Lassonde Industries (LAS-A) investor relations material

Executive summary

• Achieved a 22% increase in operating profit year-over-year in Q1 2026, despite lower sales, driven by disciplined pricing, cost stabilization, and easing input costs.

• National brands gained market share in both Canada and the U.S., offsetting private label softness and demonstrating portfolio resilience.

• Strategic focus on portfolio optimization, innovation, efficiency improvements, and new facility investments, including the New Jersey plant.

• Disciplined execution and leveraging a strong balance sheet support ongoing strategic investments.

Financial highlights

• Q1 2026 sales were $664.0M (CAD 664 million), down 5.1% year-over-year or 2.5% excluding FX, mainly due to lower private label volumes.

• Gross profit rose to $188.3M (28.4% of sales), up year-over-year, driven by pricing, mix, and lower orange concentrate costs.

• Operating profit was $52.0M, up 22% year-over-year; adjusted EBITDA increased 12% to $79.9M (12% of sales).

• Profit attributable to shareholders was $36.7M (EPS $5.38), up 49.8%; adjusted EPS was $5.36, up 34%.

• Operating cash flow was $71.3M, reversing a $60.1M outflow last year.

Outlook and guidance

• Targeting $3B (CAD 3 billion) in annual sales for 2026, with focus on profitable growth and balanced contributions from pricing and volume.

• No volume contribution expected from the New Jersey facility until at least 2028; construction is underway and on schedule.

• Capital expenditures for 2026 projected up to 7% of sales, including ~$96M for the New Jersey plant.

• Commodity cost tailwinds may moderate; inflationary pressures on transportation, PET resin, and other inputs anticipated.

• Outlook assumes no escalation in geopolitical tensions, stable FX, and no major supply chain disruptions.