SunOpta Inc. - CEO, Joe Ennen
CEO, Joe Ennen
Source: Food Business News
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  • SunOpta (TSX:SOY) has forecast improved performance for the first quarter this year compared to the same period in 2019
  • Despite the impact of COVID-19, the company is expecting revenue between C$320 million and $340 million
  • Adjusted EBITDA is also expected to be between $21 million and $25 million
  • The improved performance has been driven partly by a Q4 2019 increase in the plant-based food industry of 25 per cent
  • SunOpta (SOY) is currently up 14.85 per cent to $2.63 per share, with a market cap of $231.83 million

SunOpta (TSX:SOY) has forecast improved performance for the first quarter this year compared to the same period in 2019.

The company is primarily focused on the production of organic plant and fruit-based foods and beverages.

SunOpta’s financial estimates are based on existing data from January and February this year, combined with March forecasts.

The vast majority of companies around the world have been feeling the impact of COVID-19, however, SunOpta seems relatively unaffected.

Revenue is expected to be between C$320 million and $340 million, a substantial increase over $305.3 million for the first quarter of 2019.

Adjusted EBITDA for the period is forecast to be between $21 million and $25 million, compared to $10.9 million last year.

Joe Ennen, CEO of SunOpta, said that the forecast reflects strong performance in all three of the company’s core business units.

“We continue to deliver very strong revenue growth and margin expansion in our plant-based beverages business unit, supported by sequential improvement in our fruit-based segment.

“Overall, this continues the strong trend established in the fourth quarter of 2019, where the plant-based segment revenue grew by 25% and SunOpta doubled adjusted EBITDA,” he added.

The financial expectations were released today to facilitate the accurate pricing of up to $60 million in financing. SunOpta says that the proceeds will be used to drive accelerated growth in its plant-based foods and beverages sector.

“To support attractive strategic growth investments in the plant-based food and beverage segment and to provide incremental corporate liquidity, we are also exploring a smaller debt financing package to supplement preferred equity financing,” continued Ennen.

“We will provide an update at, or in advance of, our first quarter earnings release date.”

SunOpta (SOY) is currently up 14.85 per cent to $2.63 per share at 9:49am EST.

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