Q3 2024 Rogers Sugar Inc Earnings Call Transcript
Key Points
- Rogers Sugar Inc (RSGUF) reported the most profitable third quarter in its history, with adjusted EBITDA reaching $34.5 million, a significant increase from the previous year.
- Consolidated revenues increased by nearly 18% year-over-year, driven by double-digit growth in both the sugar and maple segments.
- The company achieved a milestone with consolidated adjusted EBITDA surpassing $100 million in the first nine months of the year for the first time.
- The maple segment posted its fourth consecutive quarter of strong financial results, with revenues up 22% and adjusted EBITDA increasing by 44% compared to the previous year.
- Rogers Sugar Inc (RSGUF) is maintaining its quarterly dividend distribution, reflecting confidence in its financial stability and future prospects.
- North American food and beverage processors experienced a softness in demand, leading to a 3% decrease in sugar volume for Rogers Sugar Inc (RSGUF) compared to the same period last year.
- The LEAP project is facing higher-than-expected costs due to inflation and increased competition for resources in the Montreal area, with no precise updated cost estimate available yet.
- The company experienced a labor disruption at its Vancouver facility, impacting operations in the first half of the year.
- Export sales, which carry lower margins, were used to mitigate the impact of decreased domestic demand, affecting overall profitability.
- The maple segment is experiencing some demand erosion in foreign markets due to price elasticity, as maple syrup is perceived as a luxury product.
(Operator Instructions) This call is being recorded on Thursday, August 8, 2024. I would now like to turn the call over to Mike Walton, President and CEO. Please go ahead.
Thank you, operator, and good afternoon, everyone. Thank you all for joining us today.
Before we begin, please be reminded that today's call may include forward-looking statements regarding our future operations and expectations. Such statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied today. Please also note that we may refer to some non-IFRS measures in our call. Please refer to the forward-looking disclaimers and non-IFRS measure definitions included in our public filings with the Securities Commission for more information on these items.
A replay of this call will be available later today. The replay numbers and passcodes have been provided in our press release, and an archiving recording of this call will also be available on our website.
I'll begin the call today with some highlights from our Q3 2024
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