Achieves record results for quarterly Sugar Deliveries, Revenues, Net Income, Free Cash Flow, and refinery contributions
Financial Highlights for the First Quarter of 2024
- Revenue of
$184.3 million on sugar deliveries of 182,865 metric tons, setting new quarterly records for both measures - Net income of
$19.7 million , a new quarterly record - Adjusted gross profit1 of
$15.98 million and adjusted gross profit margin1 percentage of 8.7% - EBITDA1 of
$31.0 million and Adjusted EBITDA1 of$10.5 million - Adjusted gross profit per metric ton delivered1,2 of
$87.38 - For our refineries, Q1 volumes of 46,754 metric tons, and Adjusted gross profit1 of
$6.7 million , a new quarterly record for the latter measure - Completed
$20.3 million of debt financings for our new refinery inHamilton, Ontario
Q1 2024 Highlights (unaudited) | Three Months Ended | ||
In 000s of | 2024 | 2023 | Change |
Sugar Deliveries (Metric Tons) | 182,865 | 143,046 | 28 % |
Revenue | $ 184,325 | $ 125,086 | 47 % |
Gross profit | 37,107 | 25,459 | 46 % |
Adjusted gross profit1 | 15,979 | 10,445 | 53 % |
Adjusted gross profit margin1 | 8.7 % | 8.4 % | |
EBITDA1 | 31,043 | 19,756 | 57 % |
Adjusted EBITDA1 | 10,468 | 4,722 | 122 % |
Adjusted EBITDA Margin1 | 5.7 % | 3.8 % | |
Net Income (Loss) | 19,739 | 11,498 | 72 % |
Per share (basic) | 2.88 | 2.21 | 30 % |
Per share (diluted) | 0.83 | 0.53 | 57 % |
Adjusted gross profit per metric ton delivered1,2 | 87.38 | 73.02 | 20 % |
Free cash flow1 | 5,004 | (1,523) | |
Refineries Results: | |||
Refineries Volume (Metric Tons) | 46,754 | 40,474 | 16 % |
Adjusted gross profit1 | $ 6,741 | $ 4,221 | 60 % |
Adjusted gross profit per metric ton delivered1 | 144.18 | 104.29 | 38 % |
1. | This is not a standardized financial measure under IFRS and may not be comparable to similar financial measures of other issuers. | |
2. | Net of cash settlements. |
"Strong execution throughout our refining and merchant wholesaling businesses led to significant improvements in our financial results for the first quarter of 2024, including new record levels for quarterly deliveries, revenues, net income, free cash flow, and adjusted gross profit from our refineries," noted
Taylor further commented "Alongside our efforts to continually improve the output of our Lackawanna and
Results from Operations - Three Months Ended
Quarter Ended March 31 In 000s of USD except per share and volume metrics. | 2024 | 2023 |
Sugar Deliveries (Metric Tons) | 182,865 | 143,046 |
Revenue | $ 184,325 | $ 125,086 |
Cost of sales | 147,218 | 99,627 |
Gross Profit | 37,107 | 25,459 |
Adjusted gross profit2 | 15,979 | 10,445 |
Adjusted gross profit margin2 | 8.7 % | 8.4 % |
Income From Operations | 29,579 | 18,140 |
Income Before Income Taxes | 24,651 | 14,718 |
Net Income | 19,739 | 11,498 |
Income from continuing operations– per share (basic)1 | 2.88 | 2.21 |
Income from continuing operations– per share (diluted)1 | 0.83 | 0.53 |
EBITDA2 | 31,043 | 19,756 |
Adjusted EBITDA2 | 10,468 | 4,722 |
Adjusted EBITDA Margin2 | 5.7 % | 3.8 % |
Return on equity (annualized)2 | 19.9 % | 43.7 % |
Adjusted gross profit per metric ton delivered2 (net of cash settlements) | 87.38 | 73.02 |
Free cash flow2 | 5,004 | (1,523) |
Refineries Results | ||
Refineries Volume (Metric Tons) | 46,754 | 40,474 |
Adjusted Gross Profit2 | $ 6,741 | $ 4,221 |
Adjusted Gross Profit per MT2 | 144.18 | 104.29 |
1. | Per share figures for periods prior to |
2. | This is not a standardized financial measure under IFRS and may not be comparable to similar financial measures of other issuers. Please |
For the three months ended
Adjusted EBITDA was
Net income for the three months ended
Revenue for the three months ended
The composition of the Company's revenue for the three months ended
Three Months Ended | 2024 | 2023 |
Tolling | $ 185 | $ 505 |
Warehousing | 82 | 317 |
Commodity | 184,538 | 124,203 |
Futures and options results | (480) | 61 |
Total revenue | $ 184,325 | $ 125,086 |
During the three months ended
The composition of cost of sales for the Company for the three months ended
Three Months Ended March 31 (000s of USD) | 2024 | 2023 |
Purchases | $ 133,606 | $ 79,708 |
Production and processing | 16,955 | 18,129 |
Logistics/ freight | 11,804 | 11,901 |
Labor | 2,285 | 1,347 |
Overheads | 2,189 | 2,590 |
Foreign exchange loss | 557 | 125 |
Depreciation on plant and equipment | 894 | 745 |
Depreciation on right-of-use plant and equipment | 79 | 96 |
Mark to market unrealized positions | (21,151) | (15,014) |
Total cost of sales | $ 147,218 | $ 99,627 |
Cost of sales increased by
Mark-to-market gains on forward contracts and, to a lesser extent, futures contracts, drove the
During the three months ended
The composition of selling, general and administrative expenses for the three months ended
Three Months Ended March 31 (000s of USD) | 2024 | 2023 |
Administrativeexpenses | $ 5,475 | $ 5,154 |
Selling and distribution expenses | 407 | 743 |
Other operating expenses | 465 | 797 |
Depreciation | 381 | 290 |
Depreciation of right-of-use assets | 156 | 134 |
Equity-based compensation | 644 | 201 |
Total Selling, General and Administrative Expenses | $ 7,528 | $ 7,319 |
Total Selling, General and Administrative Expenses / Revenue | 4.08 % | 5.85 % |
The Company's selling, general and administrative expenses amounted to
Administrative expenses, which include staff payroll, benefits and pension costs, professional fees, insurance, bank service charges and other office expenses were
During the three months ended
During the three months ended
During the three months ended
The Company's current and deferred income tax expense increased by
Outlook
A delay in the expansion of our production capacity at Lackawanna has impacted the facility's refinery production volumes to date. While we expect that increased production through the second half of 2024 will make up a majority of the production shortfall for the year, we are withdrawing our production guidance for Lackawanna of between 120,000 and 135,000 MT and updating our aggregate 2024 production estimate for the
Q1 2024 Investor Call
The Company will host a conference call on
Date: | |
Time: | 10:00 a.m. ET |
Conference Call: | Toll-Free (888) 664-6392 |
Local (GTA) (416) 764-8659 | |
Please dial in at least five minutes before the call begins. | |
Replay: | Available through |
Replay Access: | Toll-Free (888) 390-0541 |
Local (GTA) (416) 764-8677 | |
Passcode 668250 # |
Annual Meeting
The Company will hold its annual and special meeting of shareholders in the
About Sucro
Sucro is a growth-oriented sugar company that operates throughout the
Non-IFRS and Other Financial Measures
In this Press Release, reference is made to the following non-IFRS measures: "EBITDA", "EBITDA Margin", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Gross Profit", "Adjusted Gross Profit Margin", "Adjusted Gross Profit Per Metric Ton Delivered", "Return on Equity' and "Free Cash Flow". Such non-IFRS financial measures are not standardized financial measures under International Financial Reporting Standards ("IFRS") and might not be comparable to similar financial measures disclosed by other issuers. For details on the composition and a reconciliation between such non-IFRS measures and the most directly comparable financial measure in our financial statements, please refer to the "Non-IFRS and Financial Measures (Key Performance Indicators)" section in our MD&A dated
Forward-Looking Statements
This Press Release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information may relate to our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "annualized", "plans", "targets", "expects", "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "pro forma", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", or the negative of these terms, or other similar expressions intended to identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
This forward-looking information includes, among other things, statements relating to: our expectations regarding our profit and operating margins; our expectations for selling, general and administrative expenses as a percentage of revenue to decrease over time; our expectation for revenues for the 2024 fiscal year; projected sales from our
This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions include: revenue; our ability to build our market share; our ability to complete our proposed new refineries on time and on budget and with the anticipated processing capacity; our ability to retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion plans; our ability to continue investing in infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; our ability to respond to any changes and trends in our industry or the global economy; and the changes in laws, rules, regulations, and global standards are material factors made in preparing forward-looking information and management's expectations.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered to be appropriate and reasonable as of the date of this Press Release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, our ability to maintain and renew licenses and permits; fluctuations in the price of sugar that we purchase, process and sell; development of new or expansion of our existing refineries may experience cost-overruns and/or delays and actual costs, operational efficiencies, production volumes or economic returns may differ materially from the Company's estimates and variances from expectations; disruptions to our supply chains as a result of outbreaks of illness, geopolitical events or other factors; inflation and rising interest rates; the risk of unhedged trading positions and counterparty defaults; a significant portion of our current credit facility is uncommitted and requests for additional advances may be refused; elimination or significantly reduction of protective duties relating to foreign sugar imports; our limited operating history and our recent growth may not be indicative of our future growth; dependence on management's ability to implement its strategy; risks of early stage companies; competitive risks; our dependence on a small number of key persons; demands of growth on our management and our operational and financial resources; and the other risk factors discussed in greater detail under "Risk Factors" in the Company's annual information form ("AIF") dated
The above-mentioned factors should not be construed as exhaustive. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information.
Prospective investors should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this Press Release represents our expectations as of the date of this Press Release (or as of the date they are otherwise stated to be made) and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. For additional information, readers should also refer to our AIF and other information filed on www.sedarplus.ca.
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