Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced its results for the third quarter ended September 30, 2023. The Company will hold a conference call to discuss these results, today at 10:00 a.m. (Eastern Time).
Third Quarter Financial Highlights and Recent Events
- Total revenue increased by 2.8% to $69.8 million, from $67.9 million in the third quarter of 2022.
- Envelope segment revenue up 0.4% to $49.3 million, from $49.1 million in the prior year.
- Packaging and specialty products segment revenue of $20.5 million, up 9.1% from $18.8 million last year.
- Net earnings were $5.0 million, compared to $8.1 million last year.
- Earnings per share of $0.19, versus $0.31 a year ago.
- Adjusted EBITDA1 of $11.7 million, or 16.8% of revenue, versus $15.5 million, or 22.8% of revenue, a year ago.
- On October 17, 2023, the Company announced optimization initiatives in the packaging segment to enhance efficiency and yield synergies resulting in annual cost savings of $1.5 million once all measures are implemented.
- On November 8, 2023, the Board of Directors declared a quarterly dividend of $0.035 per common share, payable on December 22, 2023, to shareholders of record at the close of business on December 7, 2023.
“Demand continues to improve but somewhat slower than expected with high inflation and interest rates still affecting direct mail and consumer product spending. With continuous efforts to drive efficient working capital management, Supremex generated a solid free cash flow during the third quarter. Taking into consideration the business acquisitions, Supremex reimbursed over $9 million of long-term debt and repurchased shares,” said Stewart Emerson, President & CEO of Supremex. “We entered the fourth quarter with the right level of inventory to support our customers in the current market conditions. Meanwhile, our teams are focused on completing the integration of the packaging operations and achieving the planned efficiencies and synergies related to our most recent optimization initiatives.”
details at: https://supremex.com/wp-content/uploads/2023/01/SupremeX-Announces-Q3-Results.pdf