SunOpta Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 9.3% to $201.6 million, compared to $184.4 million in the same period last year. The growth in revenue was primarily driven by a favorable volume/mix impact of 12.2%, although this was partially offset by a 1.7% decline in pricing and a 1.3% revenue loss due to the company's exit from the smoothie bowls category. Gross profit for the quarter decreased slightly by 2.4% to $30.3 million, resulting in a gross margin of 15.0%, down from 16.8% in the prior year.
Operating income for the quarter increased to $10.5 million from $10.1 million a year earlier, attributed to a significant reduction in stock-based compensation expenses. Net earnings rose to $4.8 million, or $0.04 per diluted share, compared to $2.9 million, or $0.02 per diluted share, in the first quarter of 2024. The company also reported a decrease in net interest expense, which fell to $5.1 million from $6.1 million, reflecting interest received on a tax refund.
In terms of operational developments, SunOpta completed the divestiture of its frozen fruit business in October 2023, which has since been classified as discontinued operations. The company has also entered into a Receivables Sales Program, allowing it to sell designated trade receivables to improve cash flow. As of March 29, 2025, the company had 117,542,316 common shares outstanding, reflecting a slight increase from the previous quarter.
Looking ahead, SunOpta anticipates continued revenue growth for fiscal 2025, driven by organic volume increases in its beverages and snacks categories. However, the company faces challenges from recent U.S. tariffs on imports from Canada and Mexico, which could impact costs and pricing strategies. Management plans to implement targeted pricing actions to mitigate the effects of these tariffs, although they acknowledge potential variability in gross margins and earnings as a result. The company remains focused on improving operational efficiency and reducing costs through investments in its supply chain.
About SunOpta Inc.
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