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Awarded on Mar 17, 2023 3:35pm
Q4 and 2022
In 2019, sales were $97 million and EPS were $0.32. In 2022 those figures are $176 million and $0.26. A one-time write-off of equipment from the Burnaby plant affected the bottom line last year.
In a few more months, the transition to the new Delta plant will be complete, unleashing economies. However, there are two cautionary notes for the near term.
The preliminary cost estimate for the 2nd production line at Delta has increased from $45.0 million to $53 million. That extra cost increases financing costs.
The last bag of coffee at Burnaby occurs in Q2 (sometime before June 30) whereas commercial production from Delta Line 2 will start by late Q3 (sometime in Sept.)
To set expectations it is important to note that from April through August we will have capacity limitations. This transition period is the time between the retirement of the Burnaby assets and the full and final commissioning of our second production line in Delta. During this period we will experience reduced sales volumes and therefore earnings. This temporary curtailment in volume will likely lead to lower earnings year-over-year when we report results for the 2023 fiscal year,” Dennis added.