Canadian packaging company Cascades has announced a modest sales growth in the second quarter (Q2) of fiscal year 2024, with revenues reaching C$1.18bn ($859.31m), up from C$1.16bn in Q2 2023.
Sales increased from C$1.10bn in the previous quarter of fiscal year 2024.
However, the company's operating income saw a significant decline, dropping to C$34m from C$64m in Q2 2023.
The company's net earnings per common share stood at C$0.01, a stark contrast to the net earnings per common share of C$0.22 in Q2 2023 and the net loss per common share of $0.20 in Q1 2024.
Cascades' net debt increased to C$2,093m as of 30 June 2024, compared with C$2,020m as of 31 March 2024.
The improvement in the second quarter of 2024 was attributed to stronger performances across all three business segments.
In the Tissue Papers segment, the impact of higher raw material costs was offset by favourable volume and reduced transportation costs.
The Specialty Products business saw an increase in volume and slightly stronger pricing, which helped to counterbalance the higher average raw material costs.
The Containerboard segment experienced stronger pricing, volume, and mix, along with lower transportation and energy costs.
Cascades president and CEO Hugues Simon said: "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 and production efficiency levels are normalised 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 results in the Specialty Packaging business. At the same time, higher pulp prices and softer pricing due largely to a less favourable sales mix are expected to translate into lower results from the Tissue Papers segment.”
In June this year, Cascades announced the launch of a new eco-designed packaging solution for the egg market.
