SunOpta Reports Financial Turnaround, Plans to Expand in Washington

SunOpta, which has had a difficult couple of years, reported double-digit growth in both revenue and operational profitability and is seeing enough demand for its better-for-you fruit snacks to warrant an expansion of its Omak, Wash., facility. But the CEO also acknowledged the negative impact of tariffs.

“Both revenue and adjusted EBITDA growth continued their double-digits trajectory, driven by robust volume gains across the breadth of our diverse portfolio,” CEO Brian Kocher said in reporting the company’s second-quarter financials.

The company, based in Eden Prairie, Minn., had full-year net losses for 2022 through 2024.

Second-quarter revenues of $191.5 million increased 12.9% from 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.

“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.”

He said current assets can meet demand in SunOpta’s beverages and fruit snacks manufacturing, but “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."

The company is budgeting $25 million for that work.

“Our new business pipeline has never been stronger,” Kocher continued, “and we are exceptionally well positioned to capitalize on these opportunities to drive sustainable growth and profitability.”

However, “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 [the U.S.-Mexico-Canada free trade agreement.

“Due to the timing lag in passing through the tariff pricing adjustments, gross profit was negatively impacted by $1.6 million. We expect to have a similar fiscal third quarter timing lag impact as we recover the recently announced tariff changes on August 1. While our pass-through mechanisms may have a timing lag, we continue to expect to recover substantially all additional costs of tariffs.”