Canada's Supremex Q2 revenue rises on packaging growth
Canada's Supremex Q2 revenue rises on packaging growth
Overview
Canada packaging and envelope maker's Q2 revenue rose 8.5% yr/yr to C$71.6 mln
Q2 adjusted EPS was C$0.06, up from C$0.00 a year ago
Company completed two acquisitions and plans to renew share buyback program
Outlook
Company says new U.S. tariffs on Canadian imports may impact demand, pricing and margins
Supremex intends to pursue further acquisitions in Packaging & Specialty Products segment
Company sees continued economic volatility and trade uncertainty affecting demand for its products
Result Drivers
FOLDING CARTON GROWTH - Higher folding carton revenue from increased business with large multinational consumer packaged goods customers and e-commerce packaging expansion drove Packaging & Specialty Products segment growth
ACQUISITIONS - Revenue growth was supported by the acquisitions of Goldrich Printpak and Fantasia (iFlex), which expanded the company's packaging and label businesses
ENVELOPE SEGMENT RECOVERY - Envelope segment revenue rose due to higher average selling prices, increased volumes from acquisitions, new customer wins, and a modest rebound from previous Canada Post labour issues
Company press release: ID:nNFC98v1xV
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| C$71.56 mln |
|
Q2 Adjusted EPS | Miss | C$0.06 | C$0.10 (1 Analyst) |
Q2 Adjusted Net Income |
| C$1.39 mln |
|
Q2 Adjusted EBITDA |
| C$7.81 mln |
|
Q2 Adjusted EBITDA Margin |
| 10.90% |
|
Q2 Operating Income |
| C$2.48 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the paper products peer group is "buy"
Reuters Recommended Reads
July 30 - International Paper second-quarter sales miss estimates amid soft packaging demand
July 29 - Ireland's Smurfit Westrock Q2 sales rise on strong paper demand
July 30 - Ranpak Q2 revenue beats analyst estimates on automation growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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