What happened
Shares of SunOpta (STKL 1.45%) rose on Thursday after the food company reported financial results for the second quarter of 2022, even hitting new 52-week highs of $11.47 per share early in the day. As of 12:20 p.m ET, the stock was trading below this high but was still up 21% for the session.
So what
SunOpta sells food products like frozen fruit, nondairy milk substitutes, and more. In Q2, the company generated revenue of almost $244 million, up 20.4% from the same quarter last year.
The star of its Q2 report was its plant-based segment, which saw 31% year-over-year growth. This growth is noteworthy considering its plant-based revenue was up 21.4% in the second quarter of 2021, making for an impressive two-year growth rate. And it stands in stark contrast to its fruit-based sales, which were only up 7.4% in Q2 this year and down 1.9% in Q2 last year.
It's not a directly comparable company. But it's worth noting that revenue for plant-based milk company Oatly was up 21.8% year over year in its second quarter -- comparable to SunOpta's growth. However, by both making its own products and manufacturing products for other companies, SunOpta is able to gain scale and operating leverage faster than it could only making its own products.
For this reason, while Oatly continues with steep losses, SunOpta had $22.3 million in adjusted Q2 earnings before interest, taxes, depreciation, and amortization (EBITDA).
Now what
With Q2 results, SunOpta's management raised full-year 2022 revenue guidance to $930 million to $960 million, compared with previous guidance of $890 million to $930 million.
In June, the company's management laid out revenue guidance of $1.3 billion in 2025 and adjusted EBITDA of $150 million -- strong growth from where it is today. Having already raised its guidance for 2022 on solid Q2 results, I'd say SunOpta is certainly trending in the right direction.
