SunOpta, Inc.

Greetings and welcome to Sonopta's second quarter fiscal 2025 earnings conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the prepared remarks. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Reed Anderson with ICR. Thank you. You may begin.

Good afternoon and thank you for joining us on Sonopta's second quarter fiscal 2025 earnings conference call. On the call today are Brian Cooker, Chief Executive Officer, and Greg Gaba, Chief Financial Officer. By now, everyone should have access to the earnings press release that was issued earlier this afternoon and is available on the investor relations page of Sonopta's website at .sonopta.com. This call is being webcast and its transcription will also be available on the company's website. The investor presentation referenced during this call and webcast is also posted to the company's investor relations website. As a reminder, please note that the prepared remarks, which follow, contain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. We refer you to all risk factors contained in Sonopta's press release issued this afternoon, the company's annual report filed on Form 10-K, and other filings with the Securities and Exchange Commission for a more detailed discussion of the factors that could cause actual results to differ materially from those projections and any forward-looking statements. The company undertakes no obligation to publicly correct or update the forward-looking statements made during the presentation to reflect future events or circumstances except as may be required under applicable securities laws. Finally, we would like to remind listeners that the company may refer to certain non-GAAP financial measures during this teleconference. A reconciliation of these non-GAAP financial measures was included with the company's press release issued earlier today. Also, please note, in the prepared remarks that follow, unless otherwise stated, the company will be referring to the continuing operations portion of the business and all figures are in U.S. dollars occasionally rounded to the nearest million. Now I'll turn the call over to Brian to begin. Brian?

Good afternoon and thank you for joining us today. I'm excited to share our second quarter 25 financial results as well as the operational progress delivered during the quarter across multiple fronts. Slide 3 serves as an agenda for the scripted comments we will share today. In order, I will cover our second quarter 2025 performance, accelerating investment in our fruit snacks business and our overall confidence in our outlook. Greg will then cover our 2Q financial results and our outlook in more detail. Following our scripted comments, we'll take your questions. We are thrilled with our second quarter performance. Our business momentum continues to build, giving us significant confidence in the future. We are executing well and doing what we said we would do. Growing revenue, growing adjusted EBITDA, improving gross margins and allocating capital with discipline to drive ROIC. Importantly, we are doing all of that on schedule. Slide 5 provides a summary of the impressive numbers we achieved in the second quarter. We delivered -over-year revenue growth of 13%, driven by 14% volume growth that was broad-based across our portfolio. Our 14% -over-year growth in adjusted EBITDA is especially impressive considering we incurred 1.6 million of tariff headwinds on gross profit due to a timing lag of pass-through pricing. We'll talk more about our management of tariff exposure shortly. Our Q2 results were achieved despite ongoing consumer and tariff uncertainty, demonstrating both the resilience of our business model and the strength of our execution. The key takeaway from Q2 is very similar to Q1. We did what we said we would do, and we are advancing the objectives we outlined for 2025. While the second quarter was full of notable accomplishments, I want to highlight three that I am particularly proud of. First, our revenue growth engine delivered again. Fueled by the capacity we are creating each and every day in our production facilities, we continue delivering unit volume growth that is among the highest of all publicly traded companies in the food and beverage space.