ROGERS SUGAR INC. Q2 2024
Rogers Sugar Inc. - Management's Discussion & Analysis - Q2, 2024
1
Interim Report for the Second Quarter 2024 Results
This Management's Discussion and Analysis ("MD&A") of Rogers Sugar Inc.'s (the "Company", "Rogers", "RSI" or "our," "we", "us") dated May 9, 2024 should be read in conjunction with the unaudited condensed consolidated interim financial statements and related notes for the three- and six-month periods period ended March 30, 2024, as well as the audited consolidated financial statements and MD&A for the year ended September 30, 2023. This MD&A refers to Rogers, Lantic Inc. ("Lantic") (Rogers and Lantic together referred as the "Sugar segment"), The Maple Treat Corporation ("Maple Treat") and Highland Sugarworks Inc. ("Highland") (the latter two companies together referred to as "TMTC" or the "Maple segment").
Management is responsible for preparing the MD&A. This MD&A has been reviewed and approved by the Audit Committee of Rogers and its Board of Directors.
TABLE OF CONTENTS | |
OUTLOOK | 12 |
Sugar | 13 |
Maple | 13 |
CONSOLIDATED RESULTS AND SELECTED FINANCIAL INFORMATION | 14 |
Total revenues | 14 |
Gross margin | 14 |
Results from operating activities | 14 |
Net finance costs | 15 |
Taxation | 15 |
Net earnings | 15 |
Summary of quarterly results | 16 |
Financial condition | 16 |
Liquidity | 17 |
Free cash flow | 18 |
Contractual obligations | 19 |
Capital resources | 19 |
OUTSTANDING SECURITIES | 19 |
RISK AND UNCERTAINTIES | 19 |
NON-IFRS MEASURES | 21 |
CRITICAL ACCOUNTING ESTIMATES | 25 |
CHANGES IN ACCOUNTING PRINCIPLES AND PRACTICES NOT YET ADOPTED | 25 |
CONTROLS AND PROCEDURES | 25 |
FORWARD-LOOKING STATEMENTS | 25 |
Rogers Sugar Inc. - Management's Discussion & Analysis - Q2, 2024 | 2 |
Interim Report for the Second Quarter 2024 Results
OUR BUSINESS
Rogers has a long history of providing high-quality sugar products to the Canadian market and has been operating since 1888.
Lantic, Rogers wholly owned subsidiary, operates cane sugar refineries in Montréal, Québec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic's sugar products are generally marketed under the "Lantic" trademark in Eastern Canada, and the "Rogers" trademark in Western Canada and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups. We also operate a distribution center in Toronto, Ontario.
Maple Treat operates bottling plants in Granby, Dégelis and in St-Honoré-de-Shenley, Québec and in Websterville, Vermont. Maple Treat's products include maple syrup and derived maple syrup products supplied under retail private label brands in approximately fifty countries and are sold under various brand names.
Our business has two distinct segments - Sugar - which includes refined sugar and by-products and Maple - which includes maple syrup and maple-derived products.
BUSINESS HIGHLIGHTS
- The Company delivered consolidated adjusted EBITDA(1) for the second quarter and the first six months of fiscal 2024 of $38.1 million and $68.8 million respectively, up by $13.1 million and $10.3 million from the same periods last year, driven by the strong performance of both of our business segments.
- On March 4, 2024, in connection with the financing plan of our announced expansion of production and logistic capacity of our Eastern operations in Montréal and Toronto (the "LEAP Project"), Rogers issued 22,769,232 new common shares at a price of $5.18 per share. The net proceeds after commissions and related fees associated with this transaction amounted to $112.5 million.
- On February 1, 2024, the unionized employees of the Vancouver sugar refinery, represented by the Public and Private Workers of Canada Local 8, ratified a new five-year collective agreement, concluding a strike that began on September 28, 2023. The unionized employees have returned to work and the Vancouver refinery is now operating at its normal capacity.
- Throughout the labour disruption, production from our Taber and Montréal facilities was used to support our customers in Western Canada. The overall unfavourable impact of the strike is a net reduction of approximately 23,500 metric tonnes in sales volume, of which approximately13,500 metric tonnes were related to the second quarter, and a reduction of adjusted EBITDA(1) of $5.4 million, of which $2.4 million was related to the second quarter.
- Adjusted EBITDA(1) in the Sugar segment was very strong in the second quarter of fiscal 2024 at $33.2 million, an increase of $10.6 million compared to the same period last year, even after considering the unfavourable impact of the strike at the Vancouver refinery.
- Sales volumes in the Sugar segment decreased by approximately 15,000 metric tonnes to approximately 180,600 metric tonnes in the second quarter, largely driven by the reduction of activities at our Vancouver sugar refinery as a result of the labour disruption.
- Sugar segment adjusted gross margin(1) amounted to $249 per metric tonne in the second quarter of 2024 as compared to $175 per metric tonne for the same period last year, mainly due to a higher contribution from sugar refining activities.
- Adjusted EBITDA(1) in the Maple segment was $4.9 million in the second quarter, an increase of $2.5 million from the same quarter last year, largely driven by higher average selling prices and lower operating costs.
- Adjusted gross margin percentage(1) in the Maple segment amounted to 10.9%, as compared to an adjusted gross margin percentage(1) of 7.2% for the same period last year, driven by higher average selling prices and lower operating costs following the implementation of automation and continuous improvement initiatives in the later part of fiscal 2023.
- Free cash flow(1) for the trailing 12 months ended March 30, 2024, was $56.6 million, an increase of $4.8 million from the same period last year, driven by higher consolidated adjusted EBITDA(1), partially offset by an increase in capital expenditures.
- In the second quarter of fiscal 2024, we distributed $0.09 per share to our shareholders for a total of $9.5 million.
- On May 9, 2024, the Board of Directors declared a quarterly dividend of $0.09 per share, payable on or before July 11, 2024.
- See "Non-IFRS Measures" section for definition and reconciliation to IFRS measures
Rogers Sugar Inc. - Management's Discussion & Analysis - Q2, 2024 | 3 |
Interim Report for the Second Quarter 2024 Results
SELECTED FINANCIAL DATA AND HIGHLIGHTS
(unaudited) | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | |
(In thousands of dollars, except volume and per share information) | |||||
Sugar (metric tonnes) | 180,618 | 195,547 | 362,994 | 388,396 | |
Maple syrup (000 pounds) | 11,777 | 12,059 | 23,629 | 23,878 | |
Total revenues | 300,944 | 272,949 | 589,643 | 534,392 | |
Gross margin | 44,861 | 41,658 | 89,505 | 82,849 | |
Adjustment to cost of sale(1) | (6,431) | 3,425 | (4,106) | 2,623 | |
Adjusted gross margin(1) | 51,292 | 38,233 | 93,611 | 80,226 | |
Results from operating activities | 24,704 | 21,856 | 50,814 | 48,140 | |
Adjusted results from operating activities(1) | 31,135 | 18,431 | 54,920 | 45,517 | |
EBITDA(1) | 31,664 | 28,445 | 64,709 | 61,158 | |
Adjusted EBITDA(1) | 38,095 | 25,020 | 68,815 | 58,535 | |
Net earnings | 13,936 | 11,062 | 27,788 | 25,736 | |
per share (basic) | 0.13 | 0.11 | 0.26 | 0.25 | |
per share (diluted) | 0.11 | 0.10 | 0.22 | 0.23 | |
Adjusted net earnings(1) | 18,891 | 9,115 | 31,504 | 24,462 | |
Adjusted net earnings per share (basic)(1) | 0.17 | 0.09 | 0.29 | 0.23 | |
Trailing twelve months free cash flow(1) | 56,570 | 51,807 | 56,570 | 51,807 | |
Dividends per share | 0.09 | 0.09 | 0.18 | 0.18 |
- See "Non-IFRS Measures" section for definition and reconciliation to IFRS measures.
Rogers Sugar Inc. - Management's Discussion & Analysis - Q2, 2024 | 4 |
Interim Report for the Second Quarter 2024 Results
Adjusted results
In the normal course of business, we use derivative financial instruments consisting of sugar futures, foreign exchange forward contracts, natural gas futures and interest rate swaps. We have designated our natural gas futures and our interest rate swap agreements entered into in order to protect us against natural gas price and interest rate fluctuations as cash flow hedges. Derivative financial instruments pertaining to sugar futures and foreign exchange forward contracts are marked-to-market at each reporting date and are charged to the condensed consolidated statement of earnings. The unrealized gains/losses related to natural gas futures and interest rate swaps that qualify under hedged accounting are accounted for in other comprehensive income. The unrealized gains/losses related to interest rate swaps that do not qualify under hedged accounting are accounted in the condensed consolidated statement of earnings. The amount recognized in other comprehensive income is removed and included in net earnings under the same line item in the condensed consolidated statement of earnings and comprehensive income as the hedged item, in the same period that the hedged cash flows affect net earnings, reducing earnings volatility related to the movements of the valuation of these derivatives hedging instruments.
We believe that our financial results are more representative of our business to management, investors, analysts, and any other interested parties when financial results are adjusted by the gains/losses from financial derivative instruments that do not qualify for hedge accounting. These adjusted financial results provide a more complete understanding of factors and trends affecting our business. This measurement is a non-IFRS measurement. See "Non-IFRS measures" section.
We use the non-IFRS adjusted results of the operating company to measure and to evaluate the performance of the business through our adjusted gross margin, adjusted gross margin percentage, adjusted gross margin rate, adjusted results from operating activities, adjusted EBITDA, adjusted net earnings, adjusted net earnings per share and trailing twelve months free cash flow. These non-IFRS measures are evaluated on a consolidated basis and at a segmented level, excluding adjusted gross margin percentage, adjusted gross margin per metric tonne, adjusted net earnings per share and trailing twelve months free cash flow. In addition, we believe that these measures are important to our investors and parties evaluating our performance and comparing such performance to past results. We also use adjusted gross margin, adjusted EBITDA, adjusted results from operating activities, adjusted net earnings, adjusted net earnings per share and trailing twelve months free cash flow when discussing results with the Board of Directors, analysts, investors, banks, and other interested parties. See "Non-IFRS measures" section.
OUR RESULTS ARE ADJUSTED AS FOLLOWS:
Income (loss) | Q2 2024 | Q2 2023 | ||||
(In thousands of dollars) | ||||||
Maple | Maple | |||||
Sugar | Products | Total | Sugar | Products | Total | |
Mark-to-market on: | ||||||
Sugar futures contracts | 1,154 | - | 1,154 | 4,925 | - | 4,925 |
Foreign exchange forward contracts | 1,399 | (1,203) | 196 | 296 | (160) | 136 |
Total mark-to-market adjustment on derivatives | 2,553 | (1,203) | 1,350 | 5,221 | (160) | 5,061 |
Cumulative timing differences | (7,584) | (197) | (7,781) | (2,291) | 655 | (1,636) |
Total adjustment to costs of sales | (5,031) | (1,400) | (6,431) | 2,930 | 495 | 3,425 |
Income (loss) | YTD 2024 | YTD 2023 | ||||
(In thousands of dollars) | ||||||
Maple | Maple | |||||
Sugar | Products | Total | Sugar | Products | Total | |
Mark-to-market on: | ||||||
Sugar futures contracts | (1,536) | - | (1,536) | 3,717 | - | 3,717 |
Foreign exchange forward contracts | 1,275 | 653 | 1,928 | 569 | (357) | 212 |
Total mark-to-market adjustment on derivatives | (261) | 653 | 392 | 4,286 | (357) | 3,929 |
Cumulative timing differences | (4,512) | 14 | (4,498) | (2,979) | 1,673 | (1,306) |
Total adjustment to costs of sales | (4,773) | 667 | (4,106) | 1,307 | 1,316 | 2,623 |
Fluctuations in the mark-to-market adjustment on derivatives are due to the price movements in the Raw #11 sugar market ("Raw #11") and foreign exchange variations.
We recognize cumulative timing differences, as a result of mark-to-market gains or losses, only when sugar is sold to a customer. The gains or losses on sugar and related foreign exchange paper transactions are largely offset by corresponding gains or losses from the physical transactions, namely sale and purchase contracts with customers and suppliers.
The above-described adjustments are added to or deducted from the mark-to-market results to arrive at the total adjustment to cost of sales. For the second quarter of the current year, the total cost of sales adjustment is a loss of $6.4 million to be added to
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Interim Report for the Second Quarter 2024 Results
the consolidated results versus a gain of $3.4 million to be deducted from the consolidated results for the comparable quarter last year. For the first six months of fiscal 2024, the total cost of sales adjustment is a loss of $4.1 million to be added to the consolidated results compared to a gain of $2.6 million to be deducted from the consolidated results for the same period last year.
See the "Non-IFRS measures" section for more information on these adjustments.
SEGMENTED INFORMATION
Segmented Results | Q2 2024 | Q2 2023 | ||||||||
(In thousands of dollars) | ||||||||||
Sugar | Maple | Total | Sugar | Maple | Total | |||||
Products | Products | |||||||||
Revenues | 242,957 | 57,987 | 300,944 | 216,135 | 56,814 | 272,949 | ||||
Gross margin | 39,916 | 4,945 | 44,861 | 37,075 | 4,583 | 41,658 | ||||
Administration and selling expenses | 10,815 | 2,916 | 13,731 | 11,101 | 2,865 | 13,966 | ||||
Distribution costs | 6,192 | 234 | 6,426 | 5,340 | 496 | 5,836 | ||||
Results from operating activities | 22,909 | 1,795 | 24,704 | 20,634 | 1,222 | 21,856 | ||||
Adjustment to cost of sales(2) | 5,031 | 1,400 | 6,431 | (2,930) | (495) | (3,425) | ||||
Adjusted gross margin(1) | 44,947 | 6,345 | 51,292 | 34,145 | 4,088 | 38,233 | ||||
Adjusted results from operating activities(1) | 27,940 | 3,195 | 31,135 | 17,704 | 727 | 18,431 | ||||
EBITDA(1) | 28,194 | 3,470 | 31,664 | 25,512 | 2,933 | 28,445 | ||||
Adjusted EBITDA(1) | 33,225 | 4,870 | 38,095 | 22,582 | 2,438 | 25,020 | ||||
Additional information: | ||||||||||
Additions to property, plant and equipment | ||||||||||
and intangible assets, net of disposals | 14,252 | 421 | 14,673 | 6,514 | 275 | 6,789 | ||||
Additions to right-of-use assets | 2,674 | 58 | 2,732 | 948 | - | 948 | ||||
- See "Non-IFRS Measures" section for definition and reconciliation to IFRS measures
- See "Adjusted results" section
Segmented Results | YTD 2024 | YTD 2023 | |||||||
(In thousands of dollars) | |||||||||
Sugar | Maple | Total | Sugar | Maple | Total | ||||
Products | Products | ||||||||
Revenues | 472,765 | 116,878 | 589,643 | 421,423 | 112,969 | 534,392 | |||
Gross margin | 76,406 | 13,099 | 89,505 | 73,113 | 9,736 | 82,849 | |||
Administration and selling expenses | 20,194 | 5,677 | 25,871 | 17,736 | 5,527 | 23,263 | |||
Distribution costs | 12,278 | 542 | 12,820 | 10,402 | 1,044 | 11,446 | |||
Results from operating activities | 43,934 | 6,880 | 50,814 | 44,975 | 3,165 | 48,140 | |||
Adjustment to cost of sales(2) | 4,773 | (667) | 4,106 | (1,307) | (1,316) | (2,623) | |||
Adjusted Gross margin(1) | 81,179 | 12,432 | 93,611 | 71,806 | 8,420 | 80,226 | |||
Adjusted results from operating activities(1) | 48,707 | 6,213 | 54,920 | 43,668 | 1,849 | 45,517 | |||
EBITDA(1) | 54,494 | 10,215 | 64,709 | 54,566 | 6,592 | 61,158 | |||
Adjusted EBITDA(1) | 59,267 | 9,548 | 68,815 | 53,259 | 5,276 | 58,535 | |||
Additional information: | |||||||||
Additions to property, plant and equipment | |||||||||
and intangible assets, net of disposals | 29,200 | 609 | 29,809 | 14,966 | 369 | 15,335 | |||
Additions to right-of-use assets | 2,756 | 109 | 2,865 | 966 | 45 | 1,011 |
- See "Non-IFRS Measures" section for definition and reconciliation to IFRS measures
- See "Adjusted results" section
Rogers Sugar Inc. - Management's Discussion & Analysis - Q2, 2024 | 6 |
Interim Report for the Second Quarter 2024 Results
Sugar
IMPACT OF LABOUR DISRUPTION AT VANCOUVER REFINERY
On February 1, 2024, the unionized employees of the Vancouver sugar refinery, represented by the Public and Private Workers of Canada Local 8, ratified a new five-year collective agreement, concluding a strike that began on September 28, 2023. The unionized employees have returned to work and the Vancouver refinery is now operating at its normal capacity.
Throughout the labour disruption, production from our Taber and Montréal facilities was used to support our customers in Western Canada. The overall unfavourable impact of the strike is a net reduction in volume of approximately 23,500 metric tonnes, of which approximately 13,500 metric tonnes were related to the second quarter, and a reduction of adjusted EBITDA of $5.4 million, of which $2.4 million was related to the second quarter.
LEAP PROJECT
On August 11, 2023, the Board of Directors of Lantic approved the LEAP Project. This investment is expected to provide approximately 100,000 metric tonnes of incremental refined sugar capacity to the growing Canadian market, at an estimated construction cost of approximately $200 million. The project is expected to be completed in the first half of fiscal 2026.
The planning and design phases associated with the project are now completed and the construction phase is expected to begin shortly. Site preparation and permitting processes are currently in their final stages for the main construction site in Montréal. Detailed planning for the Toronto portion of the project is currently being developed. Orders for sugar refining equipment and other large production and logistic related equipment have been issued to suppliers.
We intend to fund the construction costs of the LEAP project using a combination of new debt, new equity and our existing revolving credit facility. In connection with the financing plan of the LEAP Project, RSI issued new common shares in the second quarter of 2024, for a net proceed of $112.5 million. In the second half of 2023, also in connection with the financing of the LEAP project, Lantic entered into two secured loan agreements with Investissement Quebec for up to $65 million. We anticipate drawing funds from the approved loans from Investissement Quebec as the construction phase begins in the second half of fiscal 2024.
As at March 30, 2024, $30.9 million, including $1.1 milion in interest costs, has been capitalized in construction in progress on the balance sheet for the LEAP project. Thus far, most of the costs incurred are related to the design and planning phases of the project, along with deposits on sugar refining, production, and logistic equipment ordered with suppliers. For the first six months of fiscal 2024, $19.7 million has been capitalized in connection with the LEAP Project, as compared to $7.0 million for the same period last year.
REVENUES
Q2 2024 | Q2 2023 | ∆ | YTD 2024 | YTD 2023 | ∆ | |
(In thousands of dollars) | 242,957 | 216,135 | 26,822 | 472,765 | 421,423 | 51,342 |
In the second quarter and first six months of fiscal 2024, revenue increased by $26.8 million and $51.3 million respectively, compared to the same periods last year. The positive variance was largely driven by higher average price for Raw #11 and higher contribution from refining related activities, partially offset by lower sales volume as a result of the labour disruption at our Vancouver sugar refinery. The average prices for Raw #11 increased by US 1.9 cents per pound to US 22.6 cents per pound during the current quarter and by US 4.1 cents per pound to US 24.1 cents per pound for the first half of the current fiscal year, when compared to the same periods last year.
Rogers Sugar Inc. - Management's Discussion & Analysis - Q2, 2024 | 7 |
Interim Report for the Second Quarter 2024 Results
In the second quarter of fiscal 2024, sugar volume totaled approximately 180,600 metric tonnes, a decrease of approximately 7.6% or 15,000 metric tonnes compared to the same period last year, driven mainly by the unfavorable net impact of the labour disruption at the Vancouver refinery, estimated at approximately 13,500 metric tonnes. The net impact of the strike on a customer segment basis was estimated as follows:
- Industrial volume decreased by approximately 4,600 metric tonnes.
- Liquid volume decreased by approximately 2,800 metric tonnes.
- Export volume decreased by approximately 6,100 metric tonnes as we focussed our sales efforts on serving the domestic market throughout the labour disruption.
For the second quarter of fiscal 2024, sales volume in Eastern Canada was also lower by approximately 1,500 metric tonnes due to timing in industrial and consumer sales, partially offset by higher sales to liquid customers.
In the first half of fiscal 2024, sugar volume totaled approximately 363,000 metric tonnes, a decrease of approximately 6.5% or 25,400 metric tonnes compared to the same period last year, driven mainly by the unfavorable net impact of the labour disruption at the Vancouver refinery, estimated at approximately 23,500 metric tonnes. The net impact of the strike on a customer segment basis was estimated as follows:
- Industrial volume decreased by approximately 7,900 metric tonnes.
- Liquid volume decreased by approximately 4,300 metric tonnes.
- Export volume decreased by approximately 11,300 metric tonnes as we focussed our sales efforts on serving the domestic market throughout the labour disruption.
For the first six months of fiscal 2024, sales volume in Eastern Canada was also lower by approximately 1,900 metric tonnes due to timing in industrial and consumers sales, partially offset by higher sales to liquid customers.
Rogers Sugar Inc. - Management's Discussion & Analysis - Q2, 2024 | 8 |
Interim Report for the Second Quarter 2024 Results
GROSS MARGIN
Q2 2024 | Q2 2023 | ∆ | YTD 2024 | YTD 2023 | ∆ | |
(In thousands of dollars, except per metric tonne information) | ||||||
Gross margin | 39,916 | 37,075 | 2,841 | 76,406 | 73,113 | 3,293 |
Total adjustment to cost of sales(2) | 5,031 | (2,930) | 7,961 | 4,773 | (1,307) | 6,080 |
Adjusted gross margin(1) | 44,947 | 34,145 | 10,802 | 81,179 | 71,806 | 9,373 |
Adjusted gross margin per metric tonne(1) | 248.85 | 174.62 | 74.23 | 223.64 | 184.88 | 38.76 |
Included in gross margin: | ||||||
Depreciation of property, plant and equipment and | ||||||
right-of-use assets | 4,144 | 3,372 | 772 | 8,318 | 7,496 | 822 |
- See "Non-IFRS Measures" section for definition and reconciliation to IFRS measures
- See "Adjusted results" section
Gross margin was $39.9 million and $76.4 million for the second quarter and the first six months of fiscal 2024, and includes a loss of $5.0 million and $4.8 million, respectively, for the mark-to-market of derivative financial instruments. For the same periods last year, gross margin was $37.1 million and $73.1 million, respectively, with a mark-to-market gain of $2.9 million and $1.3 million respectively.
Adjusted gross margin was $44.9 million and $81.2 million for the second quarter and for the first six months of fiscal 2024, respectively, as compared to $34.1 million and $71.8 million in the same periods last year.
Adjusted gross margin increased by $10.8 million in the second quarter compared to the same period last year mainly as a result of higher sugar sales margin from increased average pricing on sugar refining related activities and favorable mix of products sold. This positive variance was partially offset by higher production costs mainly driven by increased maintenance activities and market based inflationary pressure on costs, along with the unfavourable impact of lower sales volume, as described above.
On a per-unit basis, adjusted gross margin for the second quarter was $249 per metric tonne, higher than last year by $74 per metric tonne. The favourable variance was mainly due to the increase in overall margin from improved selling prices and favorable mix of products sold, partially offset by higher production costs and lower sales volume.
Adjusted gross margin for the first six months of fiscal 2024 was $9.4 million higher than the comparable period last year as a result of higher sugar sales margin from increased average pricing on sugar refining related activities and favorable mix of products sold. This positive variance was partially offset by higher production costs mainly driven by increased maintenance activities and market based inflationary pressure on costs, along with the unfavourable impact of lower sales volume, as described above.
On a per-unit basis, for the first six months of fiscal 2024, adjusted gross margin amounted to $224 per metric tonne compared to $185 per metric tonne for the same period last year The favourable variance was mainly due to the increase in overall margin from improved selling prices and favorable mix of products sold, partially offset by higher production costs and lower sales volume.
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Interim Report for the Second Quarter 2024 Results
OTHER EXPENSES
Q2 2024 | Q2 2023 | ∆ | YTD 2024 | YTD 2023 | ∆ |
(In thousands of dollars, except per metric tonne information)
Administration and selling expenses | 10,815 | 11,102 | (287) |
Distribution costs | 6,192 | 5,340 | 852 |
Included in Administration and selling expenses: | |||
Depreciation of property, plant and equipment and | |||
right-of-use assets | 197 | 318 | (121) |
Included in Distribution costs: | |||
Depreciation of right-of-use assets | 944 | 1,188 | (244) |
20,194 | 17,737 | 2,457 |
12,278 | 10,402 | 1,876 |
395 | 539 | (144) |
1,847 | 1,555 | 292 |
In the second quarter of fiscal 2024, administration and selling expenses were lower by $0.3 million compared to the same quarter last year. The variance was mainly due to lower cash-settledshare-based compensation expense as compared to the same period last year, driven by a variance in the share price in the current quarter. Distribution costs were higher by $0.9 million compared to the same quarter last year, mainly due to higher transfer of sugar between our facilities to support the needs of our customers, including costs associated with our mitigation strategy related to the labour disruption in Vancouver.
For the first six months of fiscal 2024, administration and selling expenses were $2.5 million higher than the comparable period last year. The variance was mainly due to higher compensation costs and related employee benefits, partially offset by lower cash- settled share-based compensation expenses driven by a variance in the share price used to estimate the related expense. Distribution costs for the first six months of fiscal 2024 increased by $1.9 million compared to the same period last year, mainly due to higher transfer of sugar between our facilities to support the needs of our customers, including costs associated with our mitigation strategy related to the labour disruption in Vancouver.
RESULTS FROM OPERATING ACTIVITIES AND ADJUSTED EBITDA
Q2 2024 | Q2 2023 | ∆ | YTD 2024 | YTD 2023 | ∆ | |
(In thousands of dollars) | ||||||
Results from operating activities | 22,909 | 20,634 | 2,275 | 43,934 | 44,975 | (1,041) |
Total adjustment to cost of sales (2) | 5,031 | (2,930) | 7,961 | 4,773 | (1,307) | 6,080 |
Adjusted results from operating activities(1) | 27,940 | 17,704 | 10,236 | 48,707 | 43,668 | 5,039 |
Depreciation of property, plant and equipment, right-of-use | ||||||
assets, and amortization of intangible assets | 5,285 | 4,878 | 407 | 10,560 | 9,591 | 969 |
EBITDA(1) | 28,194 | 25,512 | 2,682 | 54,494 | 54,566 | (72) |
Adjusted EBITDA(1) | 33,225 | 22,582 | 10,643 | 59,267 | 53,259 | 6,008 |
- See "Non-IFRS Measures" section for definition and reconciliation to IFRS measures
- See "Adjusted results" section
Results from operating activities for the second quarter and the first six months of fiscal 2024 year were $22.9 million and $43.9 million, respectively, an increase of $2.3 million and a decrease of $1.0 million respectively, as compared to same periods last year. These results include gains and losses from the mark-to-market of derivative financial instruments.
Adjusted results from operating activities in the second quarter were $10.2 million higher than the same period last year, mainly due to higher adjusted gross margin, partially offset by higher distribution costs. Adjusted results from operating activities for the first six months of fiscal 2024 were $5.0 million higher than the same period last year as a result of higher adjusted gross margin, partially offset by higher distribution costs and administration and selling expenses.
EBITDA for the second quarter and the first six months of fiscal 2024 were $28.2 million and $54.5 million, respectively, an increase of $2.7 million and a decrease of $0.1 million respectively, as compared to same periods last year. These results include gains and losses from the mark-to-market of derivative financial instruments.
Adjusted EBITDA for the second quarter increased by $10.6 million compared to the same period last year, largely as a result of higher adjusted gross margin, partially offset by higher distribution costs. Adjusted EBITDA for the first six months of fiscal 2024 increased by $6.0 million largely due to higher adjusted gross margin, partially offset by higher distribution costs and administration and selling expenses, as mentioned above.
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Rogers Sugar Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 22:48:53 UTC.
