Supremex Inc. announced its results for the Q2 ended June 30, 2023. Total revenue for the three-month period ended June 30, 2023, was $71.7 million, representing an increase of $9.2 million, or 14.6%, from the equivalent quarter of 2022 essentially reflecting the acquisitions of Royal Envelope Corporation, Impression Paragraph Inc. and Graf-Pak.
EBITDA was $9.4 million, down from $13.9 million in the Q2 2022. Adjusted EBITDA amounted to $9.6 million, compared to $13.9 million for the same period last year. The decrease reflects higher operating and selling, general and administrative expenses. The Adjusted EBITDA margin was 13.3% of revenue, compared to 22.3% in the equivalent quarter of 2022.
Net earnings were $2.1 million or $0.08 per share for the three-month period ended June 30, 2023, compared to $7.4 million or $0.28 per share for the equivalent period last year.
Q2 2023 Adjusted net earnings were $2.3 million or $0.09 per share, compared to $7.4 million or $0.28 per share for the equivalent period last year.
“Our Q2 results reflect the temporary effect of inventory adjustments by certain customers and lower demand from sectors more affected by inflation and interest rate levels,” said Stewart Emerson, President & CEO of Supremex. “The first half of 2023 was a very busy period, especially for our Packaging operations, as we consolidated a significant portion of our folding carton activities under one roof in Lachine while also integrating two acquisitions. Our Envelope business continued to generate a solid free cash flow which allowed us to fund our expansion and reduce debt by $3.1 million this past quarter.”
“Although disappointed with the transitory profitability reduction in Packaging, we are excited with the significant potential of the Lachine facility. Its considerable footprint will enable us to further expand folding carton production to better meet additional demand from this growing market. In this regard, the Graf-Pak operations have been successfully merged into Lachine and we continue to assess initiatives to further optimize efficiency and achieve synergies by leveraging available capacity,” concluded Mr. Emerson.
Summary of six-month period ended June 30, 2023
Total revenue for the six-month period ended June 30, 2023, was $160.1 million, representing an increase of $34.3 million, or 27.3%, from the equivalent period of 2022.
EBITDA was $27.8 million, up from $26.0 million in the first six months of 2022. Adjusted EBITDA was $28.4 million, up from $26.0 million for the same period a year ago. This increase reflects higher total revenue, partially offset by the higher material and labour costs as well as higher selling, general and administrative expenses. The Adjusted EBITDA margin reached 17.7% in the first half of 2023, versus 20.7% in the first half of 2022.
Supremex Inc. is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions.
