Rogers Sugar Reports Strong Third Quarter Results with Robust Demand from Sugar and Maple Segments

Executive Summary

• Rogers Sugar Inc. reported third-quarter and year-to-date fiscal 2025 financial results, showing growth in consolidated adjusted EBITDA and net earnings driven by strong performance in both the Sugar and Maple segments.
• Consolidated adjusted EBITDA for Q3 2025 rose to $36.6 million (up from $34.5 million in Q3 2024), while consolidated adjusted net earnings reached $17.0 million for the quarter and $52.7 million for the first nine months.
• The company provided an outlook for fiscal 2025, expecting strong financial results subject to potential US tariff impacts, with specific volume and capital expenditure guidance for both its Sugar and Maple business segments.

Key Details

• Consolidated Financials (Q3 2025 vs Q3 2024):
  • Revenues: $313.8 million (vs. $309.1 million).
  • Adjusted Gross Margin: $52.0 million (vs. $47.7 million).
  • Adjusted EBITDA: $36.6 million (vs. $34.5 million).
  • Adjusted Net Earnings: $17.0 million (vs. $16.3 million).
  • Adjusted Net Earnings Per Share (Basic): $0.13 (vs. $0.13).
  • Trailing Twelve Months Free Cash Flow: $87.8 million.
• Sugar Segment Performance:
  • Adjusted EBITDA: $32.5 million (up $2.4 million YoY).
  • Sales Volume: 191,147 metric tonnes (up ~3% or 5,300 tonnes YoY).
  • Adjusted Gross Margin per Metric Tonne: $243 (up $18 YoY).
  • Revenue decreased by $6.2 million due to lower average prices for Raw #11 (US 17.4 cents/lb, down US 2.2 cents/lb), partially offset by higher volumes.
  • Volume Breakdown: Industrial volume up 2,400 tonnes; Export volume up 7,900 tonnes; Liquid volume down 5,500 tonnes (loss of two large Western Canada customers); Consumer volume slightly higher.
• Maple Segment Performance:
  • Adjusted EBITDA: $4.0 million (down $0.3 million YoY).
  • Sales Volume: 13,796 thousand pounds (up from 11,392 thousand pounds in Q3 2024).
  • Revenue: $67.5 million (up $10.8 million YoY), driven by higher sales volumes.
  • Adjusted Gross Margin: $5.5 million (down $0.4 million YoY) due to unfavorable customer product mix and lower cost of goods sold from opportunistic purchases in the prior year.
• LEAP Project Update:
  • Total expected cost: $280 million – $300 million.
  • Capacity: ~100,000 metric tonnes of incremental refined sugar.
  • In-service date: End of calendar year 2026.
  • Q3 2025 Capital Spending: $30.3 million on PP&E, including $25.7 million for the LEAP Project.
  • Construction Progress: Completed new electrical room; advanced structural refurbishment of main expansion building; began installation of sugar refining equipment and logistic infrastructures in Montréal.
  • Capitalized Costs: $115.2 million as of June 28, 2025 (including $3.1 million interest); $61.3 million capitalized in the first nine months of 2025.
  • Financing: Funded via debt, equity, cash flow, and revolving credit facility. Issued 22,769,000 shares in 2024 for $112.5 million net proceeds. Increased revolving credit facility to $340 million.
• Operational & Strategic Updates:
  • Name Change: Maple segment legally renamed from "The Maple Treat Corporation" to "Lantic Maple Inc."
  • Supply Agreement: Entered a new five-year agreement with Alberta Sugar Beet Growers on May 9, 2025, for supply to the Taber plant; first crop harvest expected Fall 2025.
  • Taber Harvest: Delivered ~100,000 metric tonnes of beet sugar (lower than anticipated due to weather-related deterioration); 22,500 acres seeded for next year.
  • Debt Repayment: $97.6 million of Seventh series convertible unsecured subordinated debentures matured and was repaid on June 30, 2025.
• Dividends:
  • Paid $0.09 per share in Q3 2025 (Total: $11.5 million).
  • Declared quarterly dividend of $0.09 per share on August 11, 2025, payable on or before October 15, 2025.
• Board Appointments:
  • Eric Morisset appointed to the Board of Directors effective September 2, 2025; will seek election at the 2026 AGM.
• Fiscal 2025 Outlook:
  • Sugar: Sales volume outlook remains at 785,000 metric tonnes (approx. 1% YoY increase). Production costs and maintenance expected to increase. Normal business capital spending estimated at $25.0–$30.0 million; LEAP Project spending estimated at ~$90 million.
  • Maple: Sales volume expected to grow by 3.0 million lbs (approx. 6.5% growth). Capital spending estimated at $1.0–$1.7 million annually.
  • General: Expect strong financial results, subject to potential adverse impacts from US tariffs.

Notable Quotes

• “Our strong performance reflects the steady underlying demand for our sweeteners combined with the work we have done over the years in optimizing the business,” said Mike Walton, President and Chief Executive Officer of Rogers and Lantic Inc.
• “The evolving trade conditions related to US tariffs has generated some volatility in the market over the last few months. However, it has had limited impact on both of our business segments thus far.”