- About
- Sucro buys raw and refined cane sugar, mostly from Latin America. It refines and sells sugar to food and beverage makers in Canada, the United States, Mexico and the Caribbean. It owns cane sugar refineries in Hamilton, Ontario, in Lackawanna, New York, and in University Park, Illinois. The new Hamilton refinery started at the end of 2025 and opened officially in May 2026. University Park refineries startedmade its first sugar in about March 2026. Sucro also builds refineriesowns 50% of a refinery project in Belize with Santander Sugar, and a small indirect share of a planned refinery in Guyana with local partners. It reports in US dollars, and its. Its shares trade in Canadian dollars on the TSX Venture Exchange, and in the US on the OTCQB as SUGRF. The founder, Jonathan Taylor, controls about half of the votes and of the shares. The Mexican refiner Beta San Miguel owns about 16% and has an option to bid. If it bids for the company from Mayin 2027 or 2028, the founder must sell it enough shares to give it control.
- Valuation
- The fair value, the moat and the uncertainty on this page for Sucro are an AI estimate from October 8, 2026, with its inputs checked again on October 12, 2026. They are not an analyst's values. An AI research agent calculated them from Sucro's filings. The fair value is the average of two cases, and each case has a weight of 50%. These weights are an assumption. Case 1 has no takeover bid. It values the business at 8 times adjusted EBITDA, and the multiple of 8 is an assumption. It uses the 2025 adjusted EBITDA of US$31.0 million, as restated in the Q2 2026 MD&A, from before the new refineries added volume. The 2025 results release of April 16, 2026 gave US$30.9 million, which changes Case 1 by about US$0.02 per share. From this value it takes away US$132.4 million of adjusted net debt at June 30, 2026, US$18.3 million of leases and US$0.5 million due to related parties. Adjusted net debt is loans less cash and less the collateral value of inventory and receivables, as Sucro calculates it. Case 1 gives about US$4.01 per share on 24.07 million shares, with each proportionate voting share counted as 100 shares. Case 2 is a bid by Beta San Miguel in 2027 at the minimum price in its agreement. ThisThe 2024 deal announcement sets this price isat 9 times the diluted comprehensive income from continuing operations per share in the audited 2026 results, in Canadian dollars. The Q2 2026 MD&A says diluted income from continuing operations per share instead, which would give a price about 3% lower. The estimate uses the deal announcement. The estimate doubles the first-half 2026 figure of US$0.575 per share (US$13.9 million on 24.2 million diluted shares) to get US$1.15 for the full year. Case 2 gives about US$10.36 per share. The average of the two cases is US$7.19 per share, or about CA$10.20 at 1.42 Canadian dollars per US dollar. The two cases are far apart, so the uncertainty is Very High. The moat rating is None. The Q2 2026 MD&A of August 13, 2026 says that Sucro earns a margin from differences in the time, the place and the quality of sugar. Sugar is a commodity, and other refiners sell the same product in Canada and the United States. The refining margin fell by US$28.37 to US$87.28 per tonne in Q2 2026, because of customs duties, tariffs and freight costs. Interest of US$23.3 million in the 12 months to June 30, 2026 used almost all of the US$24.0 million of adjusted EBITDA, so returns are not above the cost of capital. Canadian duties on imported refined sugar and Caribbean trade rules help Sucro. But governments set them, and Canada started a review of its duties in July 2026, so they are not a durable advantage.
As of 2026-10-0812.
- Risks
- Most of the equity is unrealized gains on sugar contracts and inventory. Management estimates many of these values. A write-down would reduce equity and borrowing capacity.
Debt is high. Cash earnings only just cover interest. Most bank lines are uncommitted and depend on the value of the collateral.
US trade measures can hurt the business. These include the molasses import ban, tariffsthe 50% duties on certain Canadian goods since August 2026 and pressure from the US sugar industry.
The new refineries can ramp up more slowly than planned. Freight costs from the University Park ran below plan inramp-up cut the Q2 2026 refining margin, and the Belize project is laterefinery had not started by mid-August 2026.
The founder controls the company. Beta San Miguel hasUnder a lock-up agreement that can lead, he must sell enough shares to a bidBeta San Miguel to give it control if it bids at or above a formula price that minority. Minority holders cannot block this change of control. A later buyout of their shares needs a vote of the minority holders.
The stock trades only a few thousand shares a day. It can be hard to sell a position quickly.
Canada can end its duties on cheap imported refined sugar after the current review. This would put pressure on margins in Canada.
- Balance sheet
- Cash: $2.5M
Debt: $360M
Net debt: $358M
EBITDA, last 12 months: $24M
Net debt / EBITDA: 15× (high)
Interest cover: 1.0×
Sucro borrows mostly against its sugar inventory and receivables, so its debt rises and falls with the amount of sugar it holds. Interest used almost all of the adjusted EBITDA in the 12 months to June 30, 2026, and the company's own adjusted leverage ratio rose to 5.5 times. Debt is loans and borrowings and excludes US$18.3 million of leases. EBITDA is adjusted, and interest cover is adjusted EBITDA over interest of US$23.3 million. At June 30, 2026, equity was US$225.6 million. About US$206 million of the debt was the Rabobank-ledsyndicated borrowing base. Sucro renewed it in August 2026 at up to US$285 million, but only US$23.8 million of that is committed. At June 30, 2026, Sucro could draw only US$4.8 million more on the collateral. Another US$104 million is secured equipment and real estate loans for the new refineries. US$17.5 million of this term debt is due within 12 months, and management plans to refinance it by the end of 2026. Most of the equity is unrealized gains on forward sugar contracts and inventory, about US$198 million net. Much of it is Level 3, so a write-down would cut equity and borrowing capacity at the same time. A Mexican revolving line with US$13.7 million drawn matured in September 2026 and was due on demand, and Sucro has not said if it renewed this line. Sucro discloses no credit rating. The debt limits the company's choices, because it depends on lenders that renew uncommitted lines. A weak quarter could force asset sales or an equity raise.
As of 2026-06-30.
- Recent events
- 2026-09-29: A US ban on imports of Canadian molasses took effect. Sucro saysThe US President signed it on September 8 under Section 338 of the Tariff Act. Sucro's chair told CBC that Sucro stopped shipping molasses to the US after April 2026.
2026-09-09: Beta San Miguel bought 10,000 Sucro shares in the market at CA$9.63. It also bought 4,500 shares at CA$9.04 on September 4.
2026-08-22: US duties of 50% on certain Canadian goods took effect under Section 338 of the Tariff Act. Sucro has not said if they apply to its sugar.
2026-08-13: Sucro reported Q2 2026 results. Revenue fell 44% to US$130.6 million. Net income was US$8.1 million. Adjusted EBITDA was US$8.3 million, which includes US$4.9 million of US tariff refunds. Sucro received only US$1.0 million of these refunds in cash.
2026-08-13: Sucro renewed its main borrowing base facility at up to US$285 million. OnlySucro chose to cut the committed part from US$50 million to US$23.8 million of it is committed, and the interest rate fell to SOFR plus 2.50%. The company leverage ratio rose to 5.5 times, from 3.8 times at the end of 2025.
2026-07-14: Beta San Miguel bought more Sucro shares in the market in July 2026, at CA$10.12 to CA$11.24.
2026-07-02: Canada started an expiry review of its duties on refined sugar from the US and Europe. The CBSA must decide by November 27, 2026, and the CITT by May 7, 2027.
2026-06-30: The board started a strategic review. It can include asset sales, joint ventures and, share buybacks and a corporate reorganization. A sale of the company or of a controlling interest is not included.
2026-05-08: The new Hamilton refinery opened officially. It cost about CA$135 million. Its target capacity is up to 1 million tonnes a year.
2026-04-24: Sucro asked the USDA to withdraw a study that said most78% of molasses imports through Buffalo failed thea purity test. The USDA later said that it never published the study formally.
2026-04-16: Sucro reported 2025 results. Net income was US$41.0 million. Adjusted EBITDA fell 9% to US$30.9 million. The Hamilton refinery started at the end of 2025, and University Park made its first sugar a few weeks before this report.
2026-03-18: Sucro signed a raw sugar supply agreement with HMC Farms in Louisiana for the University Park refinery.