Yahoo Finance

• Revenue: $194 million, up 9% year-over-year.

• Volume Growth: 13% in Q4, 21% for the full year 2024.

• Adjusted EBITDA: Increased 20% to $26.1 million.

• Adjusted EBITDA Margin: Improved 130 basis points to 13.4%.

• Adjusted Gross Profit: Increased 2% to $31.5 million.

• Adjusted Gross Margin: 16.1%, down from 17.2% in the prior year.

• Loss from Continuing Operations: $4.6 million, compared to a loss of $3 million in the prior year.

• Adjusted Earnings from Continuing Operations: $7.6 million, up from $4.5 million in the prior year.

• Debt: $265 million, down $25 million from the previous quarter.

• Net Leverage: Achieved target of 3x, down from 3.4x last quarter.

• Cash Provided by Operating Activities: $52 million for the full year, up from $4 million in 2023.

• Cash Used in Investing Activities: $25 million, down from $47 million in 2023.

• 2025 Revenue Outlook: $775 million to $805 million, growth of 7% to 11%.

• 2025 Adjusted EBITDA Outlook: $97 million to $103 million, growth of 9% to 16%.

• Interest Expense for 2025: $24 million to $26 million.

• Capital Expenditures for 2025: $30 million to $35 million.

• Free Cash Flow for 2025: $25 million to $30 million.

• Warning! GuruFocus has detected 9 Warning Signs with STKL.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Revenue increased by 9% in Q4 2024, driven by a 13% volume growth across segments, products, and customers.

• Adjusted EBITDA grew by 20%, with a margin improvement of 130 basis points to 13.4%, reflecting strong revenue growth and operational efficiencies.

• SunOpta Inc (NASDAQ:STKL) completed the start-up phase in Midlothian, resolving previous equipment delays and inefficiencies.

• The company achieved a significant volume growth of 21% in 2024, indicating strong demand in the food and beverage consumer landscape.

• SunOpta Inc (NASDAQ:STKL) reduced its debt by $25 million in Q4, achieving a year-end net leverage target of 3x, down from 3.4x in the previous quarter.

Negative Points

• Gross profit decreased by $3.9 million compared to the prior year, mainly due to increased costs associated with the Midlothian start-up.

• Adjusted gross margin declined from 17.2% to 16.1% due to incremental depreciation and short-term investments in supply chain efficiencies.

• The company experienced 10-plus days of downtime at the Midlothian facility due to equipment upgrades, resulting in inefficiencies and waste.

• Loss from continuing operations was $4.6 million, compared to a loss of $3 million in the prior year period.

• The company faces supply constraints, particularly in the fruit snacks segment, which may limit its ability to meet demand without additional capacity.