The following is a summary of the Lassonde Industries Inc. (LSDAF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Lassonde reported an annual sales increase of 7.6% for 2023, attributed to price adjustments and a favorable sales mix, with a Q4 sales increase of 8.8%, reaching $605 million.
A significant increase in reported gross profit to $153 million, which constitutes 25.2% of sales, and adjusted profit attributable to shareholders was $21 million or $3.14 per share.
Adjusted EBITDA increased by 32% compared to the previous year, and the gross margin improved by over 100 basis points due to high gross margins and lower freight costs.
Lassonde Industries Inc. reported acquiring a controlling interest in Diamond Estates Wines & Spirits from November 14, 2023.
Business Progress:
Market share grew in Canada, evidencing a successful build-back plan in the wake of declining fruit juice and drink demand.
The implementation of a new TMS system led to reduced freight costs and improved adjusted EBITDA.
Lassonde expanded its production capabilities, initiating a new high-speed juice box line, and planning a new single-serve line at its North Carolina facility, set to begin full production in 2025.
Expected volume decline in the first half of 2024 is anticipated to be offset by a sequential volume improvement in the latter half of the year.
The company is considering growth options for its specialty food division in 2024, potentially involving organic growth or acquisitions.
More details: LASSONDE INDUSTRIES INC IR
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