Optimization initiatives drive solid margin improvement in the fourth quarter
Montreal, Quebec, February 20, 2025 – 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 fourth quarter and fiscal year ended December 31, 2024. The Company will hold a conference call to discuss these results today at 10:00 a.m. (Eastern Time).
Fourth Quarter Financial Highlights and Recent Events
- Total revenue of $69.1 million, compared to $72.3 million in the fourth quarter of 2023.
- Envelope segment revenue of $48.8 million, versus $50.6 million in the fourth quarter of 2023.
- Packaging and Specialty Products segment revenue of $20.3 million, compared to $21.7 million last year.
- Net earnings amounted to $5.8 million, compared to $0.7 million in the fourth quarter of 2023.
- Earnings per share of $0.23, versus $0.03 in the fourth quarter of 2023.
- Adjusted EBITDA1 totaled $12.9 million, or 18.7% of revenue, versus $9.0 million, or 12.4% of revenue, last year.
- Free cash flow1 of $8.7 million, compared to $15.1 million in the fourth quarter of 2023.
- On February 19, 2025, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on April 4, 2025, to shareholders of record at the close of business on March 20, 2025
“Supremex delivered significant profitability gains in the fourth quarter, driven by optimization initiatives across both businesses and gradually improving market conditions,” said Stewart Emerson, President and CEO of Supremex. “Our Envelope segment reported slight volume gains that were tempered by lower mix-related pricing during the quarter. As for Packaging, e-commerce fulfilment activities remained solid, partially offsetting a reduction in specialty printing, while markets subject to discretionary consumer demand continued to recover.”
“Looking ahead to 2025, we continue to evaluate crystalizing the value of the two properties listed for sale in the third quarter, and expect to benefit from improved manufacturing absorption by increasing efficiency and consolidation efforts. In addition, we expect incremental cost savings and efficiency gains from the consolidation of our Envelope activities in the Greater Toronto Area, along with full-year benefits from optimizing our Packaging business, to support further margin improvement. Backed by a strong balance sheet and healthy cash flow generation, we remain focused on executing our business strategy and creating lasting value for our shareholders,” added Mr. Emerson.
Source: Supremex
