SunOpta Inc. (NASDAQ:STKL) Q3 2022 Results Conference Call November 9, 2022 5:30 PM ET
Company Participants
Joe Ennen - CEO
Scott Huckins - CFO
Conference Call Participants
Brian Holland - Cowan & Company
Andrew Strelzik - BMO
Bobby Burleson - Canaccord
Mark Smith - Lake Street Capital Markets
Alex Fuhrman - Craig Hallum
Jon Anderson - William Blair
Operator
Good afternoon, and welcome to SunOpta's Third Quarter 2022 Earnings Conference Call. By now, everyone should have access to the earnings press release that was issued this afternoon and is available on the Investor Relations page on SunOpta's website at www.sunopta.com. This call is being webcast, and its transcription will also be available on the company's website. As a reminder, please note that, the prepared remarks which will 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 the risk factors contained in SunOpta'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 more detailed discussions 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 that unless otherwise stated, all figures discussed today are in U.S. dollars and are occasionally rounded to the nearest million.
I'd like to now turn the conference over to the SunOpta CEO, Joe Ennen.
Joe Ennen
Good afternoon, and thank you for joining us today. With me on the call is Scott Huckins, our Chief Financial Officer. Overall, we were very pleased with our Q3 results, revenue was up 16% with plant-based revenue up 20%. Profitability also rose significantly with a 42% increase in adjusted EBITDA. These results demonstrate the durability of our competitive advantages in plant-based and the traction of our turnaround strategies and through.
Let me offer several key takeaways before we begin unpacking the results. Encouragingly, we continue to deliver both revenue and volume growth. We continue to cover almost all inflationary costs with customer pricing adjustments. Similar to Q2, we had approximately 95% coverage of cost inflation. We made progress in Q3 against one of our five strategic imperatives focused on portfolio evolution with the sale of our Sunflower business and an idle frozen fruit plant in California.