Canadian food company Lassonde's Q2 sales beat expectations, helped by price adjustments
Overview
Lassonde Q2 sales rise 19%, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 down 4.5% yr/yr, reflecting market dynamics
Co focuses on strategic initiatives for growth in North American market
Outlook
Lassonde expects 2025 sales growth slightly above 10%
Lassonde plans 2025 capital expenditures up to 7% of sales
Company expects 2025 effective tax rate of about 24.5%
Result Drivers
CANADIAN SALES - Increased sales volume in Canada driven by 'Buy Canadian' sentiment
PRICE ADJUSTMENTS - Favorable selling price adjustments contributed to sales growth
U.S. MARKET DYNAMICS - U.S. private label market shifts impacted momentum, but co focuses on volume build-back initiatives
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | C$742.40 mln | C$716.90 mln (3 Analysts) |
Q2 Adjusted EPS |
| C$5.47 |
|
Q2 EPS |
| C$5.03 |
|
Q2 Adjusted EBITDA |
| C$84.40 mln |
|
Q2 EBITDA |
| C$82.40 mln |
|
Q2 Gross Profit |
| C$195.70 mln |
|
Q2 Operating Income |
| C$54.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Lassonde Industries Inc is C$252.50, about 13% above its August 6 closing price of C$219.80
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nGNX7zC0Y8
