Canada's Lassonde Q2 sales miss estimates on lower sales volumes
Canada's Lassonde Q2 sales miss estimates on lower sales volumes
Overview
Canada food and beverage maker's Q2 sales declined and missed analyst expectations
Adjusted EPS for Q2 rose and beat analyst expectations
Company expects 2026 sales to be slightly below 2025 levels amid macroeconomic pressures
Outlook
Lassonde expects 2026 sales to be slightly below 2025 levels, excluding FX impacts
Company sees 2026 capital expenditures up to 7% of sales, including about US$96 mln for New Jersey plant
Lassonde estimates 2026 effective tax rate at about 23.5%
Result Drivers
LOWER SALES VOLUMES - Co said Q2 sales fell mainly due to lower volumes for both private label and branded products
HIGHER SELLING PRICES & PRODUCT MIX - Co said gross profit grew due to selling price adjustments, improved product mix, and moderating input-cost pressures
IMPAIRMENT & COST INCREASES - Co said operating profit fell due to impairment charges, higher transportation costs from fuel surcharges, and increased compensation and admin expenses
Company press release: ID:nGNX6KmV7Y
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | C$737.70 mln | C$746.30 mln (3 Analysts) |
Q2 Adjusted EPS | Beat | C$7.45 | C$6.10 (3 Analysts) |
Q2 EPS |
| C$3.95 |
|
Q2 Adjusted EBITDA | Beat | C$100.70 mln | C$90.89 mln (2 Analysts) |
Q2 Gross Profit |
| C$227.60 mln |
|
Q2 Operating Income |
| C$40 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 23.4% above its August 5 closing price of C$224.81
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Aug 6 - Canada's Rogers Sugar Q3 revenue falls, misses estimates
Aug 6 - Canada's Premium Brands Holdings Q2 revenue up 26%, slightly beats estimates
Aug 5 - Canada Packers Q2 profit misses on lower pork cutout
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.)
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Canada's Lassonde Q2 sales miss estimates on lower sales volumes