Lassonde Industries Reports Q2 2026 Results: Gross Profit Climbs Despite Sales Dip and Impairment Charges Lassonde Industries announced second-quarter 2026 results with strong gross profit growth, but operating profit declined due to impairment charges and higher costs. Sales dipped slightly, and the company remains optimistic about future growth. Lassonde Industries Inc. reported its financial results for the second quarter of 2026 on Thursday, showing strong gross profit growth despite a slight decline in sales. The company attributed the performance to effective revenue management, an improved product mix, moderating input-cost pressures, and solid execution of its business strategy, according to Chief Executive Officer Vince Timpano. Sales for the quarter reached CAD 737.7 million, down 0.5% from the same period last year after excluding a small unfavourable foreign exchange impact.The decline was primarily due to lower sales volumes for both private label and branded products, partially offset by favourable selling price adjustments and a favourable change in the private label sales mix. Gross profit increased to CAD 227.6 million, representing 30.8% of sales, up CAD 29.3 million from the prior year quarter when adjusted for foreign exchange. This improvement was driven by selling price adjustments and cost containment, partly offset by lower volumes.Operating profit came in at CAD 40.0 million, down CAD 16.6 million from the previous year after adjusting for a favourable exchange impact. The decrease was mainly due to impairment charges of CAD 30.2 million, including CAD 27.4 million on a customer relationship intangible asset related to U.S. specialty food operations, as well as higher transportation costs and administrative expenses.However, adjusted EBITDA rose to CAD 100.7 million, up 19.3% year-over-year, reflecting the underlying strength of the business. Profit attributable to shareholders was CAD 26.9 million, or CAD 3.95 per share, down 21.6% from the same quarter in 2025. Excluding items impacting comparability, adjusted earnings per share also declined, though the company did not provide a specific figure in the release.Total assets as of June 27, 2026 stood at CAD 2,310.7 million, a 2.6% increase from the end of 2025, driven mainly by a higher foreign exchange conversion rate, increased property, plant and equipment, and higher accounts receivable, partially offset by lower intangible assets. Long-term debt, including the current portion, decreased to CAD 407.7 million, down CAD 36.8 million from December 31, 2025, as operating activities generated CAD 77.8 million in cash during the quarter compared to a use of CAD 3.1 million in the same quarter last year.The improvement in cash flow was largely due to a favourable change in non-cash operating working capital items, which provided CAD 68.5 million more cash than a year earlier. Looking ahead, Mr. Timpano said the company remains focused on strengthening brand positions, accelerating innovation, ensuring the readiness of its New Jersey facility, and investing in future growth capabilities.He acknowledged near-term pressure from rising freight and other costs due to geopolitical developments, but expressed confidence in the company's ability to manage short-term volatility while creating long-term value. Lassonde expects that its fiscal 2026 performance will continue to be influenced primarily by the financial health of consumers and the prevailing inflationary environment. The company's management discussion and analysis, unaudited interim condensed consolidated financial statements and notes are available on SEDAR+ and on its website