Pressure on TC Transcontinental’s profitability was weaker than analysts’ forecasts, despite an inflationary environment.
The printer and packer announced on Tuesday a 21.2 million increase in its net profit, which rose from 39.2 million to 60.4 million in the fourth quarter of its 2022 financial year, ended on October 31.
The Montreal-based company said acquisitions and lower restructuring costs helped support profitability, which was offset by the company no longer receiving a wage subsidy in the fourth quarter of 2022.
Adjusted diluted earnings per share were 79 cents, compared to 81 cents for the same period last year. Prior to the earnings release, analysts had expected earnings per share of 70 cents, according to data firm Refinitiv.
Revenues, for their part, increased by 3.4% to 802.2 million. The management mentioned that it was able to pass on the increase in the price of raw materials to its customers.
Transcontinental shares gained 33 cents, or 2.03%, to $16.60 on the Toronto Stock Exchange around noon.