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.
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