Canada's Rogers Sugar Q1 revenue declines

Overview

• Canada sugar producer's Q1 revenue declined yr/yr

• Adjusted EBITDA for Q1 rose 18% yr/yr, driven by Sugar segment

• Company advancing LEAP Project to expand sugar refining capacity

Outlook

• Rogers Sugar anticipates spending C$116 mln on LEAP Project in fiscal 2026

• Company expects Sugar segment volume at 750,000 metric tonnes for 2026

• Maple segment sales volume expected to grow 5% in 2026

Result Drivers

• SUGAR SEGMENT - Adjusted EBITDA rose due to higher adjusted gross margin per metric tonne, despite lower sales volumes

• LEAP PROJECT - Progressing as planned, expected to enhance future capacity

• MAPLE SEGMENT - Slight increase in adjusted EBITDA due to higher sales volumes, offset by higher costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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$7.00, about 9.9% above its February 4 closing price of C$6.37

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

Press Release: ID:nGNX1nG0lx

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