Rogers Sugar announce a solid first quarter, happy with Alberta operations
Rogers Sugar Inc. reported on Feb. 10 first quarter fiscal 2022 results with consolidated adjusted earnings before interest, taxes, depreciation, and amortization used as an indicator of the overall profitability of a business (EBITDA) of $26.1 million.
“We felt greater volatility in customer demand and experienced some unforeseen events impacting our supply chain in Western Canada in the last few weeks of the quarter, resulting in the postponement of anticipated shipments in both of our business segments, said Mike Walton, President and Chief Executive Officer of Rogers and Lantic Inc. We remain positive for our financial outlook for 2022, as we continue to build on improved gross margin, especially in
our Sugar segment, and stable volume forecast for both of our segments for the remainder of the year. Finally, we are also pleased with the progress made on the processing of the current beet crop in Alberta, and we anticipate a production volume aligned with expectations for the first time in the last three years.”
• Adjusted EBITDA in the Sugar segment was $22.6 million in the first quarter of fiscal 2022, largely in line with the same quarter last year as higher adjusted gross margin was offset by increased administration costs;
• Sales volumes in the Sugar segment decreased by 10,397 metric tonnes to 180,043 metric tonnes in the first quarter, as lower industrial, consumer and export volumes were partly offset by higher liquid volume;
• Sugar segment adjusted gross margin improved by $13.06 per metric tonne in the first quarter of 2022 compared to last year due to higher pricing, offsetting the unfavourable variance in sales volume over the same period;
• Free cash flow for the trailing 12 months ended January 1, 2022 was $41.1 million, an increase of $2.0 million from the same period last year;
• In the first quarter of 2022, we distributed $0.09 per share to our shareholders for a total amount of $9.3 million;
• On February 10, 2022, the Board of Directors declared a quarterly dividend of $0.09 per share, payable on April 20, 2022.