Intertape Polymer Group Inc. (TSX:ITP) (“IPG” or the “Company”) today released results for its third quarter ended September 30, 2021. All amounts in this press release are denominated in US dollars (“USD”) unless otherwise indicated and all percentages are calculated on unrounded numbers. For more information, refer to the Company’s management’s discussion and analysis (“MD&A”) and unaudited interim condensed consolidated financial statements and notes thereto as of and for the three and nine months ended September 30, 2021.
“We continued to experience strong demand in the third quarter and now into the first half of the fourth quarter with our open order position continuing to build. Our organic growth in the quarter is on top of the record performance we experienced in the back half of 2020 and the price increases we have implemented,” said Greg Yull, President and CEO of IPG. “The team continues to do a great job of covering the spread between selling price and the cost of raw materials and freight. The $54.3 million price increase in the quarter resulted from our successful strategy to protect the dollar contribution spread. however the mathematical impact of that higher revenue on Adjusted EBITDA margin was more than 250 basis points. We intend to continue to manage the business to effectively cover the spread. The global supply chain constraints also impacted the business in the quarter which resulted in lost revenue opportunity, although the team’s execution continues to deliver record performance despite the operating environment. The business is structurally different today with the changes and improvements we have made during the course of the past five years. We are in a great position with the team, the experience, and the strategy to meet demand with our world class, low cost manufacturing assets.”
Third Quarter 2021 Highlights (as compared to third quarter 2020):
• Revenue increased 22.5% to $395.6 million primarily due to the impact of higher selling prices in tape, film, woven, and protective packaging products driven by increases in the cost of many raw materials and freight.
• Gross margin decreased to 22.0% from 26.0% primarily due to the impact of maintaining dollar spread on higher average selling prices and increased plant operating costs, partially offset by a favourable product volume/mix.
• Net earnings attributable to the Company shareholders (“IPG Net Earnings”) decreased $1.4 million to $25.3 million ($0.43 basic and $0.42 diluted earnings per share) primarily due to an increase in selling, general and administrative expenses (“SG&A”) resulting from an increase in employee- and technology-related costs mainly due to the growth of the business in 2021 and the non-recurrence of cost saving measures implemented in response to COVID-19 related uncertainty in 2020. This unfavourable impact was partially offset by an increase in gross profit.
details at: https://www.itape.com/investor%20relations/press%20releases%20and%20reports