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SXP Supremex News Story

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Canada's Supremex Q1 revenue rises 6.6% adjusted EBITDA up 11.9%

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

MetricBeat/MissActualConsensus Estimate
Q1 RevenueC$74.84 mln
Q1 Adjusted EPSC$0.08
Q1 Adjusted Net IncomeC$1.85 mln
Q1 Adjusted EBITDAC$9.88 mln
Q1 Adjusted EBITDA Margin13.20%
Q1 Operating IncomeC$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 For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (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.)

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