Lassonde Industries Inc. announces its Q2-2025 results

ROUGEMONT, Québec, Aug. 07, 2025 (GLOBE NEWSWIRE) — Lassonde Industries Inc. (TSX: LAS.A) (“Lassonde” or the “Corporation”) today announced its financial results for the second quarter of 2025.

Financial Highlights:

Note: These are financial highlights only. Management’s Discussion and Analysis, the unaudited interim condensed consolidated financial statements and notes thereto for the quarter ended June 28, 2025 are available on the SEDAR+ website at www.sedarplus.ca and on the website of Lassonde Industries Inc.

“Lassonde delivered solid sales growth in the second quarter reflecting the strength and extensiveness of its product portfolio,” said Vince Timpano, Chief Executive Officer of Lassonde Industries Inc. “Excluding the contribution of Summer Garden and foreign exchange fluctuations, sales rose by a healthy 10.1% driven by sustained market share gains in Canada supported by an ongoing “Buy Canadian” sentiment, as well as continued share growth of our US brands. Despite recent shifts in US market dynamics that have impacted momentum in private label, we remain focused on our volume build-back initiatives, notably through the ramp-up of our single-serve line in North Carolina. As we look ahead, executing our strategy, including progressing strategic capital investment initiative in New Jersey, remains our priority as we continue to grow our reach in the North American food and beverage market.”

Second Quarter Highlights:

• Sales of $742.4 million. Excluding a $4.5 million favourable foreign exchange impact and sales from Summer Garden², sales were up $63.4 million (10.1%) from the same quarter last year, primarily due to higher sales volumes in Canada, to the favourable impact of selling price adjustments and to a favourable change in the sales mix of private label products.
• Gross profit of $195.7 million (26.4% of sales). Excluding a $5.9 million unfavourable foreign exchange impact and gross profit from Summer Garden², gross profit was up $5.8 million from the same quarter last year. This net increase results mainly from the following items:
  • A favourable impact of an increase in Canadian sales volume;
  • A favourable impact of selling price adjustments; and
  • A favourable impact of a change in the sales mix;

    partly offset by:

  • Higher cost for certain inputs, some of which had benefited from a temporary procurement advantage last year;
  • Increase in certain U.S. conversion costs, mainly related to the deployment of new assets at the North Carolina plant and the warehousing of raw materials; and
  • Expenses related to business optimization initiatives.

• Operating profit of $54.4 million. Excluding the contribution from Summer Garden², operating profit was up $0.2 million from the same quarter last year. This net increase results mainly from the following items:
  • $7.0 million in costs in 2024 related to the Summer Garden acquisition; and
  • $2.8 million decrease in performance-related compensation expenses;

    partly offset by:

  • $3.3 million increase in certain administrative expenses;
  • $3.1 million, mainly volume-related, increase in transportation costs incurred to deliver products to clients and in finished goods warehousing costs; and
  • $2.8 million increase in selling and marketing expenses.

• Excluding items impacting comparability but including Summer Garden², adjusted EBITDA¹ was $84.4 million (11.4% of sales), up $9.8 million or 13.1% from the same quarter last year.
• Profit attributable to the Corporation’s shareholders of $34.3 million, resulting in EPS of $5.03, up 2.4% from the same quarter in 2024. Excluding the contribution from Summer Garden² and the impact of additional financial expenses, net of taxes, related to its acquisition, profit attributable to the Corporation’s shareholders was up $0.6 million (or 1.6%) year over year. Excluding items impacting comparability, adjusted EPS¹ was $5.47, down 4.5% from the same quarter last year.
• As at June 28, 2025, the Corporation had total assets of $2,324.9 million versus $2,277.8 million as at December 31, 2024, a 2.1% increase arising mainly from an increase in accounts receivable, inventories and property, plant and equipment, partly offset a lower foreign exchange conversion rate as at June 28, 2025.
• As at June 28, 2025, long-term debt, including the current portion, stood at $651.1 million, representing a net debt to adjusted EBITDA¹ ratio of 2.03:1. This represents a $173.6 million increase from December 31, 2024, attributable to working capital requirements and capital expenditures
• Operating activities used $3.1 million in cash compared to $59.4 million generated in the same quarter last year. Excluding cash flows from Summer Garden², operating activities used $72.4 million more than in the second quarter of 2024 on a comparable basis. This increase in cash outflows was essentially due to a change in non-cash operating working capital items, which used $73.7 million more cash than in the same quarter of 2024.
• Dividend of $1.10 per share, paid on June 13, 2025.

Outlook

Lassonde continues to expect that the largest factors impacting its performance in fiscal 2025 will be the financial health of consumers, the inflationary environment and the reactions of market participants to these factors. Given the highly uncertain scale, breadth, timing, and duration of any trade conflict (including actual or threat of tariffs, duties, and other trade restrictions, including countermeasures, collectively referred to as “Tariffs”), and the constantly evolving situation, this Outlook section has been prepared without considering the anticipated impact of the Tariffs as of the date of this press release. Any views on these Tariffs and their potential impact on Lassonde are isolated in a separate subsection below. As a result, the Corporation is currently using the following assumptions for its fiscal year 2025:

Sales growth rate

• For 2025, barring any significant external shocks and excluding foreign exchange impacts, Lassonde expects a sales growth rate slightly above 10%, mainly driven by:
  • the impact of a full year of Summer Garden² results compared to only five months in 2024;
  • the increased volume driven by the “Buy Canadian” sentiment;
  • the run-rate effect of its existing and planned selling price adjustments; and
  • a sequential improvement in U.S. sales volume resulting from the combined impact of the following items: (i) the pace of the U.S. demand build-back strategy for the Corporation’s products; and (ii) additional volume available following the deployment of its single-serve line in North Carolina.
• The Corporation is closely monitoring the evolution of consumer food habits and demand elasticity for its products in a context of ongoing inflation in the cost of some of its key commodities. Additionally, it has recently noted an uptick in competitors’ promotional activities, primarily within the U.S. market.

Key commodity and input costs

• Although inflation trends have recently abated for certain commodities, the costs of orange juice, orange concentrates, and apple concentrates are expected to remain volatile through 2025. The Corporation is also closely monitoring the availability of pineapple concentrates and the impact on their costs.
• Given that a large portion of the raw material purchases made by Lassonde’s Canadian operations are in U.S. dollars, a strengthening of this currency against the Canadian dollar results in a higher cost for products sold in the Canadian market, after the exercise of existing foreign exchange forward contracts.

Expenses, including items impacting the comparability between the periods

• The Corporation’s operating expenses in 2025 will continue to reflect targeted investments to reinforce the innovation pipeline, distribution expansion, and strategic trade spending to support growth.
• Lassonde plans to continue deploying its multi-year strategy (“Strategy”), optimizing its business and upgrading its key systems and technology infrastructures to improve its efficiency. Planned spending in support of these elements is expected to reach up to $7.0 million in 2025.

Depreciation and amortization

• The annual depreciation and amortization expense is estimated to reach up to $115.0 million. This includes: (i) the run rate effect of Summer Garden’s² purchase price allocation, (ii) the commissioning of various capital projects undertaken in 2024, such as the new single-serve line at the North Carolina plant, and (iii) the accelerated depreciation of certain existing assets at the New Jersey plant, estimated at US$6.0 million for 2025, along with any new capital expenditures for this plant until its closure.

Effective tax rate

• Effective tax rate of about 24.5% for 2025.

Working capital

• At the end of the second quarter, the Corporation’s Days Operating Working Capital¹ stood above its historical levels. However, the Corporation remains committed to maintaining it within its historical ranges by the end of 2025. This outlook might be impacted by (i) opportunistic decisions to secure inventory cost ahead of potential additional price increases from suppliers, (ii) the objective of ensuring an adequate service level, (iii) decisions to counter new potential supply chain disruptions, or (iv) support provided to the Corporation’s manufacturing network optimization projects, including the timing of cash outflows related to certain capital expenditures.

Capital expenditures

• The Corporation’s overall capital expenditures program for 2025 is estimated to reach up to 7.0% of its sales as it continues to deploy capital in support of its Strategy. This estimate depends on the rate of progress of certain large capital projects and on the evolution of the macroeconomic environment.
• The new capital assets will be financed, to the extent possible, using the Corporation’s operating cash flows, although the Corporation may also turn to borrowing if interest rates and conditions prove advantageous.

Tariffs

• The Corporation sources raw materials globally, including from Brazil and China, and sells finished goods manufactured in Canada to the U.S. market, and to a lesser extent, finished goods manufactured in the U.S. to the Canadian market. This structure exposes the Corporation to potential tariff risks. In the current environment, the Corporation is continuously evaluating its direct and indirect exposures, competitive positioning, and mitigation strategies, which may include further price adjustments. Given the uncertainty surrounding key variables such as the duration and evolution of Tariffs, related currency fluctuations, interest rate trends, and their combined impact on the broader economy, the timing and effectiveness of mitigation measures remain difficult to predict. While the Corporation believes it is premature to disclose detailed information on its exposure, it anticipates that any significant changes resulting in increased Tariffs will likely have a more pronounced impact in the initial months following their implementation. This reflects the time required to activate mitigation measures.

The forward-looking statements herein are based on key assumptions that reflect the Corporation’s best estimates amid heightened uncertainty: (i) The Corporation assumes no material escalation in current geopolitical tensions such as trade conflicts or regional instability, while acknowledging their volatility; (ii) it anticipates that consumer confidence will remain stable, recognizing its sensitivity to inflation, interest rates, and employment trends; (iii) it expects moderate exchange rate fluctuations; (iv) it relies on the continued effectiveness of pricing strategies despite varying demand elasticity; (v) it assumes operational continuity without major disruptions, while remaining alert to risks in global sourcing and logistics; (vi) it expects a stable competitive landscape while monitoring market shifts; and (vii) it foresees reasonable delivery times for equipment and sufficient availability of resources to support its capital investment program, recognizing potential delays due to supply chain constraints, permitting, or labour shortages. These assumptions are inherently subject to change and do not account for extraordinary events beyond the Corporation’s control. The Corporation cautions readers that the foregoing list of factors is not exhaustive. It further cautions that actual results may differ materially from those expressed or implied in these forward-looking statements. The Corporation believes the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. For additional information, refer to Section 2 – “Forward-Looking Statements” of the Corporation’s MD&A for the second quarter of 2025.

Dividend

In accordance with the Corporation’s dividend policy, the Board of Directors declared today a quarterly dividend of $1.10 per share, payable on September 15, 2025 to all registered holders of Class A and Class B shares on August 19, 2025. This dividend is an eligible dividend for Canadian tax purposes.

A live audio broadcast of the conference call will be available on the Corporation’s website, on the Investors page or here: https://www.gowebcasting.com/14099. The replay of the webcast will remain available at the same link until midnight, August 15, 2025.

Financial Measures Not in Accordance With IFRS

The financial measures or ratios, further described below, do not constitute standardized financial measures or ratios in accordance with the financial reporting framework used to prepare the Corporation’s financial statements. These non-IFRS measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. Comparing them to similar financial measures or ratios presented by other issuers may not be possible.

Items impacting the comparability between periods

The following table contains a list, description, and quantification of items impacting the comparability of the financial performance between periods:

EBITDA and Adjusted EBITDA

EBITDA is a financial measure used by the Corporation and investors to assess the Corporation’s capacity to generate future cash flows from operating activities and pay financial expenses. Adjusted EBITDA is a financial measure used by the Corporation to compare EBITDA between periods by excluding items impacting comparability. EBITDA consists of the sum of operating profit and of the “depreciation of property, plant and equipment and amortization of intangible assets” item and “(Gains) losses on capital assets” item, as shown in the Consolidated Statement of Cash Flows. Adjusted EBITDA is calculated by adjusting the EBITDA with items considered by management as impacting the comparability between periods.

Adjusted Profit Attributable to the Corporation’s Shareholders and Adjusted EPS

Adjusted profit attributable to the Corporation’s shareholders and adjusted EPS are financial measures used by the Corporation to compare profit attributable to the Corporation’s shareholders and EPS between periods by excluding items impacting comparability. They are calculated by adjusting them with items considered by management as impacting the comparability between periods.

Net Debt to Adjusted EBITDA

Net debt to adjusted EBITDA is a financial measure used by the Corporation to assess its ability to pay off existing debt and define available borrowing capacity. To calculate the net debt to adjusted EBITDA ratio, net debt is divided by the sum of adjusted EBITDA from the last four quarters. Net debt represents long-term debt, including the current portion, less the “Cash and cash equivalents” item, as they are presented in the Corporation’s Consolidated Statement of Financial Position.

Days Operating Working Capital

Days operating working capital is a financial measure used by the Corporation to represent the number of days of sales tied up as operating working capital. To calculate this financial measure, operating working capital is divided by the last quarter’s sales, as they are presented in this press release, and multiplied by 91 days. Operating working capital consists of the sum of trade accounts receivable, discounts receivable and inventories, less trade payables and accrued expenses and trade spending, as they are presented in the accompanying notes to the Corporation’s interim consolidated financial statements.

About Lassonde

Headquartered in Canada and with operations across North America, Lassonde Industries Inc. is a leader in the food and beverage industry in North America. The Corporation develops, manufactures, and markets a wide range of national brand and private label products, including fruit juices and drinks, specialty food products, and fruit‑based snacks. Lassonde also manufactures and markets cranberry sauces as well as selected wines, ciders and other alcoholic beverages. Altogether, Lassonde distributes over 3,500 unique products in approximately 200 formats across shelf-stable, chilled, and frozen categories.

The Corporation’s go-to-market strategy consists of (i) retail sales to food retailers and wholesalers such as supermarket chains, independent grocers, superstores, warehouse clubs, convenience stores, and major pharmacy chains and (ii) food service sales to restaurants, hotels, hospitals, schools, and wholesalers serving these institutions.

Lassonde operates 19 plants located in Canada and the United States through the expertise of over 2,900 full-time equivalent employees. To learn more, visit www.lassonde.com.

Caution Concerning Forward-Looking Statements

This document contains “forward-looking information” and the Corporation’s oral and written public communications that do not constitute historical fact may be deemed to be “forward-looking information” within the meaning of applicable Canadian securities law. These forward-looking statements include, but are not limited to, statements on the Corporation’s objectives and goals and are based on current expectations, projections, beliefs, judgments, and assumptions based on information available at the time the applicable forward-looking statement was made and considering the Corporation’s experience combined with its perception of historical trends.

Forward-looking statements are typically identified by words such as “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “could”, “would”, “believe”, “plan”, “intend”, “design”, “target”, “objective”, “strategy”, “likely”, “potential”, “outlook”, “aim”, “goal”, and similar expressions suggesting future events or future performance in addition to the negative forms of these terms or any variations thereof. All statements other than statements of historical fact included in this document may constitute a forward-looking statement.

In this document, forward-looking statements include, but are not limited to, those set forth in the above “Outlook” section, which also presents some (but not all) of the key assumptions used in determining the forward-looking statements. Some of the forward-looking statements in this report, such as statements concerning sales volume and sales growth rate, key commodity and input costs, expenses, including items impacting the comparability between the periods, effective tax rate, working capital, capital expenditures and impacts of tariffs may be considered financial outlooks for the purposes of applicable Canadian securities regulations. These financial outlooks are presented to evaluate potential future earnings and anticipated future uses of cash flows and may not be appropriate for other purposes.

Various factors or assumptions are applied by the Corporation in elaborating the forward‑looking statements. These factors and assumptions are based on information currently available to the Corporation, including information obtained by the Corporation from third parties. Readers are cautioned that the assumptions considered by the Corporation to support these forward-looking statements may prove to be incorrect in whole or in part.

The significant factors that could cause actual results to differ materially from the conclusions, forecasts or projections reflected in the forward-looking statements contained herein include, among other things, risks associated with the following: deterioration of general macroeconomic or socioeconomic conditions, including international conflicts, such as trade conflicts (including tariffs, duties and other trade restrictions), which can lead to negative impacts on the Corporation’s suppliers, customers and operating costs; the availability of raw materials and packaging and related price variations, more specifically for the Corporation’s key commodities; disruptions in or failures of the Corporation’s information technology systems, as well as the development and performance of technology; cyber threats and other information-technology-related risks leading to business disruptions, confidentiality, data integrity, and business email compromise-related fraud; the successful deployment of the Corporation’s multi-year strategy (defined in Section 4 – “Multi‑Year Strategy” of the Corporation’s MD&A for the year ended December 31, 2024), including the successful execution of its key capital projects along with the materialization of the underlying expected benefits; the ability to adapt to changes and developments affecting the Corporation’s industry, including customer preferences, tastes, and buying patterns, market conditions and the activities of competitors and customers; climate change and disasters causing higher operating costs and capital expenditures and reduced production output, or impacting the availability, quality or price volatility of key commodities sourced by the Corporation; the Corporation’s ability to effectively integrate any acquisitions; the potential for work stoppages due to the non-renewal or conclusion of collective bargaining agreements or other reasons; loss of or disputes with key suppliers or supplier concentration; changes made to laws and rules that affect the Corporation’s activities, particularly in matters of tax, as well as the interpretation thereof, and new positions adopted by relevant authorities; the Corporation’s ability to maintain strong sourcing and manufacturing platforms and efficient distribution channels; fluctuations in the prices of inbound and outbound freight, the impact of oil prices (and derivatives thereof) on the Corporation’s direct and indirect costs along with the Corporation’s ability to transfer those increases through higher prices or other means, if any, to its customers in competitive market conditions and considering demand elasticity; the scarcity of qualified labour and the related impact on the hiring, training, developing, retaining and reliance of personnel together with their productivity, employment matters, compliance with employment laws across multiple jurisdictions; the successful deployment of the Corporation’s health and safety programs in compliance with applicable laws and regulations; serious injuries or fatalities, which could have a material impact on the Corporation’s business continuity and reputation and lead to compliance-related costs; the increasing concentration of customers in the food industry, providing them with significant bargaining power, particularly on the Corporation’s selling prices; the implementation, cost, and impact of environmental sustainability initiatives as well as the cost of remediating environmental liabilities; failure to maintain the quality and safety of the Corporation’s products, which could result in product recalls and product liability claims for misbranded, adulterated, contaminated, or spoiled food products, along with reputational damage; risks related to fluctuations in interest rates, currency exchange rates, liquidity and credit, stock price and pension obligations; the incurrence of restructuring, disposal, or other related charges together with the recognition of impairment charges on goodwill or long‑lived assets; the sufficiency of insurance coverage; and the implications and outcome of potential legal actions, litigation or regulatory proceedings to which the Corporation may be a party. The Corporation cautions readers that the foregoing list of factors is not exhaustive.

The Corporation’s ability to achieve its sustainability targets and goals is further subject to, among other factors, its ability to access and implement all technology necessary to achieve them as well as the development, deployment, and performance of technology, and environmental regulation. The Corporation’s ability to achieve its sustainability commitments is further subject to, among other factors, its ability to leverage its supplier relationships.

The assumptions, expectations, and estimates involved in preparing forward-looking statements and risks and uncertainties that could cause actual results to differ materially from forward-looking statements are discussed in the Corporation’s materials filed with the Canadian securities regulatory authorities, including information about risk factors that can be found in Section 21 – “Uncertainties and Principal Risk Factors” of the Corporation’s MD&A for the year ended December 31, 2024. Readers should review this section in detail.

All forward-looking statements included herein speak only as of the date hereof. Unless required by law, the Corporation does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements contained herein are wholly and expressly qualified by this cautionary statement.

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¹ This measure does not constitute a standardized financial measure in accordance with the financial reporting framework used to prepare the Corporation’s financial statements. Comparing it to a similar financial measure presented by other issuers may not be possible. Refer to Section “Financial Measures Not in Accordance with IFRS” of this press release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the financial statements, as applicable.
² On August 8, 2024, Lassonde completed the acquisition of The Zidian Group, which operates Summer Garden Food Manufacturing and certain of its affiliates (collectively “Summer Garden”). Consequently, this entity has been consolidated in Lassonde since this date.

Source: https://www.globenewswire.com/news-release/2025/08/07/3129829/0/en/Lassonde-Industries-Inc-announces-its-Q2-2025-results.html