Highlights
- Growth in adjusted operating earnings before depreciation and amortization(1) of 3.1% for the quarter.
- Revenues of $779.7 million for the quarter ended October 29, 2023; operating earnings of $66.7 million; and net earnings attributable to shareholders of the Corporation of $41.7 million ($0.48 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $145.5 million for the quarter ended October 29, 2023; adjusted operating earnings(1) of $107.3 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $71.8 million ($0.83 per share).
- Improved net indebtedness ratio(1) from 2.47x as at October 30, 2022 to 2.06x as at October 29, 2023.
- Announced, on November 3, 2023, the end of Publisac and its gradual replacement by raddar™ across Quebec, as well as the roll-out of raddar™ in Ontario and British Columbia.
- Launched an ambitious program including costs reductions, measures aimed at less-performing activities and the sale of real estate assets to improve the Corporation's earnings per share and balance sheet. Actions already undertaken:
- Closed the Montreal recycling plant and integrated recycling into packaging plants.
- Announced, on November 24, 2023, the closure of the Tomah, Wisconsin, packaging plant in February 2024.
- Sold a building in Quebec City for $12.0 million.
(1) Please refer to the section entitled "Non-IFRS Financial Measures" in this press release for a definition of these measures.
Montréal, December 12, 2023 - Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the fourth quarter and fiscal year 2023, which ended October 29, 2023.
"We successfully increased our adjusted operating earnings before depreciation and amortization in the fourth quarter, despite lower revenues," said Thomas Morin, President and Chief Executive Officer of TC Transcontinental.
"The Packaging Sector finished the fiscal year on a strong note with solid adjusted operating earnings before depreciation and amortization for the quarter. This concludes a year of growth in the face of headwinds in demand. In spite of an uncertain outlook, we expect to further grow the sector's operating earnings in the new fiscal year by continuing to focus on our priorities aimed at improving our financial performance.
"In our Printing Sector, the actions implemented since the beginning of the year partially offset the decrease in volume. We continue to face challenges in our book printing activities and we have taken measures to mitigate their impact in 2024. While continuing to reduce our cost structure to reflect the demand in this sector, we are encouraged by the favourable opportunities in our retailer related services as well as the roll-out of raddar™ in fiscal 2024. The Media Sector delivered a solid financial performance in the fourth quarter with a significant growth in adjusted operating earnings before depreciation and amortization.
"We were able to improve the working capital for a third quarter in a row, which substantially reduced net indebtedness. Despite significant investments in new equipment, including those intended to accelerate the commercialization of recyclable flexible packaging, our solid performance with respect to cash flows from operating activities enabled us to reduce our net indebtedness ratio to 2.06x at the end of fiscal 2023.
"After six months as President and Chief Executive Officer, I am announcing that we have implemented an ambitious program to improve the Corporation's earnings per share and balance sheet. This two-year program, which should generate recurring savings from $20 million to $40 million, comprises four main action categories: 1) significant reductions in fixed costs across the organization; 2) decisive actions aimed at less-performing activities, through turnaround or consolidation; 3) a reduction of the cost of goods sold; 4) the sale of certain real estate assets for an expected value of approximately $100 million in a first step. On top of achieving the fiscal 2024 objectives, the management team is mobilized to execute this program, which will support greater profitability growth.
"Several actions have already been undertaken as part of this program, including the closure of the Montreal recycling plant and the Tomah packaging plant, as well as the sale of a building in Quebec City for $12 million."
Source: TC Transcontinental
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