(Montreal) TC Transcontinental posted a decline in revenues but a sharp rise in profits for its third quarter of the fiscal year.
The printer and packager recorded a turnover of 700 million in the months of May, June and July. This is a decline of 0.9% compared to the same period last year.
The Montreal-based company attributes this decrease mainly to a drop in volumes in the retail services and printing sectors. This situation was, however, partially offset by the favourable variation in exchange rates, as well as an increase in volumes in the packaging sector, Transcontinental specifies.
Its net income attributable to shareholders was $43.6 million, or 50 cents per share, for the quarter ended July 28. That’s a 108 percent jump from a year earlier.
“This fourth consecutive quarter of improvement in our profitability is the result of our cost reduction initiatives, including the optimization of our manufacturing network, as well as our efforts to market higher value-added products,” said President and CEO Thomas Morin in a press release.
The company is targeting annual recurring savings of approximately $30 million by the end of fiscal 2024. The company is on track to meet its goal, according to Executive Vice President and Chief Financial Officer Donald LeCavalier.
He also stressed that Transcontinental was able to reduce its net debt thanks to its ability to generate significant cash flows.