Canada's Rogers Sugar beats Q3 revenue estimates

Overview

• Rogers Sugar fiscal Q3 revenue rises to C$313.8 mln, beating analyst expectations

• Adjusted EBITDA for fiscal Q3 increases to C$36.6 mln, driven by Sugar segment

• Co progressing with LEAP Project to expand sugar refining capacity in Montréal

Outlook

• Company anticipates sugar sales volume of 785,000 metric tonnes in 2025

• Maple segment sales volume expected to grow by 3.0 mln lbs in 2025

• Company monitoring US tariffs, plans to adjust strategy as needed

Result Drivers

• SUGAR SEGMENT - Higher sales volume and improved gross margins drove increased adjusted EBITDA

• MAPLE SEGMENT - Higher sales volumes but decreased adjusted EBITDA due to unfavorable product mix

• US TARIFFS - Limited impact on business segments despite market volatility

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 Rogers Sugar Inc is C$6.50, about 12.2% above its August 11 closing price of C$5.71

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX8XmFDc