North American flexible packaging company TC Transcontinental has reported net earnings attributable to its shareholders declined by 28.4% to C$15.9m ($11.6m) in the second quarter (Q2) of financial year 2024 (FY24), compared with C$22.2m in the same period of FY23.

The decline in net earnings reflects a decrease in operating earnings before depreciation and amortisation, partly offset by the decrease in depreciation and amortisation, in financial expenses, and in income taxes.  

In the quarter ending 28 April 2024, Transcontinental's revenues fell by 8.6% to C$683.2m, compared to C$747.2m in the same period last year, driven by the lower volumes in the company’s two main operating sectors. 

The company’s operating earnings before depreciation and amortisation also saw a 15.7% decrease, falling to C$88.7m from C$105.2m in Q2 FY23. 

Its operating earnings for the quarter were C$33.2m, down by 24.2% from 43.8% in the same quarter a year ago. 

TC Transcontinental president and CEO Thomas Morin said: "I am very satisfied with our performance for the quarter in terms of profitability. We pursued our cost reduction initiatives with determination, while our efforts to improve our product mix toward higher value-added products are showing results.” 

For the first half (H1) of FY24, net earnings attributable to shareholders of Transcontinental increased by 28.4%, to C$29.8m from C$23.2m in H1 FY23.  

However, revenues during this period decreased by 6.2% to C$1.36bn in H1 FY24. 

Looking ahead, Transcontinental anticipates an increase in consolidated adjusted operating earnings before depreciation and amortisation for FY24 compared to FY23.  

"We are encouraged by the results to date of our two-year programme aimed at improving our profitability and our financial position. We are expecting recurring annual savings of approximately $30m from this programme by the end of fiscal 2024," Morin added.