Transcontinental Inc. Announces Results for the Third Quarter of Fiscal 2022

Highlights
*Significant increase in revenues and net earnings, including organic revenue growth in all three operating sectors.
*Revenues of $747.8 million for the quarter ended July 31, 2022; operating earnings of $52.1 million; and net earnings attributable to shareholders of the Corporation of $34.1 million ($0.39 per share).
*Adjusted operating earnings before depreciation and amortization(1) of $113.0 million for the quarter ended July 31, 2022; adjusted operating earnings(1) of $72.6 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $49.6 million ($0.57 per share).
*Acquired ERPI (Éditions du renouveau pédagogique inc.), an educational publisher, on June 13, 2022, to pursue the growth strategy for educational products, both print and digital.
*Acquired Banaplast S.A.S., a flexible packaging company based in Armenia, Colombia, on June 22, 2022, which enables the Corporation to pursue its growth strategy with an expanded offering, in particular with banana tree bags and agro-mulches.
*Unveiled the 2025 Corporate Social Responsibility Plan, on June 15, 2022, which includes ambitious targets, in particular with respect to the creation of a circular economy, the reduction of greenhouse gases and diversity.
*Retirement of Brian Reid, President of TC Transcontinental Printing, after 41 years with the company, effective at the end of fiscal year 2022.

“Despite continued inflationary pressures, supply chain challenges and a tight labour market, we increased both revenues and profits in the quarter,” said Peter Brues, President and Chief Executive Officer of TC Transcontinental. “I am proud of the actions taken by the team to improve our performance.

“In our Packaging Sector, we recorded significant growth in revenues mainly as a result of the impact of the pass-through of raw materials costs, acquisitions and higher volume. This additional volume is the result of our investments in new equipment and innovative projects as well as the relentless work by our teams to support our customers. Combined with our initiatives to offset cost increases, the increase in volume contributed to a 15% organic growth in the sector’s adjusted operating earnings before depreciation and amortization.

“Our Printing Sector produced year-on-year revenue growth for the sixth consecutive quarter. Consistent with previous quarters, this growth was mainly driven by our in-store marketing, book printing and premedia activities. This demonstrates the positive evolution of our portfolio of activities.

“I am very pleased with the acquisition of ERPI in our Media Sector as it complements our educational products and services offering, both print and digital. The timing of the transaction, combined with the seasonality of the educational publishing business, contributed to an increase in both revenues and profit in the sector for the quarter.

“Our financial position remains solid, with no major debt maturities until 2025, giving us the flexibility to pursue our disciplined approach to profitable growth.”
details at: https://tctranscontinental.com/en-us/company-overview/news-room/press-releases/transcontinental-inc-announces-results-for-the-third

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