We believe that investors' understanding of our financial performance is enhanced by disclosing the specific items that we exclude from segment operating income. However, any measure of operating income excluding any or all of these items is not, and should not be viewed as, a substitute for operating income prepared under U.S. GAAP. These items are presented solely to allow investors to more fully understand how we assess financial performance.
(2) The following table presents a reconciliation of adjusted loss from net earnings/loss, which we consider to be the most directly comparable U.S. GAAP financial measure (refer to footnote (2) to the "Consolidated Results of Operations for the Quarters Ended September 26, 2020 and September 28, 2019" table regarding the use of this non-GAAP measure). In addition, in recognition of the sale of the soy and corn business (as described above under the heading "Sale of Soy and Corn Business"), we have prepared this table in a columnar format to present the effect of the disposal of these operations on our consolidated results for the three quarters ended September 28, 2019. We believe this presentation assists investors in assessing the results of the operations we have disposed and the effect of those operations on our financial performance.
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
disposed operations
|
|
|
Disposed operations
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
Per Diluted Share
|
|
|
|
|
|
Per Diluted Share
|
|
|
|
|
|
Per Diluted Share
|
|
|
For the three quarters ended
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 26, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
4,415
|
|
|
|
|
|
—
|
|
|
|
|
|
4,415
|
|
|
|
|
|
Loss attributable to non-controlling interests
|
|
42
|
|
|
|
|
|
—
|
|
|
|
|
|
42
|
|
|
|
|
|
Dividends and accretion on preferred stock
|
|
(7,473
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(7,473
|
)
|
|
|
|
|
Loss attributable to common shareholders
|
|
(3,016
|
)
|
|
(0.03
|
)
|
|
—
|
|
|
—
|
|
|
(3,016
|
)
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs related to the Value Creation Plan(a)
|
|
3,463
|
|
|
|
|
|
—
|
|
|
|
|
|
3,463
|
|
|
|
|
|
|
Legal settlements(b)
|
|
721
|
|
|
|
|
|
—
|
|
|
|
|
|
721
|
|
|
|
|
|
|
Plant expansion costs(c)
|
|
337
|
|
|
|
|
|
—
|
|
|
|
|
|
337
|
|
|
|
|
|
|
Contingent consideration settlement(d)
|
|
(2,286
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(2,286
|
)
|
|
|
|
|
|
Other(e)
|
|
(65
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(65
|
)
|
|
|
|
|
|
Net income tax effect(f)
|
|
(839
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(839
|
)
|
|
|
|
|
Adjusted loss
|
|
(1,685
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
—
|
|
|
(1,685
|
)
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 28, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
(26,941
|
)
|
|
|
|
|
31,845
|
|
|
|
|
|
4,904
|
|
|
|
|
|
Earnings attributable to non-controlling interests
|
|
(59
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(59
|
)
|
|
|
|
|
Dividends and accretion on preferred stock
|
|
(6,005
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(6,005
|
)
|
|
|
|
|
Earnings (loss) attributable to common shareholders
|
|
(33,005
|
)
|
|
(0.38
|
)
|
|
31,845
|
|
|
0.36
|
|
|
(1,160
|
)
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of soy and corn business(g)
|
|
—
|
|
|
|
|
|
(44,269
|
)
|
|
|
|
|
(44,269
|
)
|
|
|
|
|
|
Costs related to Value Creation Plan(h)
|
|
8,370
|
|
|
|
|
|
—
|
|
|
|
|
|
8,370
|
|
|
|
|
|
|
Contract manufacturer transition costs(i)
|
|
448
|
|
|
|
|
|
—
|
|
|
|
|
|
448
|
|
|
|
|
|
|
Plant expansion costs(j)
|
|
311
|
|
|
|
|
|
—
|
|
|
|
|
|
311
|
|
|
|
|
|
|
Product withdrawal and recall costs(k)
|
|
260
|
|
|
|
|
|
—
|
|
|
|
|
|
260
|
|
|
|
|
|
|
Other(l)
|
|
(1,491
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(1,491
|
)
|
|
|
|
|
|
Net income tax effect(f)
|
|
(1,379
|
)
|
|
|
|
|
12,130
|
|
|
|
|
|
10,751
|
|
|
|
|
|
Adjusted loss
|
|
(26,486
|
)
|
|
(0.30
|
)
|
|
(294
|
)
|
|
(0.00
|
)
|
|
(26,780
|
)
|
|
(0.31
|
)
|
(a) Reflects professional fees of $1.6 million and employee retention costs of $0.9 million recorded in SG&A expenses; and employee termination costs of $1.6 million (offset by a $0.9 million reversal of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees), and facility closure costs of $0.4 million recorded in other expense.
(b) Reflects a loss of $2.4 million on the settlement of a customer claim related to the recall of certain sunflower products in 2016, net of a $1.7 million gain on the settlement of an unrelated legal matter, which were recorded in other expense/income.
(c) Reflects costs related to the expansion of our plant-based extraction capabilities at our Alexandria, Minnesota, facility, which were recorded in cost of goods sold.
(d) Reflects a gain on the settlement of the remaining earn-out obligation related to our acquisition of Citrusource in 2015, which was recorded in other income.
(e) Other includes the reversal of previously accrued costs related to the withdrawal of certain consumer-packaged products, partially offset by a loss on the disposal of assets, which were recorded in other income/expense.
(f) Reflects the tax effect of the preceding adjustments to earnings and reflects an overall estimated annual effective tax rate of approximately 30% for the three quarters ended September 26, 2020 (September 28, 2019 - 27%) on adjusted loss before tax.
(g) Reflects the gain on sale of the soy and corn business, net of transaction costs and post-closing adjustments, which was recorded in other income.
|
SUNOPTA INC.
|
46
|
September 26, 2020 10-Q
|
(h) Reflects employee retention and relocation costs of $1.8 million, and professional fees of $1.0 million recorded in SG&A expenses; and employee termination costs of $6.9 million (offset by the reversal of $2.9 million of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees), CEO and CFO recruitment costs of $1.2 million, and facility closure costs of $0.3 million, all recorded in other expense.
(i) Reflects costs to transition premium juice production activities to new contract manufacturers, which were recorded in cost of goods sold and other expense.
(j) Reflects costs related to the expansion of our Allentown, Pennsylvania, plant-based beverage facility, which were recorded in cost of goods sold.
(k) Reflects product withdrawal and recall costs that were not eligible for reimbursement under insurance policies or exceeded the limits of those policies, including costs related to the 2016 sunflower product recall, which were recorded in other expense.
(l) Other includes settlement gains resulting from a legal matter and a project cancellation, offset by losses on disposal of assets, and insurance deductibles, which were recorded in other income/expense.
(3) The following table presents a reconciliation of segment operating income/loss and adjusted EBITDA from net earnings/loss, which we consider to be the most directly comparable U.S. GAAP financial measure (refer to footnote (3) to the "Consolidated Results of Operations for the Quarters Ended September 26, 2020 and September 28, 2019" table regarding the use of this non-GAAP measure). In addition, as described above under footnote (2), we have prepared this table in a columnar format to present the effect of the disposals of the soy and corn business on our consolidated results for the three quarters ended September 28, 2019. We believe this presentation assists investors in assessing the results of the operations we have exited and the effect of those operations on our financial performance.
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
|
|
|
|
disposed operations
|
|
|
Disposed operations
|
|
|
Consolidated
|
|
|
For the three quarters ended
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 26, 2020
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
4,415
|
|
|
—
|
|
|
4,415
|
|
|
Provision for income taxes
|
|
1,623
|
|
|
—
|
|
|
1,623
|
|
|
Interest expense, net
|
|
24,233
|
|
|
—
|
|
|
24,233
|
|
|
Other income, net
|
|
(601
|
)
|
|
—
|
|
|
(601
|
)
|
|
Total segment operating income
|
|
29,670
|
|
|
—
|
|
|
29,670
|
|
|
|
Depreciation and amortization
|
|
26,342
|
|
|
—
|
|
|
26,342
|
|
|
|
Stock-based compensation(a)
|
|
8,810
|
|
|
—
|
|
|
8,810
|
|
|
|
Costs related to Value Creation Plan(b)
|
|
2,434
|
|
|
—
|
|
|
2,434
|
|
|
|
Plant expansion costs(c)
|
|
337
|
|
|
—
|
|
|
337
|
|
|
Adjusted EBITDA
|
|
67,593
|
|
|
—
|
|
|
67,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 28, 2019
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
(26,941
|
)
|
|
31,845
|
|
|
4,904
|
|
|
Provision for (recovery of) income taxes
|
|
(8,779
|
)
|
|
12,018
|
|
|
3,239
|
|
|
Interest expense, net
|
|
25,857
|
|
|
—
|
|
|
25,857
|
|
|
Other expense (income), net
|
|
4,525
|
|
|
(44,269
|
)
|
|
(39,744
|
)
|
|
Total segment operating loss
|
|
(5,338
|
)
|
|
(406
|
)
|
|
(5,744
|
)
|
|
|
Depreciation and amortization
|
|
24,876
|
|
|
129
|
|
|
25,005
|
|
|
|
Stock-based compensation(a)
|
|
8,265
|
|
|
—
|
|
|
8,265
|
|
|
|
Costs related to Value Creation Plan(b)
|
|
2,772
|
|
|
—
|
|
|
2,772
|
|
|
|
Plant expansion costs(c)
|
|
311
|
|
|
—
|
|
|
311
|
|
|
|
Contract manufacturer transition costs(d)
|
|
289
|
|
|
—
|
|
|
289
|
|
|
Adjusted EBITDA
|
|
31,175
|
|
|
(277
|
)
|
|
30,898
|
|
(a) For the first three quarters of 2020 and 2019, stock-based compensation of $8.8 million and $8.3 million, respectively, was recorded in SG&A expenses, and the reversal of $0.9 million and $2.9 million, respectively, of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees was recognized in other income.
(b) For the first three quarters of 2020 and 2019, reflects professional fees, and employee retention and relocation costs of $2.4 million and $2.8 million, respectively, recorded in SG&A expenses.
(c) For the first three quarters of 2020, reflects costs related to the expansion of our plant-based extraction capabilities at our Alexandria, Minnesota, facility, and, for the first three quarters of 2019, reflects costs related to the expansion of our Allentown, Pennsylvania, plant-based beverage facility, which were recorded in cost of goods sold.
(d) Reflects costs to transition premium juice production activities to new contract manufacturers, which were recorded in cost of goods sold.
(4) Refer to footnote (4) to the "Consolidated Results of Operations for the Quarters Ended September 26, 2020 and September 28, 2019" table regarding the use of certain other non-GAAP measures in the discussion of our results of operations below.
Revenues for the three quarters ended September 26, 2020 increased by 7.6% to $961.9 million from $894.2 million for the three quarters ended September 28, 2019. Excluding the impact on revenues of the sale of the soy and corn business and the acquisition of Sanmark (a net decrease in revenues of $7.3 million) and changes in foreign exchange rates (a decrease in revenues of $0.3 million), partially offset by changes in commodity-related pricing (an increase in revenues of $2.8 million), revenues increased by 8.2% in the first three quarters of 2020, compared with the first three quarters of 2019. Revenues increased on an adjusted basis across all segments of the business, reflecting the expansion of plant-based beverage and broth offerings for retail customers, growth in plant-based ingredient extraction volumes, higher volumes of organic ingredients and premium juice products, and increased retail volumes of frozen fruit, partially offset by lower volumes of plant-based beverage, frozen fruit and fruit ingredient products sold into the foodservice channel.
|
SUNOPTA INC.
|
47
|
September 26, 2020 10-Q
|
Gross profit increased $43.4 million, or 53.1%, to $125.3 million for the three quarters ended September 26, 2020, compared with $81.9 million for the three quarters ended September 28, 2019. As a percentage of revenues, gross profit for the three quarters ended September 26, 2020 was 13.0% compared to 9.2% for the three quarters ended September 28, 2019, an increase of 380 basis points. Gross profit and gross profit percentage increased across all segments of the business. In the Global Ingredients segment, the $9.3 million increase in gross profit and 220-basis point increase in gross profit percentage reflected higher sales volumes, pricing spreads and productivity improvements for certain organic ingredients, together with a favorable cocoa commodity hedging result, and higher sales volumes and pricing, and lower production costs for premium juice products, partially offset by lower-margin sales to reduce inventory positions in certain organic ingredients, and manufacturing inefficiencies related to organic avocado oil production. In the Plant-Based Foods and Beverages segment, gross profit increased $18.6 million and gross profit percentage increased 410 basis points, reflecting higher sales and production volumes of plant-based beverages, broths and plant-based ingredients, and improved plant utilization and productivity-driven cost savings. Finally, in the Fruit-Based Foods and Beverages segment, the $15.6 million increase in gross profit and 540-basis point increase in gross profit percentage reflected increased sales pricing and a favorable mix of higher-margin retail sales of frozen fruit, and lower processing costs and productivity improvements for frozen fruit, partially offset by lower production and plant utilization for fruit ingredients and fruit snacks.
For the three quarters ended September 26, 2020, we realized total segment operating income of $29.7 million, compared with a total segment operating loss of $5.7 million for the three quarters ended September 28, 2019. The $35.4 million increase in total segment operating income reflected higher gross profit, as described above, partially offset by a year-over-year unfavorable foreign exchange impact of $4.8 million within our European organic ingredients and Mexican frozen fruit operations, together with a $3.6 million increase in SG&A expenses mainly due to higher employee-related variable compensation and benefit costs, and reserves for credit losses due to a weaker economic outlook, partially offset by the benefit from headcount reductions and other cost savings measures taken in 2019, together with lower travel and marketing costs.
Further details on revenue, gross profit and segment operating income/loss variances are provided below under "Segmented Operations Information."
Other income for the three quarters ended September 26, 2020, of $0.6 million, mainly reflected a $2.3 million gain on the settlement of a remaining earn-out obligation that arose from our acquisition of Citrusource in 2015, together with a legal settlement gain of $1.7 million, partially offset by a loss of $2.4 million on the settlement of a customer claim related to the recall of certain sunflower products in 2016, and employee termination and facility closure costs related to the Value Creation Plan of $1.0 million. Other income for the three quarters ended September 28, 2019, of $39.7 million, mainly reflected a pre-tax gain on sale of the soy and corn business of $44.3 million and legal settlement and project cancellation gains of $1.8 million, partially offset by employee termination and recruitment costs of $5.3 million associated with the Value Creation Plan, including costs related to our CEO and CFO transitions.
Net interest expense decreased by $1.7 million to $24.2 million for the three quarters ended September 26, 2020, compared with $25.9 million for the three quarters ended September 28, 2019. Interest expense included the amortization of debt issuance costs of $3.0 million and $2.0 million in the first three quarters of 2020 and 2019, respectively. The year-over-year decrease in net interest expense reflected lower average borrowings and weighted-average interest rates under our line of credit facilities, together with interest income received on a tax refund in the first quarter of 2020.
We recognized a provision of income tax of $1.6 million for the three quarters ended September 26, 2020, compared with $3.2 million for the three quarters ended September 28, 2019. The effective tax rate was 26.9% in the first three quarters of 2020, compared with 39.8% in the first three quarters of 2019.
On a consolidated basis, we realized a loss attributable to common shareholders of $3.0 million (diluted loss per share of $0.03) for the three quarters ended September 26, 2020, compared with loss attributable to common shareholders of $1.2 million (diluted loss per share of $0.01) for the three quarters ended September 28, 2019, which was inclusive of the gain on the sale of the soy and corn business.
For the three quarters ended September 26, 2020, adjusted loss was $1.7 million, or $0.02 per diluted share, compared with an adjusted loss of $26.8 million, or $0.31 per diluted share, for the three quarters ended September 28, 2019. Excluding the results of the disposed soy and corn operations, adjusted loss was $26.5 million, or $0.30 per diluted share, for the three quarters ended September 28, 2019. Adjusted EBITDA of $67.6 million for the three quarters ended September 26, 2020 more than doubled adjusted EBITDA of $30.9 million for the three quarters ended September 28, 2019. Excluding disposed operations, adjusted EBITDA was $31.2 million for the three quarters ended September 28, 2019. Adjusted loss and adjusted EBITDA are non-GAAP financial measures. See footnotes (2) and (3) to the table above for a reconciliation of adjusted loss and adjusted EBITDA from net earnings/loss, which we consider to be the most directly comparable U.S. GAAP financial measure.
|
SUNOPTA INC.
|
48
|
September 26, 2020 10-Q
|
Segmented Operations Information
|
Global Ingredients
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three quarters ended
|
|
September 26, 2020
|
|
|
September 28, 2019
|
|
|
Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
378,217
|
|
$
|
369,090
|
|
$
|
9,127
|
|
|
2.5%
|
|
|
Gross profit
|
|
48,021
|
|
|
38,744
|
|
|
9,277
|
|
|
23.9%
|
|
|
Gross profit %
|
|
12.7%
|
|
|
10.5%
|
|
|
|
|
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
22,003
|
|
$
|
13,610
|
|
$
|
8,393
|
|
|
61.7%
|
|
|
Operating income %
|
|
5.8%
|
|
|
3.7%
|
|
|
|
|
|
2.1%
|
|
Global Ingredients contributed $378.2 million in revenues for the three quarters ended September 26, 2020, compared to $369.1 million for the three quarters ended September 28, 2019, an increase of $9.1 million, or 2.5%. Excluding the impact on revenues of changes in commodity-related pricing (a decrease in revenues of $8.2 million) and foreign exchange rates (a decrease in revenues of $0.3 million), and the sale of the soy and corn business and acquisition of Sanmark (a net decrease in revenues of $7.3 million), Global Ingredients revenues increased approximately 6.9%. The table below explains the increase in reported revenues:
|
Global Ingredients Revenue Changes
|
|
|
Revenues for the three quarters ended September 28, 2019
|
$369,090
|
|
|
Increased sales volumes of organic ingredients including cocoa (reflecting increased production volumes of cocoa ingredients and sales of cocoa beans), oils (including incremental revenues from Sanmark and increased production volumes of sunflower oil), and fruits and vegetables (reflecting higher volume, lower priced sales to reduce inventory positions), partially offset by lower volumes of animal feed and grains (due to the exit from underperforming bulk categories), and coffee (reflecting the impact of COVID-19 on foodservice customers in the first half of 2020)
|
17,164
|
|
|
Higher sales volumes and pricing for premium juice products
|
10,810
|
|
|
Impact of the sale of soy and corn business
|
(10,346)
|
|
|
Decreased commodity pricing for organic ingredients
|
(8,228)
|
|
|
Unfavorable foreign exchange impact on euro-denominated sales due to a stronger U.S. dollar period-over-period
|
(273)
|
|
Revenues for the three quarters ended September 26, 2020
|
$378,217
|
Gross profit in Global Ingredients increased by $9.3 million to $48.0 million for the three quarters ended September 26, 2020, compared to $38.7 million for the three quarters ended September 28, 2019, and the gross profit percentage increased by 220 basis points to 12.7%. Excluding the impact on gross profit of the sale of the soy and corn business, the gross profit percentage would have been 10.7% in the first three quarters of 2019. The increase in gross profit percentage excluding the soy and corn business reflected increased pricing spreads, higher-margin product mix within certain categories of organic ingredients, manufacturing efficiencies for cocoa and sunflower ingredients, and a favorable cocoa commodity hedging result, together with higher sales pricing and lower bottling costs for premium juice products, partially offset by lower-margin sales to reduce inventory positions in certain organic ingredients, and manufacturing inefficiencies related to organic avocado oil production. The table below explains the increase in gross profit:
|
SUNOPTA INC.
|
49
|
September 26, 2020 10-Q
|
|
Global Ingredients Gross Profit Changes
|
|
|
Gross profit for the three quarters ended September 28, 2019
|
$38,744
|
|
|
Higher pricing spreads on seed, nuts, animal feed and grains, and increased sales volumes of organic ingredients, including cocoa and oils, together with increased production volumes and manufacturing efficiencies in our cocoa and sunflower operations, and an increase in cocoa commodity hedging gains ($0.8 million), partially offset by lower volumes and pricing for coffee, lower-margin sales to reduce certain inventory positions, and manufacturing inefficiencies at our organic avocado oil facility
|
6,257
|
|
|
Higher sales volumes and pricing, and lower bottling costs for premium juice products
|
3,200
|
|
|
Impact of the sale of the soy and corn business
|
(180)
|
|
Gross profit for the three quarters ended September 26, 2020
|
$48,021
|
Operating income in Global Ingredients increased by $8.4 million, or 61.7%, to $22.0 million for the three quarters ended September 26, 2020, compared to $13.6 million for the three quarters ended September 28, 2019. The table below explains the increase in operating income:
|
Global Ingredients Operating Income Changes
|
|
|
Operating income for the three quarters ended September 28, 2019
|
$13,610
|
|
|
Increase in gross profit, as explained above
|
9,277
|
|
|
Lower employee compensation costs due to lower headcount, and reduced spending associated with travel and marketing activities, together with SG&A reductions from the sale of the soy and corn business, partially offset by higher employee-related variable compensation
|
1,843
|
|
|
Decrease in corporate cost allocations
|
919
|
|
|
Decrease in mark-to-market gains related to forward currency contracts ($2.2 million), together with net foreign exchange losses on the revaluation of U.S. dollar-denominated receivable and payable balances
|
(3,646)
|
|
Operating income for the three quarters ended September 26, 2020
|
$22,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant-Based Foods and Beverages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three quarters ended
|
|
September 26, 2020
|
|
|
September 28, 2019
|
|
|
Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
296,985
|
|
$
|
255,027
|
|
$
|
41,958
|
|
|
16.5%
|
|
|
Gross profit
|
|
57,517
|
|
|
38,931
|
|
|
18,586
|
|
|
47.7%
|
|
|
Gross profit %
|
|
19.4%
|
|
|
15.3%
|
|
|
|
|
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
37,456
|
|
$
|
15,731
|
|
$
|
21,725
|
|
|
138.1%
|
|
|
Operating income %
|
|
12.6%
|
|
|
6.2%
|
|
|
|
|
|
6.4%
|
|
Plant-Based Foods and Beverages contributed $297.0 million in revenues for the three quarters ended September 26, 2020, compared to $255.0 million for the three quarters ended September 28, 2019, an increase of $42.0 million, or 16.5%. Excluding the impact on revenues of changes in sunflower commodity-related pricing (an increase in revenues of $3.9 million), Plant-Based Foods and Beverages revenues increased approximately 14.9%. The table below explains the increase in reported revenues:
|
SUNOPTA INC.
|
50
|
September 26, 2020 10-Q
|
|
Plant-Based Foods and Beverages Revenue Changes
|
|
|
Revenues for the three quarters ended September 28, 2019
|
$255,027
|
|
|
Higher retail sales volumes of plant-based beverages and everyday broth offerings, including output from additional aseptic processing capacity that came on-line in the third quarter of 2019, as well as increased demand for plant-based ingredients, partially offset by reduced sales volumes of plant-based beverage products to foodservice customers
|
39,608
|
|
|
Increased commodity pricing for sunflower
|
3,929
|
|
|
Lower volumes of sunflower inshell and kernel, and roasted ingredients, partially offset by higher volumes of birdfeed and roasted snacks
|
(1,579)
|
|
Revenues for the three quarters ended September 26, 2020
|
$296,985
|
Gross profit in Plant-Based Foods and Beverages increased by $18.6 million to $57.5 million for the three quarters ended September 26, 2020, compared to $38.9 million for the three quarters ended September 28, 2019, and the gross profit percentage increased by 410 basis points to 19.4%. The increase in the gross profit percentage reflected strong production volumes, improved plant utilization and productivity-driven cost savings within our plant-based beverage and ingredient extraction operations, and improved margin performance within our sunflower and roasting operations. The table below explains the increase in gross profit:
|
Plant-Based Foods and Beverages Gross Profit Changes
|
|
|
Gross profit for the three quarters ended September 28, 2019
|
$38,931
|
|
|
Higher sales volumes, plant utilization and productivity improvements within our plant-based beverage and ingredient extraction operations
|
18,210
|
|
|
Higher sales volumes of birdfeed and roasted snacks and improved plant utilization within our sunflower and roasting operations, partially offset by lower volumes of sunflower inshell and kernel
|
376
|
|
Gross profit for the three quarters ended September 26, 2020
|
$57,517
|
Operating income in Plant-Based Foods and Beverages increased by $21.8 million to $37.5 million for the three quarters ended September 26, 2020, compared to $15.7 million for the three quarters ended September 28, 2019. The table below explains the increase in operating income:
|
Plant-Based Foods and Beverages Operating Income Changes
|
|
|
Operating income for the three quarters ended September 28, 2019
|
$15,731
|
|
|
Increase in gross profit, as explained above
|
18,586
|
|
|
Decrease in corporate cost allocations
|
2,024
|
|
|
Lower employee compensation costs due to headcount reductions and reduced travel and marketing costs, partially offset by higher product development spending and employee-related variable compensation
|
1,115
|
|
Operating income for the three quarters ended September 26, 2020
|
$37,456
|
|
SUNOPTA INC.
|
51
|
September 26, 2020 10-Q
|