Canada's Supremex Q3 revenue rises 16% on acquisitions

Supremex

Thu 12:21

Overview
Canada packaging and envelope maker's Q3 revenue rose 16% yr/yr on acquisitions and organic growth
Adjusted EPS for Q3 fell yr/yr and missed the sole analyst estimate
Company had previously announced plan to cut about 60 jobs, targeting C$5.7 mln in annualized savings

Outlook
Company estimates tariffs to impact annual operating earnings by C$10 mln to C$12 mln
Supremex says timing and outcome of tariffs remain uncertain
Company sees growing opportunity in Packaging & Specialty Products, especially folding carton

Result Drivers
ACQUISITIONS AND ORGANIC GROWTH - Revenue growth was mainly driven by the contribution of the Goldrich and iFlex acquisitions and higher folding carton revenue from share of wallet gains and e-commerce packaging expansion
TARIFF COSTS - Company absorbed approximately C$1 mln in new tariff costs in the quarter, impacting operating earnings
ENVELOPE SEGMENT MARGIN GAINS - Envelope segment margin improved due to efficiency gains and integration of tuck-in acquisitions, despite tariff headwinds

Company press release: ID:nNFC885vVL

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$76.24 mln
C$70.90 mln (1 Analyst)
Q3 Adjusted EPS
Miss
C$0.03
C$0.06 (1 Analyst)
Q3 Adjusted Net Income
 
C$786,000
 
Q3 Adjusted EBITDA
 
C$8.59 mln
 
Q3 Adjusted EBITDA Margin
 
11.30%
 
Q3 Operating Income
 
C$2.25 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"
Wall Street's median 12-month price target for Supremex Inc. is C$5.00, about 60.3% above its November 4 closing price of C$3.12

Reuters Recommended Reads
Nov 4 - Canada's Russel Metals Q3 revenue jumps 56% to record
Nov 3 - Graphic Packaging Q3 sales, adjusted EPS slightly beat estimates
Nov 5 - US tariffs squeeze Canadian cabinet makers facing doubling of Trump duty 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)