SunOpta (NASDAQ: STKL) reported Q1 EPS of ($0.09), in-line with the analyst estimate of ($0.09). Revenue for the quarter came in at $305.3 million versus the consensus estimate of $300.52 million.

First Quarter 2019 Highlights:

• Revenues of $305.3 million for the first quarter of 2019, compared to $312.7 million in the first quarter of 2018, a decrease of 2.4%. Adjusted for divested and disposed operations, foreign exchange, commodity prices, and a new contract manufacturing arrangement, revenues grew 6.2% during the first quarter.
• Net income attributable to common shareholders of $23.7 million or $0.27 per common share in the first quarter of 2019, compared to a loss attributable to common shareholders of $6.3 million or $0.07 per common share in the first quarter of 2018. Net income in the first quarter of 2019 included a pre-tax gain on the sale of the specialty and organic soy and corn business of $45.6 million.
• Adjusted loss¹ of $7.9 million or $0.09 per common share during the first quarter of 2019, compared to an adjusted loss of $6.4 million or $0.07 per common share during the first quarter of 2018.
• Adjusted EBITDA¹ excluding disposed operations of $11.1 million or 3.6% of revenues for the first quarter of 2019, versus $11.0 million or 3.5% of revenues in the first quarter of 2018.
• Completed sale of specialty and organic soy and corn business for gross proceeds of $66.5 million, subject to certain post-closing adjustments.

“We delivered adjusted revenue growth of 6.2% during the first quarter of 2019, with strong commercial results across the Healthy Beverage, Healthy Snacks and international organic sourcing operations. On an adjusted basis, these businesses generated revenue growth versus prior year of 6.0%, 13.6% and 12.2% respectively in the quarter reflecting strong execution in on-trend categories," said Joe Ennen, Chief Executive Officer at SunOpta. “We have made progress on our fruit margin optimization plan and are on track with our automation investments to reduce production costs. We continue to expect the benefits of the first phase of our margin optimization plan to be realized by the fourth quarter of 2019. However, as anticipated, fruit margins continued to weigh on consolidated EBITDA margins during the first quarter, offsetting gains in the Healthy Beverage, Healthy Snacks and international organic sourcing operations. With a robust sales pipeline, strong positioning in on-trend, healthy food categories, and the right team to drive execution of our margin optimization plan, I am confident we can deliver improving results as the year progresses. In 2019, we remain focused on strengthening our product portfolio, accelerating customer-centric innovation, and improving profitability in frozen fruit through pricing and productivity, with the objective to create sustainable, long-term shareholder value.”

For earnings history and earnings-related data on SunOpta (STKL) click here.