Montréal, March 8, 2023 -Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the first quarter of fiscal 2023, which ended January 29, 2023.
"Increased profit in our Packaging Sector for the quarter was more than offset by the impact of lower volume in our Printing Sector, said Peter Brues, President and Chief Executive Officer of TC Transcontinental. In this context, I appreciate the speed with which both sectors implemented cost saving measures.
"Our Packaging Sector recorded solid growth in adjusted profit, continuing to build on the momentum of the previous quarters. All our segments delivered improved profit in the quarter except our Latin American operations which experienced continued volume pressures. We expect that our focus on developing sustainable products and commitment to an improved cost position will support continued improvement.
"In our Printing Sector, volume decreased significantly in the quarter. Our team has a solid track record of adjusting our cost structure and has already implemented measures to mitigate the impact of lower demand. We are seeing the early benefits of our actions and we will continue to adjust as necessary.
"Our financial position is solid thanks to our ability to generate significant cash flows and having no major debt maturities until 2025. We remain focused on our disciplined approach to profitable growth while maintaining our dividend and reducing our net debt."
- Increase in adjusted operating earnings before depreciation and amortization in the Packaging Sector more than offset by a slowdown in the Printing Sector.
- Revenues of $707.0 million for the quarter ended January 29, 2023; operating earnings of $15.0 million; and net earnings attributable to shareholders of the Corporation of $1.0 million ($0.01 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $84.1 million for the quarter ended January 29, 2023; adjusted operating earnings(1) of $41.8 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $21.1 million ($0.24 per share).
- Implemented initiatives generating savings of over $15.0 million in fiscal 2023.
- Maintained the quarterly dividend at $0.225 per share ($0.90 per year).
- Entered into an outsourcing agreement with Metroland to print several newspapers and extended the current printing agreement for two daily newspapers, including the Toronto Star, and four community publications to the end of 2027.
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