Broad-based volume gains helped beverage and fruit snacks producer SunOpta deliver “outstanding” second quarter results, reflecting “the strength of [its] competitive position and sharp execution by [its] team,” according to CEO Brian Kocher.
In the quarter ended June 28, net revenues jumped 12.9% year-over-year to $191.5 million, driven by 14.4% volume growth and partially offset by a 1.4% price reduction for pass-through pricing and certain raw material costs. Adjusted EBITDA also saw double-digit growth.
“Our revenue growth engine delivered again. Fueled by the capacity we are creating each and every day in our production facilities, we continue delivering volume growth that is among the highest of all publicly traded companies in the food and beverage space,” said Kocher.
The strong results signal the success of SunOpta’s private label and co-manufacturing model amid the current macroeconomic environment in which cash-strapped consumers are increasingly seeking value.
During a call with analysts and investors on Wednesday, Kocher emphasized that every segment the company plays in – including plant-based milk, protein shakes, broth and fruit snacks – is growing. During the quarter, beverage and broth production increased 16%, while fruit snack production rose 22%.
“The diversity of our revenue streams across categories, customers and channels remains a fundamental strength. During 2025, every product category, every go-to-market format and every channel grew year-over-year,” said Kocher, adding that each of the company’s top 10 customers grew in the first half of the year.
The company’s fruit snacks segment – which accounted for 20% of revenue in the quarter – is growing faster than SunOpta’s capacity can currently support, creating a bottleneck. Even so, Kocher said the company is committed to serving growth through 2026 with its existing assets.
In its earnings report, the company announced it will invest in a new manufacturing line at its Omak, Washington, facility, which is expected to increase output by 25% when it comes online in late 2026.
SunOpta’s foodservice business continued to grow by mid-single digits, driven by both menu assortment across customers and share gain in coffee chains. Meanwhile, its club channel business is “thriving,” up over 25% in the second quarter, as consumers continue to look for quality products with value. Broth in particular is performing well across retail and club channels, according to Kocher.
One dark spot in the company’s earnings report was gross margin, which experienced an 80-basis-point decrease, reflecting the timing lag on pass-through of incremental tariff costs, investments in labor and infrastructure and incremental depreciation related to assets recently placed in service. These factors were partially offset by the aforementioned higher sales and production volumes for beverages, broth and fruit snacks.
Looking ahead, SunOpta has raised its full-year outlook based on its strong second quarter, as well as the potential impact of tariffs imposed by President Trump. The company now expects net revenue between $805 million and $815 million and adjusted EBITDA between $99 million and $103 million.
As the tariff landscape “remains fluid,” SunOpta will continue passing along tariff costs similar to how it passes through raw material price changes. According to Kocher, the company’s consumers understand that the upcharges will remain in place until it has recovered the differences.
“When we completed our pricing adjustments as of July, 100% of the incremental tariff impact was covered at that time. While we expect a lag of a month or two related to the pass-through of the revised tariffs on August 1, we anticipate recovery of substantially all additional costs,” said CFO Greg Gaba.