Supremex Reveals Strong Financial Performance and Future Plans
Supremex Reports Impressive Q4 and Year-End 2024 Results
MONTREAL — Supremex Inc. (TSX: SXP), a leading manufacturer in North America specializing in envelopes and growing paper-based packaging solutions, recently released its financial results for the fourth quarter and the fiscal year that concluded on December 31, 2024. The company will host a conference call to elaborate on these results.
Highlights from the Fourth Quarter
- Total revenue reached $69.1 million, a slight decrease from $72.3 million compared to the fourth quarter of the previous year.
- The envelope segment generated $48.8 million, down from $50.6 million year-over-year.
- Revenue from the packaging and specialty products segment was $20.3 million, compared to $21.7 million the previous year.
- Net earnings surged to $5.8 million, a significant jump from $0.7 million in the same period last year.
- Earnings per share climbed to $0.23 from $0.03.
- Adjusted EBITDA stood at $12.9 million, indicating 18.7% of revenue, versus $9.0 million and 12.4% in the prior year.
- Free cash flow was reported at $8.7 million, compared to $15.1 million in the same quarter of the last year.
- On February 19, the company declared a quarterly dividend of $0.05, payable to shareholders of record on March 20.
Review of Yearly Performance
For the full fiscal year, Supremex reported total revenue of $281 million, reflecting a decrease of 7.0% compared to the previous year. The envelope segment contributed $199.2 million while the packaging and specialty products segment brought in $81.9 million.
EBITDA and Financial Metrics
The company faced challenges with EBITDA dropping to $15.6 million from $47.8 million due to an asset impairment charge and fluctuations in restructuring expenses. The adjusted EBITDA for the entire year reached $40.3 million, down from $49.1 million and highlighted an adjusted EBITDA margin of 14.4%.
Future Growth Strategies
Looking forward, Supremex aims to optimize operations and enhance manufacturing efficiencies as it anticipates improved market conditions in the packaging sector. The consolidation of envelope activities in the Greater Toronto Area is expected to generate cost efficiencies and bolster profitability.
Leadership Insights
Stewart Emerson, President and CEO, expressed optimism, stating that the fourth quarter’s profitability gains stemmed from strategic initiatives and gradually improving market conditions. He further outlined plans to realize value from properties due for sale and enhance shareholder returns through effective strategies, emphasizing their resilient cash flow.
Frequently Asked Questions
What were the total revenues reported by Supremex for Q4 2024?
The total revenue for Q4 2024 was $69.1 million.
How much did Supremex earn in net earnings for Q4 2024?
Net earnings for Q4 2024 stood at $5.8 million.
What is the significance of the Adjusted EBITDA margin for Supremex?
For Q4 2024, the Adjusted EBITDA margin improved to 18.7%, reflecting effective cost management.
What future plans did Supremex outline for 2025?
Supremex plans to enhance its manufacturing efficiency and consolidate its operations to increase profitability.
When is the next conference call for discussing Supremex's results?
The next conference call is scheduled for 10:00 a.m. Eastern Time.
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