SunOpta, a US-based supplier of plant-based snacks, milks, and nutritional shakes, has lifted its revenue growth outlook despite facing price cuts impacting positive volumes. The company now anticipates a 13-16% increase in full-year sales revenue, reaching $710-730m, up from the previous forecast of 9-13% and $685-715m. This upgrade follows a second-quarter revenue surge of 21.1%, fueled by a 26.9% volume-mix increase.
However, this volume growth was slightly offset by a 3.9% decline in prices attributed to the pass-through of commodity costs. Recent disposals also had a negative impact on revenue growth, with the sale of the frozen açaà and smoothie bowls business and divestment of frozen fruit assets affecting revenue by 1.8%.
CEO Brian Kocher noted that the revenue growth is driven by demand across various customers and channels. Despite short-term investments in the supply chain, SunOpta maintains its adjusted EBITDA guidance for fiscal 2024. The company expects to deliver adjusted EBITDA of $88-92m, marking a 12-17% growth from the previous year.
SunOpta saw a 12% increase in adjusted EBITDA for the second quarter, with strong performances in fruit snacks, protein shakes, broths, plant-based beverages, and tea. The company also reported improved financial results, narrowing losses in continuing operations and posting net losses of $4.7m for the quarter.
Analysts foresee growth potential for SunOpta in the plant-based foods and beverages market, emphasizing the company’s capabilities and competitive position. Key risks include consumer demand, competition, and commodity costs. To stay updated on industry trends and insights, sign up for our daily news round-up to gain a competitive edge in the food and beverage industry.
