Highlights
- Revenues of $683.2 million for the quarter ended April 28, 2024; operating earnings of $33.2 million; and net earnings attributable to shareholders of the Corporation of $15.9 million ($0.18 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $110.1 million for the quarter ended April 28, 2024; adjusted operating earnings(1) of $72.3 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $45.3 million ($0.52 per share).
- Growth in adjusted operating earnings before depreciation and amortization(1) of 1.0%, including an increase of 5.6% in the Packaging Sector.
- Continued to roll-out raddar™.
- Closed the Tomah, Wisconsin, plant on February 2, 2024 and the Saint-Hyacinthe, Québec, plant on April 20, 2024 with a transfer of operations to other plants in the network, and ended the Publisac distribution activities in Québec.
Montréal, June 5, 2024 -Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the second quarter of fiscal 2024, which ended April 28, 2024.
"I am very satisfied with our performance for the quarter in terms of profitability," said Thomas Morin, President and Chief Executive Officer of TC Transcontinental. "We pursued our cost reduction initiatives with determination, while our efforts to improve our product mix toward higher value-added products are showing results.
"In our Packaging Sector, the financial performance was strong with a 5.6% increase in adjusted operating earnings before depreciation and amortization, despite a solid performance last year. In spite of the continued pressure on our non-food related activities, we are starting to see demand improving in most of our end markets.
"In our Retail Services and Printing Sector, renamed to reflect our expanded offering and growth opportunities in retail services, we are satisfied with the roll-out of raddar™ in Québec and the positive customer response to this new, innovative product as well as the growth in our in-store marketing activities. The sector's profitability is stable as a result of the actions taken to improve our cost structure.
"We are encouraged by the results to date of our two-year program aimed at improving our profitability and our financial position. We are expecting recurring annual savings of approximately $30 million from this program by the end of fiscal 2024."
"Repaying our debt remains a priority, and we are confident we will continue to reduce our indebtedness and improve our balance sheet with the significant cash flows that we expect to generate during the second half of the fiscal year, added Donald LeCavalier, Executive Vice President and Chief Financial Officer of TC Transcontinental. In that context, we are requesting the approval of the Toronto Stock Exchange to launch a normal course issuer bid in the near-term."
Source: Transcontinental
