Sucro Announces Third Quarter 2024 Results
Canada NewsWire
CORAL GABLES, Fla., Nov. 22, 2024
3(rd) quarter volume growth of 54% in refining operations
CORAL GABLES, Fla., Nov. 22, 2024 /CNW/ - Sucro Limited (TSXV: SUGR) (OTCQB: SUGRF) ("Sucro" or the "Company"), an integrated sugar refiner focused primarily on serving North American sugar markets, today announced financial results for the three and nine months ended September 30, 2024. All amounts are in United States dollars ("U.S. $" or "$") unless otherwise noted.
Financial Highlights for the Third Quarter of 2024
-- Revenue of $171.9 million on sugar deliveries of 181,023 metric tons,
increases over Q3 2023 levels of 23.7% and 48.1%, respectively
-- Adjusted gross profit1 of $14.0 million and adjusted gross profit margin1
percentage of 8.1%
-- EBITDA1 of $15.5 million, a 36.6% year-over-year increase and Adjusted
EBITDA1 of $8.3 million
-- Adjusted gross profit per metric ton delivered1,2 of $89.23
-- For our refineries, Q3 volumes of 57,093 metric tons, reflecting a 54%
year-over-year increase
Q3 2024 Highlights Three Months Ended Sep 30 Nine Months Ended Sep 30
(unaudited)
In 000s of U.S. $ 2024 2023 2024 2023
except per share and
volume metrics.
Sugar Deliveries
(Metric Tons) 181,023 122,243 494,974 380,895
Revenue $171,932 $139,041 $493,967 $382,274
Gross profit 21,967 16,148 79,355 75,135
Adjusted gross
profit(1) 13,971 13,103 44,166 39,651
Adjusted gross profit
margin(1) 8.1 % 9.4 % 8.9 % 10.4 %
EBITDA(1) 15,455 11,316 60,155 59,583
Adjusted EBITDA(1) 8,315 8,227 27,096 24,755
Adjusted EBITDA
Margin(1) 8.99 % 8.14 % 5.49 % 6.48 %
Net Income (Loss) 7,438 1,983 31,136 30,355
Per share (basic) 1.06 0.27 4.49 4.17
Per share (diluted) 0.31 0.09 1.32 1.38
Adjusted gross profit
per metric ton
delivered(1,2) 77.18 107.19 89.23 104.10
Free cash flow(1) 1,348 3,491 8,525 6,755
Refineries Results:
Refineries Volume
(Metric Tons) 57,093 37,074 162,460 126,037
Adjusted gross
profit(1) $7,917 $5,804 $23,978 $16,760
Adjusted gross profit
per metric ton
delivered(1) 138.68 156.54 147.59 132.98
1. Per share figures for periods prior to Dec. 31,
2023, are adjusted for the Reorganization. Basic calculation
counts each PVS as one share.
2. This is not a standardized financial measure under
IFRS and may not be comparable to similar financial
measures of other issuers. Please refer to "Non-IFRS
and Other Financial Measures (Key Performance Indicators)"
in Sucro's Q2 2024 MD&A for further details which
are incorporated by reference herein and available
for
viewing and download on SEDAR+ at www.sedarplus.ca.
"Our strong Q3 results are a testament to the success of our refining strategy and the resilience of our integrated supply chain," said Jonathan Taylor, Founder and Chief Executive Officer of Sucro. "Increased refining volumes at our Hamilton and Lackawanna refineries have driven significant revenue growth and operational efficiencies. These achievements underscore our ability to scale production and meet rising customer demand while maintaining profitability."
Taylor added, "As we continue executing on our capacity expansion projects, including our upcoming Hamilton and University Park refineries, we are well-positioned to deliver on our long-term growth plans."
Taylor further commented "Alongside our efforts to continually improve the output of our Lackawanna and Hamilton facilities, we continue to be focused on executing our refinery expansion projects in both Hamilton and Chicago. The Hamilton refinery construction has made significant progress and we believe we are well positioned to begin refinery operations on or ahead of schedule. We will provide a further detailed update alongside our year-end results for 2024.
Results from Operations - Three Months Ended September 30, 2024
Q3 2024 Highlights (unaudited) Three Months Ended Sep 30 In 000s of U.S. $ except per share and volume 2024 2023 metrics. Sugar Deliveries (Metric Tons) 181,023 122,243 Revenue $171,932 $139,041 Gross Profit 21,967 16,148 Adjusted gross profit(2) 13,971 13,103 Adjusted gross profit margin(2) 8.1 % 9.4 % Income From Operations 14,691 9,625 Income Before Income Taxes 8,226 4,237 Net Income 7,438 1,983 Net Income per share - basic(1) 1.06 0.27 Net Income per share - diluted(1) 0.31 0.09 EBITDA(2) 15,455 11,316 Adjusted EBITDA(2) 8,315 8,227 Adjusted EBITDA Margin(2) 9.0 % 8.1 % Return on equity $(TTM)$(2) 14.6 % 42.2 % Adjusted gross profit per metric ton delivered (net of cash settlements) 77.18 107.19 Free cash flow(2) 1,348 3,491 Refineries Results Refineries Volume (Metric Tons) 57,093 37,074 Adjusted Gross Profit(2) $7,917 $5,804 Adjusted Gross Profit per MT(2) 138.68 156.54 1. Per share figures for periods prior to Dec. 31, 2023, are adjusted for the Reorganization. Basic calculation counts each PVS as one share. 2. This is not a standardized financial measure under IFRS and may not be comparable to similar financial measures of other issuers. Please refer to "Non-IFRS and Other Financial Measures (Key Performance Indicators")" in Sucro's Q2 2024 MD&A for further details which is incorporated by reference herein and available for viewing and download on SEDAR+ at www.sedarplus.ca.
For the three months ended September 30, 2024, customer deliveries increased by 48% compared with the three months ended September 30, 2023, from 122,243 MTs in 2023 to 181,023 MTs in 2024, primarily due to an increase in our wholesale distribution volumes, but also from the 54% volume increase shipped from our Lackawanna and Hamilton refineries.
Adjusted EBITDA was $8.3 million for the three months ended September 30, 2024, which was essentially flat compared with $8.2 million for the corresponding 2023 period, a 1.2% increase. The Adjusted Gross Profit was $14.0 million, a 6.6% increase from the corresponding 2023 period, driven by a combination of significantly higher wholesale distribution volumes, with particular reference to Mexico and world market shipments) and lower adjusted gross profit margins from the refinery volumes. EBITDA was $15.5 million for the three months ended September 30, 2024, compared with $11.3 million for the corresponding 2023 period, a 36.6% increase driven primarily by higher volumes and higher unrealized mark-to-market gains on physical sugar contracts and inventory.
Net income for the three months ended September 30, 2024, amounted to $7.4 million, an increase of $5.4 million compared to net income of $2.0 million for the three months ended September 30, 2024. This increase was driven primarily by higher unrealized mark-to-market gains on physical sugar contracts.
Revenue for the three months ended September 30, 2024, increased by 23.7%, to $171.9 million, from $139.0 million for the three months ended September 30, 2023. This increase was mainly driven by a combination of higher wholesale distribution volumes, particularly from Mexico and world sugar sales, higher average sugar prices during the quarter, and higher refined sugar volumes shipped from our refineries in Hamilton and Lackawanna.
Results from Operations - Nine Months Ended September 30, 2024
Q3 2024 Highlights (unaudited) Nine Months Ended Sep 30 In 000s of U.S. $ except per share and volume 2024 2023 metrics. Sugar Deliveries (Metric Tons) 494,974 380,895 Revenue $493,967 $382,274 Gross Profit 79,355 75,135 Adjusted gross profit(2) 44,166 39,651 Adjusted gross profit margin(2) 8.9 % 10.4 % Income From Operations 55,459 54,854 Income Before Income Taxes 38,162 40,734 Net Income 31,136 30,355 Net Income per share - basic(1) 4.49 4.17 Net Income per share - diluted(1) 1.32 1.38 EBITDA(2) 60,155 59,583 Adjusted EBITDA(2) 27,096 24,755 Adjusted EBITDA Margin(2) 5.5 % 6.5 % Return on equity $(TTM.AU)$(2) 14.6 % 42.2 %
(MORE TO FOLLOW) Dow Jones Newswires
November 22, 2024 07:00 ET (12:00 GMT)
Comments