Lassonde Industries : MD&A – Q3

Interim Management's Discussion & Analysis

Third quarter ended September 28, 2024

Table of Contents
1	Basis of Presentation	3
2	Forward-Looking Statements	3
3	Corporate Profile	5
4	Multi-Year Strategy	6
5	Acquisition of Summer Garden Food Manufacturing	7
6	Selected Financial Information	9
7	Financial Highlights	10
8	Outlook	12
9	Analysis of the Consolidated Results	14
10	Summary of Quarterly Results	18
11	Analysis of the Consolidated Financial Position	19
12	Analysis of the Consolidated Cash Flows	21
13	Off-Consolidated-Statement-of-Financial-Position Arrangements	22
14	Share Information	22
15	Dividends	23
16	Subsequent Event	23
17	Financial Measures Not in Accordance With IFRS	23
18	Adoption of IFRS Standards	30
19	Accounting Policies and Future Accounting Changes	30
20	Disclosure Controls and Procedures ("DC&P")	30
21	Internal Control Over Financial Reporting ("ICFR")	31
22	Limitations on Scope of Design	31

2

1 Basis of Presentation

The following Management's Discussion and Analysis ("MD&A") presents the factors that had a significant impact on the results, financial position, and cash flows of Lassonde Industries Inc. ("Lassonde" or the "Corporation"). This MD&A should be read in conjunction with the Corporation's unaudited interim condensed consolidated financial statements ("interim consolidated financial statements") and accompanying notes. It should also be read in conjunction with its 2023 annual consolidated financial statements and accompanying notes thereto and with its 2023 annual MD&A. In addition to containing an analysis of the third quarter ended September 28, 2024, this MD&A reports on items deemed significant that have taken place from September 28, 2024 up to and including November 7, 2024, which is the date on which this MD&A was approved by the Corporation's Board of Directors. The financial information in this MD&A has been prepared in accordance with International Financial Reporting Standards ("IFRS"). Unless otherwise indicated, the reporting currency for figures in this document is the Canadian dollar and all dollar amounts are expressed in millions, which may cause calculation discrepancies due to rounding.

The MD&A is available on the Lassonde Industries Inc. website at www.lassonde.com. Readers will also find this MD&A, the Annual Information Form for the fiscal year ended December 31, 2023, additional documents, press releases, certifications of filings, and more information about the Corporation on the SEDAR+ website at www.sedarplus.ca. Printed copies of such documents may be obtained by contacting Lassonde's Corporate Secretary's Office. The Class A subordinate voting shares of Lassonde Industries Inc. are listed for trading on the Toronto Stock Exchange under the ticker symbol LAS.A.

This document contains financial measures not in accordance with IFRS. Lassonde reports its financial results in accordance with IFRS and generally assesses its financial performance using financial measures or ratios that are prepared using IFRS. However, this MD&A also refers to certain measures or ratios that are not in accordance with IFRS, including the following: Adjusted operating profit; Earnings before interest, taxes, depreciation, and amortization ("EBITDA"); Adjusted EBITDA; Adjusted profit attributable to the Corporation's shareholders; Adjusted basic and diluted earnings per share; Operating working capital; Days operating working capital; Capital employed and sources of capital; Return on capital employed; and Net debt to adjusted EBITDA. These measures may not be comparable to similar measures presented by other issuers. Please refer to Section 17 - "Financial Measures Not in Accordance With IFRS" of this MD&A for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the financial statements, as applicable. The Corporation uses measures and ratios that are not in accordance with IFRS to provide investors with supplemental metrics to assess and measure its operating performance and financial position from one period to the next. These metrics are presented as a complement to enhance the understanding of Lassonde's financial performance but not in substitution of IFRS results. In addition, measures that are not in accordance with IFRS should not be viewed as a substitute to the related financial information prepared in accordance with IFRS.

2 Forward-Looking Statements

This report contains "forward-looking information", and the Corporation's oral and written public communications that do not constitute historical fact may be deemed to be "forward-looking information" within the meaning of applicable Canadian securities law. These forward-looking statements include, but are not limited to, statements on the Corporation's objectives and goals and are based on current expectations, projections, beliefs, judgments, and assumptions based on information available at the time the applicable forward-looking statement was made and considering the Corporation's experience combined with its perception of historical trends.

Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "could", "would", "believe", "plan", "intend", "design", "target", "objective", "strategy", "likely", "potential", "outlook", "aim", "goal", and similar expressions suggesting future events or future performance in addition to the negative forms of these terms or any variations thereof. All statements other than statements of historical fact included in this report may constitute a forward-looking statement.

In this report, forward-looking statements include, but are not limited to, those set forth in Section 8 - "Outlook" hereafter, which also presents some (but not all) of the key assumptions used in determining the forward-looking statements. Some of the forward-looking statements in this report, such as statements concerning sales volume and sales growth rate, key commodity and input costs, expenses, including items impacting the comparability between the periods, effective tax rate, working capital, and capital expenditures may be considered financial outlooks for the purposes of applicable Canadian securities regulations. These financial outlooks are presented to evaluate potential future earnings and anticipated future uses of cash flows and may not be appropriate for other purposes.

Various factors or assumptions are applied by the Corporation in elaborating the forward-looking statements. These factors and assumptions are based on information currently available to the Corporation, including information obtained by the Corporation from third parties. Readers are cautioned that the assumptions considered by the Corporation to support these forward-lookingstatements may prove to be incorrect in whole or in part.

The significant factors that could cause actual results to differ materially from the conclusions, forecasts, or projections reflected in the forward-looking statements contained herein include, among other things, risks associated with the following: deterioration of general macroeconomic conditions, including international conflicts, which can lead to negative impacts on the Corporation's suppliers, customers, and operating costs; the availability of raw materials and packaging and related price variations (including the prices of orange juice and orange concentrates, key commodities for the Corporation, which have continued to trade above historical highs for the past

3

several months and show no sign of favourable change); loss of key suppliers or supplier concentration; disruptions in or failures of the Corporation's information technology systems, as well as the development and performance of technology; cyber threats and other information-technology-related risks leading to business disruptions, confidentiality, data integrity, and business email compromise-related fraud; the successful deployment of the Corporation's multi-year strategy (the "Strategy", defined in Section 4 - "Multi-YearStrategy" of this MD&A), including the successful execution of its key capital projects along with the materialization of the underlying expected benefits, and the Corporation's ability to effectively integrate any acquisitions; the Corporation's ability to maintain strong sourcing and manufacturing platforms and efficient distribution channels; fluctuations in the prices of inbound and outbound freight, the impact of oil prices (and derivatives thereof) on the Corporation's direct and indirect costs along with the Corporation's ability to transfer those increases through higher prices or other means, if any, to its customers in competitive market conditions and considering demand elasticity; climate change and disasters causing higher operating costs and capital expenditures and reduced production output, or impacting the availability, quality or price volatility of key commodities sourced by the Corporation; the scarcity of labour and the related impact on the hiring, training, developing, retaining and reliance of personnel together with their productivity, employment matters, compliance with employment laws across multiple jurisdictions, and the potential for work stoppages due to the non-renewal of collective bargaining agreements or other reasons; the successful deployment of the Corporation's health and safety programs in compliance with applicable laws and regulations; serious injuries or fatalities, which could have a material impact on the Corporation's business continuity and reputation and lead to compliance-related costs; disputes with significant suppliers; the increasing concentration of customers in the food industry, providing them with significant bargaining power, particularly on the Corporation's selling prices; the implementation, cost, and impact of environmental sustainability initiatives as well as the cost of remediating environmental liabilities; changes made to laws and rules that affect the Corporation's activities, particularly in matters of tax and customs duties, as well as the interpretation thereof, and new positions adopted by relevant authorities; the ability to adapt to changes and developments affecting the Corporation's industry, including customer preferences, tastes, and buying patterns, market conditions and the activities of competitors and customers; failure to maintain the quality and safety of the Corporation's products, which could result in product recalls and product liability claims for misbranded, adulterated, contaminated, or spoiled food products, along with reputational damage; risks related to fluctuations in interest rates, currency exchange rates, liquidity and credit, stock price and pension obligations; the incurrence of restructuring, disposal, or other related charges together with the recognition of impairment charges on goodwill or long-lived assets; the sufficiency of insurance coverage; and the implications and outcome of potential legal actions, litigation or regulatory proceedings to which the Corporation may be a party. The Corporation cautions readers that the foregoing list of factors is not exhaustive.

The Corporation's ability to achieve its sustainability targets and goals is further subject to, among other factors, its ability to access and implement all technology necessary to achieve them as well as the development, deployment, and performance of technology and environmental regulation. The Corporation's ability to achieve its environmental, social and governance ("ESG") risk commitments is further subject to, among other factors, its ability to leverage its supplier relationships.

The assumptions, expectations, and estimates involved in preparing forward-looking statements and risks and uncertainties that could cause actual results to differ materially from forward-looking statements are discussed in the Corporation's materials filed with the Canadian securities regulatory authorities, including information about risk factors that can be found in Section 19 - "Uncertainties and Principal Risk Factors" of the 2023 annual MD&A. Readers should review this section in detail.

All forward-lookingstatements included herein speak only as of the date hereof. Unless required by law, the Corporation does not undertake any obligation to publicly update or revise forward-lookingstatements, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are wholly and expressly qualified by this cautionary statement.

4

3 Corporate Profile

Lassonde Industries Inc. is a leader in the food and beverages industry in North America. The Corporation develops, manufactures, and markets a wide range of private label and national brand products, including ready-to-drink beverages, fruit-based snacks as well as frozen juice concentrates. It is also a leading producer of cranberry sauces and specialty food products such as pasta sauces, BBQ sauces, condiments, soups, and fondue broths and sauces. The Corporation also produces, imports and markets selected wines from several countries of origin and produces and markets apple cider and cider-based drinks.

Lassonde is committed to its vision of putting more of its great tasting products in more consumers' hands, that serve more needs, across more occasions, every day, and by continuing its focus on crafting quality food and beverages that consumers love, clients value, employees are proud of, and that demonstrate care for our planet.

The Corporation operates 19 plants located in Canada and the United States ("U.S.") and produces its superior quality products through the expertise of over 2,900 full-time equivalent employees. To learn more, visit www.lassonde.com.

The Corporation is active in two market segments:

• Retail sales consist of sales to food retailers and wholesalers such as supermarket chains, independent grocers, superstores, warehouse clubs, major pharmacy chains; and
• Food service sales consist of sales to restaurants, hotels, hospitals, schools, and wholesalers serving these institutions.

Pro Forma Sales Breakdowns1 (2023)

Main National Brands

The Corporation's national brands are sold in various packages under several proprietary trademarks as well as under trademarks for which the Corporation is a licensed user. The Corporation also manufactures private label products for the vast majority of major retailers and wholesalers in North America.

1 The pro forma sales breakdowns are reflecting the annualized sales of Summer Garden Food Manufacturing.

5

4 Multi-Year Strategy

To provide clarity and orientation on the opportunities to pursue and optimize capital allocation decisions, in early 2022, the Corporation developed a multi-year strategy. This Strategy aims to accelerate sales growth, improve overall profitability, and drive long-term value by focusing on three strategic pillars.

• The first pillar, Building a growth-orientedportfolio, reinforces the Corporation's commitment to becoming a more diversified food and beverage leader in North America by accelerating the growth of its specialty foods business, strengthening its leadership position in the Canadian beverages sector, and fortifying its competitive position in the U.S.
• The second pillar focuses on Driving sustainable performance by increasing investments in its manufacturing network, strengthening its supply chain activities, modernizing its revenue growth management practices, and driving efficiency across all areas of the organization. Moreover, the Corporation's ESG roadmap is a key driver of its sustainability agenda and serves as a guide for important investment decisions for the future.
• The third pillar, Improving its capacity to act, focuses on modernizing its operating model to accelerate innovation, improve costs and increase productivity, on simplifying its operations, and on investing in new tools and technologies, including the upgrade of its ERP systems. It also focuses on fortifying capabilities in key areas of the business to enable the execution of its growth strategy.

While the Corporation is actively pursuing every aspect of its Strategy, its primary focus in 2023 was to revitalize the performance of its U.S. operations through Project Eagle, which identified and addressed key issues impacting performance within the supply chain and existing manufacturing facilities, through portfolio simplification, process realignment, talent acquisition, employee training, and capital deployment. Another component of Project Eagle was the implementation of new management systems, including those aimed at generating greater efficiency in transportation management, demand and supply planning as well as production scheduling. Benefits from these initiatives began materializing in 2023 and in the first nine months of 2024. In addition, the Corporation recently completed the upgrade of its U.S. ERP system.

The Corporation expects further benefits in the fourth quarter of 2024 and beyond as it gradually builds back its U.S. sales volume, which was voluntarily reduced following the 2023 portfolio simplification process. Furthermore, the commissioning of a new single-serve line in the North Carolina plant in late July 2024 will play a key role in providing growth opportunities in new markets across both branded and private label businesses. Lastly, a new high-speed single-serve juice box line was commissioned in January 2024 in Rougemont, Quebec, to bring in-house some of the U.S. volume historically produced by a co-packer, and will enable the Corporation to better serve customers, fuel future growth and increase profitability.

Leveraging the improvements achieved through Project Eagle, Lassonde evaluated various investment scenarios to secure the long-term competitiveness of its U.S. beverage divisions. Comprehensive analyses uncovered several limitations at the Corporation's New Jersey plant. This facility, which employs close to 200 persons, houses two hot fill multi-serve beverage lines and is the only one in the Lassonde network to produce canned cranberry sauce. It was built in 1935 and acquired by Lassonde as part of the Clement Pappas & Company Inc. acquisition in 2011. Over the past several years, the plant has required and continues to require frequent and significant investments to maintain its operations. Besides the related costs and time lost, production at this plant has been inconsistent, leading to subpar service levels. Furthermore, a recent engineering study indicated that a multimillion-dollar investment was necessary to maintain long-term ongoing operations within the current facility. This investment would yield minimal return and would significantly impact business operations during the project execution phase. In addition, although the facility spans 456,000 square feet, its design results in operational inefficiencies, it is expensive to operate and does not support further growth within the current footprint. Finally, most production lines deployed in this facility are also approaching the end of their useful life.

Given these factors and the strategic importance of the Northeast region for the Corporation's U.S. business, management determined that a significant investment was necessary. As a result, on October 1, 2024, Lassonde unveiled the details of a capital expenditure program that consists of an investment of approximately US$200.0 million over an estimated two-year period for the construction of a new facility in New Jersey, on a site adjacent to the Corporation's existing plant. Approximately US$10.0 million will be incurred this year, US$100.0 million in 2025 and the remaining amount in 2026.

Once built, the state-of-the-art facility, extending across approximately 200,000 square feet, will replace the existing plant and enable Lassonde to fortify its competitive position in the key U.S. Northeast market by improving operating efficiency and delivering incremental volume at lower costs through a more efficient production flow, improved yields, and better logistics. The Corporation anticipates that the new cranberry sauce line will be operational for the 2026 pressing season while the two new beverage lines will be deployed in phases later in 2026 and early in 2027.

As a result of this decision, certain existing assets related to the current plant will need to be depreciated at an accelerated rate over the next ten quarters, starting in the fourth quarter of 2024.The additional depreciation charge is estimated at US$1.5 million per quarter.

The investment is anticipated to be accretive, with an internal rate of return surpassing the Corporation's cost of capital and a payback period of approximately five years post-completion.

6

In addition to the important investment in New Jersey, Lassonde also plans to further invest an additional US$20.0 million at its North Carolina facility to fortify its role as a strategic production hub. This supplementary investment consists in bringing in-house certain owned production assets currently deployed at a co-packer facility. This insourcing, expected to be completed in late 2025, will allow the Corporation to enhance network efficiency and reliability by optimizing the utilization of these assets, while providing more flexibility to meet incremental demand.

In parallel to the efforts to revitalize the U.S. business, the Corporation remained focused on pursuing various options to take advantage of market opportunities in the specialty food business, which resulted in the Summer Garden Food Manufacturing acquisition which is described in Section 5 hereafter. The Corporation is also focused on strengthening its leadership position in the Canadian beverage sector through increased focus on innovation, channel expansion and productivity initiatives. After an initial rollout in the U.S., the deployment of new management systems in Canada, including the transportation management system, will generate productivity gains.

To anchor its growth plan and Strategy on tangible goals, the Corporation presented certain financial objectives during its first Investor Day held in September 2023. Lassonde aims to achieve a sales run rate of $3 billion by the end of 2026 supported by a combination of organic growth and investment-driven growth. Organic growth reflects sales increase based on existing assets and capacity. Investment-driven growth is comprised of two sources: additional sales coming from currently known projects, and new growth investments related to capacity expansion and/or acquisitions such as the ones recently announced. The Corporation anticipates a contribution from each of these sources, which will provide a certain degree of flexibility depending on inflation and exchange rate assumptions, market conditions, timing and available opportunities. The Corporation has also stated that profitability growth will take precedence over its sales growth objective.

5 Acquisition of Summer Garden Food Manufacturing

Business combination

On August 8, 2024, a 90%-owned U.S. subsidiary of the Corporation completed the acquisition of The Zidian Group, which operates Summer Garden Food Manufacturing and certain of its affiliates (collectively "Summer Garden"). Located in Boardman, Ohio, and employing approximately 200 people, Summer Garden develops, manufactures and markets a wide range of premium sauces and condiments, including tomato and cream-based pasta sauces, BBQ sauces, dipping sauces and dressings. Its portfolio consists of approximately 250 products sold through more than 20,000 locations under the Gia Russa and Little Italy in the Bronx brands and under the G Hughes brand, a leader in the U.S. sugar-free BBQ sauce (and other condiments) segment. Summer Garden also acts as a co-packer for well-known brands. For the 12-month period ending in May 2024, Summer Garden generated sales of approximately US$148.0 million and adjusted EBITDA2 of approximately US$27.9 million.

The acquisition was for a cash consideration of US$237.2 million, paid at closing. This amount reflects US$2.2 million in preliminary adjustments related to working capital. The amount could be subject to additional adjustments related to working capital and other items once the final value is established during the fourth quarter of 2024. Moreover, contingent considerations of up to US$45.0 million may be payable in various instalments over the two years following the closing of the transaction, should certain financial targets be achieved and other conditions met. The contingent considerations are related to the sales volume of certain products over the two-year period following the acquisition, the renewal or not of a customer agreement upon expiry thereof and, to a lesser extent, the occurrence or not of events related to labour costs.

Consistent with the ownership structure of the Corporation's U.S. subsidiaries in place since 2011, the Corporation owns a 90% equity interest in Summer Garden while 3346625 Canada Inc., an entity controlled by Mr. Pierre-Paul Lassonde, Chairman of the Corporation's Board, owns the remaining 10%.

At the closing of the acquisition, an amount of US$241.0 million was paid to settle the Summer Garden acquisition cost and certain related charges. It was financed as follows: (i) US$224.5 million from the Canadian revolving operating credit facility ("CArevolving credit"),

1. US$6.0 million from the Corporation's cash and cash equivalents and (iii) US$10.5 million in equity from 3346625 Canada Inc. The acquisition-related costs totalled $8.2 million.

The Corporation recognizes this business combination using the acquisition method in accordance with the provisions of IFRS 3 "Business Combinations". Therefore, the interim consolidated financial statements for the third quarter of 2024 include the results of Summer Garden from August 8, 2024, certain acquisition-related transaction costs, and the effect of the purchase price allocation exercise.

2 This measure does not constitute a standardized financial measure in accordance with the financial reporting framework used to prepare the Corporation's financial statements. Comparing it to a similar financial measure presented by other issuers may not be possible. Refer to Section 17 - "Financial Measures Not in Accordance With IFRS" of this MD&A for more information, including the definition and composition of the measure.

7

Purchase price allocation

During the third quarter of 2024, the Corporation made progress on the purchase price allocation process. The process, which also required a fair value assessment of the contingent considerations previously described, resulted in the identification and fair valuation of the following assets based on the Corporation's assumptions and estimates:

• The current assets acquired were deemed to be reflected at fair value except for the finished goods inventories, which had to be remeasured at their net realizable value (estimated selling price minus the estimated costs required to complete the sale). This resulted in a fair value adjustment of $4.3 million (US$3.2 million) on the opening balance sheet. This amount was subsequently expensed, in the cost of sales, during the third quarter.
• The fair value of the property, plant and equipment acquired was established at $40.2 million (US$29.2 million). The associated annual depreciation expense is currently estimated at US$3.9 million.
• In addition to the residual goodwill, preliminary assessed at $152.7 million (US$111.1 million), the process identified two separate intangible asset categories, i.e., trademarks and trade name as well as client relationships. The preliminary fair value of these assets is estimated at $145.4 million (US$105.8 million). The associated annual amortization expense is currently estimated at US$14.0 million. The goodwill recognized in this business combination is not amortizable for accounting purposes (though it is subject to impairment testing), but it is tax deductible on a straight-line basis over 15 years. A similar tax deductibility period applies to the above-identified intangible assets.

The preliminary acquisition-date fair value of the contingent considerations, amounting to $45.3 million (US$32.9 million), was assessed using management's estimated probability of the financial objectives being achieved and the other conditions being met. Subsequent changes in the fair value, which include the impact of revisions made to key assumptions and the impact of the passage of time, will be recognized in profit or loss during the period in which they arise, in other (gains) losses.

Impact of the business combination on the Corporation's financial performance

If the business combination had been completed on January 1, 2024, the Corporation's consolidated sales and consolidated profit for the first nine months ending on September 28, 2024 would have stood at $1,992.1 million and $98.5 million, respectively. The Corporation considers these pro forma figures to be approximate measurements of the combined business's financial performance over a nine-month period and that they provide a baseline against which to compare the financial performance of future periods.

To determine the Corporation's pro forma consolidated sales and profit if Summer Garden had been acquired on January 1, 2024, the Corporation:

• Calculated the depreciation of property, plant and equipment acquired and the amortization of intangible assets acquired based on the fair values determined during the preliminary initial recognition of the business combination rather than the carrying amounts recognized in the pre-acquisition financial statements;
• Calculated the borrowing costs on the Corporation's net indebtedness after the business combination;
• Calculated the impact of the passage of time on the contingent considerations payable;
• Excluded the acquisition-related costs that were recognized in profit or loss and the seller's transaction costs recognized in the pre-acquisition financial statements; and
• Excluded the impact of the inventory revaluation adjustment to fair value arising from the preliminary initial recognition of the business combination on cost of sales.

Long-term debt

On June 20, 2024, upon the signing of the Summer Garden acquisition agreement, the Corporation entered into an agreement to amend the Canadian credit facilities to, notably, include the various requests for amendments accepted between Decembre 20, 2019 and June 19, 2024, and to raise the authorized amount of the CA revolving credit by $250 million. As a result of this agreement, the credit facilities comprise a CA revolving credit committed until April 2027 for an authorized amount of $475 million. This agreement came into effect upon the closing of the Summer Garden acquisition. The financing-related costs totalled $0.5 million. These costs have been capitalized and will be amortized over the term of the agreement. Conversely, the amendment to the Canadian credit facilities led to the expensing of previously capitalized financing costs, amounting to $0.4 million, during the third quarter.

Note 4 to the interim consolidated financial statements for the third quarter of 2024 contains additional information about the acquisition, including the assets acquired and liabilities assumed at the acquisition date, as well as the financing of the acquisition cost and related costs.

8

6	Selected Financial Information
			Third quarters ended	First nine months ended
	(in millions of dollars, unless otherwise indicated)	Sept. 28, 2024	Sept. 30, 2023	Sept. 28, 2024	Sept 30, 2023
	Related to operations	$	$	$	$
	668.3		1,862.8
	Sales	583.4	1,710.2
	Gross profit	179.8	146.3	505.1	435.2
	Operating profit	47.2	35.7	131.8	103.3
	Adjusted operating profit3	48.8	37.2	143.3	108.5
	Adjusted EBITDA3	69.3	52.9	196.2	154.6
	Profit attributable to the Corporation's shareholders	29.7	24.3	87.0	66.5
	Basic and diluted earnings per share ("EPS") (in $)	4.35	3.56	12.75	9.75
	Adjusted EPS3 (in $)	4.53	3.67	13.93	10.03
	Dividends declared per share for Class A and B	1.00		3.00
		shares (in $)	0.50	1.70
	Cash flows from operating activities	87.5	76.0	158.2	147.1
					As at	As at
	(in millions of dollars, unless otherwise indicated)			Sept. 28, 2024	Dec. 31, 2023
	Related to financial position			$	$
			2,095.3
	Total assets			1,665.7
	Operating working capital3			340.0	293.5
	Days operating working capital3 (in days)			46.3	44.2
	Long-term debt, including the current portion			465.2	210.5
	Net debt to adjusted EBITDA ratio3			1.83:1	0.92:1
	Return on capital employed3 (in %)			13.7	12.1

Financial information related to entities acquired during the last 12 months

Lassonde acquired control of Diamond Estates Wines & Spirits Inc. ("Diamond") on November 14, 2023, and completed the acquisition of Summer Garden on August 8, 2024 (collectively referred to as the "Acquired Entities"). Consequently, these entities have been consolidated in Lassonde since these dates and the table below details their respective contributions.

	Third quarter	First nine months
	ended Sept. 28 2024	ended Sept. 28 2024
		Summer		Summer
(in millions of dollars, unless otherwise indicated)	Diamond	Garden4	Diamond	Garden4
Related to operations	$	$	$	$
4.7	26.7	16.1	26.7
Sales
Gross profit	3.1	5.8	7.4	5.8
Operating profit (loss)	(1.4)	(2.6)	(3.5)	(2.6)
Profit (loss) before income taxes	(1.3)	(2.7)	(4.3)	(2.7)
Profit (loss)	(1.3)	(2.0)	(4.3)	(2.0)
Profit (loss) attributable to the Corporation's	(0.7)	(1.8)	(2.3)	(1.8)
shareholders
Depreciation of property, plant and equipment and	0.1	3.8	1.0	3.8
amortization of intangible assets
Cash flows from operating activities	(1.0)	1.7	1.5	1.7

1. This measure does not constitute a standardized financial measure in accordance with the financial reporting framework used to prepare the Corporation's financial statements. Comparing it to a similar financial measure presented by other issuers may not be possible. Refer to Section 17 - "Financial Measures Not in Accordance With IFRS" of this MD&A for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the financial statements, as applicable.
2. Amounts reflect the effect of the purchase price allocation, as explained in section 5.

9

7 Financial Highlights

Third quarter ended September 28, 2024:

• Sales of $668.3 million. Excluding a $5.6 million favourable foreign exchange impact and sales from the Acquired Entities, the Corporation's sales were up $47.9 million (8.2%) year over year, mainly due to the favourable impact of selling price adjustments in Canada and an increase in the U.S. sales volume for both private label and branded products, partly offset by an unfavourable change in the sales mix of U.S. private label products.
• Gross profit of $179.8 million (26.9% of sales). Excluding a $0.5 million unfavourable foreign exchange impact and gross profit from the Acquired Entities, gross profit was up $25.1 million from the same quarter last year. This net increase results mainly from the following items:

1. A decrease in the Corporation's conversion costs, a portion of which results from operational improvements, including the impact of the ongoing insourcing of manufacturing for certain products sold by the Corporation's U.S. beverage divisions;

1. A favourable impact of selling price adjustments to offset the higher costs of certain inputs, essentially orange juice and orange concentrates;

1. A favourable impact of an increase in sales volume; and

• 1. An unfavourable impact of a change in the sales mix.
• Operating profit of $47.2 million. Excluding the unfavourable contribution from the Acquired Entities, operating profit was up $15.5 million from the same quarter last year. This net increase results mainly from the impact of the following items:
• 1. Higher gross profit;

1. $6.2 million increase in transportation costs incurred to deliver products to clients and in finished goods warehousing costs, essentially in the U.S.;

1. $2.0 million net increase in other selling and administrative expenses; and

• 1. $0.4 million in costs related to the Summer Garden acquisition.
• Excluding items impacting comparability but including the Acquired Entities, adjusted EBITDA5 was $69.3 million (10.4% of sales), up $16.4 million from the same quarter last year.
• Profit attributable to the Corporation's shareholders totalled $29.7 million, resulting in EPS of $4.35, up $5.4 million and $0.79, respectively, from the same quarter in 2023. Excluding the unfavourable contribution from the Acquired Entities and the impact of additional financial expenses, net of taxes, related to the Summer Garden acquisition, profit attributable to the Corporation's shareholders was up $10.2 million year over year. Excluding items impacting comparability, adjusted EPS5 was $4.53 compared to $3.67 in the same quarter last year.
• Operating activities generated $87.5 million in cash compared to $76.0 million generated in the same quarter last year. The Acquired Entities' operating activities generated $0.7 million in cash, leaving a difference of $10.8 million on a comparable basis. This increase in cash inflows was mainly due to a higher operating profit and a $2.3 million favourable change in the change in the fair value of financial instruments, partly offset by a $7.6 million increase in net income tax paid.
• Dividend of $1.00 per share, paid on September 13, 2024.

5 This measure does not constitute a standardized financial measure in accordance with the financial reporting framework used to prepare the Corporation's financial statements. Comparing it to a similar financial measure presented by other issuers may not be possible. Refer to Section 17 - "Financial Measures Not in Accordance With IFRS" of this MD&A for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the financial statements, as applicable.

10