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Lassonde (TSE:LAS.A)
TSX:LAS.A

Lassonde (LAS.A) AI Stock Analysis

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Lassonde

(TSX:LAS.A)

Rating:77Outperform
Price Target:
C$258.00
▲(20.32%Upside)
Lassonde Industries garners a strong overall score driven by solid financial performance, characterized by revenue growth and profitability. The technical indicators point to bullish momentum, while the valuation remains attractive. Recent earnings call and corporate events reflect robust strategic direction and market position, despite higher input costs and leverage concerns.

Lassonde (LAS.A) vs. iShares MSCI Canada ETF (EWC)

Lassonde Business Overview & Revenue Model

Company DescriptionLassonde Industries Inc. (LAS.A) is a Canadian company primarily engaged in the development, manufacturing, and marketing of a wide array of food and beverage products. The company is renowned for its high-quality fruit and vegetable juices, drinks, and specialty food items. Lassonde operates across North America and is recognized for its extensive portfolio of brands, including Oasis, Rougemont, and SunRype, catering to both retail and institutional markets.
How the Company Makes MoneyLassonde Industries generates revenue through the sale of its diverse range of beverage and food products. The company's key revenue streams include its branded products sold directly to consumers through retail partners and private label products manufactured for other companies. Lassonde leverages its vast distribution network and strategic partnerships with major retailers to ensure widespread availability of its products. Additionally, the company invests in innovation and marketing to drive consumer demand and maintain competitive positioning in the food and beverage industry.

Lassonde Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 3.64%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Neutral
Lassonde Industries reported strong sales growth and market share gains, particularly in the U.S. beverage segment and through the acquisition of Summer Garden. However, challenges such as margin contraction due to higher input costs and increased operating working capital requirements were noted. The strategic investments are on track, which bodes well for future growth.
Q1-2025 Updates
Positive Updates
Significant Sales Increase
Sales increased 22.8% to CAD 700 million. Excluding the foreign exchange impact and the acquisition of Summer Garden, the growth was 9.3%.
Market Share Gains in U.S. Beverage Segment
Lassonde gained market share in the U.S. with a volume increase of 10% despite a slightly contracting market.
Strong Performance of Summer Garden
Summer Garden reported sales of $55.5 million with an EBITDA margin of 24%.
Strategic Investments on Track
Investments in a new facility in New Jersey and a production line in North Carolina are on schedule and within budget.
Negative Updates
Gross Profit Margin Contraction
The gross profit margin contracted to 24.9% (excluding Summer Garden) due to higher input costs, particularly oranges, pineapples, and apples.
Increased Operating Working Capital Requirement
Operating activities required CAD 60 million, with higher raw material inventories and finished goods inventory impacting working capital.
Higher SG&A Expenses
SG&A expenses increased by 8%, driven by higher outbound transportation costs and warehousing expenses.
Company Guidance
During the Lassonde Industries 2025 First Quarter Earnings Conference Call, the company reported a sales increase of 22.8% to CAD 700 million, with 9.3% growth excluding foreign exchange impacts and the recently acquired Summer Garden business. The U.S. Beverage activities saw a 10% volume increase, despite a slight market contraction, due to build-back initiatives and a new single-serve line. The Canadian segment benefited from past price adjustments and new high-speed juice box lines, leading to market share gains. Specialty Food's contribution included Summer Garden's sales of USD 55.5 million and an EBITDA margin of 24%. The company's cash flow from operating activities required CAD 60 million, influenced by higher working capital needs. Capital expenditures were CAD 79 million, with a significant portion allocated to the New Jersey facility. Net debt rose to CAD 587 million, reflecting inventory financing and CapEx, with a net debt to adjusted EBITDA ratio of 2.0:1. The company anticipates a 10% sales increase for 2025, driven by strategic investments and market expansion efforts.

Lassonde Financial Statement Overview

Summary
Lassonde shows strong revenue growth and profitability with a gross profit margin of 26.8% and a net profit margin of 4.2%. The balance sheet is healthy with a moderate debt-to-equity ratio of 0.58. Cash flow operations are positive, but increased capital expenditures have led to negative free cash flow, indicating a need for better CapEx management.
Income Statement
85
Very Positive
Lassonde demonstrates strong revenue growth with a TTM increase of 5% and consistent profitability with a gross profit margin of 26.8% and a net profit margin of 4.2%. EBIT and EBITDA margins of 6.7% and 10% respectively, indicate effective cost management. However, the net profit margin has room for improvement.
Balance Sheet
78
Positive
The company maintains a healthy equity ratio of 44.7% and a moderate debt-to-equity ratio of 0.58. Return on equity stands robust at 10.8% but an increase in total debt warrants attention for potential leverage risks.
Cash Flow
70
Positive
Operating cash flow remains positive, providing a buffer against negative free cash flow, which has declined due to increased capital expenditures. The operating cash flow to net income ratio is 1.4, suggesting strong cash generation. However, the free cash flow to net income ratio is negative, highlighting the need for capital expenditure management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.73B2.60B2.31B2.15B1.89B1.98B
Gross Profit731.68M656.16M587.72M523.35M521.94M559.78M
EBITDA273.98M258.06M204.09M141.14M177.14M217.68M
Net Income114.81M114.12M87.53M53.94M77.51M97.82M
Balance Sheet
Total Assets2.37B2.28B1.67B1.60B1.42B1.38B
Cash, Cash Equivalents and Short-Term Investments25.44M28.23M19.84M2.68M305.00K6.80M
Total Debt616.77M478.74M214.55M253.78M180.46M215.49M
Total Liabilities1.22B1.11B669.80M667.15M554.09M585.90M
Stockholders Equity1.06B1.07B922.57M877.17M808.41M739.64M
Cash Flow
Free Cash Flow-6.02M118.02M118.47M-23.38M56.09M190.67M
Operating Cash Flow162.52M233.88M224.86M24.00M93.73M231.19M
Investing Cash Flow-493.53M-440.84M-115.39M-48.05M-40.40M-121.02M
Financing Cash Flow352.71M217.31M-91.67M27.65M-64.88M-92.60M

Lassonde Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price214.42
Price Trends
50DMA
214.43
Negative
100DMA
203.33
Positive
200DMA
189.60
Positive
Market Momentum
MACD
0.29
Positive
RSI
46.48
Neutral
STOCH
13.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LAS.A, the sentiment is Neutral. The current price of 214.42 is below the 20-day moving average (MA) of 216.73, below the 50-day MA of 214.43, and above the 200-day MA of 189.60, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 13.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:LAS.A.

Lassonde Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSHLF
78
Outperform
C$523.08M6.8314.49%3.78%-4.45%90.27%
77
Outperform
$1.46B12.7411.45%2.83%16.82%21.82%
TSRSI
72
Outperform
C$715.90M11.4814.43%6.37%11.35%-4.31%
TSMFI
72
Outperform
C$3.50B36.976.05%3.40%3.16%
68
Neutral
¥196.82B21.248.29%2.39%4.99%2.94%
TSPBH
66
Neutral
C$3.62B30.446.75%4.23%6.29%24.34%
60
Neutral
C$244.64M20.664.58%4.66%5.42%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LAS.A
Lassonde
214.42
63.56
42.13%
TSE:MFI
Maple Leaf Foods
28.26
6.16
27.87%
TSE:HLF
High Liner Foods
17.98
5.15
40.14%
TSE:RSI
Rogers Sugar
5.59
0.31
5.87%
TSE:ADW.A
Andrew Peller A NV
5.43
1.67
44.41%
TSE:PBH
Premium Brands
80.65
-11.92
-12.88%

Lassonde Corporate Events

Executive/Board ChangesShareholder Meetings
Lassonde Industries Elects Board of Directors with Strong Support
Positive
May 16, 2025

Lassonde Industries Inc. announced the election of its board of directors during its Annual General Meeting, with all nominees receiving strong support. This election is crucial for maintaining the company’s strategic direction and ensuring continued leadership in the competitive food and beverage industry.

The most recent analyst rating on ($TSE:LAS.A) stock is a Buy with a C$255.00 price target. To see the full list of analyst forecasts on Lassonde stock, see the TSE:LAS.A Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Lassonde Industries Reports Robust Q1 2025 Results Amid Market Growth
Positive
May 8, 2025

Lassonde Industries Inc. reported strong financial results for Q1 2025, with sales increasing to $699.7 million, a rise attributed to higher U.S. sales volumes and favorable price adjustments in Canada. Despite challenges such as increased transportation costs and foreign exchange impacts, the company achieved a gross profit of $183.2 million and an operating profit of $42.7 million. Lassonde’s strategic focus on capacity expansion and market share growth positions it well for further expansion in the North American market.

Business Operations and StrategyFinancial Disclosures
Lassonde Industries Reports Strong 2024 Financial Results and Optimistic Outlook for 2025
Positive
Apr 16, 2025

Lassonde Industries Inc. reported strong financial results for Q4 and the fiscal year 2024, with significant increases in sales, gross profit, and operating profit. The growth was driven by higher sales volumes in the U.S., favorable price adjustments in Canada, and contributions from acquired entities. The company is optimistic about 2025, focusing on cost reduction, capacity improvement, and strategic investments in a new facility in New Jersey. Despite potential challenges like tariffs, Lassonde is positioned for sustained growth, supported by a robust product portfolio and strategic initiatives.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 17, 2025