- Lower volume in the Packaging and Printing Sectors, partially offset by the positive impact of actions implemented to adjust our cost structure.
- Revenues of $706.7 million for the quarter ended July 30, 2023; operating earnings of $39.2 million; and net earnings attributable to shareholders of the Corporation of $20.9 million ($0.24 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $107.9 million for the quarter ended July 30, 2023; adjusted operating earnings(1) of $70.2 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $44.0 million ($0.51 per share).
- On August 22, 2023, announced a major investment to accelerate the commercialization of innovative recyclable flexible packaging.
(1) Please refer to the section entitled "Non-IFRS Financial Measures" in this press release for a definition of these measures.
Montréal, September 6, 2023 - Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the third quarter of fiscal 2023, which ended July 30, 2023.
"During this quarter, we accelerated the implementation of actions to reduce costs, improve operational efficiency and increase cash flow generation," said Thomas Morin, President and Chief Executive Officer of TC Transcontinental. "This partially mitigated the effect of pressure on volume in our Packaging and Printing Sectors.
"In our Packaging Sector, customer destocking continued, and demand softened due to economic conditions. Despite pressure on volume, the sector's adjusted operating earnings before depreciation and amortization for the quarter increased by 3%. This profitability improvement resulted mainly from price increases to offset the impact of inflation, cost reduction initiatives and the favourable exchange rate effect. Meanwhile, we continue our investments to commercialize sustainable packaging solutions that should be a key driver of our long-term growth.
"As for our Printing Sector, the actions implemented since the beginning of the year are exceeding $20 million on an annualized basis. These recurring initiatives partially offset the lower volume in the sector during the quarter. Lastly, we are pleased with the progress on the deployment of raddar™, our reinvented flyer, in Montréal and Vancouver."
"The decrease in working capital for a second consecutive quarter is aligned with our strategic priorities, and our financial position remains solid," added Donald LeCavalier, Executive Vice President and Chief Financial Officer of TC Transcontinental. "We expect to generate significant cash flows in the fourth quarter of fiscal 2023, which will enable us to reduce our net indebtedness."
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