Sucro Announces Fourth Quarter and Year-End 2023 Results
Financial Highlights
- Full-year revenues of
$496.8 million on sugar deliveries of 476,778 metric tons; Q4 of$114.6 million and 95,883 metric tons, respectively - Full-year net income of
$20.0 million ; Q4 net loss of$10.4 million - Full-year adjusted gross profit1 of
$49.1 million and adjusted gross profit margin1 percentage of 9.9%; Q4 of$9.5 million and 8.3%, respectively - Full-year EBITDA1 of
$54.1 million and Adjusted EBITDA1 of$33.1 million ; Q4 of ($5.5 million ) and$8.3 million , respectively - Full-year Adjusted gross profit per metric ton delivered1 2 of
$94.37 ; Q4 of$55.64 - For our refineries, Full-year volumes of 160,323 metric tons; Q4 of 34,287 metric tons
- For our refineries, Full-year Adjusted gross profit per metric ton delivered of
$143.49 ; Q4 of$182.12
Q4 and Year-End 2023 Highlights (audited) |
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Three Months Ended |
|
Year Ended |
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In 000s of |
|
2023 |
|
2022 |
Change |
|
2023 |
|
2022 |
Change |
|
|
|
|
|
|
|
|
|
|
|
Sugar Deliveries (Metric Tons) |
|
95,883 |
|
81,947 |
17 % |
|
476,778 |
|
518,557 |
-8 % |
Revenue |
$ |
114,560 |
$ |
94,455 |
21 % |
$ |
496,834 |
$ |
439,254 |
13 % |
Gross profit |
|
(4,857) |
|
23,186 |
-121 % |
|
70,285 |
|
72,416 |
-3 % |
Adjusted gross profit 1 |
|
9,467 |
|
15,401 |
-39 % |
|
49,126 |
|
38,291 |
28 % |
Adjusted gross profit margin1 |
|
8.3 % |
|
16.3 % |
|
|
9.9 % |
|
8.7 % |
|
EBITDA1 |
|
(5,471) |
|
18,086 |
-130 % |
|
54,113 |
|
54,521 |
-1 % |
Adjusted EBITDA1 |
|
8,308 |
|
10,452 |
-21 % |
|
33,065 |
|
22,412 |
48 % |
Adjusted EBITDA Margin1 |
|
7.3 % |
|
11.1 % |
|
|
6.7 % |
|
5.1 % |
|
Net Income (Loss) |
|
(10,381) |
|
15,685 |
-166 % |
|
19,974 |
|
35,570 |
-44 % |
Per share (basic) |
|
(1.65) |
|
2.27 |
-173 % |
|
3.18 |
|
5.14 |
-38 % |
Adjusted gross profit per metric ton delivered1,2 |
|
55.64 |
|
187.94 |
-70 % |
|
94.37 |
|
73.84 |
28 % |
|
|
|
|
|
|
|
|
|
|
|
Refineries Results: |
|
|
|
|
|
|
|
|
|
|
Refineries Volume (Metric Tons) |
|
34,287 |
|
19,345 |
77 % |
|
160,323 |
|
83,615 |
92 % |
Adjusted gross profit |
$ |
6,244 |
$ |
2,276 |
174 % |
$ |
23,004 |
$ |
9,480 |
143 % |
Adjusted gross profit per metric ton delivered1 |
|
182.12 |
|
117.67 |
55 % |
|
143.49 |
|
113.38 |
27 % |
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" below for further details. |
2. Net of cash settlements |
"The Sucro team delivered a strong operational performance in 2023, which included valuable contributions from our US-based
Taylor further commented "Our expectation in 2024 is to deliver further production growth from our existing operations while executing our refinery expansion plans. Our investment program for the year is focused on construction activities for our new refinery in
Q4 and Year-end 2023 Investor Call
The Company will host a conference call on
Date: |
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Time: |
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Conference Call: |
Toll-Free (888) 664-6392 |
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Local (GTA) (416) 764-8659 |
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Please dial in at least five minutes before the call begins. |
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Replay: |
Available through May 6, 2024 |
Replay Access: |
Toll-Free (888) 390-0541 |
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Local (GTA) (416) 764-8677 |
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Passcode 011068 # |
Results from Operations - Three Months Ended
Values are in 000s of USD except per share, sugar deliveries, and refinery volume metrics.
Quarter Ended |
2023 |
2022 |
|
|
|
Sugar Deliveries (Metric Tons) |
95,883 |
81,947 |
|
|
|
|
|
|
Revenue |
$ 114,560 |
$ 94,455 |
Cost of sales |
119,417 |
71,269 |
Gross Profit |
(4,857) |
23,186 |
Adjusted gross profit |
9,467 |
15,401 |
Adjusted gross profit margin |
8.3 % |
16.3 % |
Income From Operations |
(8,057) |
17,002 |
Income Before Income Taxes |
(14,404) |
13,881 |
Net Income |
(10,381) |
15,685 |
Adjusted Gross profit/MT Delivered |
0.10 |
0.19 |
Revenue/MT Delivered |
1.19 |
1.15 |
Income from continuing operations– per share (basic)* |
(1.65) |
2.27 |
Income from continuing operations– per share (diluted)* |
(0.45) |
2.23 |
EBITDA |
(5,471) |
18,086 |
Adjusted EBITDA |
8,308 |
10,452 |
EBITDA Margin |
-4.8 % |
19.1 % |
Adjusted EBITDA Margin |
7.3 % |
11.1 % |
Return on equity (annualized) |
18.3 % |
49.7 % |
Adjusted gross profit per metric ton delivered (net of |
55.64 |
187.94 |
|
|
|
Refineries Results |
|
|
Refineries Volume (Metric Tons) |
34,287 |
19,345 |
Adjusted Gross Profit |
$ 6,244 |
$ 2,276 |
Adjusted Gross Profit per MT |
182.12 |
117.67 |
* Per share figures are as reported and do not make any adjustments for the Reorganization (defined in the Company's most recent MD&A). The basic calculation does count each PVS as one share. |
Customer sugar deliveries increased by 17.0% from 81,947 MTs for the quarter ended
Adjusted Gross Profit decreased to
Refined sugar deliveries from our own refineries increased by 77.2% from 19,345 MT in the three months ended
Results from Operations – Year Ended
Values are in 000s of USD except per share, sugar deliveries, and refinery volume metrics.
Year Ended |
2023 |
2022 |
|
|
|
Sugar Deliveries (Metric Tons) |
476,778 |
518,557 |
|
|
|
Revenue |
$ 496,834 |
$ 439,254 |
Cost of sales |
426,549 |
366,838 |
Gross Profit |
70,285 |
72,416 |
Adjusted gross profit |
49,126 |
38,291 |
Adjusted gross profit margin |
9.9 % |
8.7 % |
Income From Operations |
46,796 |
50,022 |
Income Before Income Taxes |
26,331 |
41,749 |
Net Income (Loss) |
19,974 |
35,570 |
Income from continuing operations– per share (basic)* |
3.18 |
5.14 |
Income from continuing operations– per share (diluted)* |
0.86 |
5.06 |
EBITDA |
54,113 |
54,521 |
Adjusted EBITDA |
33,065 |
22,412 |
Adjusted EBITDA/MT Delivered |
69.35 |
43.22 |
EBITDA Margin |
10.9 % |
12.4 % |
Adjusted EBITDA Margin |
6.7 % |
5.1 % |
Total assets |
543,929 |
380,052 |
Total non-current liabilities |
67,581 |
60,556 |
Total Shareholders' equity |
141,825 |
109,127 |
Return on equity |
18.3 % |
49.7 % |
Adjusted gross profit per metric ton delivered (net of |
94.37 |
73.84 |
Free cash flow |
4,823 |
6,730 |
|
|
|
Refineries Results |
|
|
Refineries Volume (Metric Tons) |
160,323 |
83,615 |
Adjusted Gross Profit |
$ 23,004 |
$ 9,480 |
Adjusted Gross Profit per MT |
143.49 |
113.38 |
* Per share figures are as reported and do not make any adjustments for the Reorganization (defined in the Company's most recent MD&A). Basic calculation does count each PVS as one share. |
For the year ended
Adjusted EBITDA was
Net income for the year ended
Revenue for the year ended
Revenues are anticipated to increase in the 2024 fiscal year as commissioning of the
The composition of the Company's revenue for the years ended
Year Ended |
2023 |
2022 |
|
|
|
Tolling |
$ 1,306 |
$ 5,200 |
Warehousing |
1,015 |
1,464 |
Commodity |
495,316 |
432,347 |
Futures and options results |
(803) |
243 |
Total revenue |
$ 496,834 |
$ 439,254 |
During the year ended
The composition of cost of sales for the years ended
Year Ended |
2023 |
2022 |
|
|
|
Purchases |
$ 327,494 |
$ 310,632 |
Production and processing |
53,441 |
33,734 |
Logistics/ freight |
44,121 |
42,717 |
|
7,024 |
5,665 |
Overheads |
10,660 |
5,183 |
Foreign exchange loss |
1,206 |
747 |
Depreciation on plant and equipment |
3,093 |
1,692 |
Depreciation on right-of-use plant and equipment |
345 |
354 |
Mark to market unrealized positions |
(20,835) |
(33,886) |
Total cost of sales |
$ 426,549 |
$ 366,838 |
Cost of sales increased by
Mark-to-market gains on forward contracts and, to a lesser extent, inventory, drove the
During the year ended
The composition of selling, general and administrative expenses for the years ended
Year Ended |
2023 |
2022 |
|
|
|
Administrative expenses |
$ 18,455 |
$ 14,359 |
Selling and distribution expenses |
866 |
544 |
Other operating expenses |
2,619 |
4,014 |
Depreciation |
1,460 |
664 |
Depreciation of right-of-use assets |
550 |
475 |
Equity-based compensation |
(461) |
2,338 |
Equity-based settlement expense |
- |
- |
Total Selling, General and Administrative Expenses |
$ 23,489 |
$ 22,394 |
Total Selling, General and Administrative Expenses / |
4.73 % |
5.10 % |
The Company's selling, general and administrative expenses amounted to
Administrative expenses, which include staff payroll, benefits and pension costs, professional fees, insurance, bank service charges and other office expenses were
During the year ended
During the year ended
During the year ended
During the year ended
The Company's current and deferred income tax expense increased by
Outlook
In
The Company's final prospectus also contained full-year 2024 EBITDA and Adjusted EBITDA estimates of between
As estimates for 2024 EBITDA and Adjusted EBITDA had been originally provided in the Company's prospectus, we intend to update such guidance through the end of the 2024 reporting period. Due to the variable nature of Sucro's trading operations and the developmental stage of the Company's refining operations, Management intends to discontinue providing earnings guidance going forward. Given the growing importance of the Company's refinery operations and its expected expansion as a proportion of its overall business activities, we intend to focus our forward guidance on delivery volumes from our refineries, along with information on Adjusted Gross Margin per metric ton of sugar delivered from our refineries, capital expenditures, and the debt and equity composition of the financing of any capital projects. We believe that these measures better align our targets and guidance with Management's vision and long-term goals for Sucro.
Notwithstanding the above, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Management has recently reviewed the Company's commitments and opportunities for the application of its capital and has determined not to pay a dividend on the Company's shares at this time in order to invest in more accretive opportunities, including funding planned capital expenditures. Any determination to pay dividends in the future will be at the discretion of the Board and will depend on many factors, including, among others, the Company's financial condition, current and anticipated cash requirements, contractual restrictions and financing agreement covenants, solvency tests imposed by applicable corporate law and other factors that the Board may deem relevant.
Longer-term Outlook for our Refinery Operations
Sucro's strategic plan is to grow its sugar sourcing, refining and distribution infrastructure, with an emphasis on low-capital-cost refining assets, and actively and efficiently manage the entire supply-chain cost of sugar, from the point of origin to the delivery to end-use customers in North America. Based on the Company's announced plans for expansion of its refinery capabilities in
Note: Readers are cautioned that forward-looking statements are not guarantees of future performance. Actual results could differ materially from those currently anticipated due to a number of factors and risks. See "Forward-Looking Statements". |
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1. |
Forecasted production based on announced refinery investments – |
Awards of Stock Options and Restricted Share Units
The Company announced today that, subject to regulatory approval, it has awarded stock options and restricted share units ("RSUs") pursuant to its Omnibus Equity Incentive Plan. The Company has granted stock options to acquire an aggregate of 342,846 Subordinate Voting Shares to employees, consultants and officers of Sucro subsidiaries, with each option exercisable until
Annual Meeting
The Company has called an annual and special meeting of shareholders to be held in
About Sucro
Sucro is a growth-oriented sugar company that operates throughout the
Non-IFRS and other Financial Measures
In this news release, reference is made to the following non-IFRS measures: "EBITDA", "EBITDA Margin", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Gross Profit", "Adjusted Gross Profit Margin", and "Adjusted Gross Profit Per Metric Ton". Such non-IFRS financial measures are not standardized financial measures under International Financial Reporting Standards ("IFRS") and might not be comparable to similar financial measures disclosed by other issuers. For details on the composition and a reconciliation between such non-IFRS measures and the most directly comparable financial measure in our financial statements, please refer to the "Other Selected Financial Information (Key Performance Indicators) –Non-IFRS Measures" section in our MD&A dated
Forward-Looking Statements
This Press Release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information may relate to our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "annualized", "plans", "targets", "expects", "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "pro forma", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", or the negative of these terms, or other similar expressions intended to identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
This forward-looking information includes, among other things, statements relating to: future production growth; anticipated increase in revenues for 2024; our revised 2024 Lackawanna and
This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions include: revenue; our ability to build our market share; our ability to complete our proposed new refineries on time and on budget and with the anticipated processing capacity; our ability to retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion plans; our ability to continue investing in infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; our ability to respond to any changes and trends in our industry or the global economy; and the changes in laws, rules, regulations, and global standards are material factors made in preparing forward-looking information and management's expectations.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered to be appropriate and reasonable as of the date of this Press Release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, our ability to maintain and renew licenses and permits; fluctuations in the price of sugar that we purchase, process and sell; development of new or expansion of our existing refineries may experience cost-overruns and/or delays and actual costs, operational efficiencies, production volumes or economic returns may differ materially from the Company's estimates and variances from expectations; disruptions to our supply chains as a result of outbreaks of illness, geopolitical events or other factors; inflation and rising interest rates; the risk of unhedged trading positions and counterparty defaults; a significant portion of our current credit facility is uncommitted and requests for additional advances may be refused; elimination or significantly reduction of protective duties relating to foreign sugar imports; our limited operating history and our recent growth may not be indicative of our future growth; dependence on management's ability to implement its strategy; risks of early stage companies; competitive risks; our dependence on a small number of key persons; demands of growth on our management and our operational and financial resources; and the other risk factors discussed in greater detail under "Risk Factors" in the Company's annual information form dated
The above-mentioned factors should not be construed as exhaustive. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information.
Prospective investors should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this Press Release represents our expectations as of the date of this Press Release (or as of the date they are otherwise stated to be made) and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. For additional information, readers should also refer to our Final Prospectus and other information filed on www.sedarplus.ca.
Neither
SOURCE