SunOpta Inc. (STKL) Q2 2025 Earnings Call Transcript
Revenue Revenue of $191 million was up 13% compared to last year, entirely driven by 14% volume growth within our diverse portfolio.
Gross Profit Gross profit increased by $7.2 million or 34% to $28.4 million compared to $21.2 million in the prior year.
Gross Margin Gross margin increased by 230 basis points to 14.8% compared to 12.5%. Adjusted gross margin was 15.2% compared to 16% in the prior year. The 80 basis point decrease in adjusted gross margin is due to the timing lag on the pass-through of incremental tariff costs, investments in labor and infrastructure made over the past 2 quarters to improve long-term margins, and incremental depreciation related to assets recently placed in service.
Earnings from Continuing Operations Earnings from continuing operations increased 198% to $4.4 million compared to a loss of $4.4 million in the prior year period.
Adjusted Earnings from Continuing Operations Adjusted earnings from continuing operations was $4.4 million or $0.04 earnings per diluted share compared to $2.2 million or $0.02 earnings per diluted share in the prior year period.
Adjusted EBITDA Adjusted EBITDA increased 14% to $22.7 million compared to $20 million in the prior year period.
Net Debt Net debt was $271 million and net leverage was 2.9x, flat to the first quarter and down from 3x at the end of the fourth quarter.
Cash Provided by Operating Activities Cash provided by operating activities of continuing operations for the first 2 quarters was $17.8 million compared to $2 million in the first 2 quarters of the prior year.
Cash Used in Investing Activities Cash used in investing activities of continuing operations was $18.6 million in the first 2 quarters of fiscal 2025 compared to $13.9 million in the first 2 quarters of fiscal 2024.
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