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Rogers Sugar Inc T.RSI

Alternate Symbol(s):  RSGUF | T.RSI.DB.E | T.RSI.DB.F

Rogers Sugar Inc. is a provider of sugar products to the Canadian market. The Company operates through two segments: Sugar, which includes refined sugar and by-products, and Maple, which includes maple syrup and maple derived products. The Company operates through its wholly owned subsidiaries, Lantic Inc. (Lantic) and The Maple Treat Corporation (TMTC). Lantic sugar products include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups. Lantic also operates a distribution center in Toronto, Ontario. Lantic operates cane sugar refineries in Montreal, Quebec and Vancouver, British Columbia, as well as the Canadian sugar beet processing facility in Taber, Alberta. TMTC products include maple syrup and derived maple syrup products supplied under retail private label brands in over 50 countries and are sold under various brand names. TMTC operates bottling plants in Granby, Degelis and St-Honore-de-Shenley, Quebec and in Websterville, Vermont.


TSX:RSI - Post by User

Bullboard Posts
Comment by Aggirl7on Nov 27, 2017 11:46pm
158 Views
Post# 27043634

RE:Just looking...

RE:Just looking...I've followed RSI closely for about 7 years. I personally like the name because it's very boring (annual sugar consumption in Canada has been flat for eons and the Cdn sugar industry is a duopoly) and it pays a big, fat divvy. The sweet divvy and high payout stems from it previously being a low-growth, but steady income trust. The company is extremely motivated to maintain the divvy. One of the reasons for this is the RSI Chairman is one the biggest shareholders through his company, Belkin Enterprises, and he really likes the nice pay day. 

The RSI story has recently really changed with the 2 acquisitions in maple syrup. The maple syrup industry has really good annual growth, whereas sugar does not. I think it's a great move for RSI for the higher revenue growth, the earnings accretiveness of the deals, but also the lower capital-intensity of maple syrup should increase free cash flow and reduce the payout ratio. 

In my opinion, it's a good time to look at RSI because it just completed these 2 great deals that the market seems to love, but they then reported a weak Q4 stemming from some temporary headwinds... so the stock is pretty cheap right now. 
Bullboard Posts