SunOpta Announces Second Quarter Fiscal 2025 Financial Results

Executive Summary

• SunOpta Inc. reported strong second-quarter 2025 financial results, with revenue increasing 12.9% to $191.5 million and earnings from continuing operations turning positive at $4.4 million, compared to a loss of $4.4 million in the prior year period.
• The company raised its full-year 2025 revenue outlook to $805–$815 million (from $788–$805 million) due to strong Q2 performance and expected tariff pass-through pricing, while reaffirming its Adjusted EBITDA outlook of $99–$103 million.
• Management announced a new fruit snack manufacturing line at its Omak, Washington facility, which is already over-subscribed and expected to come online in late 2026 to meet growing demand in the better-for-you snack category.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $191.5 million (up 12.9% YoY), driven by 14.4% volume growth partially offset by a 1.4% price reduction for pass-through raw material cost savings.
  • Earnings from continuing operations: $4.4 million (up 198% YoY vs. a $4.4 million loss).
  • Adjusted EBITDA from continuing operations: $22.7 million (up 13.9% YoY), representing 11.9% of revenue.
  • Adjusted EPS: $0.04 (up from $0.02 in Q2 2024).
  • Gross Profit: $28.4 million (up 34.0% YoY); Gross Margin: 14.8% (vs. 12.5% prior year).
  • Operating Income: $10.5 million (up from $2.0 million prior year).
• Balance Sheet and Cash Flow (First Two Quarters 2025):
  • Total Assets: $704.9 million; Total Debt: $273.4 million.
  • Cash provided by operating activities: $17.8 million (vs. $2.0 million prior year).
  • Net Leverage: 2.9x (improved from 3.0x at year-end 2024); target is 2.5x by end of fiscal 2025.
  • Share Repurchases: Repurchased 163,227 common shares in Q2 at an average price of $6.04 for $1.0 million; $24.0 million remained available under the program.
• 2025 Outlook:
  • Revised Revenue Outlook: $805–$815 million (increased by ~$8M due to tariff pass-through timing).
  • Revised Revenue Growth: 11%–13% (up from 9%–11%).
  • Reaffirmed Adjusted EBITDA: $99–$103 million.
  • Reaffirmed Adjusted EBITDA Growth: 12%–16%.
• Operational Updates & Strategy:
  • Tariffs: Implemented new pricing arrangements with all customers by mid-July to mitigate tariff exposure; gross profit was negatively impacted by $1.6 million (90 bps) in Q2 due to timing lag in pass-through.
  • Capital Expansion: Announcing a new fruit snack manufacturing line at the Omak, Washington facility to meet demand for 2027 and beyond; line is over-subscribed and expected online in late 2026.
  • Growth Drivers: Robust volume gains in plant-based beverages, broths, and fruit snacks; new product launches; and improved plant utilization.
• Conference Call: Scheduled for Wednesday, August 6, 2025, at 5:30 P.M. Eastern Time.

Notable Quotes

• “Second quarter results were outstanding, reflecting the strength of our competitive position and sharp execution by our team... Both revenue and Adjusted EBITDA growth continued their double-digits trajectory, driven by robust volume gains across the breadth of our diverse portfolio.” — Brian Kocher, CEO
• “Our new business pipeline has never been stronger and we are exceptionally well positioned to capitalize on these opportunities to drive sustainable growth and profitability... we are announcing a new fruit snack manufacturing line at our Omak, Washington facility, that is already over-subscribed and is anticipated to come online in late 2026 to meet this demand for 2027 and beyond.” — Brian Kocher, CEO