Canadian food company Lassonde's Q2 sales beat expectations, helped by price adjustments

Reuters
Aug 08
Canadian food company Lassonde's <a href="https://laohu8.com/S/QTWO">Q2</a> sales beat expectations, helped by price adjustments

Overview

  • Lassonde Q2 sales rise 19%, beating analyst expectations, per LSEG data

  • Adjusted EPS for Q2 down 4.5% yr/yr, reflecting market dynamics

  • Co focuses on strategic initiatives for growth in North American market

Outlook

  • Lassonde expects 2025 sales growth slightly above 10%

  • Lassonde plans 2025 capital expenditures up to 7% of sales

  • Company expects 2025 effective tax rate of about 24.5%

Result Drivers

  • CANADIAN SALES - Increased sales volume in Canada driven by 'Buy Canadian' sentiment

  • PRICE ADJUSTMENTS - Favorable selling price adjustments contributed to sales growth

  • U.S. MARKET DYNAMICS - U.S. private label market shifts impacted momentum, but co focuses on volume build-back initiatives

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Beat

C$742.40 mln

C$716.90 mln (3 Analysts)

Q2 Adjusted EPS

C$5.47

Q2 EPS

C$5.03

Q2 Adjusted EBITDA

C$84.40 mln

Q2 EBITDA

C$82.40 mln

Q2 Gross Profit

C$195.70 mln

Q2 Operating Income

C$54.40 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the food processing peer group is "buy"

  • Wall Street's median 12-month price target for Lassonde Industries Inc is C$252.50, about 13% above its August 6 closing price of C$219.80

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX7zC0Y8

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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