MINNEAPOLIS — Transforming a business can be expensive. SunOpta, Inc. learned that lesson in 2023, but management is now forecasting growth in the markets for plant-based milks, broths, fruit snacks and protein shakes.

For the year ended Dec. 30, 2023, SunOpta incurred a loss of $175 million, much wider than the year prior when the company incurred a loss of $4.8 million.

Annual sales were $630.1 million, up from $591.4 million the year before.

Items affecting profitability included divestiture of its frozen fruit business, and startup costs associated with a new plant in Midlothian, Texas, and at a plant in Omak, Wash. The company also took an asset impairment charge associated with the exit from a frozen fruit processing plant in Oxnard, Calif.

With much of the heavy lifting of realigning SunOpta’s business toward more growth-oriented categories completed, management is guiding fiscal 2024 sales will be between $670 million and $700 million, up 6% to 11%, and adjusted EBITDA will be in a range of $87 million to $92 million, up approximately 11% to 17%.

“From a pacing standpoint, as you would expect, we see the back half of the year to be somewhat stronger than the first half with a split of approximately 48% first half and 52% second half,” said Greg Gaba, chief financial officer. “In addition, in the first half of the year, due to seasonality, we expect Q1 to be stronger than Q2 with an expected split of approximately 52% and 48% for Q1 and Q2.”

During the fourth quarter, SunOpta recorded a loss of $11.7 million, down from fiscal 2022 when the company earned $1.1 million, equal to 1¢ per share on the common stock.

Quarterly sales rose to $181.6 million, up from $159.8 million the year before.

“Overall revenue growth was volume-driven and very strong,” said Joseph D. Ennen, former chief executive officer, during a Feb. 28 conference call with securities analysts. “For the quarter, revenues increased 14% year-over-year, a sharp sequential acceleration from the 6% increase we delivered in Q3 and in line with our long-term growth algorithm.

“Growth continued to be broad-based. We continued to see similar growth rates from each of our three primary growth levers, share gains with existing customers, adding new customers, and expanding our total addressable market.”

SunOpta’s beverage and broth group experienced a sales increase of 19% to $147 million during the quarter.

“This product group represented 81% of our Q4 revenue,” Ennen said. “Growth in oat milk was incredibly robust and remains a key driver as it has been for over three years.”

Brian W. Kocher, SunOpta’s new CEO, said much of the oat milk growth was in foodservice as well as the company’s co-manufacturing and private label businesses.

Addressing the growth in foodservice, Ennen added that more coffee shops are promoting their plant-based milk options.

“… We've seen for years and years the migration of consumers from cow dairy to plant-based (milk). Additionally, you see coffeehouses putting an increasing emphasis on the promotional drinks featuring plant-based.

“All one has to do is look at the menu board and you will see a plethora of plant-based specialty drinks. And, so, between the consumer shift and then the coffee shops’ enthusiasm for promoting and pushing specialty drinks, it has been the same drivers for several years now, and we would expect those to continue.”

In fruit snacks, sales were up 31% to $27 million, driven by volume growth that was enabled by capacity expansion at the Omak plant.