SunOpta's Non-GAAP Earnings Per Share come in at $0.04, surpassing expectations by $0.01; revenue also surpasses, hitting $191.5M, beating estimates by $6.15M.
SunOpta, a leading organic food company, has announced its Q2 2025 financial results, displaying a notable resilience in the face of trade tariffs and logistics challenges, as well as the ongoing impact of the COVID-19 pandemic on its operations.
Despite a $1.6 million negative impact on the gross profit due to tariffs, SunOpta reported a 34% increase in gross profit to $28.4 million and a gross margin expansion of 230 basis points to 14.8% year-over-year. This impressive growth was partly due to strong volume growth (+14.4%) and growth across core segments, which helped offset tariff pressures.
The company also managed to absorb raw material cost savings and maintain margin improvement despite the tariffs. The tariff-related costs are being passed through to customers, with full recovery of these tariff expenses targeted by Q4 2025, indicating that the margin impact is expected to be temporary.
SunOpta's Q2 revenue stood at $191.5 million, a significant 12.9% increase compared to the same period last year, and $6.15 million more than the expected amount. The reduction in the Q2 gross margin was due to a timing lag in passing through the tariff pricing adjustments.
In terms of earnings, SunOpta's Q2 Non-GAAP EPS was $0.04, one cent more than expected, and a slight improvement compared to the same period last year. However, the company did not provide an updated guidance for the rest of the fiscal year.
SunOpta's stock is traded on NASDAQ under the ticker symbol STKL. Investors are advised to monitor the company's progress in recovering tariff costs and navigating the ongoing challenges posed by the pandemic and global trade conditions.
[1] SunOpta press release, Q2 2025 Earnings Announcement. [2] SunOpta press release, Q1 2025 Earnings Announcement. [3] SunOpta conference call, Q2 2025 Earnings Presentation. [4] SunOpta conference call, Q1 2025 Earnings Presentation.
SunOpta's impressive revenue growth and margin expansion in Q2 2025, despite tariffs and pandemic-related challenges, showcases the company's resilience in business and investing opportunities within the organic food sector. Investors should keep a close eye on SunOpta's progress in recovering tariff costs and navigating ongoing global trade conditions.
