Lassonde (LSDAF) AI Stock Analysis

Lassonde

(Other OTC:LSDAF)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Profitability and margin expansionHigher gross profit and EBITDA margins indicate stronger earnings quality from pricing, mix and lower concentrate costs. This improves resilience and operating leverage, although sustaining the gains will require disciplined pricing and cost management.

Negative Factors

Weak revenue outlookA flat-to-lower sales outlook limits the company’s ability to grow through volume and raises dependence on pricing, mix and productivity. Persistent weak demand could eventually pressure margins if fixed manufacturing and distribution costs are underabsorbed.

Lassonde (LSDAF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.11B
Dividend Yield: 2.22%
Average Volume (3M): 133
Price to Earnings (P/E): 11.5
Beta (1Y): 0.36
Revenue Growth: 2.54%
EPS Growth: 34.59%
Country: US
Employees: 2,900
Sector: Consumer Defensive
Sector Strength: 62
Industry: Beverages - Non-Alcoholic

Lassonde Business Overview & Revenue Model

Company Description

Lassonde Industries Inc., along with its subsidiaries, specializes in the development, manufacturing, and distribution of various ready-to-drink fruit juices, beverages, and frozen juice concentrates across Canada, the United States, and internationa...

Lassonde Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q2-2026)|% Change Since:11.35%|Next Earnings Date:May 11, 2023

Earnings Call SentimentPositive

The call highlighted robust profitability, margin expansion, strong operating cash flow and improved leverage, alongside strategic investments and brand/distribution momentum. These positives were balanced by a slight sales decline, a $30M impairment tied to a customer contract change, ongoing category volume softness, and cost/market volatility. Management expects 2026 sales to be slightly below last year but prioritized profitable sales and has taken actions (backfill agreements, NCIB, disciplined revenue management) to mitigate near-term challenges.

Positive Updates

Strong Gross Profit and Margin Expansion

Gross profit of $228M vs $196M a year ago (up $32M); excluding FX gross profit rose $29M or ~15%; management cited a 16% gross profit growth in Q2 and a ~440 bps year-over-year margin expansion driven by lower orange concentrate costs, selling price adjustments and favorable mix.

Negative Updates

Slight Sales Decline and Lower Full-Year Sales Outlook

Q2 sales totaled $738M vs $742M last year; excluding FX sales decreased ~0.5%; company now expects 2026 sales to be slightly below 2025 levels (excluding FX and major external disruptions).

Company Guidance

Guidance: Lassonde now expects 2026 sales to be slightly below 2025 (excluding foreign exchange and major external disruptions) while prioritizing profitable sales over volume; CapEx is projected to reach up to 7% of sales in fiscal 2026 (Q2 CapEx was $38M), including approximately USD 96M for the New Jersey project (equipment installation underway, transfer of production beginning late 2026 and completing in H1 2027); Q2 net debt was $451M (down from $474M) with net debt/adjusted EBITDA at 1.22x (down from 1.35x) and management expects leverage to remain well below its 3.25x internal maximum; operating cash flow generated $78M in Q2 (vs. -$3M a year ago), days of operating working capital were 46 (vs. 51) and are expected to remain within the historical range, and the company launched an NCIB to buy up to 200,000 common shares (~6.5% of Class A shares) over 12 months (subject to TSX approval); management reiterated cost assumptions that orange and apple concentrate costs should be lower year-over-year, but flagged inflationary pressure on transportation and PET resin, noted most hedges roll off toward year-end, disclosed a $30M impairment (including $27M on a customer relationship) and said Specialty Food has already secured replacement volume representing more than 50% of the expected 2027 shortfall with advanced talks for an additional ~25%.

Lassonde Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

LSDAF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:CSW.A	68Neutral	CAD 438.21M	13.31	17.72%	6.11%	10.09%	21.92%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TSE:MFI	62Neutral	CAD 3.37B	6.57	36.83%	5.16%	-21.88%	189.83%
TSE:RSI	58Neutral	CAD 848.39M	13.07	14.14%	5.46%	-5.74%	-3.64%
TSE:PBH	53Neutral	CAD 3.80B	44.74	4.19%	4.62%	20.43%	-21.27%

* Consumer Defensive Sector Average

Performance Comparison

LSDAF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LSDAF	Lassonde Industries Inc.	176.84	27.47	18.39%
TSE:CSW.A	Corby Spirit&Wine A	15.71	2.63	20.12%
TSE:MFI	Maple Leaf Foods	27.54	2.60	10.44%
TSE:PBH	Premium Brands Holdings	73.66	-17.66	-19.34%
TSE:RSI	Rogers Sugar	6.59	0.74	12.73%

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.

Lassonde AI Stock Analysis