Second Quarter Financial Highlights and Recent Events
- Total revenue increased by 14.6% to $71.7 million, from $62.5 million in the second quarter of 2022.
- Envelope segment revenue up 7.3% to $49.3 million, from $45.9 million in the prior year.
- Packaging and specialty products segment revenue of $22.4 million, up 34.7% from $16.6 million last year.
- Net earnings were $2.1 million, compared to $7.4 million last year.
- Acquisition on May 8, 2023 of Graf-Pak Inc. (“Graf-Pak”), a provider of folding carton packaging solutions located in the province of Quebec.
- Appointment of François Bolduc as Chief Financial Officer of the Company, effective July 4, 2023.
“Our second quarter results reflect the temporary effect of inventory adjustments by certain customers and lower demand from sectors more affected by inflation and interest rate levels,” said Stewart Emerson, President & CEO of Supremex. “The first half of 2023 was a very busy period, especially for our Packaging operations, as we consolidated a significant portion of our folding carton activities under one roof in Lachine while also integrating two acquisitions. Our Envelope business continued to generate a solid free cash flow which allowed us to fund our expansion and reduce debt by $3.1 million this past quarter.”
“Although disappointed with the transitory profitability reduction in Packaging, we are excited with the significant potential of the Lachine facility. Its considerable footprint will enable us to further expand folding carton production to better meet additional demand from this growing market. In this regard, the Graf-Pak operations have been successfully merged into Lachine and we continue to assess initiatives to further optimize efficiency and achieve synergies by leveraging available capacity,” concluded Mr. Emerson.
details at: https://supremex.com/wp-content/uploads/2023/08/Supremex-announces-Q2-2023-results.pdf