SunOpta Inc. (NASDAQ:STKL) Q4 2023 Earnings Call Transcript

Brian Kocher: We don’t really kind of bucket that and segment that. I think it’s fair to say that the growth rate that we are projecting includes all of the plant-based milks, whether it’s oat, almond, soy, coconut, and it’s all of the plant-based milks.

Daniel Biolsi: Okay. And then does Modesto still look to be online in Q2 and when would shipping start? And then should we expect growth in ingredients once that comes online in the second half of the year?

Brian Kocher: Yes. Modesto is still on track. Yes, we believe that it will make a positive impact in the financials in the second quarter. Again, we will prioritize the internal use of oat for our own products. But I would say maybe by the end of the year, the first part of 2025, you might see some ingredient sales. But our priority will be the internal use first.

Daniel Biolsi: Okay. Thanks.

Operator: There are no further questions at this time. I will now turn the call over to Brian Kocher for closing remarks.

Brian Kocher: Thank you, operator. I would just like to take a few minutes to summarize our key messages. If you only take away three items from this call, then the three items should be, first and foremost, we are a growing company in growing categories. In addition to the growth that’s naturally coming our way via the growth of our blue chip customer base, we are growing via share gains in our existing customers, we are growing via new customer acquisition, and we continue to grow via TAM expansion. So, that’s one thing. Secondly, I would just like to remind everyone. Our early visibility into the results and trends in 2024 have allowed us to both affirm our ‘24 guidance as well as that mid-term guidance that we talked about and so that’s really important to remember.

And then I think the other thing that’s important is, my confidence in the demand side of the business is allowing us to prioritize our leadership efforts in the pursuit of operational excellence. And pursuing operational excellence as a way to enhance margin and then create that non-CapEx capacity to unlock capacity from our existing network. So, remember those three as the summary items. And then finally, I would really like to thank you again, Joe, for your leadership. Your legacy will positively impact the culture and the business of SunOpta for many years to come and so thank you for your efforts. With that, operator, we can adjoin – adjourn, excuse me. Thank you to all who joined us and we look forward to updating you throughout 2024.

Thank you.

Operator: This concludes today’s call. You may now disconnect.