Canada-based Imaflex has reported a significant rise in revenue in the third quarter (Q3) of 2024, driven by increased volumes and favourable foreign exchange rates.
Despite the temporary plant closures due to Québec's annual construction holiday, Imaflex's Montréal and Victoriaville plants contributed to the growth.
Imaflex's president and CEO Stephan Yazedjian said: "We continued to deliver solid year-over-year results in the third quarter, reflecting the strength of our dedicated team and expanding capabilities. As we look ahead, we are confident in our ability to build on this momentum and deliver sustainable growth."
Revenues for Q3 2024, ending 30 September 2024, reached $28.4m, marking a 24.3% increase from $22.9m in the same period last year.
The growth was attributed to stronger sales of higher-margin offerings and favourable movements in foreign exchange.
Gross profit also saw a substantial rise, reaching $4.6m or 16.2% of sales, compared to $2.1m or 9.1% of sales, in 2023.
Selling and administrative expenses were $2.6m, representing 9.2% of sales, compared to $2.1m, or 9.1% of sales, in 2023.
The increase was primarily due to higher administrative expenses, including increased provisions for the profit participation plan, reflecting the company's heightened profitability.
Net income for Q3 2024 grew to $1.5m, an increase of $1.3m or 847.1% over 2023.
Year-to-date net income rose to $6.8m, up 345.3% from $1.5m in 2023. The increase in profitability was largely driven by the higher gross profit.
EBITDA for the current quarter was $3m or 10.5% of sales, up 104.7% from $1.5m or 6.4% of sales, in 2023.
Year-to-date, EBITDA reached $12.2m, up 128.6% from $5.4m in the prior year.
Excluding foreign exchange impacts, EBITDA grew 114.8% to $11.8m, or 13.9% of sales, compared to $5.5m, or 7.8% of sales, in 2023.
Net cash flows from operating activities, including working capital and taxes, were $5m for the current quarter, up from $0.7m in the same period of 2023.
This $4.3m improvement was driven by higher profits in 2024 and movements in trade and other payables, foreign exchange, and income taxes, partially offset by movements in trade and other receivables and inventories.
As of 30 September 2024, Imaflex maintained a strong financial position with $15.7m in available liquidity, including $3.7m in cash and a fully undrawn $12m revolving line of credit.
Working capital stood at $21.9m, up from $14m as of 31 December 2023, driven by higher cash levels and trade and other receivables, along with reduced bank indebtedness and long-term debt.
Meanwhile, Imaflex continues to focus on securing US Environmental Protection Agency (EPA) approval for ADVASEAL.
The company noted that the EPA's review process is taking longer than initially expected, with no decision timeline provided.
