Supremex Inc. announced its results for the Q4 and fiscal year ended December 31, 2024.
Summary of three-month period ended December 31, 2024
Total revenue for the three-month period ended December 31, 2024, was $69.1 million, representing a decrease of $3.2 million, or 4.5%, from the equivalent quarter of 2023.
EBITDA was $13.7 million, up from $6.9 million in the fourth quarter last year. This increase of $6.8 million includes lower restructuring expenses of $2.7 million. Adjusted EBITDA totalled $12.9 million, up from $9.0 million in the fourth quarter of 2023. This increase reflects lower operating expenses and lower selling, general and administrative expenses, partially offset by lower revenue, as detailed above. The Adjusted EBITDA margin reached 18.7% of revenue, up from 12.4% in the equivalent quarter of 2023.
Net earnings were $5.8 million or $0.23 per share for the three-month period ended December 31, 2024, compared to $0.7 million or net earnings of $0.03 per share for the equivalent period last year. Adjusted net earnings were $5.2 million or $0.20 per share for the three-month period ended December 31, 2024, compared to $2.2 million or net earnings of $0.09 per share for the equivalent period in 2023.
“Supremex delivered significant profitability gains in the fourth quarter, driven by optimization initiatives across both businesses and gradually improving market conditions,” said Stewart Emerson, President and CEO of Supremex. “Our Envelope segment reported slight volume gains that were tempered by lower mix-related pricing during the quarter. As for Packaging, e-commerce fulfilment activities remained solid, partially offsetting a reduction in specialty printing, while markets subject to discretionary consumer demand continued to recover.”
“Looking ahead to 2025, we continue to evaluate crystalizing the value of the two properties listed for sale in the third quarter, and expect to benefit from improved manufacturing absorption by increasing efficiency and consolidation efforts. In addition, we expect incremental cost savings and efficiency gains from the consolidation of our Envelope activities in the Greater Toronto Area, along with full-year benefits from optimizing our Packaging business, to support further margin improvement. Backed by a strong balance sheet and healthy cash flow generation, we remain focused on executing our business strategy and creating lasting value for our shareholders,” added Mr. Emerson.
Summary of twelve-month period ended December 31, 2024
Total revenue for the twelve-month period ended December 31, 2024, reached $281.0 million, representing a decrease of $21.1 million, or 7.0%, from the equivalent period of 2023.
EBITDA amounted to $15.6 million in the twelve-month period ended December 31, 2024, compared to $47.8 million in the equivalent period of 2023. The variation is essentially due to an asset impairment charge recorded in the third quarter, as well as lower restructuring expenses of $1.0 million. Adjusted EBITDA reached $40.3 million in the twelvemonth period ended December 31, 2024, compared to $49.1 million last year. This decrease is the result of lower revenue and operating expenses, partially offset by higher selling, general and administrative expenses. The Adjusted EBITDA margin stood at 14.4% of revenue, compared to 16.3% in the equivalent period of 2023.
The net loss was $11.7 million or net loss of $0.47 per share for the twelve-month period ended December 31, 2024, compared to net earnings of $17.3 million or $0.67 per share for the equivalent period in 2023. Adjusted net earnings were $11.9 million or net earnings of $0.48 per share for the twelve-month period ended December 31, 2024, compared to $18.3 million or $0.72 per share for the equivalent period in 2023.
Outlook
Following challenging market conditions for 2023 and 2024, demand for the Company’s products is gradually returning to historical patterns, although the recovery is taking more time than anticipated. As it continues to expand in the vast and fragmented U.S. envelope market, Supremex will be increasingly subject to competitive pressures, but the Company will rely on its solid reputation and geographic reach to stimulate sales while continuing to proactively control expenses.
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates nine manufacturing facilities across four provinces in Canada and five manufacturing facilities in four states in the United States employing approximately 900 people.
