to expand the distribution of its Dream Oatmilk Barista product.
Starting in January 2025, the product will be available in 6,700 additional locations across North America.
Kocher described the company’s investment in capacity as “very timely,” noting that output at SunOpta’s facility in Midlothian, Texas, has increased significantly, with the third production line contributing as expected.
Following the release of the financial results on November 5, SunOpta’s share price saw an uptick, rising 9% to US$7.40 by November 6, reflecting investor confidence in the company’s future prospects.
The price is the highest the stock has reached since May 9, 2024, when it touched a 52-week high of US$7.59.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
