Rogers Sugar Q3 Earnings Call Highlights

Third-quarter results were broadly stable: Adjusted net earnings fell slightly to C$16 million, while adjusted EBITDA declined to C$36 million. For the first nine months, however, adjusted EBITDA rose to nearly C$121 million and adjusted earnings increased to C$60 million.

Sugar remained the main earnings driver, while maple softened: Sugar EBITDA was C$32 million despite lower volumes, supported by pricing, product mix and hedging. Maple EBITDA slipped to approximately C$4 million as food inflation and cautious consumer spending weakened demand.

LEAP expansion remains on track: The Montreal project is entering its final commissioning phase, with costs maintained at C$280 million–C$300 million and additional refining capacity expected to come online in the first half of 2027.

The company also declared its quarterly C$0.09-per-share dividend and said it expects solid fiscal 2026 results.

Rogers Sugar TSE: RSI reported third-quarter fiscal 2026 adjusted net earnings of C$16 million, or C$0.13 per share, compared with C$17 million, or C$0.13 per share, a year earlier, as strength in its sugar business helped offset softer maple syrup demand. Consolidated adjusted EBITDA totaled C$36 million in the quarter, versus C$37 million in the prior-year period.

For the first nine months of fiscal 2026, adjusted EBITDA rose to nearly C$121 million from C$111 million a year earlier, while adjusted net earnings increased to C$60 million, or C$0.47 per share, from C$53 million, or C$0.41 per share.

Revenue declined 8% year over year to C$294 million in the quarter, largely because of lower average raw No. 11 sugar prices. Chief Financial Officer Jean-Sébastien Couillard said the lower raw sugar prices had limited impact on profitability because of the company’s hedging program. Lower volumes in both the sugar and maple segments also contributed to the revenue decline.

The sugar segment generated adjusted EBITDA of C$32 million, compared with C$33 million in the same quarter last year. Sugar sales volume was approximately 188,000 metric tons, down about 3,000 metric tons from a year earlier. President and Chief Executive Officer Mike Walton said lower liquid sugar volume was the largest factor behind the decline, following the closure of a major customer facility in Western Canada.

That weakness was partly offset by modestly higher industrial demand, particularly from confectionery customers, and a marginal improvement in export volumes. Walton said the company has seen signs of recovery among existing confectionery customers, citing lower cocoa prices and lower No. 11 sugar values as potentially supportive of consumer demand for chocolate products.

Sugar segment adjusted gross margin was C$46 million, slightly lower than the prior year. The result included a C$3 million non-recurring, non-cash pension charge associated with the new collective agreement at the Montreal refinery. Higher production costs and lower sales volumes also weighed on margin, but those items were largely offset by improved refining-related contribution, favorable pricing and product mix, and lower raw sugar procurement costs.

Couillard said lower procurement costs reflected a small number of raw sugar shipments that arrived at prices below the prior year and should not be viewed as recurring. Adjusted gross margin per metric ton rose modestly to C$245 from C$243 a year earlier.

For the full year, Rogers Sugar modestly increased its sugar volume forecast to 745,000 metric tons, reflecting improved industrial and export demand in recent months. The forecast remains below fiscal 2025 volume, with the decline primarily tie...