SunOpta Announces First Quarter Fiscal 2021 Financial Results
SunOpta (STKL) reported Q1 2021 revenues of $207.6 million, flat compared to last year, with a 12.4% increase in plant-based foods offset by declines in fruit-based revenues. Plant-based revenues reached $119.5 million, growing 47.0% since 2019. Gross margin improved to 14.4%, while adjusted EBITDA rose 34% to $18.3 million. The company also completed the acquisition of Dream and WestSoy brands for $33 million, expected to add $6-$8 million in adjusted EBITDA in 2022.
- Q1 plant-based revenue of $119.5 million, up 12.4% year-over-year.
- Adjusted EBITDA increased 34% to $18.3 million.
- Gross margin improved to 14.4%, a 130 basis point increase.
- Acquisition of Dream and WestSoy expected to contribute $6-$8 million in adjusted EBITDA in 2022.
- Overall revenue flat despite growth in plant-based foods due to a decline in fruit-based revenues.
- Fruit-based revenues decreased 13% compared to Q1 2020.
SunOpta Inc. (“SunOpta” or the “Company”) (Nasdaq:STKL) (TSX:SOY), a leading healthy food and beverage company focused on plant-based foods and beverages and fruit-based foods and beverages, today announced financial results for the first quarter ended April 3, 2021.
All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.
First Quarter 2021 Highlights:
-
Revenues of
$207.6 million for the first quarter of 2021 were flat with the prior year as strong12.4% growth in plant-based was offset by planned SKU and customer rationalization in fruit-based. -
Plant-Based revenues have grown
47.0% from Q1 2019, while Fruit-Based revenues have declined1.1% , resulting in a21.8% increase in consolidated revenues from Q1 2019 -
Gross margin increased 130 basis points to
14.4% from13.1% in the prior year. -
Earnings from continuing operations of
$1.7 million compared to a loss from continuing operations of$4.0 million in the prior year -
Adjusted earnings¹ attributable to common shareholders was
$1.3 million or$0.01 per diluted common share in the first quarter of 2021, compared to an adjusted loss of$5.4 million or$0.06 per diluted common share in the first quarter of 2020. -
Adjusted EBITDA¹ of
$18.3 million , or8.8% of revenues for the first quarter of 2021, versus$13.7 million or6.6% of revenues in the first quarter of 2020.
“We continued to execute well against our strategic plan in the first quarter, driving strong growth in plant-based revenue and productivity improvements in our fruit-based business leading to a significant increase in Adjusted EBITDA. We set a new quarterly record in plant-based with revenue of
First Quarter 2021 Results
Revenues of
The Plant-Based Foods and Beverages segment generated revenues of
The Fruit-Based Foods and Beverages segment generated revenues of
Gross profit was
Segment operating income¹ was
Adjusted EBITDA¹ was
Loss from continuing operations attributable to common shareholders for the first quarter of 2021 was
Adjusted earnings¹ in the first quarter of 2021 was
Please refer to the discussion and table below under “Non-GAAP Measures”.
Balance Sheet and Cash Flow
At April 3, 2021, SunOpta had total assets of
Acquisition of Dream and WestSoy
On April 15, 2021, SunOpta acquired the Dream and WestSoy brands for
Conference Call
SunOpta plans to host a conference call at 9:00 A.M. Eastern time on Wednesday, May 12, 2021, to discuss the first quarter financial results. After opening remarks, there will be a question and answer period. Investors interested in listening to a live webcast of the conference call can access a link on SunOpta's website at www.sunopta.com under the "Investors" section or directly here. Investors interested in listening to the live call over the telephone must pre-register for the conference call via a link on SunOpta's website at www.sunopta.com under the "Investors Relations" section or directly at Event Lobby (EVENT: 3081417) (on24.com). Upon registration, investors will be provided with the dial-in information, passcode and individual ID. Investors will also receive a confirmation email. Investors are encouraged to register at least 15 minutes prior to the scheduled call time and can register earlier at any time to receive the conference details. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at the Company's website.
¹ See discussion of non-GAAP measures
About SunOpta Inc.
SunOpta Inc. is a leading company specializing in the sourcing, processing and production of organic, natural and non-GMO plant-based and fruit-based food and beverage products.
Forward-Looking Statements
Certain statements included in this press release may be considered "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our belief that we will be able to capitalize on our pipeline of potential opportunities and the expected contribution to our adjusted EBITDA resulting from the acquisition of the Dream and WestSoy brands. Generally, forward-looking statements do not relate strictly to historical or current facts and are typically accompanied by words such as “expect”, “believe”, “anticipate”, “estimates”, “continue”, “can”, “will”, “target”, "should", "would", "plans", "becoming", "intend", "confident", "may", "project", "potential", "intention", "might", "predict", “budget”, “forecast” or other similar terms and phrases intended to identify these forward-looking statements. Forward-looking statements are based on information available to the Company on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments including, but not limited to, the Company’s actual financial results; uninterrupted operations and service levels to our customers during COVID-19; current customer demand for the Company’s products and the additional anticipated demand due to COVID-19; general economic conditions; continued consumer interest in health and wellness; the Company’s ability to maintain product pricing levels; planned facility and operational expansions, closures and divestitures; cost rationalization and product development initiatives; alternative potential uses for the Company’s capital resources; portfolio optimization and productivity efforts; the sustainability of the Company’s sales pipeline; the Company’s expectations regarding commodity pricing, margins and hedging results; improved availability and field prices for fruit; procurement and logistics savings; freight lane cost reductions; yield and throughput enhancements; and labor cost reductions. Whether actual timing and results will agree with expectations and predictions of the Company is subject to many risks and uncertainties including, but not limited to, unanticipated issues or delays with the integration of the Dream and WestSoy brands with our current product portfolio; potential loss of suppliers and customers as well as supply chain, logistics and other disruptions resulting from or related to COVID-19; unexpected issues or delays with the Company’s structural improvements and automation investments; failure or inability to implement portfolio changes, process improvements, go-to-market improvements and process sustainability strategies in a timely manner; changes in the level of capital investment; local and global political and economic conditions; consumer spending patterns and changes in market trends; decreases in customer demand; delayed or unsuccessful product development efforts; potential product recalls; working capital management; availability and pricing of raw materials and supplies; potential covenant breaches under the Company’s credit facilities; and other risks described from time to time under "Risk Factors" in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). Consequently, all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized. The Company undertakes no obligation to publicly correct or update the forward-looking statements in this document, in other documents, or on its website to reflect future events or circumstances, except as may be required under applicable securities laws.
SunOpta Inc. |
||||||
Consolidated Statements of Operations |
||||||
For the quarters ended April 3, 2021 and March 28, 2020 |
||||||
(Unaudited) |
||||||
(All dollar amounts expressed in thousands of U.S. dollars, except per share amounts) |
||||||
|
|
|
||||
|
Quarter ended |
|||||
|
April 3, 2021 |
March 28, 2020 |
||||
|
$ |
$ |
||||
|
|
|
||||
Revenues |
207,640 |
|
207,597 |
|
||
|
|
|
||||
Cost of goods sold |
177,651 |
|
180,424 |
|
||
|
|
|
||||
Gross profit |
29,989 |
|
27,173 |
|
||
|
|
|
||||
Selling, general and administrative expenses |
20,874 |
|
19,933 |
|
||
Intangible asset amortization |
2,194 |
|
2,271 |
|
||
Other expense, net |
1,615 |
|
555 |
|
||
Foreign exchange loss |
836 |
|
2,210 |
|
||
|
|
|
||||
Earnings from continuing operations before the following |
4,470 |
|
2,204 |
|
||
|
|
|
||||
Interest expense, net |
1,660 |
|
7,665 |
|
||
|
|
|
||||
Earnings (loss) from continuing operations before income taxes |
2,810 |
|
(5,461 |
) |
||
|
|
|
||||
Provision for (recovery of) income taxes |
1,138 |
|
(1,497 |
) |
||
|
|
|
||||
Earnings (loss) from continuing operations |
1,672 |
|
(3,964 |
) |
||
|
|
|
||||
Earnings from discontinued operations |
- |
|
7,325 |
|
||
|
|
|
||||
Net earnings |
1,672 |
|
3,361 |
|
||
|
|
|
||||
Dividends and accretion on preferred stock |
(1,953 |
) |
(2,025 |
) |
||
|
|
|
||||
Earnings (loss) attributable to common shareholders |
(281 |
) |
1,336 |
|
||
|
|
|
||||
Basic and diluted earnings (loss) per share |
|
|
||||
From continuing operations |
(0.00 |
) |
(0.07 |
) |
||
From discontinued operations |
- |
|
0.08 |
|
||
Basic and diluted earnings (loss) per share |
(0.00 |
) |
0.02 |
|
||
|
|
|
||||
Weighted-average common shares outstanding (000s) |
|
|
||||
Basic |
96,120 |
|
88,161 |
|
||
Diluted |
96,120 |
|
88,161 |
|
||
SunOpta Inc. |
||||||
Consolidated Balance Sheets |
||||||
As at April 3, 2021 and January 2, 2021 |
||||||
(Unaudited) |
||||||
(All dollar amounts expressed in thousands of U.S. dollars) |
||||||
|
|
|
||||
|
April 3, 2021 |
January 2, 2021 |
||||
|
$ |
$ |
||||
|
|
|
||||
ASSETS |
|
|
||||
Current assets |
|
|
||||
Cash and cash equivalents |
754 |
|
251 |
|
||
Accounts receivable |
88,227 |
|
72,724 |
|
||
Inventories |
165,342 |
|
147,748 |
|
||
Prepaid expenses and other current assets |
18,449 |
|
21,665 |
|
||
Current income taxes recoverable |
7,113 |
|
6,935 |
|
||
Total current assets |
279,885 |
|
249,323 |
|
||
|
|
|
||||
Property, plant and equipment |
187,976 |
|
158,048 |
|
||
Operating lease right-of-use assets |
33,182 |
|
35,172 |
|
||
Goodwill |
3,998 |
|
3,998 |
|
||
Intangible assets |
131,123 |
|
133,317 |
|
||
Deferred income taxes |
1,847 |
|
- |
|
||
Other assets |
5,614 |
|
5,757 |
|
||
|
|
|
||||
Total assets |
643,625 |
|
585,615 |
|
||
|
|
|
||||
LIABILITIES |
|
|
||||
Current liabilities |
|
|
||||
Accounts payable and accrued liabilities |
107,265 |
|
118,592 |
|
||
Income taxes payable |
2,440 |
|
1,431 |
|
||
Current portion of long-term debt |
7,462 |
|
3,478 |
|
||
Current portion of operating lease liabilities |
12,535 |
|
12,750 |
|
||
Current portion of long-term liabilities |
- |
|
200 |
|
||
Total current liabilities |
129,702 |
|
136,451 |
|
||
|
|
|
||||
Long-term debt |
130,060 |
|
66,245 |
|
||
Operating lease liabilities |
22,541 |
|
24,582 |
|
||
Deferred income taxes |
28,092 |
|
25,408 |
|
||
Total liabilities |
310,395 |
|
252,686 |
|
||
|
|
|
||||
Series A Preferred Stock |
- |
|
87,305 |
|
||
Series B Preferred Stock |
27,727 |
|
27,595 |
|
||
|
|
|
||||
EQUITY |
|
|
||||
SunOpta Inc. shareholders’ equity |
|
|
||||
Common shares |
418,822 |
|
326,545 |
|
||
Additional paid-in capital |
33,340 |
|
37,862 |
|
||
Accumulated deficit |
(148,022 |
) |
(147,741 |
) |
||
Accumulated other comprehensive income |
1,363 |
|
1,363 |
|
||
Total equity |
305,503 |
|
218,029 |
|
||
|
|
|
||||
Total equity and liabilities |
643,625 |
|
585,615 |
|
||
SunOpta Inc. |
||||||
Consolidated Statements of Cash Flows |
||||||
For the quarters ended April 3, 2021 and March 28, 2020 |
||||||
(Unaudited) |
||||||
(Expressed in thousands of U.S. dollars) |
||||||
|
|
|
||||
|
Quarter ended |
|||||
|
April 3, 2021 |
March 28, 2020 |
||||
|
$ |
$ |
||||
|
|
|
||||
CASH PROVIDED BY (USED IN) |
|
|
||||
|
|
|
||||
Operating activities |
|
|
||||
Net earnings |
1,672 |
|
3,361 |
|
||
Earnings from discontinued operations |
- |
|
7,325 |
|
||
Earnings (loss) from continuing operations |
1,672 |
|
(3,964 |
) |
||
Items not affecting cash: |
|
|
||||
Depreciation and amortization |
8,043 |
|
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FAQ
What were SunOpta's Q1 2021 earnings results?
SunOpta reported Q1 2021 revenues of $207.6 million, with adjusted earnings of $1.3 million or $0.01 per diluted share.
How did the plant-based segment perform in Q1 2021?
The plant-based segment generated revenues of $119.5 million, showing a year-over-year growth of 12.4%.
What is the outlook for SunOpta following the acquisition of Dream and WestSoy?
The acquisition is expected to add $6-$8 million in adjusted EBITDA in fiscal year 2022, enhancing growth prospects.
What was the gross margin for SunOpta in Q1 2021?
SunOpta's gross margin improved to 14.4% in Q1 2021, an increase of 130 basis points from the previous year.
SunOpta, Inc.
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Beverages - Non-Alcoholic
Wholesale-farm Product Raw Materials
United States of America
EDEN PRAIRIE
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