CANADA – Canadian flexible packaging manufacturer TC Transcontinental recorded US$2.17 billion (C$2.95bn) in full-year revenue for fiscal 2022 (FY22).

The figure represents an 11.8% increase of US$228.89 million (C$312.7m) from US$1.93 billion (C$2.64bn) in the previous fiscal year (FY21).

The company’s revenue growth in the year was driven by a rise in raw material prices and higher volume in its Packaging and Printing units, as well as the company’s recent acquisitions.

TC Transcontinental’s operating earnings before depreciation and amortization (EBDA) were US$328.80 million (C$449.2m), down by US$1.61 million (C$2.2m) or 0.5% from FY21.

Adjusted operating earnings before depreciation and amortization decreased by US$13.25 million (C$18.1m), or 3.9%, from US$340.22 million (C$464.8m) in fiscal 2021 to US$326.97 million (C$446.7m) in the corresponding period of 2022.

The decline in operating earnings before depreciation and amortization and adjusted operating earnings before depreciation and amortization is mainly due to the negative impact of the pandemic on production capacity at several plants during the first months of fiscal 2022.

These factors were partially offset by the recent acquisitions and, to a lesser extent, the decrease in the stock-based compensation expense related to the share price.

Lastly, the decrease in restructuring costs had a favorable impact on operating earnings before depreciation and amortization.

Net earnings attributable to TC Transcontinental’s shareholders grew by 8.1% to US$103.35 million (C$141.2m) in FY22, while adjusted net earnings attributable to its shareholders dropped by 8.1% to US$138.86 million (C$189.7m).

During the fourth quarter (Q4), the company’s revenue rose by 3.4%, from US$567.87 million (C$775.8m) to US$587.19 million (C$802.2m).

TC Transcontinental’s operating EBDA increased by 7.3% to US$106.65 million (C$145.7m) in the quarter, compared with US$99.40 million (C$135.8m) in Q4 2021.

Net earnings attributable to the company’s shareholders grew from US$28.69 million (C$39.2m) in Q4 2021 to US$44.21 million (C$60.4m).

TC Transcontinental president and CEO Peter Brues said: “Excluding the impact of the 53rd week and the Canada Emergency Wage Subsidy on the prior year’s results, we posted solid growth in net earnings in the fourth quarter.

“Building on the momentum of the previous quarters, our Packaging Sector recorded over 10% growth in adjusted operating earnings before depreciation and amortization on a comparable basis.

“With our investments in equipment and innovation, we are committed to continuing our profitable growth.”

For FY23, TC Transcontinental expects organic volume growth in its Packaging unit. The firm also anticipates growth in its adjusted operating EBDA compared with FY22.

Brues concluded: “In fiscal 2023, we will remain focused on improving profitability and cash flows from operating activities.

“Our solid financial position, with no major debt maturities until 2025, gives us the flexibility to pursue our disciplined approach to profitable growth.”

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