Overview

• North America sugar trader's Q1 revenue fell 4% yr/yr as margins remained under pressure

• Q1 net income dropped 55% yr/yr; adjusted EBITDA declined 48%

• Company achieved record refinery volumes as new Hamilton and University Park facilities began ramp-up

Outlook

• Company expects improved operating leverage and stronger financial performance as new assets scale

• Sucro says margin pressure continues due to lower market prices and higher logistics costs

• Company expects long-term margin expansion as business mix shifts toward higher value refining operations

Result Drivers

• RECORD REFINERY VOLUMES - Co said ramp-up of new Hamilton and University Park facilities drove record refinery production volumes in Q1

• MARGIN COMPRESSION - Co attributed lower margins to decreased market prices, higher logistics costs, and tariffs that could not be fully passed through to customers

• MARK-TO-MARKET GAINS - Co said lower unrealized mark-to-market gains on physical sugar contracts contributed to net income decline

Company press release: ID:nCNWrLkbfa

Key Details

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