Rogers Sugar products - credit Rogers Sugar

By Dori Modney

Rogers’ Sugar posts positive numbers for its unaudited first quarter of fiscal 2022

Feb 11, 2022 | 4:36 PM

LETHBRIDGE, AB. — Rogers’ Sugar sales volume took a dip on volatile markets but, there was still a margin increase in the company’s first fiscal quarter.

Revenue increased by $16.4 million compared to the same period last year, despite a reduction in sales volume. High prices drove the increase for #11 world raw sugar, with improved pricing from recent negotiations and higher by-product sales revenue. In the first quarter of 2022, the average price for #11 world raw sugar increased to US$0.1951 per pound from US$0.1464 per pound in the first quarter of 2021.

There was a decrease in sugar volume by 10,397 metric tonnes in the first quarter of fiscal 2022 compared to the same quarter last year. Total domestic volume decreased during the current quarter as a reduction in consumer and industrial volumes was partly offset by an increase in liquid volume.

Consumer volume was down due to lower demand from on-going volatility related to COVID-19, high inventory levels at retailers at the beginning of the period and disruption to the supply chain in western Canada caused by poor weather that resulted in rail and road closures for an extended period of time, which restricted shipments for specialty sugar products across the country.

Industrial volume was impacted by delayed customer orders driven by COVID-19-related demand volatility. The reductions were partly offset by the increase in liquid volume during the quarter, mainly due to the continued demand from existing customers.

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Also, export volume decreased from the same quarter last year, as the first quarter of last year included a one-time opportunistic quota under the ratified Canadian United States Mexico agreement (“CUSMA”).

Roger Sugar has two operating and reportable segments, namely sugar and maple products. The principal business activity of the sugar segment is the refining, packaging and marketing of sugar products, primarily from sugar beets in Taber, Alberta, while the maple products segment processes pure maple syrup and related maple products. The two segments are managed separately as they require different technology and capital resources.

Mike Walton, the President and Chief Executive officer fo Rogers and Lantic Inc., concedes the company felt greater volatility in customer demand and experienced the unforeseen events impacting the supply chain in Western Canada in the last few weeks of the quarter, resulting in postponement shipments in both of the company’s business segments. However, Walton says the company is forward looking.

“We remain positive for our financial outlook for 2022, as we continue to build on improved gross margin, especially in our Sugar segment, and stable volume forecast for both of our segments for the remainder of the year. We are also pleased with the progress made on the processing of the current beet crop in Alberta, and we anticipate a production volume aligned with expectations for the first time in the last three years.”

The full EBITDA (earnings before interest, taxes, depreciation and amortization) statement can be viewed here.

Rogers has provided high sugar products to the Canadian market and has been operating since 1888.

Rogers Sugar – Rogers Sugar specialty items – credit Rogers Sugar

Lantic, Rogers wholly owned subsidiary, operates cane sugar refineries in Montreal, Québec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic’s sugar products are marketed under the “Lantic” trademark in Eastern Canada, and the “Rogers” trademark in Western Canada and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups. We also operate a custom blending and packaging operation and distribution center in Toronto, Ontario.

Maple Treat operates bottling plants in Granby, Dégelis and in St-Honoré-de-Shenley, Québec and in Websterville, Vermont. Maple Treat’s products include maple syrup and derived maple syrup products supplied under retail private label brands in over fifty countries and are sold under various brand names, such as TMTC, Uncle Luke’s, Great Northern, Decacer and Highland Sugarworks.

The business has two distinct segments – Sugar – which includes refined sugar and by-products and Maple – which includes maple syrup and maple derived products.