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Canada's Supremex Q3 revenue rises 16% on acquisitions

By Reuters News


Overview

  • Canada packaging and envelope maker's Q3 revenue rose 16% yr/yr on acquisitions and organic growth

  • Adjusted EPS for Q3 fell yr/yr and missed the sole analyst estimate

  • Company had previously announced plan to cut about 60 jobs, targeting C$5.7 mln in annualized savings


Outlook

  • Company estimates tariffs to impact annual operating earnings by C$10 mln to C$12 mln

  • Supremex says timing and outcome of tariffs remain uncertain

  • Company sees growing opportunity in Packaging & Specialty Products, especially folding carton


Result Drivers

  • ACQUISITIONS AND ORGANIC GROWTH - Revenue growth was mainly driven by the contribution of the Goldrich and iFlex acquisitions and higher folding carton revenue from share of wallet gains and e-commerce packaging expansion

  • TARIFF COSTS - Company absorbed approximately C$1 mln in new tariff costs in the quarter, impacting operating earnings

  • ENVELOPE SEGMENT MARGIN GAINS - Envelope segment margin improved due to efficiency gains and integration of tuck-in acquisitions, despite tariff headwinds


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

C$76.24 mln

C$70.90 mln (1 Analyst)

Q3 Adjusted EPS

Miss

C$0.03

C$0.06 (1 Analyst)

Q3 Adjusted Net Income

C$786,000

Q3 Adjusted EBITDA

C$8.59 mln

Q3 Adjusted EBITDA Margin

11.30%

Q3 Operating Income

C$2.25 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the paper products peer group is "buy"

  • Wall Street's median 12-month price target for Supremex Inc. is C$5.00, about 60.3% above its November 4 closing price of C$3.12


Reuters Recommended Reads

  • Nov 4 - Canada's Russel Metals Q3 revenue jumps 56% to record

  • Nov 3 - Graphic Packaging Q3 sales, adjusted EPS slightly beat estimates

  • Nov 5 - US tariffs squeeze Canadian cabinet makers facing doubling of Trump duty


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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