Overview
Canada envelope and packaging maker's Q1 revenue rose 6.6% yr/yr
Q1 adjusted EBITDA increased 11.9%, while adjusted EPS declined yr/yr
Company closed Indianapolis envelope facility and acquired iFlex Labels after quarter-end
Outlook
Company expects annual cost savings of over $1.5 mln from Envelope segment optimization initiatives
Supremex estimates label business reorganization will generate annual cost savings exceeding $0.5 mln
Company says economic volatility and postal service issues are contributing to operating environment variability
Result Drivers
ENVELOPE VOLUME GROWTH - Higher unit sales in the Envelope segment, driven by new customer wins and U.S. market expansion, contributed to revenue growth despite lower average selling prices
PACKAGING SEGMENT GAINS - Packaging & Specialty Products revenue rose mainly due to higher folding carton sales, e-commerce packaging growth, new business wins, and the acquisition of Trans-Graphique
Company press release: ID:nNFC56wZPF
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$74.84 mln
Q1 Adjusted EPS
C$0.08
Q1 Adjusted Net Income
C$1.85 mln
Q1 Adjusted EBITDA
C$9.88 mln
Q1 Adjusted EBITDA Margin
13.20%
Q1 Operating Income
C$3.72 mln
Analyst Coverage
The one available analyst rating on the shares is "buy"
Wall Street's median 12-month price target for Supremex Inc is C$5.00, about 37.4% above its May 6 closing price of C$3.64
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)