KINGSEY FALLS, QC, Feb. 20, 2025 - Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period and fiscal year ended December 31, 2024.
Q4 2024 Highlights
- Sales of $1,211 million (compared with $1,201 million in Q3 2024 and $1,138 million in Q4 2023);
- Operating income of $16 million (compared with operating income of $36 million in Q3 2024 and operating loss of $(24) million in Q4 2023);
- Net loss per common share of ($0.13) (compared with net earnings per common share of $0.01 in Q3 2024 and a net loss per common share of ($0.57) in Q4 2023);
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A)1) of $146 million (compared with $140 million in Q3 2024 and $122 million in Q4 2023);
- Adjusted net earnings per common share1 of $0.25 (compared with $0.27 in Q3 2024 and $0.05 in Q4 2023);
2024 Annual Highlights
- Sales of $4,701 million (compared with $4,638 million in 2023);
- Operating income of $95 million (compared with $40 million in 2023);
- Net loss per common share of ($0.31) (compared with ($0.76) in 2023);
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A)1) of $501 million (compared with $558 million in 2023);
- Adjusted net earnings per common share1 of $0.60 (compared with $1.08 in 2023);
- Net debt1 of $2,096 million as of December 31, 2024 (compared with $1,882 million as of December 31, 2023). Net debt to EBITDA (A) ratio1 of 4.2x, versus from 3.4x as of December 31, 2023;
- Total capital expenditures, net of disposals, totaled $29 million in Q4 2024 and $127 million in 2024. The Corporation's 2025 forecasted capital expenditures will be approximately $175 million.
Hugues Simon, President and CEO, commented: "Our fourth quarter 2024 performance was in line with expectations. Favourable average selling prices and raw material costs in the Containerboard business drove stronger sequential results, offsetting the impact of usual lower seasonal volumes. Specialty Products continued to perform well despite slightly lower volume sequentially. In Tissue, average selling prices and raw material costs were advantageous, and fully offset slightly higher operational costs. Broadly, the depreciation of the Canadian dollar benefited quarterly results, but led to higher reported debt levels at the end of the year given the company's $1.3 billion of US denominated debts."
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Some information represents non-IFRS Accounting Standards Financial measures, other financial measures or non-IFRS Accounting Standards ratios which are not standardized under IFRS Accounting Standards and therefore might not be comparable to similar financial measures disclosed by other corporations. Please refer to the "Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures" section for a complete reconciliation. |
Discussing near-term outlook, Mr. Simon commented, "Operationally, raw material costs remain a tailwind for our businesses in the first quarter, and we are currently seeing steady seasonal demand levels. We will not be providing an outlook for near-term financial or business-specific performance given the lack of clarity regarding the implementation of bilateral tariffs between Canada and the United States. The continued risk has resulted in significant near-term macro-economic uncertainty, and may disrupt or negatively impact future demand levels, customer buying patterns and the economic performance of both countries.
As we have previously disclosed in our financial filings, approximately 11% of our annual sales are derived from finished products made in Canada and sold to US customers. In addition to this, cross-border inter-company transfers and raw material sourcing increases this potential annual exposure to tariffs to approximately 15% of revenues. Proactive steps to mitigate these impacts have been initiated, and include changes to raw material sourcing, reallocating production to minimize inter country shipping, and adapting our commercial strategies with our customers and our suppliers. We are diligently working on these strategies and have a process in place to minimize potential impacts on our cash flow, our customers and our operations.
This diligence applies equally to the strategic areas of focus we have set for the company for the next 24 months. Capitalizing on our commitment to excellence, we have established wide-ranging initiatives targeting efficiency and productivity improvements while assuring best-in-class health and safety in our operations. Central to these work streams are an enhanced commercial approach and excellent service levels to ensure that Cascades is the supplier of choice for our customers. These key strategic objectives are targeting baseline profitability improvements, stronger sustainable net free cash flow levels and capital deployment focused on debt reduction. Successfully achieving these objectives over the next 24 months will support future growth opportunities and shareholder value creation."
Source: Cascades
