Highlights
- Growth in adjusted operating earnings before depreciation and amortization(1) of 14.3% for the quarter, including an increase of 29.6% in the Packaging Sector.
- Revenues of $680.4 million for the quarter ended January 28, 2024; operating earnings of $27.8 million; and net earnings attributable to shareholders of the Corporation of $13.9 million ($0.16 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $96.1 million for the quarter ended January 28, 2024; adjusted operating earnings(1) of $59.0 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $37.4 million ($0.43 per share).
- Announced, on February 1, 2024, the closure of the Saint-Hyacinthe plant in April 2024 and the transfer of its operations to the other plants in the network.
(1) Please refer to the section entitled "Non-IFRS Financial Measures" in this press release for a definition of these measures.
Montréal, March 12, 2024 -Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the first quarter of fiscal 2024, which ended January 28, 2024.
"We had a solid first quarter despite persistently challenging market conditions," said Thomas Morin, President and Chief Executive Officer of TC Transcontinental. "This performance is largely attributable to cost reductions in line with our priorities and the profitability and financial position improvement program announced in December.
"The Packaging Sector had an excellent start with a 29.6% growth in adjusted operating earnings before depreciation and amortization for the quarter compared to last year, as the initiatives implemented to reduce our costs and a more favourable product mix more than offset the softer demand across the market. While there are still uncertainties surrounding short-term demand, we are satisfied with the progress made with the deployment of new equipment related to our strategic investments and the market interest in that respect.
"In our Printing Sector, our cost reduction initiatives allowed us to mitigate the persistent challenges facing our book printing activities. We are encouraged by the opportunities in our retail related services, in particular the continued roll-out of raddar™ as well as our in-store marketing activities.
"I'm pleased that our two-year program aimed at improving our earnings per share and our financial position has already started to show results. By the end of the second quarter, we will have reduced our overall workforce by 6%. We also achieved significant cost of goods sold savings, and our solid earnings and free cash flows enabled us to reduce our indebtedness ratio to 2.00x at the end of the first quarter."
"Our financial position is solid, and we expect to generate significant cash flows by the end of fiscal 2024 that will enable us to pursue our debt reduction objective," concluded Donald LeCavalier, Executive Vice President and Chief Financial Officer of TC Transcontinental.
Source: TC Transcontinental
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