Lassonde Industries (TSE:LAS.A) reported record results for fiscal 2025 and a sharp year-over-year improvement in fourth-quarter profitability, as executives pointed to market share gains, disciplined pricing, and easing comparisons versus prior-year operational disruptions.
Fourth-quarter results: sales up 4% as profit and margins improved
For the fourth quarter ended Dec. 31, 2025, Lassonde posted sales of CAD 768 million, up 4.1% from the prior year. Chief Financial Officer Éric Gemme said the increase was “entirely organic,” with negligible foreign exchange impact, reflecting pricing actions—mainly in Canada—and higher U.S. volume.
SG&A expenses increased to CAD 154 million from CAD 150 million, driven by higher administrative expenses, performance-related compensation, and finished goods warehousing costs (mainly in Canada). These were partly offset by lower transportation costs and prior-year expenses tied to strategy work and the Summer Garden acquisition.
Adjusted EBITDA climbed 28% to CAD 102 million, representing 13.3% of sales, compared with CAD 80 million or 10.8% a year earlier—an expansion of 250 basis points. Adjusted profit attributable to shareholders was CAD 51 million, or CAD 7.52 per share, which the company described as its highest quarterly adjusted EPS on record. The company also noted that net profit in the quarter doubled to CAD 54 million.
Full-year 2025: record sales and higher profitability
Chief Executive Officer Vince Timpano said 2025 was “a record year” for Lassonde, with record sales and a strong profitability increase despite a challenging macroeconomic environment. Each division recorded sales growth versus the prior year, he added.
For the full year, sales totaled CAD 2.9 billion, up 12.8% from CAD 2.6 billion in 2024. Excluding Summer Garden’s contribution for “just over seven months” and foreign exchange, sales growth was 7.2%, driven by price, volume, and mix improvement, Gemme said.
Adjusted EBITDA increased to CAD 344 million, or 11.7% of sales, from CAD 276 million or 10.6% in 2024. Adjusted profit attributable to shareholders was CAD 156 million, or CAD 22.82 per share, compared with CAD 130 million or CAD 19.05 per share a year earlier.
Operational highlights across divisions
U.S. beverage: Management said Lassonde gained market share in the fourth quarter, increasing total volume while the category was down mid-single digits. The private label business was described as in line with its category as the company’s “build back plan” was balanced by pricing discipline. In branded beverages, management cited a focus on higher-velocity SKUs following investments in single-serve and juice box platforms at its North Carolina facility. The company also said it is benefiting from relocating production assets from a U.S. co-packer into its own network, which is expected to improve throughput in the coming months and help capture additional volume across branded and private label products.
On its new New Jersey facility, Lassonde said construction is progressing well, with the project on budget and on schedule and the building expected to be enclosed in the coming weeks. The company plans to start gradually transferring existing production activities from the current facility by late 2026 and complete that phase in early 2027.
Canadian beverage: Lassonde said it continued to gain market share even as category volumes declined mid-single digits in the quarter. National brands “meaningfully outpaced the category,” supported by distribution gains in shelf-stable and chilled products, and strong growth in single-serve formats. Management highlighted disciplined pricing, targeted promotional activity, and brand marketing, including an Oasis of Light campaign that it said supported distribution gains and brand engagement. The company also said it continues reducing commodity exposure by increasing the proportion of juice blends and less-than-100% juice beverages, and is developing a multi-year innovation pipeline aimed at reducing commodity exposure and expanding consumption occasions.
Food service: Lassonde reported another strong quarter in food service, driven by U.S. volume gains with broadline distributors and improving national account penetration in Canada. The company said deployment of its new Bag-in-a-Box aseptic packaging line is progressing, and that it remains in active negotiations and bidding processes with large national customers and regional players.
Specialty food: The company said it continued integrating its North American Specialty Food Division. Summer Garden sales were $52 million in the quarter, down from $55.7 million a year earlier, as it lapped a strong 2024 quarter, with the decline also reflecting a change in third-party mix and timing of promotions. Management said Summer Garden experienced system recovery and restoration issues that led to non-recurring expenses and missed commercial opportunities; the issue was addressed promptly, fully contained, not material to consolidated results, and expected to have only residual impact in the ensuing period. Legacy specialty operations delivered solid sales and profit growth, driven by premium pasta sauces and soup.
Cash flow, leverage, and investment spending
Lassonde ended the year with operating working capital at 43 days, down from 55 days in the third quarter, returning to its historical range. Operating cash flow in Q4 was CAD 122 million, up from CAD 76 million a year earlier, driven by higher EBITDA and working capital improvement.
For the year, operating cash flow was CAD 176 million, down from CAD 234 million in 2024, reflecting higher working capital use, lower accounts payable, and higher income tax and interest paid, partly offset by higher EBITDA.
Capital expenditures were CAD 45 million in Q4 and CAD 187 million for the year, including $60 million tied to construction of the New Jersey facility. Management said 2026 CapEx could reach up to 7% of sales, including approximately $96 million for the New Jersey project, and expects to fund the program primarily through operating cash flow while maintaining “comfortable leverage.”
Net debt declined to CAD 489 million at quarter-end from CAD 550 million three months earlier, and the net debt-to-adjusted EBITDA ratio improved to 1.4x from 1.7x. The company said leverage should remain below 2.0x through 2026, assuming all else equal, and within its comfort zone of less than 3.25x.
2026 outlook: targeting CAD 3 billion in sales amid volatility
Looking ahead, Timpano said Lassonde is entering 2026 “from a position of strength,” while emphasizing ongoing macro uncertainty and potential impacts on supply and consumer spending. Excluding foreign exchange and barring significant external disruption, the company said it anticipates achieving its stated goal of CAD 3 billion in sales by 2026, while stressing that profitable growth and cash generation remain the priority over volume-driven revenue expansion.
Management outlined priorities by division, including continued private label volume build-back and capacity ramp-ups in the U.S., innovation-led growth and revenue management in Canada, food service expansion supported by Bag-in-a-Box, and specialty food integration and brand development, including a strategic refresh of the G Hughes brand in the zero sugar category.
On input costs, management described a mixed commodity picture: easing orange concentrate versus 2025 spot levels (with realized benefits depending on hedges), cautious to moderately bearish sentiment in apple juice concentrate with regional supply constraints, and pineapple concentrate shifting toward balance with modest downward pressure but continued constraints in Thailand. CFO Gemme said the net commodity impact on the profit and loss statement is expected to be “relatively wash,” while noting uncertainty tied to Middle East developments and potential impacts on transportation and PET resin costs.
Separately, the company highlighted leadership changes, including the hiring of Francis Trudeau as Executive Vice President of Finance, with a planned transition to Chief Financial Officer on May 19, and Minh Quan Dam as Chief Information Officer.
About Lassonde Industries (TSE:LAS.A)
Lassonde Industries Inc is engaged in the development, manufacturing, and marketing of ready-to-drink fruit and vegetable juices and drinks. It also acts as a producer of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces. The company operates through a single segment being the development, manufacturing, and marketing of a wide range of ready-to-drink juices and drinks; frozen juice concentrates; and specialty food products; and the importation, packaging, and marketing of selected wines from several countries of origin.
