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

"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.