RSI Rogers Sugar Inc

Rogers Sugar Inc. (the “Company”, “Rogers”, “RSI” or “our,” “we”, “us”) (TSX: RSI) today reported results for the third quarter and first nine months of fiscal 2024. Consolidated adjusted EBITDA for the quarter rose to $34.5 million, driven by strong performance in the Company’s Maple and Sugar segments.

The quarterly consolidated adjusted EBITDA represents a record for third-quarter profitability at Rogers Sugar, driven by supportive market conditions and the continuing impact of management efforts to optimize the business and drive profitability. The Company remains on track to deliver a third straight fiscal year of record adjusted EBITDA.

“Our emphasis on optimizing the business to generate consistent, profitable and sustainable growth once again delivered strong results,” said Mike Walton, President and Chief Executive Officer of Rogers and Lantic Inc. “We continue to expect positive demand trends for our sugar in the years to come, and we are making the investments needed to expand and position the business to benefit from those over the long term.”

Third Quarter 2024 Consolidated Highlights(unaudited)	Q3 2024	Q3 2023		YTD 2024		YTD 2023
Financials ($000s)
Revenues	309,091	262,285		898,734		796,677
Gross margin	36,635	41,685		126,140		124,534
Adjusted gross margin(1)	47,742	34,912		141,353		115,138
Results from operating activities	16,315	24,008		67,129		72,148
EBITDA(1)	23,372	30,523		88,081		91,681
Adjusted EBITDA(1)	34,479	23,750		103,294		82,285
Net earnings	7,379	14,177		35,167		39,913
per share (basic)	0.06	0.13		0.31		0.38
per share (diluted)	0.06	0.12		0.28		0.35
Adjusted net earnings(1)	16,337	8,749		47,841		33,211
Adjusted net earnings per share (basic)(1)	0.13	0.08		0.42		0.32
Trailing twelve months free cash flow(1)	74,542	47,846		74,542		47,846
Dividends per share	0.09	0.09		0.27		0.27
Volumes
Sugar (metric tonnes)	185,799	191,411		548,793		579,807
Maple Syrup (thousand pounds)	11,392	9,630		35,021		33,508

(1) See “Cautionary statement on Non-IFRS Measures” section of this press release for definition and reconciliation to IFRS measures.

• The Company delivered consolidated adjusted EBITDA(1) for the third quarter and the first nine months of fiscal 2024 of $34.5 million and $103.3 million respectively, up by $10.7 million and $21.0 million from the same periods last year, driven by the strong performance of both of our business segments.
• Adjusted net earnings per share at $0.13 for the third quarter were $0.05 higher than the same period last year.
• Adjusted EBITDA(1) in the Sugar segment was strong in the third quarter of fiscal 2024 at $30.1 million, an increase of $9.4 million compared to the same period last year, driven by higher adjusted gross margin, partially offset by higher administration and selling expenses.
• Sales volumes in the Sugar segment decreased by 5,600 metric tonnes to approximately 185,800 metric tonnes in the third quarter, driven by timing and by a slight reduction in North American demand.
• Sugar segment adjusted gross margin(1) amounted to $225 per metric tonne in the third quarter of 2024 as compared to $159 per metric tonne for the same period last year, mainly due to the increase in overall margin from improved selling prices, partially offset by higher production costs.
• Adjusted EBITDA(1) in the Maple segment was $4.4 million in the third quarter, an increase of $1.4 million from the same quarter last year, largely driven by higher average selling prices, higher sales volumes and lower operating costs.
• Adjusted gross margin percentage(1) in the Maple segment was 10.4% in the third quarter, as compared to an adjusted gross margin percentage(1) of 9.5% for the same period last year, driven by higher average selling prices and lower operating costs following the implementation of automation and continuous improvement initiatives in the later part of fiscal 2023.
• Free cash flow(1) for the trailing 12 months ended June 29, 2024, was $74.5 million, an increase of $26.7 million from the same period last year, driven by higher consolidated adjusted EBITDA(1) and lower short term interest charges, timing in interest payments and deferred financing fees.
• Considering the strong results of the first nine months of fiscal 2024 for both of our business segments, we anticipate delivering higher financial results in 2024 as compared to 2023.
• In the third quarter of fiscal 2024, we distributed $0.09 per share to our shareholders for a total of $11.5 million.
• The construction phase of the Montréal portion of our expansion project aimed at enhancing the production and logistic capacity of our eastern sugar refining operations in Montréal and Toronto (formerly referred to as the “Expansion Project” and now referred to as the “LEAP Project”) has begun. Orders for sugar refining equipment and other large production and logistic-related equipment have been placed with suppliers. In the third quarter, we identified incremental costs to the LEAP Project. We expect to provide a revised cost estimate for the LEAP Project in the fall of 2024.
• On August 8, 2024, the Board of Directors declared a quarterly dividend of $0.09 per share, payable on or before October 10, 2024.(1) See “Cautionary statement on Non-IFRS Measures” section of this press release for definition and reconciliation to IFRS measures.

Sugar

Third Quarter 2024 Sugar Highlights(unaudited)	Q3 2024	Q3 2023		YTD 2024		YTD 2023
Financials ($000s)
Revenues	252,453	215,831		725,218		637,253
Gross margin	31,304	35,772		107,710		108,885
Adjusted gross margin(1)	41,862	30,494		123,041		102,300
Per metric tonne ($/ mt) (1)	225	159		224		176
Administration and selling expenses	11,003	7,811		31,197		25,547
Distribution costs	6,137	6,821		18,415		17,223
Results from operating activities	14,164	21,140		58,098		66,115
EBITDA(1)	19,553	26,002		74,047		80,567
Adjusted EBITDA(1)	30,111	20,724		89,378		73,982
Volumes (metric tonnes)
Total volume	185,799	191,411		548,793		579,807

(1) See “Cautionary statement on Non-IFRS Measures” section of this press release for definition and reconciliation to IFRS measures.

In the third quarter of fiscal 2024, revenues increased by $36.6 million compared to the same periods last year, largely driven by higher contribution from refining related activities. This variance was partially offset by a lower average price for Raw #11 and lower sales volume.

In the third quarter of fiscal 2024, sugar volume totaled approximately 185,800 metric tonnes, a decrease of approximately 3% or 5,600 metric tonnes compared to the same period last year, driven mainly by a slight reduction in North American demand.

Gross margin was $31.3 million for the current quarter and included a loss of $10.6 million for the mark-to-market of derivative financial instruments. For the same period last year, gross margin was $35.8 million with a mark-to-market gain of $5.3 million.

Adjusted gross margin was $41.9 million for the third quarter of 2024 as compared to $30.5 million for the same period in 2023. Adjusted gross margin increased by $11.4 million in the third quarter compared to the same period last year mainly as a result of higher sugar sales margin from increased average pricing on sugar refining related activities. This positive variance was partially offset by higher production costs mainly driven by increased maintenance activities and market based inflationary pressure on costs, along with the unfavourable impact of lower sales volume.

On a per-unit basis, adjusted gross margin for the third quarter was $225 per metric tonne, higher than last year by $66 per metric tonne. The favourable variance was mainly due to the increase in overall margin from improved selling prices, partially offset by higher production costs.

Results from operating activities for the third quarter of fiscal 2024 were $14.2 million, a decrease of $7.0 million from the same period last year. These results included gains and losses from the mark-to-market of derivative financial instruments.

EBITDA for the third quarter of fiscal 2024 was $19.6 million compared to $26.0 million in the same period last year. These results include gains and losses from the mark-to-market of derivative financial instruments.

Adjusted EBITDA for the third quarter increased by $9.4 million compared to the same period last year, largely as a result of higher adjusted gross margin and lower distribution costs, partially offset by higher administration and selling expenses.

Maple

Third Quarter 2024 Maple Highlights(unaudited)	Q3 2024	Q3 2023		YTD 2024		YTD 2023
Financials ($000s)
Revenues	56,638	46,454		173,516		159,424
Gross margin	5,331	5,913		18,430		15,649
Adjusted gross margin(1)	5,880	4,418		18,312		12,838
As a percentage of revenues (%) (1)	10.4%	9.5%		10.6%		8.1%
Administration and selling expenses	2,833	2,675		8,510		8,202
Distribution costs	347	370		889		1,414
Results from operating activities	2,151	2,868		9,031		6,033
EBITDA(1)	3,819	4,521		14,034		11,114
Adjusted EBITDA(1)	4,368	3,026		13,916		8,303
Volumes (thousand pounds)
Total volume	11,392	9,630		35,021		33,508

(1) See “Cautionary statement on Non-IFRS Measures” section of this press release for definition and reconciliation to IFRS measures.

Revenues for the third quarter were $10.2 million higher than in the same period last year, due to higher average selling price and higher sales volume.

Gross margin was $5.3 million for the current quarter, including a loss of $0.5 million for the mark-to-market of derivative financial instruments. For the same period last year, gross margin was $5.9 million with a mark-to-market gain of $1.5 million.

Adjusted gross margin percentage for the third quarter was 10.4% as compared to 9.5% for the same period last year, representing an increase in adjusted gross margin of $1.5 million, mainly related to higher average pricing, incremental sales volume and lower operating costs from savings related to continuous improvement and automation initiatives implemented in the later part of fiscal 2023.

Results from operating activities for the third quarter of fiscal 2024 were $2.2 million, compared to $2.9 million in the same period last year. These results included gains from the mark-to-market of derivative financial instruments.

EBITDA for the third quarter of fiscal 2024 amounted to $3.8 million compared to $4.5 million for the same period last year. These results include gains from the mark-to-market of derivative financial instruments.

Adjusted EBITDA for the third quarter of fiscal 2024 increased by $1.3 million to $4.4 million, due mainly to higher adjusted gross margin, as explained above.

LEAP PROJECT

On August 11, 2023, the Board of Directors of Lantic approved the LEAP Project. This investment is expected to provide approximately 100,000 metric tonnes of incremental refined sugar capacity to the growing Canadian market. The LEAP Project is expected to be completed in the first half of fiscal 2026 and its initial cost was estimated at $200 million.

The planning and design phases associated with the LEAP Project are now completed and the construction phase has begun. Site preparation and permitting processes are completed for the main construction site in Montréal. Detailed planning for the Toronto portion of the project is currently in the final stages. Orders for sugar refining equipment and other large production and logistic-related equipment have been placed with suppliers.

In the third quarter, we identified incremental costs to the LEAP Project, primarily due to design changes, market-driven price increases for construction, and new safety regulations. Despite these challenges, we remain confident in the investment’s value, which is supported by the robust economic fundamentals of the sugar industry in Canada. We expect to provide a revised cost estimate for the LEAP Project in the fall of 2024.

We are funding the construction costs of the LEAP Project, including the expected incremental costs, using a combination of debt, equity and our existing revolving credit facility. In connection with the financing plan of the LEAP Project, RSI issued new common shares in the second quarter of 2024, for net proceeds of $112.5 million. In the second half of 2023, also in connection with the financing of the LEAP Project, Lantic entered into two secured loan agreements with Investissement Québec for up to $65 million. We anticipate drawing funds from the approved loans from Investissement Québec at the beginning of fiscal 2025.

As at June 29, 2024, $43.2 million, including $1.2 million in interest costs, has been capitalized in construction in progress on the balance sheet for the LEAP Project. Thus far, most of the costs incurred are related to the design and planning phases of the project, the site preparation in Montréal and deposits paid on sugar refining, production, and logistic equipment ordered from suppliers. For the first nine months of fiscal 2024, $32.0 million has been capitalized in connection with the LEAP Project, while $11.2 million was capitalized in fiscal 2023.

OUTLOOK

Management continues to focus on optimizing the business and delivering growth in consolidated adjusted EBITDA. Considering the strong results of the first nine months of fiscal 2024 for both of our business segments, we anticipate delivering higher financial results in 2024 as compared to 2023. The stability of our operations in both segments, the continued positive outlook for the Sugar segment from a market demand and pricing point of view, and the recovery of our Maple segment over the last few quarters, should drive an increase in consolidated adjusted EBITDA for fiscal 2024 over fiscal 2023.

Sugar

We expect the Sugar segment to perform well in fiscal 2024 and to exceed the results of fiscal 2023, despite the unfavourable impact of the recent labour disruption in Vancouver that ended on February 1, 2024. Underlying North American demand for sugar and sugar containing products remains historically strong and supports our positive business outlook. The expected increase in sugar margin from recently negotiated agreements is having a positive impact on our financial results, allowing us to mitigate the recent inflationary pressures on costs, and the lower sales volume related mainly to the recent labour disruption in Vancouver.

The initial volume expectation for fiscal year 2024 was set at 800,000 metric tonnes, representing an increase of 4,700 metric tonnes over fiscal year 2023. Considering the impact of the labour disruption in Vancouver that impacted the first half of fiscal 2024, and the slight decrease in domestic demand observed in the third quarter, we expect volumes in fiscal 2024 to decrease from our initial outlook by 40,000 metric tonnes, to 760,000 metric tonnes.

In Taber, the harvest season delivered 115,000 metric tonnes of beet sugar, higher than the prior year production by 10,000 metric tonnes. The higher-than-expected production is attributable to the higher quality of the beets received in 2024 associated with favourable weather conditions during the growing season, and the improved performance of the plant throughout the slicing process. A total of 28,000 acres of sugar beets has been seeded for the next year crop, being the second year of the two-year agreement signed in April 2023. Negotiations with the Alberta Sugar Beet Growers Association for subsequent crops have begun and will continue over the next few months.

Production costs and maintenance programs at our three production facilities are expected to increase moderately in 2024; as such related expenditures continue to be impacted by the current market-based pressures on costs, and as we continue to perform the necessary maintenance activities to ensure a smooth production process to meet the needs of our customers. We are committed to managing our costs responsibly and have implemented optimization and control initiatives in all our plants.

Distribution costs are expected to increase slightly in 2024. These expenditures reflect the current market dynamics requiring the transfer of sugar produced between our refineries to meet demand from customers, and some of the costs associated with servicing customers with imported refined sugar.

Administration and selling expenses are expected to increase in 2024 compared to 2023, due mainly to market-based increases in compensation expenditures and prices of external services.

Considering the elements discussed above, we expect the Sugar segment adjusted EBITDA to increase in fiscal 2024 over fiscal 2023, reflecting the strong prevailing market dynamics and the stability of our operations.

We anticipate our financing costs to decrease in fiscal 2024 due mainly to the timing of the equity financing portion of the LEAP Project, which is providing a temporary increase in our available cash that will reduce the interest costs associated with our revolving credit facility. We have been able to mitigate the impact of recent increases in interest rates and energy costs through our multi-year hedging strategy. We expect our hedging strategy will continue to mitigate such exposure in fiscal 2024.

Spending on regular business capital projects is also expected to remain stable for fiscal 2024. We anticipate spending approximately $28.0 million on various initiatives related to our regular operations. This capital spending estimate excludes expenditures relating to our LEAP Project, which are currently estimated at $47.7million for fiscal 2024.

Maple

We expect financial results in our Maple segment to improve in 2024 over the prior year. Over the last few months, we focused on negotiating market-based price increases and optimizing our operations at our Granby and Dégelis plants through automation and continuous improvement initiatives. Such initiatives are supporting the recovery of our Maple business segment noted over the last four quarters.

The expected sales volume for fiscal 2024 at 45.4 million lbs is higher than last year’s by approximately 1.5 million lbs. The sales volume expectation reflects the current market conditions, and the availability of new maple syrup from the producers. The 2024 maple syrup crop was significantly better than anticipated and will support the current market demand, while also allowing for the partial replenishment of the reserve held by the Producteurs et Productrices Acéricoles du Québec (“PPAQ”). The reserve of PPAQ has been depleted in recent years from below-average crops.

Considering the elements discussed above, we expect the Maple segment adjusted EBITDA to increase in fiscal 2024 over fiscal 2023, reflecting the benefits of the positive changes we implemented over the last year.

Capital investments in the Maple segment have decreased significantly in recent years. We expect to spend between $1.0 million and $1.5 million annually on capital projects in this segment. The main driver for the selected projects is improvement in productivity and profitability through automation.

See “Forward-Looking Statements” section below.

A full copy of Rogers third quarter 2024, including management’s discussion and analysis and unaudited condensed consolidated interim financial statements, can be found at www.LanticRogers.com or on SEDAR+ at www.sedarplus.ca.

Cautionary Statement Regarding Non-IFRS Measures

In analyzing results, we supplement the use of financial measures that are calculated and presented in accordance with IFRS with a number of non-IFRS financial measures. A non-IFRS financial measure is a numerical measure of a company’s performance, financial position or cash flow that excludes (includes) amounts or is subject to adjustments that have the effect of excluding (including) amounts, that are included (excluded) in most directly comparable measures calculated and presented in accordance with IFRS. Non-IFRS financial measures are not standardized; therefore, it may not be possible to compare these financial measures with the non-IFRS financial measures of other companies having the same or similar businesses. We strongly encourage investors to review the audited consolidated financial statements and publicly filed reports in their entirety, and not to rely on any single financial measure.

We use these non-IFRS financial measures in addition to, and in conjunction with, results presented in accordance with IFRS. These non-IFRS financial measures reflect an additional way of viewing aspects of the operations that, when viewed with the IFRS results and the accompanying reconciliations to corresponding IFRS financial measures, may provide a more complete understanding of factors and trends affecting our business. Refer to “Non-IFRS measures” section at the end of the MD&A for the current quarter for additional information.

The following is a description of the non-IFRS measures we used in this press release:

• Adjusted gross margin is defined as gross margin adjusted for “the adjustment to cost of sales”, which comprises the mark-to-market gains or losses on sugar futures and foreign exchange forward contracts as shown in the notes to the consolidated financial statements and the cumulative timing differences as a result of mark-to-market gains or losses on sugar futures and foreign exchange forward contracts.
• Adjusted results from operating activities are defined as results from operating activities adjusted for the adjustment to cost of sales and goodwill impairment.
• EBITDA is defined as earnings before interest, taxes, depreciation, amortization and goodwill impairment.
• Adjusted EBITDA is defined as adjusted results from operating activities adjusted to add back depreciation and amortization expenses.
• Adjusted net earnings is defined as net earnings adjusted for the adjustment to cost of sales, goodwill impairment and the income tax impact on these adjustments.
• Adjusted gross margin rate per MT is defined as adjusted gross margin of the Sugar segment divided by the sales volume of the Sugar segment.
• Adjusted gross margin percentage is defined as the adjusted gross margin of the Maple segment divided by the revenues generated by the Maple segment.
• Adjusted net earnings per share is defined as adjusted net earnings divided by the weighted average number of shares outstanding.
• Free cash flow is defined as cash flow from operations excluding changes in non-cash working capital, mark-to-market and derivative timing adjustments and financial instruments’ non-cash amounts, and including the payment of deferred financing fees, lease obligations, and capital expenditures and intangible assets, net of value-added capital expenditures and LEAP Project related capital expenditures.

In this press release, we discuss the non-IFRS financial measures, including the reasons why we believe these measures provide useful information regarding the financial condition, results of operations, cash flows and financial position, as applicable. We also discuss, to the extent material, the additional purposes, if any, for which these measures are used. These non-IFRS measures should not be considered in isolation, or as a substitute for, analysis of our results as reported under IFRS. Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures ae as follows:

RECONCILIATION OF NON-IFRS FINANCIAL MEASURES TO IFRS FINANCIAL MEASURES

	Q3 2024				Q3 2023
Consolidated results(In thousands of dollars)	Sugar	Maple Products	Total		Sugar		Maple Products		Total
Gross margin	31,304	5,331	36,635		35,772		5,913		41,685
Total adjustment to the cost of sales(1)	10,558	549	11,107		(5,278	)	(1,495	)	(6,773	)
Adjusted Gross Margin	41,862	5,880	47,742		30,494		4,418		34,912
Results from operating activities	14,164	2,151	16,315		21,140		2,868		24,008
Total adjustment to the cost of sales(1)	10,558	549	11,107		(5,278	)	(1,495	)	(6,773	)
Adjusted results from operating activities	24,722	2,700	27,422		15,862		1,373		17,235
Results from operating activities	14,164	2,151	16,315		21,140		2,868		24,008
Depreciation of property, plant and equipment, amortization of intangible assets and right-of-use assets	5,389	1,668	7,057		4,862		1,653		6,515
EBITDA(1)	19,553	3,819	23,372		26,002		4,521		30,523
EBITDA(1	19,553	3,819	23,372		26,002		4,521		30,523
Total adjustment to the cost of sales(1)	10,558	549	11,107		(5,278	)	(1,495	)	(6,773	)
Adjusted EBITDA	30,111	4,368	34,479		20,724		3,026		23,750
Net earnings			7,379						14,177
Total adjustment to the cost of sales(1)			11,107						(6,773	)
Net change in fair value in interest rate swaps(1)			943						(203	)
Income taxes on above adjustments			(3,092	)					1,548
Adjusted net earnings			16,337						8,749
Net earnings per share (basic)			0.06						0.13
Adjustment for the above			0.07						(0.05	)
Adjusted net earnings per share (basic)			0.13						0.08

(1)   See “Adjusted results” section of the MD&A for additional information

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO IFRS FINANCIAL MEASURES (CONTINUED)

	YTD 2024					YTD 2023
Consolidated results(In thousands of dollars)	Sugar	Maple Products		Total		Sugar		Maple Products		Total
Gross margin	107,710	18,430		126,140		108,885		15,649		124,534
Total adjustment to the cost of sales(1)	15,331	(118	)	15,213		(6,585	)	(2,811	)	(9,396	)
Adjusted gross margin	123,041	18,312		141,353		102,300		12,838		115,138
Results from operating activities	58,098	9,031		67,129		66,115		6,033		72,148
Total adjustment to the cost of sales(1)	15,331	(118	)	15,213		(6,585	)	(2,811	)	(9,396	)
Adjusted results from operating activities	73,429	8,913		82,342		59,530		3,222		62,752
Results from operating activities	58,098	9,031		67,129		66,115		6,033		72,148
Depreciation of property, plant and equipment, amortization of intangible assets and right-of-use assets	15,949	5,003		20,952		14,452		5,081		19,533
EBITDA(1)	74,047	14,034		88,081		80,567		11,114		91,681
EBITDA(1)	74,047	14,034		88,081		80,567		11,114		91,681
Total adjustment to the cost of sales(1)	15,331	(118	)	15,213		(6,585	)	(2,811	)	(9,396	)
Adjusted EBITDA(1)	89,378	13,916		103,294		73,982		8,303		82,285
Net earnings				35,167						39,913
Total adjustment to the cost of sales(1)				15,213						(9,396	)
Net change in fair value in interest rate swaps(1)				1,837						322
Income taxes on above adjustments				(4,376	)					2,372
Adjusted net earnings				47,841						33,211
Net earnings per share (basic)				0.31						0.38
Adjustment for the above				0.11						(0.06	)
Adjusted net earnings per share (basic)				0.42						0.32
(1)   See “Adjusted results” section of the MD&A for additional information

Conference Call and Webcast

Rogers will host a conference call to discuss its third quarter fiscal 2024 results on August 8, 2024 starting at 17:30p.m. ET. To participate by phone, please dial 1-800-717-1738. To access the live webcast presentation, please click on the link below:

https://onlinexperiences.com/Launch/QReg/ShowUUID=2F8B1C1C-121F-4AEA-858F-53569C0604ED&LangLocaleID=1033

A recording of the conference call will be accessible shortly after the conference, by dialing 1-877-674-7070, access code 30571#. This recording will be available until August 8, 2025. A live audio webcast of the conference call will also be available via www.LanticRogers.com.

About Rogers Sugar

Rogers is a corporation established under the laws of Canada. The Corporation holds all of the common shares of Lantic and its administrative office is in Montréal, Québec. Lantic operates cane sugar refineries in Montréal, Québec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic also operate a distribution center in Toronto, Ontario. Lantic’s sugar products are mainly 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. Lantic owns all of the common shares of TMTC and its head office is headquartered in Montréal, Québec. TMTC operates bottling plants in Granby, Dégelis and in St-Honoré-de-Shenley, Québec and in Websterville, Vermont. TMTC’s products include maple syrup and derived maple syrup products supplied under retail private label brands in approximately fifty countries and sold under various brand names.

For more information about Rogers please visit our website at www.LanticRogers.com.

Cautionary Statement Regarding Forward-Looking Information

This report contains statements or information that are or may be “forward-looking statements” or “forward-looking information” within the meaning of applicable Canadian Securities laws. Forward-looking statements may include, without limitation, statements and information which reflect our current expectations with respect to future events and performance. Wherever used, the words “may,” “will,” “should,” “anticipate,” “intend,” “assume,” “expect,” “plan,” “believe,” “estimate,” and similar expressions and the negative of such expressions, identify forward-looking statements. Although this is not an exhaustive list, we caution investors that statements concerning the following subjects are, or are likely to be, forward-looking statements:

• Future demand and related sales volume for refined sugar and maple syrup;
• our LEAP Project;
• future prices of Raw #11;
• expected inflationary pressures on costs;
• natural gas costs;
• beet sugar production forecast for our Taber facility;
• the level of future dividends;
• the status of government regulations and investigations; and
• projections regarding future financial performance.

Forward-looking statements are based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Actual performance or results could differ materially from those reflected in the forward-looking statements, historical results or current expectations.

Readers should also refer to the section “Risks and Uncertainties” in this MD&A for additional information on risk factors and other events that are not within our control. These risks are also referred to in our Annual Information Form in the “Risk Factors” section. Although we believe that the expectations and assumptions on which forward-looking information is based are reasonable under the current circumstances, readers are cautioned not to rely unduly on this forward-looking information as no assurance can be given that it will prove to be correct. Forward-looking information contained herein is made as at the date of this MD&A and we do not undertake any obligation to update or revise any forward-looking information, whether a result of events or circumstances occurring after the date hereof, unless so required by law.

For further information Mr. Jean-Sébastien CouillardVice President of Finance, Chief Financial Officer and Corporate SecretaryPhone: (514) 940-4350 Email: jscouillard@lantic.ca