SunOpta Announces Second Quarter Fiscal 2025 Financial Results
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Adjusted EBITDA from continuing operations increased 14% to $22.7 million
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Adjusted EPS of $0.04 compared to $0.02 in the prior year
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Reaffirms 2025 Adjusted EBITDA Outlook
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MINNEAPOLIS — SunOpta Inc. ('SunOpta' or the 'Company') (Nasdaq: STKL) (TSX:SOY), a company that delivers customized supply chain solutions and innovation for top brands, retailers and foodservice providers across a broad portfolio of beverages, broths and better-for-you snacks today announced financial results for the second quarter ended June 28, 2025.
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All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.
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Second Quarter 2025 highlights:
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Revenues of $191.5 million increased 12.9% compared to $169.5 million in the prior year period, driven by 14.4% volume growth partially offset by a 1.4% price reduction for pass-through pricing for certain raw material cost savings
Earnings from continuing operations of $4.4 million compared to a loss of $4.4 million in the prior year period
Adjusted earnings¹ from continuing operations of $4.4 million compared to $2.2 million in the prior year period
Adjusted earnings per share¹ from continuing operations of $0.04 compared to $0.02 in the prior year period
Adjusted EBITDA¹ from continuing operations increased 13.9% to $22.7 million, or 11.9% of revenues, compared to $20.0 million, or 11.8% of revenues, in the prior year period
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'Second quarter results were outstanding, reflecting the strength of our competitive position and sharp execution by our team,' said Brian Kocher, Chief Executive Officer of SunOpta. 'Both revenue and Adjusted EBITDA growth continued their double-digits trajectory, driven by robust volume gains across the breadth of our diverse portfolio. Earnings growth was equally strong. We also made significant progress advancing our operational initiatives to improve margins, including unlocking capacity and improving yields, which we expect to gain additional traction over the balance of 2025.'
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Kocher continued, 'Our new business pipeline has never been stronger and we are exceptionally well positioned to capitalize on these opportunities to drive sustainable growth and profitability. Across beverages and fruit snacks we can meet our growth requirements through 2026 with existing assets. Especially in the better-for-you fruit snack category, powerful tailwinds have significantly increased customer demand. Accordingly, we are announcing a new fruit snack manufacturing line at our Omak, Washington facility, that is already over-subscribed and is anticipated to come online in late 2026 to meet this demand for 2027 and beyond.'
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Second Quarter 2025 Results
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Revenues increased 12.9% to $191.5 million for the second quarter of 2025. The increase was driven by 14.4% volume growth partially offset by a 1.4% price reduction for pass-through pricing for certain raw material cost savings. Growth in volume/mix reflected volume growth for plant-based beverages, broth and fruit snacks as well as new product launches.
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Gross profit increased $7.2 million, or 34.0%, to $28.4 million for the quarter ended June 28, 2025, compared with $21.2 million for the quarter ended June 29, 2024. Gross margin was 14.8% for the quarter ended June 28, 2025, compared with 12.5% for the quarter ended June 29, 2024, an increase of 230 basis points. Adjusted gross margin¹, was 15.2% for the quarter ended June 28, 2025, compared with 16.0% for the quarter ended June 29, 2024. The 80-basis point decrease in adjusted gross margin reflects the timing lag on the pass-through of incremental tariff costs, investments in labor and infrastructure to improve long-term margins and incremental depreciation related to assets recently placed in service. These factors were partially offset by higher sales and production volumes for beverages, broths and fruit snacks driving improved plant utilization.
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Operating income increased by $8.5 million, to $10.5 million, compared to $2.0 million in the second quarter of 2024, reflecting higher gross profit and a favorable foreign exchange impact.
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Earnings from continuing operations increased 198% to $4.4 million for the second quarter of 2025 compared with a loss of $4.4 million in the prior year period. Diluted earnings per share from continuing operations attributable to common shareholders (after dividends and accretion on preferred stock) was $0.03 for the second quarter compared with diluted loss per share of $0.04 in the prior year period.
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Adjusted earnings¹ from continuing operations were $4.4 million or $0.04 per diluted share in the second quarter of 2025 compared to adjusted earnings from continuing operations of $2.2 million or $0.02 per diluted share in the second quarter of 2024.
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Adjusted EBITDA¹ from continuing operations was $22.7 million in the second quarter of 2025 compared to $20.0 million in the second quarter of 2024 driven by strong volume growth.
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Please refer to the discussion and table below under 'Non-GAAP Measures'.
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Balance Sheet and Cash Flow
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As of June 28, 2025, SunOpta had total assets of $704.9 million and total debt of $273.4 million compared to total assets of $668.5 million and total debt of $265.2 million at year end fiscal 2024. During the first two quarters of fiscal 2025, cash provided by operating activities of continuing operations was $17.8 million compared to $2.0 million during the first two quarters of fiscal 2024. The increase mainly reflected improved working capital efficiency, together with increased operating income, driven by revenue growth. Investing activities of continuing operations consumed $18.6 million of cash during the first two quarters of fiscal 2025 compared to $13.9 million in the first two quarters of fiscal 2024, reflecting higher capital expenditures together with non-recurring proceeds from the sale of the smoothie bowl product line. Net leverage 1 was 2.9x, compared to 3.0x at the end of fiscal 2024 and we continue to expect to achieve our 2.5x net leverage target by the end of this fiscal year.
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During the second quarter, the Company repurchased 163,227 common shares at an average price per share of $6.04, for total consideration of $1.0 million. As at June 28, 2025, there was $24.0 million of the authorized amount remained available under the Share Repurchase Program.
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Tariffs
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Tariffs continue to be an evolving situation that we continue to monitor. While our employees, production facilities, and customers are predominately located in the U.S. (in 2024, 98% of revenue was to U.S.-based customers), we source a portion of our raw material ingredients and packaging globally, and a portion of our fruit snack products are imported into the U.S. from our Niagara, Ontario, facility that are not exempt under USMCA. In response to these tariffs, at the beginning of the year we started communications with our customers regarding our intention to pass-through substantially all the incremental costs to our customers, similar to our pass-through pricing of raw material cost increases. By the middle of July, we successfully implemented new pricing arrangements with all of our customers to mitigate the full amount of known tariff exposure at that time. Due to the timing lag in passing through the tariff pricing adjustments, gross profit was negatively impacted by $1.6 million, reducing gross margin by 90 basis points in the second quarter. We expect to have a similar fiscal third quarter timing lag impact as we recover the recently announced tariff changes on August 1, 2025. While our pass-through mechanisms may have a timing lag, we continue to expect to recover substantially all additional costs of tariffs.
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2025 Outlook 2
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For fiscal 2025, the Company is raising its revenue outlook reflecting both the strong performance in Q2 and the expected impact of pass-through tariff pricing, and is reaffirming its adjusted EBITDA outlook:
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The revised outlook includes an increase of approximately $8 million in revenue and $10 million in cost of goods sold in the second half of 2025 simply due to the expected tariff expense, related pass-through pricing to our customers, and timing lag on implementing the pricing.
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Conference Call
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SunOpta plans to host a conference call at 5:30 P.M. Eastern time on Wednesday, August 6, 2025, to discuss the second quarter financial results. After prepared remarks, there will be a question and answer period. Investors interested in listening to the live webcast can access a link on SunOpta's website at www.sunopta.com under the 'Investor Relations' section or directly. A replay of the webcast will be archived and can be accessed for approximately 90 days on the Company's website.
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This call may be accessed with the toll free dial-in number (800) 715-9871 or international dial-in number (646) 307-1963 using Conference ID: 8323651.
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The quarterly earnings presentation, including the long-term grow algorithm and capital allocation priorities, can be accessed through the live webcast referenced above, and on SunOpta's website at www.sunopta.com under the 'Investor Relations' section or directly.
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2
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The Company has included certain forward-looking statements about the future financial performance that include non-GAAP financial measures, including Adjusted EBITDA. These non–GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because management cannot reliably predict all of the necessary components of such GAAP measures. Historically, management has excluded the following items from certain of these non-GAAP measures, and such items may also be excluded in future periods and could be significant amounts.
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Expenses related to the acquisition or divestiture of a business, including business development costs, impairment of assets, integration costs, severance, retention costs and transaction costs;
Charges associated with restructuring and cost saving initiatives, including but not limited to asset impairments, accelerated depreciation, severance costs and lease abandonment charges;
Asset impairment charges and facility closure costs;
Legal settlements or awards; and
The tax effect of the above items.
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About SunOpta
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SunOpta (Nasdaq: STKL) (TSX: SOY) delivers customized supply chain solutions and innovation for top brands, retailers and foodservice providers across a broad portfolio of beverages, broths and better-for-you snacks. With over 50 years of expertise, SunOpta fuels customers' growth with high-quality, sustainability-forward solutions distributed through retail, club, foodservice and e-commerce channels across North America. For more information, visit www.sunopta.com or follow us on LinkedIn.
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Forward-Looking Statements
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Certain statements included in this press release may be considered 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our intention to maintain our disciplined financial approach to deliver sustainable gross margin improvement and continue to generate significant free cash flow, our expectation to continue de-levering our balance sheet, achieve net leverage targets and drive increasing returns on invested capital, share repurchases, our expectations to recover tariff impacts through pass-through pricing, and our anticipated Revenue, Adjusted EBITDA, Revenue growth and Adjusted EBITDA growth for fiscal 2025. Generally, forward-looking statements do not relate strictly to historical or current facts and are typically accompanied by words such as 'potential', 'expect', 'believe', 'anticipate', 'estimates', 'can', 'will', 'target', 'should', 'would', 'plans', 'continue', 'becoming', 'intend', 'confident', 'may', 'project', 'intention', 'might', 'predict', 'budget', 'forecast' or other similar terms and phrases intended to identify these forward-looking statements. Forward-looking statements are based on information available to the Company on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments including, but not limited to, the Company's actual financial results; uninterrupted operations and service levels to our customers; current customer demand for the Company's products; general economic conditions; continued consumer interest in health and wellness; the Company's ability to maintain product pricing levels; planned facility and operational expansions, closures and divestitures; cost rationalization and product development initiatives; alternative potential uses for the Company's capital resources; portfolio optimization and productivity efforts; the sustainability of the Company's sales pipeline; the Company's expectations regarding commodity pricing, margins and hedging results; procurement and logistics savings; freight lane cost reductions; yield and throughput enhancements; labor cost reductions; and the terms of our insurance policies. Whether actual timing and results will agree with expectations and predictions of the Company is subject to many risks and uncertainties including, but not limited to, potential loss of suppliers and customers as well as the possibility of supply chain, logistics and other disruptions; unexpected issues or delays with the Company's structural improvements and automation investments; failure or inability to implement portfolio changes, process improvements, go-to-market improvements and process sustainability strategies in a timely manner; changes in the level of capital investment; local and global political and economic conditions; consumer spending patterns and changes in market trends; decreases in customer demand; delayed or unsuccessful product development efforts; potential product recalls; working capital management; availability and pricing of raw materials and supplies; potential covenant breaches under the Company's credit facilities; the impact of the imposition of tariffs, including increases in food prices and inflation, and any resulting negative impacts on the macro-economic environment; and other risks described from time to time under 'Risk Factors' in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). Consequently, all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized. The Company undertakes no obligation to publicly correct or update the forward-looking statements in this document, in other documents, or on its website to reflect future events or circumstances, except as may be required under applicable securities laws.
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SunOpta Inc.
Consolidated Statements of Operations
For the quarters and two quarters ended June 28, 2025 and June 29, 2024
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars, except per share amounts)
Quarter ended
Two quarters ended
June 28, 2025
June 29, 2024
June 28, 2025
June 29, 2024
$
$
$
$
Revenues
191,489
169,541
393,117
353,963
Cost of goods sold
163,082
148,349
334,391
301,719
Gross profit
28,407
21,192
58,726
52,244
Selling, general and administrative expenses
17,727
17,784
36,923
40,118
Intangible asset amortization
526
446
972
892
Other income, net
(131
)
(304
)
(56
)
(2,104
)
Foreign exchange loss (gain)
(248
)
1,310
(133
)
1,259
Operating income
10,533
1,956
21,020
12,079
Interest expense, net
5,301
6,410
10,408
12,460
Other non-operating expense
537
–
959
–
Earnings (loss) from continuing operations before income taxes
4,695
(4,454
)
9,653
(381
)
Income tax expense (benefit)
344
(17
)
491
260
Earnings (loss) from continuing operations
4,351
(4,437
)
9,162
(641
)
Net loss from discontinued operations
–
(897
)
–
(1,814
)
Net earnings (loss)
4,351
(5,334
)
9,162
(2,455
)
Dividends and accretion on preferred stock
(35
)
169
(175
)
(264
)
Earnings (loss) attributable to common shareholders
4,316
(5,165
)
8,987
(2,719
)
Basic earnings (loss) per share
Earnings (loss) from continuing operations attributable to common shareholders
0.04
(0.04
)
0.08
(0.01
)
Loss from discontinued operations
–
(0.01
)
–
(0.02
)
Earnings (loss) attributable to common shareholders (1)
0.04
(0.04
)
0.08
(0.02
)
Diluted earnings (loss) per share
Earnings (loss) from continuing operations attributable to common shareholders
0.03
(0.04
)
0.07
(0.01
)
Loss from discontinued operations
–
(0.01
)
–
(0.02
)
Earnings (loss) attributable to common shareholders (1)
0.03
(0.04
)
0.07
(0.02
)
Weighted-average common shares outstanding (000s)
Basic
118,168
116,640
117,685
116,336
Diluted
124,676
116,640
124,700
116,336
(1) The sum of individual per share amounts may not add due to rounding.
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SunOpta Inc.
Consolidated Balance Sheets
As at June 28, 2025 and December 28, 2024
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars)
June 28, 2025
December 28, 2024
$
$
ASSETS
Current assets
Cash and cash equivalents
2,161
1,552
Accounts receivable
58,851
46,314
Inventories
109,945
92,798
Prepaid expenses and other current assets
12,346
14,680
Income taxes recoverable
780
4,114
Total current assets
184,083
159,458
Restricted cash
8,003
7,460
Property, plant and equipment, net
345,968
343,618
Operating lease right-of-use assets
112,138
105,692
Intangible assets, net
22,041
20,077
Goodwill
3,998
3,998
Other long-term assets
28,709
28,224
Total assets
704,940
668,527
LIABILITIES
Current liabilities
Accounts payable
109,560
93,362
Accrued liabilities
15,189
17,876
Income taxes payable
70
638
Notes payable
8,211
11,110
Short-term debt
10,115
–
Current portion of long-term debt
30,176
29,393
Current portion of operating lease liabilities
17,491
17,055
Total current liabilities
190,812
169,434
Long-term debt
233,080
235,798
Operating lease liabilities
105,684
99,328
Deferred income taxes
325
325
Total liabilities
529,901
504,885
Series B-1 Preferred Stock
15,223
15,048
SHAREHOLDERS' EQUITY
Common shares
478,064
471,792
Additional paid-in capital
27,070
30,775
Accumulated deficit
(347,327
)
(355,982
)
Accumulated other comprehensive income
2,009
2,009
Total shareholders' equity
159,816
148,594
Total liabilities and shareholders' equity
704,940
668,527
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SunOpta Inc.
Consolidated Statements of Cash Flows
For the two quarters ended June 28, 2025 and June 29, 2024
(Unaudited)
(All dollar amounts expressed in thousands of U.S. dollars)
Two quarters ended
June 28, 2025
June 29, 2024
$
$
CASH PROVIDED BY (USED IN)
Operating activities
Net earnings (loss)
9,162
(2,455
)
Net loss from discontinued operations
–
(1,814
)
Earnings (loss) from continuing operations
9,162
(641
)
Items not affecting cash:
Depreciation and amortization
19,686
17,686
Amortization of debt issuance costs
477
457
Deferred income taxes
–
(368
)
Stock-based compensation
3,735
7,088
Gain on sale of smoothie bowls product line
–
(1,800
)
Gain on sale of property, plant and equipment
(244
)
–
Other
(194
)
(193
)
Changes in operating assets and liabilities, net of divestitures
(14,844
)
(20,216
)
Net cash provided by operating activities of continuing operations
17,778
2,013
Net cash used in operating activities of discontinued operations
–
(2,310
)
Net cash provided by (used in) operating activities
17,778
(297
)
Investing activities
Additions to property, plant and equipment
(17,438
)
(17,259
)
Proceeds from sale of property, plant and equipment
1,284
–
Addition to intangible assets
(2,419
)
–
Proceeds from sale of smoothie bowls product line
–
3,336
Net cash used in investing activities of continuing operations
(18,573
)
(13,923
)
Net cash provided by investing activities of discontinued operations
–
6,300
Net cash used in investing activities
(18,573
)
(7,623
)
Financing activities
Proceeds from notes payable
80,070
70,477
Repayment of notes payable
(82,969
)
(71,709
)
Net increase in borrowings under revolving credit facilities
6,762
26,350
Borrowings of short-term and long-term debt
18,600
–
Repayment of long-term debt
(19,016
)
(12,320
)
Proceeds from the exercise of stock options and employee share purchases
1,880
749
Payment of withholding taxes on stock-based awards
(2,389
)
(2,659
)
Repurchase of common shares
(991
)
–
Payment of cash dividends on preferred stock
–
(305
)
Net cash provided by financing activities of continuing operations
1,947
10,583
Increase in cash, cash equivalents and restricted cash in the period
1,152
2,663
Cash, cash equivalents and restricted cash, beginning of the period
9,012
8,754
Cash, cash equivalents and restricted cash, end of the period
10,164
11,417
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Non-GAAP Measures
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Adjusted Gross Margin
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Gross margin is a measure of gross profit (equal to revenues less cost of goods sold) as a percentage of revenues. The Company uses a measure of adjusted gross margin that excludes unusual items that are identified and evaluated on an individual basis, which due to their nature or size, the Company would not expect to occur as part of our normal business on a regular basis. The Company uses the measure of adjusted gross margin to evaluate the underlying profitability of our revenue-generating activities within each reporting period. The Company believes that disclosing this non-GAAP measure provides users with a meaningful, consistent comparison of its profitability measure for the periods presented. However, the non-GAAP measure of adjusted gross margin should not be considered in isolation or as a substitute for gross margin calculated based on gross profit determined in accordance with U.S. GAAP. The following tables present a reconciliation of adjusted gross margin from reported gross margin calculated in accordance with U.S. GAAP (all dollar amounts expressed in thousands of U.S. dollars).
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Second Quarter Ended
Revenues
Cost of Goods Sold
Gross Profit
June 28, 2025
$
$
$
As reported
191,489
163,082
28,407
Adjusted for:
Wastewater haul-off charges (a)
–
(752
)
752
As adjusted
191,489
162,330
29,159
Reported gross margin
14.8
%
Adjusted gross margin
15.2
%
Second Quarter Ended
Revenues
Cost of Goods Sold
Gross Profit
June 29, 2024
$
$
$
As reported
169,541
148,349
21,192
Adjusted for:
Wastewater haul-off charges (a)
–
(1,426
)
1,426
Start-up costs (b)
61
(2,287
)
2,348
Product withdrawal costs (c)
–
(2,145
)
2,145
As adjusted
169,602
142,491
27,111
Reported gross margin
12.5
%
Adjusted gross margin
16.0
%
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First Two Quarters Ended
Revenues
Cost of Goods Sold
Gross Profit
June 28, 2025
$
$
$
As reported
393,117
334,391
58,726
Adjusted for:
Wastewater haul-off charges (a)
–
(1,295
)
1,295
As adjusted
393,117
333,096
60,021
Reported gross margin
14.9
%
Adjusted gross margin
15.3
%
First Two Quarters Ended
Revenues
Cost of Goods Sold
Gross Profit
June 29, 2024
$
$
$
As reported
353,963
301,719
52,244
Adjusted for:
Wastewater haul-off charges (a)
–
(1,426
)
1,426
Start-up costs (b)
61
(2,614
)
2,675
Product withdrawal costs (c)
–
(2,145
)
2,145
As adjusted
354,024
295,534
58,490
Reported gross margin
14.8
%
Adjusted gross margin
16.5
%
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Adjusted Earnings
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When assessing financial performance, the Company uses an internal measure of adjusted earnings that excludes specific items recognized in other income or expense, and other unusual items that are identified and evaluated on an individual basis, which due to their nature or size, the Company would not expect to occur as part of its normal business on a regular basis. The Company believes that the identification of these excluded items enhances the analysis of the financial performance of its business when comparing those operating results between periods, as the Company does not consider these items to be reflective of normal business operations. The following tables present a reconciliation of adjusted earnings from earnings (loss) from continuing operations, which the Company considers to be the most directly comparable U.S. GAAP financial measure (all dollar amounts expressed in thousands of U.S. dollars, except per share amounts).
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Second Quarter Ended
June 28, 2025
June 29, 2024
Per Share
Per Share
$
$
$
$
Earnings (loss) from continuing operations
4,351
(4,437
)
Dividends and accretion on preferred stock
(35
)
169
Earnings (loss) from continuing operations attributable to common shareholders
4,316
0.03
(4,268
)
(0.04
)
Adjusted for:
Wastewater haul-off charges (a)
752
1,426
Start-up costs (b)
–
2,348
Product withdrawal costs (c)
–
2,145
Unrealized foreign exchange loss (gain) on restricted cash (d)
(562
)
838
Other (e)
(131
)
(304
)
Adjusted earnings from continuing operations
4,375
0.04
2,185
0.02
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First Two Quarters Ended
June 28, 2025
June 29, 2024
Per Share
Per Share
$
$
$
$
Earnings (loss) from continuing operations
9,162
(641
)
Accretion on preferred stock
(175
)
(264
)
Earnings (loss) from continuing operations attributable to common shareholders
8,987
0.07
(905
)
(0.01
)
Adjusted for:
Wastewater haul-off charges (a)
1,295
1,426
Start-up costs (b)
–
2,675
Product withdrawal costs (c)
–
2,145
Unrealized foreign exchange loss (gain) on restricted cash (d)
(543
)
838
Other (e)
(56
)
(304
)
Gain on sale of smoothie bowls product line (f)
–
(1,800
)
Adjusted earnings from continuing operations
9,683
0.08
4,075
0.03
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Adjusted EBITDA
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The Company uses a measure of adjusted EBITDA from continuing operations when assessing the performance of its operations, which the Company believes is useful to users' understanding of the Company's operating profitability because it excludes non-operating expenses, such as interest, loss on sale of receivables, and income taxes, as well as non-cash expenses, such as depreciation, amortization, and stock-based compensation. In addition, the Company's measure of adjusted EBITDA excludes other unusual items that affect the comparability of its operating performance, as identified in the preceding determination of adjusted earnings from continuing operations. The Company also uses this measure of adjusted EBITDA to assess operating performance in connection with its employee incentive programs. The following tables present a reconciliation of adjusted EBITDA from continuing operations from earnings (loss) from continuing operations, which the Company considers to be the most directly comparable U.S. GAAP financial measure (all dollar amounts expressed in thousands of U.S. dollars).
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Second Quarter Ended
June 28, 2025
June 29, 2024
$
$
Earnings (loss) from continuing operations
4,351
(4,437
)
Interest expense, net
5,301
6,410
Loss on sale of receivables*
537
–
Income tax expense (benefit)
344
(17
)
Depreciation and amortization
9,960
9,110
Stock-based compensation
2,192
2,443
Adjusted for:
Wastewater haul-off charges (a)
752
1,426
Start-up costs (b)
–
2,348
Product withdrawal costs (c)
–
2,145
Unrealized foreign exchange loss (gain) on restricted cash (d)
(562
)
838
Other (e)
(131
)
(304
)
Adjusted EBITDA from continuing operations
22,744
19,962
* Included in other non-operating expense.
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First Two Quarters Ended
June 28, 2025
June 29, 2024
$
$
Earnings (loss) from continuing operations
9,162
(641
)
Interest expense, net
10,408
12,460
Loss on sale of receivables*
959
–
Income tax expense
491
260
Depreciation and amortization
19,686
17,686
Stock-based compensation
3,735
7,088
Adjusted for:
Wastewater haul-off charges (a)
1,295
1,426
Start-up costs (b)
–
2,675
Product withdrawal costs (c)
–
2,145
Unrealized foreign exchange loss (gain) on restricted cash (d)
(543
)
838
Other (e)
(56
)
(304
)
Gain on sale of smoothie bowls product line (f)
–
(1,800
)
Adjusted EBITDA from continuing operations
45,137
41,833
* Included in other non-operating expense.
Article content
Footnotes
(a)
Reflects temporary third-party haul-off charges for excess wastewater produced at our Midlothian, Texas, facility due to volume constraints within our current treatment system.
(b)
Start-up costs mainly reflect the scale-up of production over the course of fiscal 2024 at our plant-based beverage facility in Midlothian, Texas.
(c)
Reflects certain direct costs, net of expected insurance recoveries, related to the voluntary withdrawal from customers in the second quarter of 2024 of certain batches of aseptically-packaged products.
(d)
Reflects unrealized foreign exchange (gains) or losses associated with peso-denominated restricted cash held in Mexico.
(e)
For the second quarter and first two quarters of 2025, other mainly reflects a gain on sale of property, plant and equipment, partially offset by a legal settlement loss. For the second quarter and first two quarters of 2024, other mainly reflects legal settlement gains. These other amounts are recorded in other income or expense.
(f)
Reflects the pre-tax gain on sale of the smoothie bowls product line in the first quarter of 2024, which is recorded in other income.
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Net Leverage
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Net leverage is a non-GAAP financial measure that is calculated by dividing net debt (non-GAAP) by trailing four quarters adjusted EBITDA (non-GAAP). Net debt is defined by the Company as short-term debt plus current portion of long-term debt plus long-term debt less cash and cash equivalents. The Company uses net leverage as an assessment of its operating performance relative to its debt levels. The following tables present reconciliations of trailing four quarters adjusted EBITDA from continuing operations from loss from continuing operations and total debt to net debt, and the calculation of net leverage (all dollar amounts expressed in thousands of U.S. dollars).
Article content
Trailing Four Quarters Ended
June 28, 2025
December 28, 2024
$
$
Loss from continuing operations
(1,671
)
(11,474
)
Interest expense, net
22,856
24,908
Loss on sale of receivables*
1,645
686
Income tax expense
1,701
1,470
Depreciation and amortization
38,497
36,497
Stock-based compensation
7,837
11,190
Adjusted for:
Wastewater haul-off charges
4,230
4,361
Start-up costs
16,474
19,149
Product withdrawal costs
–
2,145
Unrealized foreign exchange loss on restricted cash
226
1,607
Other
215
(33
)
Gain on sale of smoothie bowls product line
–
(1,800
)
Adjusted EBITDA from continuing operations
92,010
88,706
* Included in other non-operating expense.
Article content
$
As at June 28, 2025
Short-term debt
10,115
Current portion of long-term debt
30,176
Long-term debt
233,080
Total debt
273,371
Cash and cash equivalents
(2,161
)
Net debt
271,210
For the trailing four quarters ended June 28, 2025
Adjusted EBITDA
92,010
Net leverage
2.9x
As at December 28, 2024
Current portion of long-term debt
29,393
Long-term debt
235,798
Total debt
265,191
Cash and cash equivalents
(1,552
)
Net debt
263,639
For the trailing four quarters ended December 28, 2024
Adjusted EBITDA
88,706
Net leverage
3.0x
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Globe and Mail
10 minutes ago
- Globe and Mail
Super Group Reports Financial Results for Second Quarter of 2025
Super Group (SGHC) Limited (NYSE: SGHC) ('SGHC', the "Company" or 'Super Group'), the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, today announced its second quarter 2025 unaudited consolidated financial results. Neal Menashe, Chief Executive Officer of Super Group, commented: 'We had a Super first half of 2025, driven by a record-breaking second quarter. The quarter's success was fueled by strong execution across our key markets, a full calendar of global sporting events, increased deposits, high customer retention, and margin expansion. While our decision to exit the U.S. was difficult, we believe that this step demonstrates our commitment to capital efficiency and long-term profitability. With continued focus on scaling our technology globally, Super Group should be even better positioned for sustained, profitable growth.' Alinda van Wyk, Chief Financial Officer of Super Group, stated: 'Q2 marked the strongest quarterly financial performance in Super Group's history, with revenue up 30% year-over-year and Adjusted EBITDA up 78% year-over-year to $157 million, delivering a healthy 27% margin. These results underscore our scalable, cost-efficient operating model and controlled marketing spend. We ended the quarter with $393 million in unrestricted cash and zero debt, and returned $20 million to shareholders, bringing our 12-month capital returns to $166 million. Driven by our continued focus on core markets, we are raising our full-year Adjusted EBITDA guidance and remain confident in delivering long-term value to our shareholders.' Financial Highlights: Revenue increased by 30% to $579.4 million for the second quarter of 2025 from $446.5 million in the same period of the prior year, driven by growth from the Africa, Europe and North America markets partially offset by declines from the LATAM, Middle East and Asia-Pacific markets. Profit before tax was $38.8 million for the second quarter of 2025 and includes a non-cash charge of $63.9 million related to the impairment of Digital Gaming Corporation Limited ("DGC")' iGaming related assets and $22.6 million relating to onerous contracts. By comparison, profit before tax for the second quarter of 2024 was $22.1 million and included a non-cash charge of $39.6 million related to the impairment of DGC's sportsbook assets. Adjusted EBITDA, a non-GAAP financial measure, increased by 78% to $156.7 million for the second quarter of 2025 compared to $88.2 million in the second quarter of 2024. Monthly Active Customers increased by 21% to 5.5 million for the second quarter of 2025 compared to 4.5 million in the second quarter of 2024. Balance Sheet: Total Assets: $1.1 billion; Total Liabilities: $454.4 million; Total Equity: $662.3 million. Cash and cash equivalents was $393.0 million as of June 30, 2025 compared to $388.0 million at December 31, 2024. Dividends of $20.2 million was paid during the quarter, bringing the 12-month capital returns to $166 million. Guidance 2025 Super Group is raising its full-year Group Adjusted EBITDA guidance to $470-$480 million. Ex-U.S. Adjusted EBITDA is now expected to be between $500-$510 million, up from greater than $480 million compared to prior guidance. U.S. Adjusted EBITDA is expected to be a loss of $30 million, excluding one-off cost of U.S. exit. Interim Financial Statements: The Group intends to publish a condensed set of interim accounts for the six months ended June 30, 2025 and comparative period by the end of August 2025, which will include a condensed Statement of Profit or Loss and Other Comprehensive Income, condensed statement of Financial Position, condensed Statement of Changes in Equity, condensed Statement of Cash Flows and relevant notes. Revenue by Geographical Region for the Three Months Ended June 30, 2025 in $ millions: Betway Spin Total Africa and Middle East 225 4 229 Asia-Pacific 9 28 37 Europe 81 28 109 North America 37 162 199 South/Latin America 3 2 5 Total revenue 355 224 579 % % % Africa and Middle East 63 % 2 % 40 % Asia-Pacific 3 % 13 % 6 % Europe 23 % 12 % 19 % North America 10 % 72 % 34 % South/Latin America 1 % 1 % 1 % Revenue by Geographical Region for the Three Months Ended June 30, 2024 in $ millions*: Betway Spin Total Africa and Middle East 164 1 165 Asia-Pacific 7 33 40 Europe 49 23 72 North America 41 120 161 South/Latin America 4 5 9 Total revenue 265 182 447 % % % Africa and Middle East 62 % 1 % 37 % Asia-Pacific 3 % 18 % 9 % Europe 18 % 13 % 16 % North America 15 % 65 % 36 % South/Latin America 2 % 3 % 2 % * The Group has adopted a change in presentation currency from Euros to USD at January 1, 2025. Accordingly, the comparative table has been re-presented retrospectively as outlined under the change in presentation currency note. Revenue by Geographical Region for the Six Months Ended June 30, 2025 in $ millions: Betway Spin Total Africa and Middle East 426 6 432 Asia-Pacific 14 56 70 Europe 151 53 204 North America 76 304 380 South/Latin America 6 4 10 Total revenue 673 423 1,096 % % % Africa and Middle East 63 % 1 % 39 % Asia-Pacific 3 % 13 % 6 % Europe 22 % 13 % 19 % North America 11 % 72 % 35 % South/Latin America 1 % 1 % 1 % Revenue by Geographical Region for the Six Months Ended June 30, 2024 in $ millions: Betway Spin Total Africa and Middle East 316 1 317 Asia-Pacific 16 62 78 Europe 90 43 133 North America 76 238 314 South/Latin America 8 8 16 Total revenue 506 352 858 % % % Africa and Middle East 62 % 0 % 37 % Asia-Pacific 3 % 18 % 9 % Europe 18 % 12 % 15 % North America 15 % 68 % 37 % South/Latin America 2 % 2 % 2 % Revenue by product line for the Three Months Ended June 30, 2025 in $ millions: Betway Spin Total Online casino 1 230 224 454 Sports betting 1 116 — 116 Brand licensing 2 8 — 8 Other 3 1 — 1 Total revenue 355 224 579 Revenue by product line for the Three Months Ended June 30, 2024 in $ millions: Betway Spin Total Online casino 1 166 182 348 Sports betting 1 91 — 91 Brand licensing 2 6 — 6 Other 3 2 — 2 Total revenue 265 182 447 Revenue by product line for the Six Months Ended June 30, 2025 in $ millions: Betway Spin Total Online casino 1 436 423 859 Sports betting 1 222 — 222 Brand licensing 2 12 — 12 Other 3 3 — 3 Total revenue 673 423 1,096 Revenue by product line for the Six Months Ended June 30, 2024 in $ millions *: Betway Spin Total Online casino 1 318 351 669 Sports betting 1 170 — 170 Brand licensing 2 12 — 12 Other 3 6 1 7 Total revenue 506 352 858 1 Sports betting and online casino revenues are not within the scope of IFRS 15 'Revenue from Contracts with Customers' and are treated as derivatives under IFRS 9 'Financial Instruments'. 2 Brand licensing revenues are within the scope of IFRS 15 'Revenue from Contracts with Customers'. 3 Other relates to profit share, royalties and outsource fees from external customers. * The Group has adopted a change in presentation currency from Euros to USD at January 1, 2025. Accordingly, the comparative table has been re-presented retrospectively as outlined under the change in presentation currency note. Non-GAAP Financial Information This press release includes non-GAAP financial information not presented in accordance with the International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board. EBITDA, Adjusted EBITDA, Adjusted EBITDA ex-US, Adjusted EBITDA US are non-GAAP company-specific performance measures that Super Group ("the Group") uses to supplement the Company's results presented in accordance with IFRS. EBITDA is defined as profit before depreciation, amortization, finance income, finance expense and income tax expense. Adjusted EBITDA is EBITDA adjusted for RSU expense, change in fair value of options, unrealized foreign exchange, gain on disposal of business and other adjustments. Adjusted EBITDA ex-US is Adjusted EBITDA relating to the rest of the Group, excluding Digital Gaming Corporation ('DGC'). Adjusted EBITDA US is Adjusted EBITDA relating to DGC. Super Group believes that these non-GAAP measures are useful in evaluating the Company's operating performance as they provide additional perspective on the financial performance of our core business, are similar to measures reported by the Company's public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by IFRS to be recorded in Super Group's financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with IFRS results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with IFRS, but should not be considered a substitute for, or superior to, IFRS results. Reconciliation tables of the most comparable IFRS financial measure to the non-GAAP financial measures used in this press release, and supplemental materials are included below. Super Group urges investors to review the reconciliation and not to rely on any single financial measure to evaluate its business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs. for the Three Months Ended June 30: Three Months Ended June 30 Six Months Ended June 30 2025 $m 2024 * $m 2025 $m 2024 * $m Profit before taxation 39 22 127 75 Finance income (3 ) (3 ) (5 ) (6 ) Finance expense 2 1 4 3 Depreciation and amortization expense 19 23 37 45 EBITDA 57 43 163 117 Change in fair value of options — — — 14 RSU expense 3 3 9 7 Unrealized foreign exchange 4 2 2 5 Impairment of assets 66 40 66 40 US iGaming closure 23 — 23 — Market closure — — — — Gain on disposal of business — — — (44 ) Other adjustments 1 4 — 5 — Adjusted EBITDA 157 88 268 139 Adjusted EBITDA, ex-US 162 106 283 181 Adjusted EBITDA, US (5 ) (18 ) (15 ) (42 ) 1 Other adjustments in 2025 mainly relates to Sportsbook acquisition related costs. * The Group has adopted a change in presentation currency from Euros to USD at January 1, 2025. Accordingly, the comparative table has been re-presented retrospectively as outlined under the change in presentation currency note. Webcast Details The Company will host a webcast at 7:45 a.m. ET tomorrow to discuss the second quarter 2025 financial results. Participants may access the live webcast and supplemental earnings presentation on the events & presentations page of the Super Group Investor Relations website at: About Super Group (SGHC) Limited Super Group (SGHC) Limited is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering. The Group is listed on the New York Stock Exchange (NYSE ticker: SGHC) and is licensed in multiple jurisdictions, with leading positions in key markets throughout Europe, the Americas and Africa. The Group's sports betting and online gaming offerings are underpinned by its scale and leading technology, enabling fast and effective entry into new markets. Its proprietary marketing and data analytics engine empowers it to responsibly provide a unique and personalized customer experience. Super Group has been ranked number 6 in the EGR Power 50 for the last three years. For more information, visit Forward-Looking Statements Certain statements made in this press release are 'forward looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, Super Group's intention to pay a dividend, including the expected timing of such dividend, expectations and projections of market opportunity, growth and profitability. These forward-looking statements generally are identified by the words 'believe,' 'project,' 'expect,' 'anticipate,' 'estimate,' 'intend,' 'strategy,' 'future,' 'opportunity,' 'plan,' 'pipeline,' 'possible,' 'may,' 'should,' 'will,' 'would,' 'will be,' 'will continue,' 'will likely result,' and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, forecasts and other expectations, and identify and realize additional opportunities; (ii) changes in the competitive and regulated industries in which Super Group operates; (iii) variations in operating performance across competitors; (iv) changes in laws and regulations affecting Super Group's business; (v) Super Group's inability to meet or exceed its financial projections; (vi) changes in general economic conditions; (vii) changes in domestic and foreign business, market, financial, political and legal conditions, including abrupt or unexpected changes in interest rates or increases in inflation or inflationary expectations and reductions in discretionary consumer spending; (viii) the ability of Super Group's customers to deposit funds in order to participate in Super Group's gaming products; (ix) Super Group's ability, and the ability of Super Group's key executives, certain employees, significant shareholders or other applicable individuals, to comply with regulatory requirements or successfully obtain a license or permit required in a particular regulated jurisdiction, or maintain, renew or expand existing licenses; (x) the effectiveness of technological solutions Super Group has in place to block customers in certain jurisdictions, including jurisdictions where Super Group's business is illegal, or which are sanctioned by countries in which Super Group operates from accessing its offerings; (xi) Super Group's ability to restrict and manage betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; (xii) Super Group's ability to protect or enforce its intellectual property rights, the confidentiality of its trade secrets and confidential information, or the costs involved in protecting or enforcing Super Group's intellectual property rights and confidential information, and Super Group's ability to obtain new licenses and maintain, renew or expand existing licenses to use the intellectual property of third parties; (xiii) compliance with applicable data protection and privacy laws in Super Group's collection, storage and use, including sharing and international transfers, of personal data; (xiv) failures, errors, defects or disruptions in Super Group's information technology and other systems and platforms; (xv) Super Group's ability to develop new products, services, and solutions, bring them to market in a timely manner, and make enhancements to its platform; (xvi) Super Group's ability to maintain and grow its market share, including its ability to enter new markets and acquire and retain paying customers; (xvii) the success, including win or hold rates, of existing and future online betting and gaming products; (xiii) competition within the broader entertainment industry; (xix) Super Group's reliance on strategic relationships with land based casinos, sports teams, event planners, local licensing partners and advertisers; (xx) events or media coverage relating to, or the popularity of, online betting and gaming industry; (xxi) trading, liability management and pricing risk related to Super Group's participation in the sports betting and gaming industry; (xxii) accessibility to the services of banks, credit card issuers and payment processing services providers due to the nature of Super Group's business; (xxiii) the regulatory approvals related to proposed acquisitions and the integration of the acquired businesses; and (xxiv) other risks and uncertainties indicated from time to time for Super Group including those under the heading 'Risk Factors' in our Annual Report on Form 20-F filed with the SEC on April 3, 2025, and in Super Group's other filings with the SEC. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in other documents filed or that may be filed by Super Group from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Super Group assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Super Group does not give any assurance, representation or warranty that it will achieve its expectations in any specified time frame or at all.


Globe and Mail
10 minutes ago
- Globe and Mail
Expeditors Appoints David A. Hackett as CFO
Expeditors International of Washington, Inc. (NYSE: EXPD) announced the appointment of David A. Hackett on August 4, 2025, as Senior Vice President and Chief Financial Officer, effective October 1, 2025. Hackett has served as Vice President, Finance, since May 2024. On August 4, 2025, Expeditors' current Senior Vice President and Chief Financial Officer, Bradley S. Powell, notified the Board of Directors of his intention to retire, effective September 30, 2025. These announcements demonstrate the company's commitment to succession planning. 'Dave has fully integrated himself into our finance and accounting operations and fits seamlessly with our culture, having worked closely with Brad to learn our services, business model and strategies since joining Expeditors as Vice President of Finance in May 2024,' said Daniel R. Wall, President and Chief Executive Officer. 'Dave also worked directly with our other executives and the Board and traveled to many Districts throughout our global network to learn our operations at the field level and meet with a great many employees. With his wealth of financial capabilities and demonstrated leadership, we are fully confident in Dave's ability to step in as CFO.' Wall added, 'I can't thank Brad enough for his strong hand in overseeing our financial health and growth. Brad built a strong team around him and managed through some of the most difficult events in our company's history, including the 2008 financial crisis and the COVID-19 pandemic. Through it all, Brad has brought unflappable leadership and strategic thinking to the role of Chief Financial Officer. At least as significantly, Brad brought us his unrelenting focus on investing in our people, profitability, and cash flow. Over the past 17 years under Brad, Expeditors has increased its dividend from $0.32 to $1.54 and has returned a total of $12 billion to shareholders through share repurchases and dividends. We all wish Brad the best in a well-deserved retirement.' Upon his appointment, Hackett commented, 'The Expeditors culture is unique, and I appreciate getting to know so many people throughout the organization. I'm humbled and honored to build on Brad's legacy in leading the finance and accounting function as part of the executive team of this great company. I'm also excited to help shape strategy that drives sustainable, profitable, and capital-efficient growth for our employees and shareholders.' Dave Hackett, 52, joined Expeditors in May 2024 as Vice President, Finance. Prior to Expeditors, Hackett served in many roles across finance at NIKE, Inc. for nearly 16 years, with 7 of these years as a vice president in the finance and strategy function as part of the NIKE Corporate Leadership Team. During his time at NIKE, he led external reporting, was Controller of North America and Vice President of Global Treasury and Financial Risk Management. Prior to NIKE, Hackett spent nearly 9 years in the audit function of KPMG where he was a senior manager and led the audit teams for some of the firm's largest public clients in the Pacific Northwest. He also obtained his CPA certification in the state of Oregon in 1998. Expeditors is a global logistics company headquartered in Bellevue, Washington. The Company employs trained professionals in 172 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.


Globe and Mail
10 minutes ago
- Globe and Mail
Yotpo Exits Email & SMS, E-commerce Brands Face Vendor Lock-In Risk TxtCart Emerges as the SMS-Only Alternative to Attentive
In a strategic shift, Israeli-founded unicorn Yotpo announced it will discontinue its Email and SMS marketing services—laying off roughly 200 employees (34% of its workforce)—and sell that business to Attentive in a deal valued in the tens of millions. The move highlights the dangers of stacking multiple channels with a single vendor: when that provider pivots, merchants can be left scrambling for replacements, migrating complex integrations and incurring steep costs. 'Tomorrow's companies will be smaller, more focused, and much more AI-based,' said Yotpo CEO Tomer Tagrin. The Risk of Stack Consolidation Brands that bundle reviews, loyalty, email, SMS, and analytics risk sudden service gaps when their provider refocuses. Migrations become costly, innovation stalls, and ROI suffers—especially for Shopify merchants who need swift, reliable SMS solutions. TxtCart: SMS Built for Shopify Brands of the Future TxtCart sidesteps these pitfalls by concentrating solely on two-way, conversational SMS marketing. Key benefits include: ● Two-way AI Conversations: Handle customer queries at $0.50 per resolution (vs $16 with human agents), driving 32× cost savings. ● Performance-Based Pricing: 10× ROI guarantee on qualifying plans, no contracts or minimums. ● Deep Shopify Integration: One-click automations, abandoned cart recovery, granular segmentation by purchase behavior, and real-time revenue analytics. 'Honestly like a money printer for us,' said Gamenetics. 'Within the first 45 days we added an additional $8,500 in revenue with only a small SMS list.' Brands that Migrated from Attentive (Yotpo's SMS buyer) to TxtCart ● Joyride (pet harnesses) recovered over $1.8 million in SMS revenue in 2024, achieving 20× ROI and doubling checkout recovery after switching from Attentive. ● Shogun Sports (athletic gear) saw $13,848 in recovered revenue and 15.66× ROI in 28 days following their move from Attentive. As further proof for the TxtCart platform's SMS capabilities, Dreamwrap Sleep saw a 400% ROI in just two weeks, and OrganiGrowHairCo calls TxtCart 'top tier support,' praising its seamless setup and instant results. TxtCart Founder's Perspective On Twitter, TxtCart founder Kyle Bigley invited both merchants and displaced employees to join: 'Hearing that Yotpo is shutting down email and sms…Merchants affected, my DMs are open as we can get you migrated in minutes… Employees affected, my DMs are open as we are hiring for a variety of roles at TxtCart.' He also recalled the SMSBump era: '25k merchants were left hanging after SMSBump was acquired by Yotpo…Too bloated. Too expensive. Too complicated. Dropshippers don't want to deal with sales calls or contracts. They want quick money. That's exactly who we built TxtCart for… We only do SMS, and we go deep as hell.' About TxtCart TxtCart is a Shopify-native SMS marketing platform built for e-commerce brands that demand rapid onboarding, AI-driven automation, and performance-based ROI. Focused exclusively on SMS, TxtCart helps merchants recover carts, engage customers in real time, and maximize revenue without the bloat of multi-channel stacks.