Supremex (TSE:SXP) Releases Earnings Results
by Teresa Graham · The Cerbat GemSupremex (TSE:SXP – Get Free Report) released its earnings results on Thursday. The company reported C$0.08 earnings per share (EPS) for the quarter, FiscalAI reports. Supremex had a net margin of 4.38% and a return on equity of 10.80%. The business had revenue of C$74.84 million during the quarter.
Here are the key takeaways from Supremex’s conference call:
- Q1 revenue was CAD 74.8 million (+6.6% YoY) and adjusted EBITDA was CAD 9.9 million (13.2% margin), with sequential margin expansion driven by higher volume and cost discipline.
- Packaging delivered strong momentum — revenue CAD 24.0 million (+10% YoY) and a 15.4% adjusted EBITDA margin, the highest quarterly margin in three years, helped by folding-carton wins, e‑commerce growth and the Transgraphic acquisition.
- Management completed the iFlex labels acquisition (~CAD 3M revenue) and is consolidating label operations (Laval → Lachine), expecting >CAD 500k annualized run‑rate savings and cross‑sell synergies with cartons.
- Operational footprint rightsizing (including the Indianapolis envelope closure) is expected to deliver roughly CAD 1.5M in annualized savings, supporting further margin expansion through 2026.
- Operating cash flow was negative CAD 0.8M (free cash flow negative CAD 1.8M) due mainly to a one‑time working capital/tax settlement; net debt rose to CAD 4.1M (0.13x net debt/EBITDA), though the company says the balance sheet remains flexible.
Supremex Price Performance
Shares of SXP remained flat at C$3.64 during mid-day trading on Thursday. 23,324 shares of the company were exchanged, compared to its average volume of 21,153. The company has a debt-to-equity ratio of 185.57, a quick ratio of 1.01 and a current ratio of 1.68. Supremex has a 12-month low of C$3.44 and a 12-month high of C$4.64. The company has a 50-day moving average of C$3.66 and a two-hundred day moving average of C$3.67. The stock has a market capitalization of C$88.56 million, a price-to-earnings ratio of 7.43, a price-to-earnings-growth ratio of 0.31 and a beta of 0.53.
Supremex Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, April 2nd were issued a $0.05 dividend. The ex-dividend date of this dividend was Thursday, March 19th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 5.5%. Supremex’s dividend payout ratio is currently 40.82%.
About Supremex
Supremex Inc is engaged in manufacturer and marketer of a broad range of custom envelopes and packaging products. The company operates in two business segments that are Manufacturing and Sale of Envelopes, and the manufacturing and sale of paper-based packaging solutions and specialty products. The majority of the revenue is generated from the Envelope segment. Its product portfolio consists of translucent envelopes, custom envelopes, stock envelopes, poly mailers, enviro-Logix flat mailers, board mailers, custom labels, affixing, repositionable notes and others.