Cascades registers US$860B in revenue in Q2 2024, Henkel hits US$$11.79B in sales in H1FY23

CANADA – Packaging company Cascades reported modest sales growth in the second quarter (Q2) of fiscal year 2024, with revenues reaching C$1.18 billion (US$859.31m), up from C$1.16 billion (US$844.58m) in Q2 2023.

This increase also marks a rise from C$1.10 billion (US$800.89 million) in the previous quarter.

However, the company’s operating income significantly declined, dropping to C$34 million (US$24.75m) from C$64 million (US$46.60m) in Q2 2023.

Net earnings per common share fell sharply to C$0.01, compared to C$0.22 in Q2 2023, and a net loss per common share of C$0.20 in Q1 2024.

Additionally, Cascades’ net debt increased to C$2.09 billion as of June 30, 2024, up from C$2.02 billion as of March 31, 2024.

The Q2 2024 improvements were driven by stronger performances across all three business segments.

In the Tissue Papers segment, higher raw material costs were offset by favorable volume and reduced transportation costs.

The Specialty Products business benefited from increased volume and slightly stronger pricing, helping to counterbalance higher average raw material costs.

The Containerboard segment saw gains in pricing, volume, and product mix, along with lower transportation and energy costs.

Cascades President and CEO Hugues Simon remarked, “In my first eight weeks at Cascades, I have been inspired by the companywide drive to create meaningful value for our customers and shareholders.

“We expect consolidated third-quarter results to be stronger sequentially, driven by improved Containerboard results as price increases are implemented, production efficiency levels normalize following planned maintenance in the second quarter, and the unplanned extended downtime at Bear Island and Greenpac.

“Consolidated results are also expected to benefit from stable performance in the Specialty Packaging business, though higher pulp prices and softer pricing due to a less favorable sales mix are expected to impact results in the Tissue Papers segment.”

Henkel achieves US$11.79B in sales in H1 FY23

Meanwhile, Henkel reported positive financial results for the first half (H1) of 2024, demonstrating robust organic sales growth and improved earnings despite a challenging economic environment.

The company’s group sales reached €10.8 billion (US$11.79bn), reflecting an organic growth rate of 2.9%.

However, nominal sales saw a slight decline of 1.0%, primarily due to the divestment of business activities in Russia and the impact of currency fluctuations.

Despite these challenges, Henkel’s operating profit (earnings before interest and taxes/EBIT) surged by 28.4% to €1.61 billion (US$1.76bn), with the EBIT margin improving by 340 basis points to 14.9%.

Earnings per preferred share (EPS) increased by 32.9% at constant exchange rates, reaching €2.78. Free cash flow remained strong at €800 million (US$875.58m), surpassing last year’s H1 performance.

Following this strong first-half performance, Henkel has raised its earnings outlook for the full year 2024.

The company now anticipates organic sales growth of 2.5% to 4.5%, with an adjusted return on sales expected to be between 13.5% and 14.5%. Additionally, EPS is projected to increase by 20.0% to 30.0% at constant exchange rates.

Henkel remains focused on its strategic growth agenda, investing in brands, technologies, and innovations. The company is also advancing its sustainability and digitalization initiatives to enhance its competitive position in the global market.

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