Sucro Announces First Quarter 2025 Results

CORAL GABLES, Fla., May 23, 2025 /CNW/ - Sucro Limited (TSXV: SUGR) (OTCQB: SUGRF) ("Sucro" or the "Company"), an integrated sugar refiner focused primarily on serving North American sugar markets, today announced financial results for the three months ended March 31, 2025. All amounts are in United States dollars ("U.S. $" or "$") unless otherwise noted.

Financial Highlights

• Revenue of $155.2 million on sugar deliveries of 176,319 metric tons
• Net income of $12.0 million for the quarter
• Adjusted gross profit¹ of $13.8 million and adjusted gross profit margin¹ of 8.9%
• EBITDA¹ of $22.9 million and Adjusted EBITDA¹ of $9.9 million
• Adjusted gross profit per metric ton delivered¹ of $78.18

Q1 Highlights	Three Months Ended Mar 31
In 000s of U.S. $ except per share and volume metrics.	2025	2024	Change
Sugar Deliveries (Metric Tons)	176,319	182,865	-3.6 %
Revenue	$155,247	$184,771	-16.0 %
Gross profit	27,070	37,303	-27.4 %
Adjusted gross profit^1	13,785	16,175	-14.8 %
Adjusted gross profit margin^1	8.9 %	8.8 %
EBITDA^1	22,862	31,489	-27.4 %
Adjusted EBITDA^1	9,897	10,914	-9.3 %
Adjusted EBITDA Margin^1	14.73 %	17.04 %
Net Income (Loss)	12,007	19,739	-39.2 %
Per share (basic)	1.10	2.88	-61.9 %
Per share (diluted)	0.50	0.83	-39.4 %
Adjusted gross profit per metric ton delivered^1,2	78.18	88.45	-11.6 %
Free cash flow^1	1,222	5,004
Refineries Results:
Refineries Volume (Metric Tons)	48,202	46,754	3.1 %
Adjusted gross profit^1	$8,158	$6,741	21.0 %
Adjusted gross profit per metric ton delivered^1	169.25	144.18	17.4 %

1.	Please refer to "Non IFRS and other Financial Measures" below for further details.
2.	Net of cash settlements.

"Our results in the first quarter of 2025 reflect the strength of our integrated supply chain model and the continued execution of our growth strategy," said Jonathan Taylor, Founder and Chief Executive Officer of Sucro. "We are seeing sustained momentum in our core markets, alongside disciplined cost management and a focus on margin-enhancing business."

Results from Operations – Three Months Ended March 31, 2025

Revenue for the quarter was $155.2 million compared to revenue of $184.8 million for the three months ended March 31, 2024, a decrease of 16.0%. Sugar deliveries of 176,319 metric tons were 3.6% lower than deliveries in the same period of 2024. Adjusted gross profit was $13.8 million, 14.8% lower than the same period a year ago of $16.2 million. Adjusted gross profit margin for 2025 of 8.9% was slightly higher than the 8.8% achieved in 2024. Adjusted gross profit per metric ton delivered was $78.18 and 11.6% lower than 2024 of $88.45. While overall volumes have remained consistent with those of the previous year, we have seen some shifts in their composition, including a decrease in deliveries into Mexico (where the market has normalized after a period of high market prices driven by a disappointing cane crop caused by adverse weather conditions) that has been compensated for with increased U.S. deliveries. The decrease in Adjusted Gross Profit was driven by lower margins from the deliveries of refined sugar out of our Lackawanna refinery. This margin compression resulted from the utilization of raw sugar inputs that were purchased to fulfill production forecasts for fiscal year 2024, when U.S. sugar prices were generally higher than those of today. 

Net income for the first quarter was $12.0 million compared to net income for the three months ended March 31, 2024 of $19.7 million, a decrease of 39.2%. EBITDA was $22.9 million, compared to EBITDA of $31.5 million in the corresponding 2024 period, a decrease of 27.4%. Adjusted EBITDA was $9.9 million compared to adjusted EBITDA for the 2024 period of $10.9 million, These decreases were driven primarily by lower unrealized mark-to-market gains on physical sugar contracts and lower Adjusted Gross Profit.

Sucro continues to advance construction on its Hamilton, Ontario and University Park, Illinois cane sugar refineries, expected to be operational in late 2025 and early 2026, respectively. These strategic assets are designed to increase production capacity and improve supply responsiveness in key North American markets.

The Company remains focused on optimizing its refining operations, managing supply chain costs, and expanding commercial relationships with major food and beverage customers. Management continues to monitor global trade developments, including tariff and cross-border policy changes between the U.S., Canada, and Mexico.

Q1 2025 Investor Call

The Company will host a conference call on Friday, November 22, 2024, at 12:00 noon Eastern time during which Jonathan Taylor, Founder and Chief Executive Officer, and Stefano D'Aniello, Chief Financial Officer, will discuss Sucro's financial performance for the first quarter ended March 31, 2025.

Date:	Friday May 23, 2025
Time:	1:00 pm ET
Conference Call:	Toll-Free Dial-In Number	[phone]
	Dial-In Number (GTA)	[phone]
	Please dial in at least five minutes before the call begins.
Replay:	Available through June 6, 2025
Replay Access:	Toll-Free Dial-In Number	[phone]
	Dial-In Number (GTA)	[phone]
	Passcode	57871 #

About Sucro

Sucro is a growth-oriented sugar company that operates throughout the Americas, with a primary focus on serving the North American sugar market. The Company operates a highly integrated and interconnected sugar supply business, utilizing the entire sugar supply chain to service its customers. Sucro's integrated supply chain includes sourcing raw and refined sugar from countries throughout Latin America, and refined sugar from its own refineries, and delivering to customers in North America and the Caribbean. Since its inception in 2014, Sucro has achieved growth by creating value for customers through continuous process innovation and supply chain re-engineering. Sucro has established a broad production, sales, and sourcing network throughout North America with two cane sugar refineries and an additional value-added processing facility, and two sugar cane refineries under development in Hamilton, Ontario and University Park, Illinois (a suburb of Chicago). The Company has offices in Miami, Mexico City, Cali, Sao Paulo, and Port of Spain. For more information, visit sucro.us and follow us on LinkedIn.

Non-IFRS and Other Financial Measures

In this Press Release, reference is made to the following non-IFRS measures: "EBITDA", "EBITDA Margin", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Gross Profit", "Adjusted Gross Profit Margin", "Adjusted Gross Profit Per Metric Ton Delivered", and "Free Cash Flow". Such non-IFRS financial measures are not standardized financial measures under International Financial Reporting Standards ("IFRS") and might not be comparable to similar financial measures disclosed by other issuers. For details on the composition and a reconciliation between such non-IFRS measures and the most directly comparable financial measure in our financial statements, please refer to the "Non-IFRS and Financial Measures (Key Performance Indicators)" section in our MD&A dated May 22, 2025 and filed on SEDAR+ at www.sedarplus.ca, which is specifically incorporated by reference herein.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Sucro Limited

For further information, please contact: Don Hill, Chairman, Sucro Limited, T: [phone], E: [email protected]