Lassonde Industries Q4 sales beat estimates on Canada pricing, higher US volumes

Overview

• Canada food and beverage maker's Q4 sales rose 4%, beating analyst expectations

• Q4 adjusted EPS beat analyst expectations

Outlook

• Lassonde expects to reach $3 bln in sales in 2026 barring significant external shocks

• Company anticipates inflationary pressures on commodities and packaging inputs to offset lower orange concentrate costs

• Lassonde estimates 2026 capital expenditures at up to 7% of sales, including US$96 mln for New Jersey plant

Result Drivers

• SELLING PRICE ADJUSTMENTS - Co said higher selling prices in Canada contributed to Q4 sales growth

• U.S. SALES VOLUME - Co said increased sales volume in its U.S. business supported Q4 sales growth

• TRANSPORTATION COSTS - Co said lower carrier charges reduced transportation costs, supporting operating profit

Company press release: ID:nGNX8wqnrD

Key Details

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$267.50, about 20.3% above its March 25 closing price of C$222.35

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

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