Demand For Healthy Products Drives SunOpta's Q1 Revenue Growth
SunOpta reported double-digit gains for the first quarter with volume growth cited as the key driver of growth.
For the quarter ended March 30, net revenues were $182.8 million, an increase of 18% over the first quarter of 2023. Earnings from continuing operations were $3.8 million, up from a net loss of $2.8 million in the comparable quarter the previous year.
Company officials said the first quarter growth was driven by volume growth of 23.5% that was partially offset by a 5% price reduction for pass-through commodity pricing together with a 0.6% revenue reduction related to its exit from the smoothie bowls category in March 2024.
Volume/mix reflected volume growth for oat milks and creamers, protein shakes, broths, teas, and fruit snacks, partially offset by softer demand for other varieties of plant-based milks.
“SunOpta’s first quarter performance was defined by excellent revenue growth across our portfolio of products, customers, and channels, which continue to see healthy, broad-based demand,” said Brian Kocher, CEO of SunOpta. “We are encouraged by the progress of our capacity investments and our operational improvement initiatives, which are supporting significant volume growth, driving our revenue trajectory and enabling us to improve gross margin. Based on the strength of first quarter results, the relentless pursuit of operational excellence, our robust pipeline of opportunities, and confidence in our business momentum, we are increasing our 2024 outlook.”
The company is now forecasting annual revenue of $685 million to $715 million, up from previous revenue guidance of $670 million to $700 million.
