Core Viewpoint - Supremex Inc. reported its first-quarter financial results for 2025, showing a decline in revenue and net earnings compared to the same period in 2024, but highlighted growth in its packaging segment and ongoing strategic initiatives to enhance profitability and market position [1][4][6]. Financial Highlights - Total revenue for Q1 2025 was $70.2 million, down 4.1% from $73.3 million in Q1 2024 [6][7]. - Operating earnings decreased to $3.8 million from $5.8 million year-over-year [3]. - Adjusted EBITDA was $8.8 million, representing a margin of 12.6%, compared to $10.5 million and 14.3% in the previous year [3][10]. - Net earnings were $1.9 million, or $0.08 per share, down from $3.5 million, or $0.14 per share, in Q1 2024 [6][14]. Segment Performance - Envelope segment revenue was $48.4 million, a decrease of 9.4% from $53.4 million in Q1 2024, primarily due to an 11.0% drop in average selling prices [8]. - Packaging and Specialty Products segment revenue increased by 9.9% to $21.8 million, driven by higher demand for e-commerce packaging solutions [9]. Cash Flow and Debt - Net cash flows from operating activities were $7.0 million, up from $5.1 million in Q1 2024, attributed to a working capital release [16]. - Free cash flow amounted to $6.8 million, compared to $4.7 million in the same period last year [17]. - Total debt decreased to $38.0 million as of March 31, 2025, down from $43.1 million at the end of 2024, with a net debt to adjusted EBITDA ratio of 0.9x [18]. Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.05 per common share, payable on June 20, 2025, to shareholders of record as of June 5, 2025 [19]. Outlook - The company anticipates gradual normalization of product demand following challenging market conditions in 2023 and 2024, while acknowledging ongoing economic volatility and trade uncertainties [20]. - Supremex aims to enhance operational efficiency and pursue strategic acquisitions, particularly in the Packaging & Specialty Products segment [21][22].
Supremex Announces Results for the First Quarter of 2025 and its Intention to Renew Normal Course Issuer Bid (“NCIB”)
Globenewswire·2025-05-08 11:00