Mr. Joe Ennen reports

SUNOPTA ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS

SunOpta Inc. has released financial results for the first quarter ended April 1, 2023.

All amounts are expressed in U.S. dollars, and results are reported in accordance with U.S. generally accepted accounting principles, except where specifically noted.

First quarter 2023 highlights:

• Excluding the divested sunflower business, total company revenues of $223.9-million were up 0.4 per cent from the prior-year period; plant-based foods and beverages revenues increased by 9.3 per cent, partially offset by a 9.7-per-cent decline in fruit-based foods and beverages revenues;
• The plant-based foods and beverages segment revenue growth was led by a 25-per-cent increase in plant-based milk products, partially offset by declines in lower margin broth and ingredients;
• Gross profit margin was up 80 basis points on a reported basis and improved 320 basis points to 15.2 per cent adjusted for start-up costs related to the new Texas plant;
• Earnings from continuing operations were $1.4-million compared with $1.0-million in the prior-year period;
• Adjusted earnings attributable to common shareholders were $6.0-million or five cents per diluted common share, compared with adjusted earnings of $900,000 or one cent per diluted common share in the prior-year period;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $23.6-million, was up 50.5 per cent versus $15.7-million; as a percentage of revenue, adjusted EBITDA was 10.5 per cent compared with 6.5 per cent in the prior-year period.

"We delivered another quarter of significant increase in profitability as margin-focused portfolio optimization and revenue expansion initiatives continue to flow through to profit," said Joe Ennen, chief executive officer. "We continue to have strong momentum in our businesses by leveraging our value proposition of operating expertise, available capacity, and strong [research and development] and innovation capabilities. Plant-based milk products revenue increased 25 per cent year over year, including an 89-per-cent increase in oat. This growth was broad based from a customer perspective, and all go-to-market approaches were positive. Strong plant-based operational execution continues, as evidenced by a gross profit margin of 20 per cent, excluding start-up costs. To that point, production start-up at our new plant in Texas continues to be on schedule, setting the stage for strong second half growth. We remain well positioned competitively, confident in our outlook for 2023 and steadfast in our focus on fuelling the future of food."

2023 outlook

For fiscal 2023, the company reaffirms its outlook.

             2023 OUTLOOK
             ($ millions) 

               2023 outlook     Growth   

Revenue        $1,000-1,050      7%-12%  
Adj. EBITDA         $97-103     16%-23% 

Excluding $57.9-million of revenue in 2022 related to the divested Sunflower business, expected revenue growth rates in 2023 are between 14 per cent and 20 per cent.

Conference call

SunOpta plans to host a conference call at 5:30 p.m. Eastern Time on Wednesday, May 10, 2023, to discuss the first quarter financial results. After opening remarks, there will be a question-and-answer period. Investors interested in listening to the live webcast can click on the link on SunOpta's website under the investor relations section. A replay of the webcast will be archived and can be viewed for approximately 90 days on the company's website. This call will be available with the toll-free dial-in number 888-440-4182 or the international dial-in number 646-960-0653 using conference ID 8338433.

About SunOpta Inc.

SunOpta (Nasdaq: STKL) (Toronto Stock Exchange: SOY) is a United States-based, global pioneer fuelling the future of sustainable, plant-based and fruit-based food and beverages. Founded nearly 50 years ago, SunOpta manufactures natural, organic and specialty products sold through retail and food service channels. SunOpta operates as a manufacturer for leading natural and private label brands, and also proudly produces its own brands, including Sown, Dream, West Life and Sunrise Growers.

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