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(1)   See “Non-IFRS Measures” section of this press release for definition and reconciliation to IFRS measures.

Sugar

(1)   See “Non-IFRS Measures” section of this press release for definition and reconciliation to IFRS measures.

In the first quarter of fiscal 2025, revenues increased by $27.0 million compared to the same period last year. The favourable variance was largely driven by higher sales volume compared to the same period last year. The increase of 13,700 metric tonnes over the first quarter of last year was mainly related to the unfavourable impact of the labour disruption at our Vancouver facility, which reduced sales volumes in the first two quarter of fiscal 2024. The favourable variance in revenues was also driven by higher pricing for refining-related activities.

The variances in sales volumes by customer categories were as follows:

• Industrial volume increased by 3,500 metric tonnes as compared to the same quarter last year, mainly reflecting the unfavourable impact from the labour disruption at our Vancouver facility in 2024.

• Consumer volume decreased by 2,500 metric tonnes compared to the same period last year, mainly due to timing in demand from customers.

• Liquid volume decreased by 7,500 metric tonnes compared to the same quarter last year, mainly related to the loss of a large customer in Western Canada.

• Export volume increased by 20,200 metric tonnes in the first quarter of 2025, reflecting the unfavourable impact from the labour disruption at our Vancouver facility in 2024, and from higher sales to existing customers.

Gross margin was $42.8 million for the current quarter and included a loss of $1.3 million for the mark-to-market of derivative financial instruments. For the same period last year, gross margin was $36.5 million with a mark-to-market gain of $0.3 million.

Adjusted gross margin was $44.1 million for the first quarter of 2025 as compared to $36.2 million for the same period in 2024. Adjusted gross margin increased by $7.9 million for the first three months of 2025, due mainly to higher sales volumes and higher contribution on sugar refining-related activities. The favourable variance includes a $2.7 million gain recognized in the first quarter of 2025, in relation to the settlement of an insurance claim associated with the purchase, in prior periods, of sugar from Central America. In addition, in the first quarter of fiscal 2024, adjusted gross margin was negatively impacted by approximately $3.0 million due to the labour disruption in Vancouver.

On a per-unit basis, adjusted gross margin for the first quarter, at $225 per metric tonne, was $26 per metric tonne higher than the same quarter last year.

EBITDA for the first quarter of fiscal 2025 was $32.6 million compared to $26.3 million in the same period last year. These results include gains and losses from the mark-to-market of derivative financial instruments.

Adjusted EBITDA for the current quarter increased by $7.9 million compared to the same period last year, mainly due to higher adjusted gross margin, partially offset by higher administration and selling expenses. These variances include the impact of the labour disruption in Vancouver for the first quarter of last fiscal year, which is estimated at approximately $3.0 million.

Maple

(1)   See “Non-IFRS Measures” section of this press release for definition and reconciliation to IFRS measures.

Revenues for the first quarter of the current fiscal year were $7.5 million higher than the same period last year, driven mainly by higher sales volume from existing customers.

Gross margin was $3.9 million for the first three months of the current fiscal year, including a loss of $3.7 million from the mark-to-market of derivative financial instruments. For the same period last year, gross margin was $8.2 million with a mark-to-market gain of $2.1 million.

Adjusted gross margin percentage for the current quarter was 11.5% as compared to 10.3% for the same period last year, representing an increase in adjusted gross margin of $1.5 million. The higher gross margin was mainly related to higher sales volume and lower operating expenses.

EBITDA for the first quarter of fiscal 2025 amounted to $2.0 million compared to $6.7 million for the same period last year. These results include gains from the mark-to-market of derivative financial instruments.

LEAP PROJECT

On August 11, 2023, the Board of Directors of Lantic approved the LEAP Project. LEAP is expected to provide approximately 100,000 metric tonnes of incremental refined sugar capacity to the growing Canadian market and includes sugar refining assets, along with logistic assets to increase the delivery capacity to the Ontario market. The total cost for the LEAP Project is expected to range between $280 million and $300 million and we anticipate the LEAP Project to be in service by the end of 2026.

The planning and design phases associated with the LEAP Project are completed and the construction phase has begun. Site preparation and permitting processes are completed for the main construction site in Montréal. Detailed planning for the Toronto portion of the project is now completed. Orders for sugar refining equipment and other large production and logistic-related equipment have been placed with suppliers, with several pieces of equipment already on site.

We are funding the execution of the LEAP Project with a combination of debt, equity, existing operating cash flow and our revolving credit facility. In connection with the financing plan of the LEAP Project, we issued 22,769,000 common shares of RSI in fiscal 2024, for net proceeds of $112.5 million and we also increased the amount available under our revolving credit facility by $75 million, to $340 million. In fiscal 2023, also in connection with the financing of the LEAP Project, Lantic entered into two secured loan agreements with Investissement Québec (“IQ loans”) for up to $65 million. As at December 28, 2024, $7.4 million has been drawn under the IQ Loans.

As at December 28, 2024, $73.5 million, including $2.4 million in interest costs, has been capitalized as construction in progress on the balance sheet for the LEAP Project. Thus far, most of the costs incurred are related to the design and planning phases of the project, the site preparation in Montréal and sugar refining, production, and logistic equipment ordered and received from suppliers. For the first quarter of fiscal 2025, $19.7 million has been capitalized in connection with the LEAP Project, while $10.5 million was capitalized in the same period last year.

See “Forward-Looking Statements” and “Risks and Uncertainties”.

OUTLOOK

We continue to focus on delivering consistent, profitable and sustainable growth. Following a strong performance in both of our business segments in 2024, and in the first quarter of 2025, we expect, subject to the adverse impact of potential US tariffs in the near future, to deliver strong financial results in 2025. The strength in demand and pricing is expected to continue for our Sugar business segment going forward.

For our Maple segment, we expect the recovery of 2024 to set the pace for a strong year in 2025, as the global maple market is showing growth, also subject to the adverse impact of potential US tariffs in the near future.

In both of our segments, we have been reviewing strategies and steps to mitigate the potential adverse impact of such tariffs in the event that they are imposed. See “Forward-Looking Statements” and “Risks and Uncertainties” in our Management’s Discussion and Analysis for the three-month period ended December 28, 2024.

Sugar

We expect the Sugar segment to perform well in fiscal 2025. Underlying North American demand for sugar remains favourable. Gross margin for the sugar segment for 2025 is expected to align with previous year, reflecting market-based price increases for sugar and sugar-containing products, and should continue to have a positive impact on our financial results, allowing us to mitigate the expected increase in costs associated with our operations.

We are maintaining our sales volume outlook for fiscal year 2025 at approximately 800,000 metric tonnes, following a first quarter sales volume that was aligned with our expectation, subject to the adverse impact of the potential imposition of US tariffs. Overall, this would represent an increase of over 5% year-over-year from 2024, if we adjust for the unfavourable impact of the labour disruption in Vancouver, which reduced volume in the first two quarters of last fiscal year. We expect to continue to prioritize domestic sales and to take advantage of export sales opportunities in fiscal 2025, with the objective to consistently meet our commitments to our customers.

The harvest period for our sugar beet facility in Taber was completed in early November. We are currently in the processing stage of the 2024 sugar beet campaign, with expected completion by the end of February. Based on our early assessment, we anticipate the 2024 crop to deliver between 100,000 metric tonnes and 105,000 metric tonnes of beet sugar, which is slightly less than anticipated due to unfavourable weather conditions impacting the quality of the harvested beets, which is negatively impacting the slicing process.

Production costs and maintenance programs for our three production facilities are expected to increase moderately in 2025, as such related expenditures continue to be impacted by market-based increases in costs and annual wage increases for employees. For 2025, we plan to continue to perform the necessary maintenance activities to ensure a smooth production process to meet the needs of our customers. We remain committed to managing our costs responsibly and to properly maintain our production assets and related facilities.

Distribution costs are expected to align with prior year. These expenditures reflect the current market dynamics and include the transfer of sugar produced between our refineries to meet demand from customers, pending the completion of our LEAP Project.

Administration and selling expenses are expected to slightly increase in 2025 compared to 2024, reflecting expected market-based increases for compensation-related expenses and external services.

We anticipate our financing costs to be stable in fiscal 2025, as excess cash related to the timing of the equity financing portion of the LEAP project is providing a temporary increase in our available cash, which is mitigating the impact of a higher net interest rate on our credit facility. We have been able to partially mitigate the impact of recent increases in interest rates and energy costs through our multi-year hedging strategy. We expect our hedging strategy will continue to mitigate such exposure in fiscal 2025.

Spending on regular business capital projects is expected to decrease slightly in fiscal 2025 as compared to 2024. We anticipate spending between $25.0 million to $30.0 million on various initiatives. This capital spending estimate excludes expenditures relating to our LEAP Project, which are currently estimated to be approximately $112 million for fiscal 2025.

Maple

We expect financial results in our Maple segment to be strong in 2025, following the recovery seen over the last year and the strong results of the first quarter. We currently anticipate sales volume to grow by 2.0 million lbs in 2025, representing a growth rate of approximately 5%, subject to the adverse impact of the potential imposition of US tariffs. The sales volume expectation reflects current market conditions, and the anticipated availability of maple syrup from the producers.

The 2024 maple syrup crop was significantly better than anticipated and should support the current market demand, while also allowing for the partial replenishment of the reserve held by the Producteurs et Productrices Acéricoles du Québec (”PPAQ”). The reserve of PPAQ had been depleted in recent years from below average crops.

We expect to spend between $1 million and $1.5 million annually on capital projects for the Maple business segment. The main driver for the selected projects is improvement in productivity and profitability through automation.

See “Forward-Looking Statements” and “Risks and Uncertainties” in our Management’s Discussion and Analysis for the three-month period ended December 28, 2024.

A full copy of Rogers first quarter 2025, including management’s discussion and analysis and unaudited condensed consolidated interim financial statements, can be found at www.LanticRogers.com or on SEDAR+ at www.sedarplus.ca.

Cautionary Statement Regarding Non-IFRS Measures

In analyzing results, we supplement the use of financial measures that are calculated and presented in accordance with IFRS with a number of non-IFRS financial measures. A non-IFRS financial measure is a numerical measure of a company’s performance, financial position or cash flow that excludes (includes) amounts or is subject to adjustments that have the effect of excluding (including) amounts, that are included (excluded) in most directly comparable measures calculated and presented in accordance with IFRS. Non-IFRS financial measures are not standardized; therefore, it may not be possible to compare these financial measures with the non-IFRS financial measures of other companies having the same or similar businesses. We strongly encourage investors to review the audited consolidated financial statements and publicly filed reports in their entirety, and not to rely on any single financial measure.

We use these non-IFRS financial measures in addition to, and in conjunction with, results presented in accordance with IFRS. These non-IFRS financial measures reflect an additional way of viewing aspects of the operations that, when viewed with the IFRS results and the accompanying reconciliations to corresponding IFRS financial measures, may provide a more complete understanding of factors and trends affecting our business. Refer to “Non-IFRS measures” section at the end of the MD&A for the current quarter for additional information.

The following is a description of the non-IFRS measures we used in this press release:

• Adjusted gross margin is defined as gross margin adjusted for “the adjustment to cost of sales”, which comprises the mark-to-market gains or losses on sugar futures and foreign exchange forward contracts as shown in the notes to the consolidated financial statements and the cumulative timing differences as a result of mark-to-market gains or losses on sugar futures and foreign exchange forward contracts.

• Adjusted results from operating activities are defined as results from operating activities adjusted for the adjustment to cost of sales.

• EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

• Adjusted EBITDA is defined as adjusted results from operating activities adjusted to add back depreciation and amortization expenses.

• Adjusted net earnings is defined as net earnings adjusted for the adjustment to cost of sales and the income tax impact on these adjustments.

• Adjusted gross margin rate per MT is defined as adjusted gross margin of the Sugar segment divided by the sales volume of the Sugar segment.

• Adjusted gross margin percentage is defined as the adjusted gross margin of the Maple segment divided by the revenues generated by the Maple segment.

• Adjusted net earnings per share is defined as adjusted net earnings divided by the weighted average number of shares outstanding.

• Free cash flow is defined as cash flow from operations excluding changes in non-cash working capital, mark-to-market and derivative timing adjustments, financial instruments non-cash amount, and includes deferred financing charges, funds received from stock options exercised, capital and intangible assets expenditures, net of value-added capital expenditures and capital expenditures associated to LEAP Project, and payments of capital leases.

In this press release, we discuss the non-IFRS financial measures, including the reasons why we believe these measures provide useful information regarding the financial condition, results of operations, cash flows and financial position, as applicable. We also discuss, to the extent material, the additional purposes, if any, for which these measures are used. These non-IFRS measures should not be considered in isolation, or as a substitute for, analysis of our results as reported under IFRS. Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures are as follows:

RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO IFRS FINANCIAL MEASURES

(1)   See “Adjusted results” section of the MD&A for additional information

Conference Call and Webcast

Rogers will host a conference call to discuss its first quarter fiscal 2025 results on February 6, 2025, starting at 8:00a.m. ET. To participate, please dial 1-800-717-1738. To access the live webcast presentation, please click on the link below:

https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=F01668B1-D8E1-4B1D-957D-61B15877FD5B&LangLocaleID=1033

A recording of the conference call will be accessible shortly after the conference, by dialing 1-888-660-6264, access code 01931#. This recording will be available until March 6, 2025. A live audio webcast of the conference call will also be available via www.LanticRogers.com.

About Rogers Sugar

Rogers is a corporation established under the laws of Canada. The Corporation holds all of the common shares of Lantic and its administrative office is in Montréal, Québec. Lantic operates cane sugar refineries in Montréal, Québec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic also operate a distribution center in Toronto, Ontario. Lantic’s sugar products are mainly marketed under the “Lantic” trademark in Eastern Canada, and the “Rogers” trademark in Western Canada and include granulated, icing, cube, yellow and brown sugars, liquid sugars, and specialty syrups. Lantic owns all of the common shares of TMTC and its head office is headquartered in Montréal, Québec. TMTC operates bottling plants in Granby, Dégelis and in St-Honoré-de-Shenley, Québec and in Websterville, Vermont. TMTC’s products include maple syrup and derived maple syrup products supplied under retail private label brands in approximately fifty countries and sold under various brand names.

For more information about Rogers please visit our website at www.LanticRogers.com.

Cautionary Statement Regarding Forward-Looking Information

This report contains statements or information that are or may be “forward-looking statements” or “forward-looking information” within the meaning of applicable Canadian Securities laws. Forward-looking statements may include, without limitation, statements and information which reflect our current expectations with respect to future events and performance. Wherever used, the words “may,” “will,” “should,” “anticipate,” “intend,” “assume,” “expect,” “plan,” “believe,” “estimate,” and similar expressions and the negative of such expressions, identify forward-looking statements. Although this is not an exhaustive list, we caution investors that statements concerning the following subjects are, or are likely to be, forward-looking statements:

• The potential impact of US tariffs on export sales of refined sugar, sugar containing products and maple products;

• Future demand and related sales volume for refined sugar and maple syrup;

• our LEAP Project;

• future prices of Raw #11;

• natural gas costs;

• beet sugar production forecast for our Taber facility;

• the level of future dividends;

• the status of government regulations and investigations; and

• projections regarding future financial performance.

Forward-looking statements are based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Actual performance or results could differ materially from those reflected in the forward-looking statements, historical results, or current expectations.

Readers should also refer to the section “Risks and Uncertainties” in this current quarter MD&A and the 2023 fourth quarter MD&A for additional information on risk factors and other events that are not within our control. These risks are also referred to in our Annual Information Form in the “Risk Factors” section. Although we believe that the expectations and assumptions on which forward-looking information is based are reasonable under the current circumstances, readers are cautioned not to rely unduly on this forward-looking information as no assurance can be given that it will prove to be correct. Forward-looking information contained herein is made as at the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information, whether a result of events or circumstances occurring after the date hereof, unless so required by law.

For further information
Mr. Jean-Sébastien Couillard
Vice President of Finance, Chief Financial Officer and Corporate Secretary
Phone: (514) 940-4350
Email: jscouillard@lantic.ca