Beverage maker Lassonde Q3 sales miss on weak demand

Lassonde Industries

Yesterday 24:17

Overview
Canada food and beverage maker's Q3 sales declined and missed analyst expectations
Q3 adjusted EPS and adjusted EBITDA both missed analyst expectations
Company cites softer consumer demand and operational challenges in U.S. beverage network

Outlook
Lassonde expects fiscal 2026 sales to be slightly below fiscal 2025 levels
Company anticipates higher conversion costs for late 2026 and early 2027, mainly in U.S. beverage network
Lassonde estimates 2026 and 2027 effective tax rate at approximately 23.5%

Result Drivers
SOFTER CONSUMER DEMAND - Lassonde said Q3 results reflect weaker demand in parts of the agri-food sector as households manage budget pressures
LOWER PRIVATE LABEL VOLUMES - Co said sales decline was mainly due to lower private label sales volumes, partly offset by a favourable change in sales mix
OPERATIONAL CHALLENGES - Temporary equipment issues at New Jersey and North Carolina plants increased conversion costs and caused production inefficiencies

Company press release: ID:nGNX53My72

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
C$713.30 mln
C$729.42 mln (3 Analysts)
Q3 Adjusted EPS
Miss
C$5.94
C$6.15 (3 Analysts)
Q3 EPS
 
C$5.52
 
Q3 Adjusted EBITDA
Miss
C$83.60 mln
C$89.12 mln (3 Analysts)
Q3 EBITDA
 
C$82.20 mln
 
Q3 Gross Profit
 
C$205.50 mln
 
Q3 Operating Income
 
C$56.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Lassonde Industries Inc. is C$277.50, about 9.3% above its November 5 closing price of C$254.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Nov 5 - Canada's Premium Brands Q3 adjusted EBITDA rises
Nov 4 - Canada's Maple Leaf Foods misses Q3 revenue estimates; backs FY rev view
Nov 5 - Vegan protein maker Beyond Meat Q3 revenue falls on drop in sales volume

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)