Delivers continued top line revenue and volume growth, including record results for quarterly refinery volumes and gross margins
CORAL GABLES, Fla., Aug. 29, 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 six months ended June 30, 2024. All amounts are in United States dollars ("U.S. $" or "$") unless otherwise noted.
Financial Highlights for the Second Quarter of 2024
Revenue of $137.7 million on sugar deliveries of 131,086 metric tons, increases over 2023 levels of 16.6% and 13.4%, respectively
Adjusted gross profit1 of $14.2 million and adjusted gross profit margin1 percentage of 10.3%
EBITDA1 of $13.7 million and Adjusted EBITDA1 of $8.3 million
Adjusted gross profit per metric ton delivered1,2 of $108.45
For our refineries, Q2 volumes of 58,613 metric tons, and Adjusted gross profit1 of $9.3 million, a new quarterly record for both measures
Completed $31.3 million of debt financings for our new refinery in Hamilton, Ontario.
Q2 2024 Highlights (unaudited)
Three Months Ended June 30
Six Months Ended June 30
In 000s of U.S. $ except per share and volume metrics.
2024
2023
Change
2024
2023
Change
Sugar Deliveries (Metric Tons)
131,086
115,606
13.4 %
313,951
258,652
21.4 %
Revenue
$137,710
$118,147
16.6 %
$322,035
$243,233
32.4 %
Gross profit
20,281
33,528
-39.5 %
57,388
58,987
-2.7 %
Adjusted gross profit1
14,216
16,104
-11.7 %
30,195
26,548
13.7 %
Adjusted gross profit margin1
10.3 %
13.6 %
9.4 %
10.9 %
EBITDA1
13,656
28,511
-52.1 %
44,700
48,267
-7.4 %
Adjusted EBITDA1
8,287
11,807
-29.8 %
18,757
16,529
13.5 %
Adjusted EBITDA Margin1
9.92 %
24.13 %
5.82 %
6.80 %
Net Income (Loss)
3,959
16,874
-76.5 %
23,698
28,372
-16.5 %
Per share (basic)
0.57
2.31
-75.4 %
3.43
3.90
-12.0 %
Per share (diluted)
0.17
0.77
-78.1 %
1.01
1.29
-22.2 %
Adjusted gross profit per metric ton delivered1,2
108.45
139.30
-22.1 %
96.18
102.64
-6.3 %
Free cash flow1
2,173
4,787
7,177
3,264
Refineries Results:
Refineries Volume (Metric Tons)
58,613
48,488
20.9 %
105,367
88,963
18.4 %
Adjusted gross profit1
$9,320
$6,736
38.4 %
$16,060
$10,956
46.6 %
Adjusted gross profit per metric ton delivered1
159.00
138.91
14.5 %
152.42
123.16
23.8 %
1. 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.
2. Net of cash settlements.
"The early part of the second quarter was a challenge due to delayed capacity expansion installations in our Lackawanna refinery, which was expected and highlighted last quarter." noted Jonathan Taylor, Founder and Chief Executive Officer of Sucro. "The delay also impacted the early part of the second quarter, although we finished the quarter very strongly, and are well positioned for a strong second half of 2024. Notwithstanding those earlier delays, the second quarter results delivered record refineries volume output of 58,613 metric tons and a record adjusted gross profit of $9.3 million, Our refinery teams have worked diligently on the continued commissioning of our refineries, and we are excited about the second half outlook, and the ongoing production improvements we are achieving"
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 is on schedule and already visible with much of the refinery building already erected, and most major pieces of refining equipment already delivered to the site."
Results from Operations - Three Months Ended June 30, 2024
Q2 2024 Highlights (unaudited)
Three Months Ended June 30
In 000s of U.S. $ except per share and volume metrics.
2024
2023
Sugar Deliveries (Metric Tons)
131,086
115,606
Revenue
$137,710
$118,147
Gross Profit
20,281
33,528
Adjusted gross profit2
14,216
16,104
Adjusted gross profit margin2
10.3 %
13.6 %
Income From Operations
11,189
27,089
Income Before Income Taxes
5,285
21,779
Net Income
3,959
16,874
Net Income per share - basic1
0.57
2.31
Net Income per share - diluted1
0.17
0.77
EBITDA2
13,656
28,511
Adjusted EBITDA2
8,287
11,807
Adjusted EBITDA Margin2
9.9 %
24.1 %
Return on equity (TTM)2
10.8 %
48.5 %
Adjusted gross profit per metric ton delivered (net of cash settlements)
108.45
139.30
Free cash flow2
2,173
4,787
Refineries Results
Refineries Volume (Metric Tons)
58,613
48,488
Adjusted Gross Profit2
$9,320
$6,736
Adjusted Gross Profit per MT2
159.00
138.91
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 June 30, 2024, customer deliveries increased by 13.4% compared with the three months ended June 30, 2023, from 115,606 MTs in 2023 to 131,086 MTs in 2024, primarily due to an increase in volumes shipped from our Lackawanna and Hamilton refineries.
Adjusted EBITDA was $8.3 million for the three months ended June 30, 2024, compared with $11.8 million for the corresponding 2023 period, a 29.8% decrease, mainly as a result of lower Adjusted Gross Profit ($14.2 million for the three months ended June 30, 2024, compared with $16.1 million for the corresponding 2023 period) and higher selling, general and administrative expenses, which increased in line with management's expectations to support our growing operations. The decrease in Adjusted Gross Profit was driven by lower margins in our operations in the Caribbean, Mexico and World Market Operations, which were partially offset by increases in volume (a 20.9% increase) and margin ($20.09 per MT increase in Adjusted Gross Profit per MT) in our U.S. and Canada refining operations. As our refining operations grow relative to the size of our overall sales ...
