Financial roundup: Supremex, Canfor Pulp report declines in Q1FY25 revenue

USA – Supremex Inc. has posted Q1 FY25 revenue of US$70.2 million, a decline of 4.1% or US$3.0 million compared to the same period in 2024.

EBITDA dropped to US$8.5 million from US$10.5 million, while adjusted EBITDA stood at US$8.8 million, reflecting lower revenue and increased SG\&A expenses, partially offset by lower operating costs.

The adjusted EBITDA margin decreased to 12.6%, from 14.3% a year earlier.

Net earnings for the quarter were US$1.9 million, or US$0.08 per share, compared to US$3.5 million, or US$0.14 per share, in Q1 2024.

Adjusted net earnings came in at US$2.2 million, or US$0.09 per share, down from US$3.5 million in the same quarter last year.

Despite the dip, President and CEO Stewart Emerson noted resilient performance amid tariff-related uncertainty.

“Our U.S. envelope business marked its fourth consecutive quarter of volume growth, although pricing remains under pressure. In packaging, we saw a nearly 10% sales increase driven by folding carton volumes and strong e-commerce demand,” he said.

Looking ahead, Supremex expects to maintain volume momentum and improve profitability through efficiency gains, network optimization, and tuck-in acquisitions.

The company also plans to complete a sale-leaseback transaction on two properties to unlock shareholder value.

Supremex continues to navigate a volatile economic landscape, with demand gradually stabilizing.

Competitive pressures in the U.S. envelope market are expected to intensify, but the company plans to leverage its reputation and geographic footprint while controlling expenses and maximizing synergies from recent acquisitions.

Canfor Pulp Products Inc. Q1 2025 performance

Meanwhile, Canfor Pulp has reported Q1 sales of C$196.2 million (US$140.71m), down 12%** from C$222.3 million (US$159.43m) in Q1 2024.

However, the company recorded an operating income of C$10.8 million (US$7.75m), up from C$4.1 million (US$2.94m) in Q4 2024, driven by a moderate improvement in NBSK pulp unit sales prices and a 6% rise in pulp production to 104,000 tonnes.

This production increase stemmed from stronger reliability and output at both pulp mills.

Stephen Mackie, President and CEO of CPPI, expressed cautious optimism, “We’re encouraged by the improved results, though global economic uncertainty continues to pressure pulp markets. Our focus remains on navigating external challenges and improving operational performance.”

In the paper segment, operating income rose slightly to C$5.4 million (US$3.87m) from C$5.1 million (US$3.66m) in the previous quarter, aided by favorable shipment timing and a weaker Canadian dollar.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE