Q4 2024 Transcontinental Inc Earnings Call Transcript
Key Points
- Transcontinental Inc (TCLAF) achieved a record adjusted EBITDA of $262 million in the packaging sector, marking a 14.2% increase over the previous year.
- The company successfully reduced costs and improved profitability, contributing to a 5.1% growth in adjusted EBITDA for the fiscal year 2024.
- The startup of the new BOP line in Spartanburg, South Carolina, went well, enhancing the company's recyclable packaging capabilities.
- Transcontinental Inc (TCLAF) achieved a 9% reduction in workplace accidents, improving their safety frequency rate to 1.0.
- The company generated over $30 million in recurring savings from its two-year profit improvement program, nearing its $40 million target.
- Revenues for the fourth quarter decreased by 3.9% to $749.3 million, primarily due to lower volumes in the main sectors.
- The Canada Post strike negatively impacted the distribution of printed flyers, resulting in an estimated $7 million profit impact.
- The packaging sector experienced a 1.2% revenue decrease in Q4, mainly due to continued weakness in the medical market.
- Pricing pressures are expected to offset volume growth in the packaging sector for fiscal 2025.
- The sale of industrial packaging operations, while strategic, resulted in a loss of a business segment that previously contributed to the company's revenue.
(spoken in foreign language) Welcome to the TC Transcontinental fourth-quarter and fiscal year 2024 results conference call. (Operator Instructions) As a reminder, this conference is being recorded today, December 12, 2024.
And I would like to turn the conference over to Yan Lapointe, Director, Investor Relations and Treasury. (spoken in foreign language) Monsieur Lapointe, please go ahead.
Thank you, Sylvie. And good morning, everyone, on the call. Welcome to Transcontinental's fourth quarter and fiscal 2024 earnings call. Before we begin, please note that our quarterly reports, including financial statements and related notes, as well as the slides supporting management's remarks, are available on our website at [www.tc.cc] under the Investor Relations section.
A replay of this conference call will also be available on our website shortly after the call. Please note that this conference call is intended for the financial community. Media are in listen-only
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