Refinery volumes increase significantly as new assets begin ramp-up; continued margin pressure reflects broader U.S. market conditions

CORAL GABLES, Fla., May 20, 2026 /CNW/ - Sucro Limited (TSXV: SUGR) (OTCQB: SUGRF) ("Sucro" or the "Company"), an integrated sugar trader and refiner focused primarily on serving North American sugar markets, today announced financial results for the three months ended March 31, 2026. All amounts are in United States dollars ("U.S. $" or "$") unless otherwise noted.

Financial Highlights

• Revenue of $149.2 million on sugar deliveries of 179,764 metric tons
• Record refinery deliveries of 96,507 MT, inclusive of all Sucro processing plant operations.
• Net income of $5.4 million, down 55% from 2025.
• Adjusted gross profit¹ of $9.8 million versus $13.9 million in 2025, and adjusted gross profit margin¹ percentage of 6.6% versus 8.9% last year
• EBITDA¹ of $16.7 million and adjusted EBITDA¹ of $5.2 million versus $22.9 million and $10.0 million, respectively, last year
• Adjusted gross profit per metric ton delivered^1,2 of $54.64 /MT versus $78.95/MT last year
• For our refineries, adjusted gross profit per metric ton delivered¹ of $90.77 compared to $169.25/MT last year.

"Our first quarter results reflect both the continued strength of our integrated platform and the near-term market pressures impacting the broader U.S. sugar industry," said Jonathan Taylor, Founder and Chief Executive Officer of Sucro.

"Most importantly, we achieved record refinery production volumes as our new Hamilton and University Park facilities continue their ramp-up. These assets are beginning to materially shift our business mix toward higher value refining operations, which we expect will drive long-term margin expansion."

Taylor also added, "while margins in the quarter were impacted by lower market prices, higher logistics costs, and tariffs that could not be fully passed through to customers, our ability to maintain volumes, expand refining throughput, and grow our forward book demonstrates the resilience and flexibility of our model. As these new assets scale, we expect improved operating leverage and stronger financial performance."

Results from Operations – Three Months Ended March 31, 2026

For the three months ended March 31, 2026, customer deliveries remained relatively flat compared with the three months ended March 31, 2025 (176,319 MTs in 2025 compared with 179,764 MTs in 2026). While overall volumes have remained consistent with those of the previous year, we have seen some shifts in their composition, including a decrease in deliveries into Mexico and our bulk world market sales that have been compensated with increased deliveries from our refineries, which saw record quarterly volumes of 96,507 MT, driven by export opportunities from our Canadian refinery and the inclusion of our University Park and Memphis operations in our refined volumes beginning January 1, 2026.

Adjusted EBITDA was $5.2 million for the three months ended March 31, 2026, compared with $10.0 million for the corresponding 2025 period, a 48.0% decrease, mainly as a result of lower Adjusted Gross Profit ($9.8 million for the three months ended March 31, 2026, compared with $13.9 million for the corresponding 2025 period). The decrease in Adjusted Gross Profit was driven by margin compression in the U.S., driven in turn by market dynamics that have rendered the Company unable to pass on additional logistics and freight costs, including tariffs, to its customers. Likewise, while refinery volumes have nearly doubled year-over-year, refining margins decreased by $78.48, to $90.77 per MT in Q1 2026, driven by customs duties and tariffs, as well as by freight costs related to the transfer product between our facilities. Following the U.S. Supreme Court decision overturning the International Emergency Powers Act ("IEEPA") tariffs imposed by the U.S. government in 2025, the Company has sought to protect its right to obtain such refunds for the full amount of its IEEPA tariff payments of approximately $6.2 million. 

EBITDA was $16.7 million for the three months ended March 31, 2026, compared with $22.9 million for the corresponding 2025 period, a 27.2% decrease. Likewise, net income for the three months ended March 31, 2026, amounted to $5.4 million, a decrease of $6.6 million when compared to net income of $12.0 million for the three months ended March 31, 2025. These decreases were driven primarily by lower unrealized mark-to-market gains on physical sugar contracts and lower Adjusted Gross Profit.

Annual Meeting

The Company has called an annual and special meeting of shareholders to be held virtually via webcast on Friday May 29, 2026 at 8:30 am EDT.

Q1 2026 Investor Call

The Company will host a conference call on Wednesday May 20, 2026, at 8:30 am Eastern time during which Jonathan Taylor, Founder and Chief Executive Officer, and Stefano D'Aniello, Chief Financial Officer, will discuss Sucro's financial performance for the first quarter ending March 31, 2026.

About Sucro

Sucro is a growth-oriented sugar trader and refiner that operates throughout the Americas, with a primary focus on serving the North American sugar market. The Company operates a highly integrated and interconnected sugar supply business, utilizing the entire sugar supply chain to service its customers. Sucro's integrated supply chain includes sourcing raw and refined sugar from countries throughout Latin America, and refined sugar from its own refineries, and delivering to customers in North America and the Caribbean. Since its inception in 2014, Sucro has achieved growth by creating value for customers through continuous process innovation and supply chain re-engineering. Sucro has established a broad production, sales, and sourcing network throughout North America with three cane sugar refineries, including two recently opened sugar cane refineries in Hamilton, Ontario and University Park, Illinois (a suburb of Chicago). The Company has offices in Miami, Mexico City, Cali, Sao Paulo, and Port of Spain. For more information, visit sucro.us and follow us on LinkedIn.

Non-IFRS and Other Financial Measures

In this Press Release, reference is made to the following non-IFRS measures: "EBITDA", "Adjusted EBITDA", "Adjusted Gross Profit", "Adjusted Gross Profit Margin", "Adjusted Gross Profit Per Metric Ton Delivered", and "Free Cash Flow". Such non-IFRS financial measures are not standardized financial measures under International Financial Reporting Standards ("IFRS") and might not be comparable to similar financial measures disclosed by other issuers. For details on the composition and a reconciliation between such non-IFRS measures and the most directly comparable financial measure in our financial statements, please refer to the "Non-IFRS and Other Financial Measures (Key Performance Indicators)" section in our MD&A dated May 19, 2026 and filed on SEDAR+ at www.sedarplus.ca, which is specifically incorporated by reference herein.

Forward-Looking Statements

This Press Release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws.  This forward-looking information includes, among other things, statements relating to: our expectation that as our business mix shifts toward higher value refining operations our operating margins will expand over the longer-term and operating and financial  performance will improve.  

Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered to be appropriate and reasonable as of the date of this Press Release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Important risk factors are described in the Company's MD&A for the period ended March 31, 2026 and other Company filings on SEDAR+ at www.sedarplus.ca, including under "Risk Factors" in the Company's annual information form ("AIF") dated April 18, 2024, which section of the AIF is specifically incorporated by reference herein.

Prospective investors should not place undue reliance on forward-looking information, which speaks only as of the date made.  The Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Sucro Limited