First Quarter Highlights
Record earnings per Class B share(3): $1.18 basic and adjusted basic earnings up 9.3%; foreign currency translation positive $0.02 per Class B share
Sales increased 8.6% on 3.8% organic growth, 1.4% acquisitions and 3.4% positive currency translation
Operating income(1) improved 12.4%, with a 16.8% operating margin(1) up 60 bps
$156.3 million returned to shareholders in stock buybacks and dividends
TORONTO, ON / ACCESS Newswire / May 7, 2025 / CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B) ("the Company"), a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, today reported 2025 first quarter results.
Sales for the first quarter of 2025 increased 8.6% to $1,887.1 million, compared to $1,737.2 million for the first quarter of 2024, with organic growth of 3.8%, acquisition-related growth of 1.4% and 3.4% positive impact from foreign currency translation.
Operating income(1) for the first quarter of 2025 increased 12.4% to $316.9 million compared to $282.0 million for the comparable quarter of 2024. Operating income(1) improved 9.4%, excluding currency translation.
The Company recorded an expense of $0.8 million for restructuring and other items in the first quarter of 2025, with no corresponding expense recorded in the first quarter of 2024. Restructuring and other items for the 2025 first quarter mainly comprised of severance costs associated with the Checkpoint Segment.
Tax expense for the first quarter of 2025 was $68.0 million compared to $60.4 million in the prior year period. The effective tax rate for the 2025 and 2024 first quarters was 24.7%.
Net earnings increased 8.0% to $207.4 million for the 2025 first quarter compared to $192.1 million for the 2024 first quarter. Basic and adjusted basic earnings per Class B share(3) were $1.18 for the 2025 first quarter, compared to basic and adjusted basic earnings per Class B share(3) of $1.08 for the prior year first quarter.
Geoffrey T. Martin, President and Chief Executive Officer, commented, "I am very pleased to report record quarterly adjusted earnings, with all our segments performing well, but with notably strong results for our CCL and Innovia segments, against a strong prior year period and amidst a tense volatile geopolitical backdrop. All-in, the Company posted a record quarter of $1.18 adjusted basic earnings per Class B share compared to $1.08 in the 2024 first quarter."
Mr. Martin continued, "The CCL Segment delivered 4.5% organic sales growth with strong profitability gains. Home & Personal Care results were driven by continuing robust aluminum container demand in the Americas, alongside gains in tubes, and solid contributions for labels especially in Europe and Mexico, leading to substantial profitability improvement. Results in the Middle East for the Pacman acquisition also exceeded expectations. Healthcare & Specialty profitability improved on solid Healthcare markets in North America and Europe, offsetting mixed AgChem markets globally. Food & Beverage recorded modest organic sales growth with profitability gains in North America more than offset by reduced results in Europe due to slower markets, pricing pressures and new plant start-up costs. Rebounding demand and new business wins in electronics markets, particularly across Asia, alongside improved profitability in automotive despite slowing end market demand, drove significant gains for CCL Design. CCL Secure results declined on timing of shipments for banknote substrate but U.S. results were good for passport components. Avery posted a slight organic sales decline driven primarily by international markets and the horticultural business in the United States, with profitability up modestly on foreign exchange gains. Checkpoint posted good sales and profit growth in apparel labeling for both traditional categories and RFID, offset by modestly lower profitability in MAS products compared to a very strong first quarter in 2024. Results for Innovia improved dramatically on higher demand in product categories previously fulfilled by our former facility in Belgium and growth in films for shrink sleeve, in mould label and pressure sensitive materials customers."
Mr. Martin noted, "Foreign currency translation had a positive impact of $0.02 on earnings per Class B share for the first quarter of 2025. At today's Canadian dollar exchange rates, currency translation would be a tailwind, if sustained, for the second quarter of 2025."
Mr. Martin concluded, "The Company finished the quarter with a strong balance sheet and robust liquidity despite returning $56.3 million in dividends and $100.0 million of capital stock buybacks to shareholders, while investing $113.6 million in capital expenditures, net of disposals. The Company's consolidated leverage ratio(5) was 1.14 times Adjusted EBITDA(2) with $821.0 million cash-on-hand and US$0.9 billion undrawn capacity on its syndicated revolving credit facility, leaving the Company well placed to fund global expansion. The Board of Directors approved a dividend of $0.32 per Class B non-voting share and $0.3175 per Class A voting share to shareholders of record as of June 13, 2025, and payable June 27, 2025."
2025 First Quarter Highlights
CCL
Sales increased 9.7% to $1,200.3 million, on 4.5% organic growth, 2.2% acquisition contribution and 3.0% positive impact from foreign currency translation
Regional organic sales growth: double digit in Latin America, low single digit in North America, Europe and Asia Pacific
Operating income(1) $200.3 million, up 12.8%; 16.7% operating margin(1) up 50 bps
Avery
Sales increased 2.4% to $258.8 million, with a 1.7% organic decline offset by 4.1% positive impact from foreign currency translation
Operating income(1) $52.2 million, up 2.4%; 20.2% operating margin(1), no change
Checkpoint
Sales increased 7.3% to $241.1 million, on organic growth of 3.9% and by 3.4% positive impact from foreign currency translation
Operating income(1) $37.3 million, up 0.8%; 15.5% operating margin(1), down 100 bps
Innovia
Sales increased 12.9% to $186.9 million on organic growth of 7.2%, and by 5.7% positive impact from foreign currency translation
Operating income(1) $27.1 million, up 65.2%; 14.5% operating margin(1), up 460 bps
The Company will hold a webcast at 7:30 a.m. ET on May 8, 2025, to discuss these results.
The quarterly results review presentation, including outlook commentary, is posted on the Company's website at https://www.cclind.com/investors/investor-presentations/
To access the webcast or webcast replay, please use the following link:
https://www.webcaster4.com/Webcast/Page/2807/52318
To access the audio/listen only live webcast, please use the following numbers:
Toll Free: 1-877-545-0320
International: 1-973-528-0002
Conference Entry Code (CEC): 826252
Replay of the webcast will be available Thursday, May 8, 2025, until Sunday, June 8, 2025.
For more information on CCL, visit our website - www.cclind.com or contact:
Sean Washchuk
Senior Vice President and Chief Financial Officer
416-756-8526
Forward-looking Statements
This press release contains forward-looking information and forward-looking statements (hereinafter collectively referred to as "forward-looking statements"), as defined under applicable securities laws, that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the anticipated growth in sales, the expectation that the depicted strength of the Company's balance sheet will be able to fund its global expansion initiatives; the expectation that CCL Secure's results will improve on timing of shipments for banknote; the impact of foreign currency exchange rates on the 2025 second quarter; income and profitability of the Company's segments; and the Company's expectations regarding general business and economic conditions including the impact of tariffs.
Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and the Company's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic environment and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific sectors and entering into new sectors; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; fluctuations in resin prices; the Company's continued relations with its customers; and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the 2024 Annual Report, Management's Discussion and Analysis, particularly under Section 4: "Risks and Uncertainties." CCL Industries Inc.'s annual and quarterly reports can be found online at www.cclind.com and www.sedarplus.ca or are available upon request.
Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on the Company's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
The financial information presented herein has been prepared on the basis of IFRS Accounting Standards ("IFRS") and is expressed in Canadian dollars unless otherwise stated.
Financial Information
CCL Industries Inc.
Consolidated condensed interim statements of financial position
Unaudited
In millions of Canadian dollars |
|
|
| |||||
| As at |
|
| As at |
| |||
Assets |
|
|
|
|
|
| ||
Current assets |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 821.0 |
|
| $ | 828.7 |
|
Trade and other receivables |
|
| 1,432.8 |
|
|
| 1,251.4 |
|
Inventories |
|
| 873.9 |
|
|
| 819.9 |
|
Prepaid expenses |
|
| 69.9 |
|
|
| 62.1 |
|
Assets held for sale |
|
| 24.1 |
|
|
| 23.5 |
|
Income taxes recoverable |
|
| 32.6 |
|
|
| 51.8 |
|
Derivative instruments |
|
| 0.1 |
|
|
| 0.1 |
|
Total current assets |
|
| 3,254.4 |
|
|
| 3,037.5 |
|
Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
| 2,781.6 |
|
|
| 2,698.1 |
|
Right-of-use assets |
|
| 217.4 |
|
|
| 215.4 |
|
Goodwill |
|
| 2,602.6 |
|
|
| 2,554.1 |
|
Intangible assets |
|
| 1,108.7 |
|
|
| 1,109.7 |
|
Deferred tax assets |
|
| 95.3 |
|
|
| 94.7 |
|
Equity-accounted investments |
|
| 67.9 |
|
|
| 60.9 |
|
Other assets |
|
| 30.6 |
|
|
| 31.7 |
|
Derivative instruments |
|
| 34.7 |
|
|
| 57.0 |
|
Total non-current assets |
|
| 6,938.8 |
|
|
| 6,821.6 |
|
Total assets |
| $ | 10,193.2 |
|
| $ | 9,859.1 |
|
Liabilities |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade and other payables |
| $ | 1,432.0 |
|
| $ | 1,416.9 |
|
Current portion of long-term debt |
|
| 3.5 |
|
|
| 4.2 |
|
Lease liabilities |
|
| 50.4 |
|
|
| 47.2 |
|
Income taxes payable |
|
| 45.0 |
|
|
| 42.2 |
|
Total current liabilities |
|
| 1,530.9 |
|
|
| 1,510.5 |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Long-term debt |
|
| 2,357.0 |
|
|
| 2,232.5 |
|
Lease liabilities |
|
| 162.7 |
|
|
| 163.7 |
|
Deferred tax liabilities |
|
| 358.9 |
|
|
| 347.3 |
|
Employee benefits |
|
| 301.9 |
|
|
| 307.7 |
|
Provisions and other long-term liabilities |
|
| 17.1 |
|
|
| 16.7 |
|
Derivative instruments |
|
| 7.3 |
|
|
| - |
|
Total non-current liabilities |
|
| 3,204.9 |
|
|
| 3,067.9 |
|
Total liabilities |
|
| 4,735.8 |
|
|
| 4,578.4 |
|
Equity |
|
|
|
|
|
|
|
|
Share capital |
|
| 614.8 |
|
|
| 607.8 |
|
Contributed surplus |
|
| 98.8 |
|
|
| 101.1 |
|
Retained earnings |
|
| 4,559.8 |
|
|
| 4,492.3 |
|
Accumulated other comprehensive gain |
|
| 184.0 |
|
|
| 79.5 |
|
Total equity attributable to shareholders of the Company |
|
| 5,457.4 |
|
|
| 5,280.7 |
|
Total liabilities and equity |
| $ | 10,193.2 |
|
| $ | 9,859.1 |
|
CCL Industries Inc.
Consolidated condensed interim income statements
Unaudited
|
| Three Months Ended |
| |||||
In millions of Canadian dollars, except per share information |
| 2025 |
|
| 2024 |
| ||
|
|
|
| |||||
Sales |
| $ | 1,887.1 |
|
| $ | 1,737.2 |
|
Cost of sales |
|
| 1,315.0 |
|
|
| 1,222.0 |
|
Gross profit |
|
| 572.1 |
|
|
| 515.2 |
|
Selling, general and administrative expenses |
|
| 277.9 |
|
|
| 253.0 |
|
Restructuring and other items |
|
| 0.8 |
|
|
| - |
|
Earnings in equity-accounted investments |
|
| (0.5 | ) |
|
| (8.3 | ) |
|
| 293.9 |
|
|
| 270.5 |
| |
Finance cost |
|
| 18.9 |
|
|
| 19.3 |
|
Finance income |
|
| (2.7 | ) |
|
| (3.6 | ) |
Interest on lease liabilities |
|
| 2.3 |
|
|
| 2.3 |
|
Net finance cost |
|
| 18.5 |
|
|
| 18.0 |
|
Earnings before income tax |
|
| 275.4 |
|
|
| 252.5 |
|
Income tax expense |
|
| 68.0 |
|
|
| 60.4 |
|
Net earnings for the period |
| $ | 207.4 |
|
| $ | 192.1 |
|
Earnings per share |
|
|
|
|
|
|
|
|
Basic earnings per Class B share |
| $ | 1.18 |
|
| $ | 1.08 |
|
Diluted earnings per Class B share |
| $ | 1.17 |
|
| $ | 1.07 |
|
CCL Industries Inc.
Consolidated condensed interim statements of cash flows
Unaudited
| Three Months Ended |
| ||||||
In millions of Canadian dollars |
| 2025 |
|
| 2024 |
| ||
Cash provided by (used for) |
|
|
| |||||
Operating activities |
|
|
| |||||
Net earnings |
| $ | 207.4 |
|
| $ | 192.1 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Property, plant and equipment depreciation |
|
| 80.6 |
|
|
| 74.9 |
|
Right-of-use assets depreciation |
|
| 14.1 |
|
|
| 13.3 |
|
Intangibles amortization |
|
| 19.1 |
|
|
| 17.7 |
|
Earnings in equity-accounted investments, net of dividends received |
|
| 6.1 |
|
|
| (8.3 | ) |
Net finance costs |
|
| 18.5 |
|
|
| 18.0 |
|
Current income tax expense |
|
| 66.0 |
|
|
| 59.9 |
|
Deferred income tax expense |
|
| 2.0 |
|
|
| 0.5 |
|
Equity-settled share-based payment transactions |
|
| 9.7 |
|
|
| 9.8 |
|
Gain on sale of property, plant and equipment |
|
| (0.5 | ) |
|
| (0.5 | ) |
|
| 423.0 |
|
|
| 377.4 |
| |
Change in inventories |
|
| (54.0 | ) |
|
| (24.4 | ) |
Change in trade and other receivables |
|
| (181.6 | ) |
|
| (155.8 | ) |
Change in prepaid expenses |
|
| (7.9 | ) |
|
| (14.2 | ) |
Change in trade and other payables |
|
| (3.4 | ) |
|
| 7.8 |
|
Change in income taxes recoverable and payable |
|
| 1.6 |
|
|
| 1.2 |
|
Change in employee benefits |
|
| 10.3 |
|
|
| 5.6 |
|
Change in other assets and liabilities |
|
| 11.2 |
|
|
| 9.5 |
|
|
| 199.2 |
|
|
| 207.1 |
| |
Net interest paid |
|
| (3.5 | ) |
|
| (3.2 | ) |
Income taxes paid |
|
| (43.0 | ) |
|
| (32.7 | ) |
Cash provided by operating activities |
|
| 152.7 |
|
|
| 171.2 |
|
Financing activities |
|
|
| |||||
Proceeds on issuance of long-term debt |
|
| 150.0 |
|
|
| 51.6 |
|
Repayment of long-term debt |
|
| (41.5 | ) |
|
| (16.1 | ) |
Repayment of lease liabilities |
|
| (13.3 | ) |
|
| (12.4 | ) |
Proceeds from issuance of shares |
|
| - |
|
|
| 6.3 |
|
Repurchase of shares |
|
| (100.0 | ) |
|
| - |
|
Dividends paid |
|
| (56.3 | ) |
|
| (51.6 | ) |
Cash used for financing activities |
|
| (61.1 | ) |
|
| (22.2 | ) |
Investing activities |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
| (114.3 | ) |
|
| (179.0 | ) |
Proceeds on disposal of property, plant and equipment |
|
| 0.7 |
|
|
| 0.8 |
|
Cash used for investing activities |
|
| (113.6 | ) |
|
| (178.2 | ) |
Net decrease in cash and cash equivalents |
|
| (22.0 | ) |
|
| (29.2 | ) |
Cash and cash equivalents at beginning of the period |
|
| 828.7 |
|
|
| 774.2 |
|
Translation adjustments on cash and cash equivalents |
|
| 14.3 |
|
|
| 2.7 |
|
Cash and cash equivalents at end of period |
| $ | 821.0 |
|
| $ | 747.7 |
|
CCL Industries Inc.
Segment Information
Unaudited
In millions of Canadian dollars
| Three Months Ended |
| ||||||||||||||
| Sales |
|
| Operating income |
| |||||||||||
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| |||||
CCL |
| $ | 1,200.3 |
|
| $ | 1,094.1 |
|
| $ | 200.3 |
|
| $ | 177.6 |
|
Avery |
|
| 258.8 |
|
|
| 252.8 |
|
|
| 52.2 |
|
|
| 51.0 |
|
Checkpoint |
|
| 241.1 |
|
|
| 224.7 |
|
|
| 37.3 |
|
|
| 37.0 |
|
Innovia |
|
| 186.9 |
|
|
| 165.6 |
|
|
| 27.1 |
|
|
| 16.4 |
|
Total operations |
| $ | 1,887.1 |
|
| $ | 1,737.2 |
|
| $ | 316.9 |
|
| $ | 282.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expense |
|
|
|
|
|
|
|
|
|
| (22.7 | ) |
|
| (19.8 | ) |
Restructuring and other items |
|
|
|
|
|
|
|
|
|
| (0.8 | ) |
|
| - |
|
Earnings in equity-accounted investments |
|
|
|
|
|
|
|
|
|
| 0.5 |
|
|
| 8.3 |
|
Finance cost |
|
|
|
|
|
|
|
|
|
| (18.9 | ) |
|
| (19.3 | ) |
Finance income |
|
|
|
|
|
|
|
|
|
| 2.7 |
|
|
| 3.6 |
|
Interest on lease liabilities |
|
|
|
|
|
|
|
|
|
| (2.3 | ) |
|
| (2.3 | ) |
Income tax expense |
|
|
|
|
|
|
|
|
|
| (68.0 | ) |
|
| (60.4 | ) |
Net earnings |
|
|
|
|
|
|
|
|
| $ | 207.4 |
|
| $ | 192.1 |
|
|
| Total Assets |
|
| Total Liabilities |
|
| Depreciation and |
|
| Capital Expenditures |
| ||||||||||||||||||||
|
| March 31 |
|
| December 31 |
|
| March 31 |
|
| December 31 |
|
| Three Months Ended March 31 |
|
| Three Months Ended March 31 |
| ||||||||||||||
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
CCL |
| $ | 5,576.3 |
|
| $ | 5,374.5 |
|
| $ | 1,306.8 |
|
| $ | 1,297.7 |
|
| $ | 77.7 |
|
| $ | 70.9 |
|
| $ | 71.6 |
|
| $ | 131.5 |
|
Avery |
|
| 1,197.3 |
|
|
| 1,110.0 |
|
|
| 315.8 |
|
|
| 307.5 |
|
|
| 10.1 |
|
|
| 10.2 |
|
|
| 5.7 |
|
|
| 4.6 |
|
Checkpoint |
|
| 1,268.4 |
|
|
| 1,249.5 |
|
|
| 464.3 |
|
|
| 457.0 |
|
|
| 13.9 |
|
|
| 12.3 |
|
|
| 17.8 |
|
|
| 16.5 |
|
Innovia |
|
| 1,205.9 |
|
|
| 1,160.3 |
|
|
| 285.1 |
|
|
| 292.5 |
|
|
| 11.7 |
|
|
| 12.1 |
|
|
| 19.2 |
|
|
| 26.4 |
|
Equity-accounted investments |
|
| 67.9 |
|
|
| 60.9 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Corporate |
|
| 877.4 |
|
|
| 903.9 |
|
|
| 2,363.8 |
|
|
| 2,223.7 |
|
|
| 0.4 |
|
|
| 0.4 |
|
|
| - |
|
|
| - |
|
Total |
| $ | 10,193.2 |
|
| $ | 9,859.1 |
|
| $ | 4,735.8 |
|
| $ | 4,578.4 |
|
| $ | 113.8 |
|
| $ | 105.9 |
|
| $ | 114.3 |
|
| $ | 179.0 |
|
Non-IFRS Measures
(1) Operating income and operating income margin are key non-IFRS financial measures used to assist in understanding the profitability of the Company's business units. Operating income is defined as earnings before corporate expenses, net finance cost, goodwill impairment loss, earnings in equity accounted investments, restructuring and other items, and taxes. Operating income margin, also known as return on sales, is defined as operating income over sales.
(2) Adjusted EBITDA is a critical non-IFRS financial measure used extensively in the packaging industry and other industries to assist in understanding and measuring operating results. Adjusted EBITDA is also considered as a proxy for cash flow and a facilitator for business valuations. This non-IFRS financial measure is defined as earnings before net finance cost, taxes, depreciation and amortization, goodwill impairment loss, non-cash acquisition accounting adjustments to inventory, earnings in equity accounted investments and restructuring and other items. Calculations are provided below to reconcile operating income to Adjusted EBITDA. The Company believes that this is an important measure as it allows management to assess the ongoing business without the impact of net finance cost, depreciation and amortization and income tax expenses, as well as non-operating factors and one-time items. As a proxy for cash flow, it is intended to indicate the Company's ability to incur or service debt and to invest in property, plant and equipment, and it allows management to compare the business to those of the Company's peers and competitors who may have different capital or organizational structures. Adjusted EBITDA is tracked by financial analysts and investors to evaluate financial performance and is a key metric in business valuations. It is considered an important measure by lenders to the Company and is included in the financial covenants included in the senior notes and bank lines of credit.
Reconciliation of operating income to Adjusted EBITDA
Unaudited
(In millions of Canadian dollars) |
|
|
| |||||
|
| Three months ended |
| |||||
Sales |
| 2025 |
|
| 2024 |
| ||
CCL |
| $ | 1,200.3 |
|
| $ | 1,094.1 |
|
Avery |
|
| 258.8 |
|
|
| 252.8 |
|
Checkpoint |
|
| 241.1 |
|
|
| 224.7 |
|
Innovia |
|
| 186.9 |
|
|
| 165.6 |
|
Total sales |
| $ | 1,887.1 |
|
| $ | 1,737.2 |
|
Operating income |
|
|
|
|
|
|
|
|
CCL |
| $ | 200.3 |
|
| $ | 177.6 |
|
Avery |
|
| 52.2 |
|
|
| 51.0 |
|
Checkpoint |
|
| 37.3 |
|
|
| 37.0 |
|
Innovia |
|
| 27.1 |
|
|
| 16.4 |
|
Total operating income (non-IFRS measure) |
|
| 316.9 |
|
|
| 282.0 |
|
Less: Corporate expenses |
|
| (22.7 | ) |
|
| (19.8 | ) |
Add: Depreciation & amortization |
|
| 113.8 |
|
|
| 105.9 |
|
Adjusted EBITDA (non-IFRS measure) |
| $ | 408.0 |
|
| $ | 368.1 |
|
(3) Adjusted basic earnings per Class B share is an important non-IFRS measure to assist in understanding the ongoing earnings performance of the Company excluding items of a one-time or non-recurring nature. It is not considered a substitute for basic net earnings per Class B share but it does provide additional insight into the ongoing financial results of the Company. This non-IFRS financial measure is defined as basic net earnings per Class B share excluding gains on business dispositions, goodwill impairment loss, non-cash acquisition accounting adjustments to inventory, restructuring and other items, and tax adjustments.
Reconciliation of Basic Earnings per Class B Share to Adjusted Basic Earnings per Class B Share
Unaudited
|
| Three months ended |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Basic earnings per Class B Share |
| $ | 1.18 |
|
| $ | 1.08 |
|
Restructuring and other items |
|
| - |
|
|
| - |
|
Adjusted Basic Earnings per Class B Share |
| $ | 1.18 |
|
| $ | 1.08 |
|
(4) Free Cash Flow From Operations - a measure indicating the relative amount of cash generated by the Company during the year and available to fund dividends, debt repayments, repurchase of shares and acquisitions. It is calculated as cash flow from operations less capital expenditures, net of proceeds from the sale of property, plant and equipment.
The following table reconciles the measure of free cash flow from operations to IFRS measures reported in the consolidated condensed interim statements of cash flows for the period ended as indicated.
Free Cash Flow from Operations |
|
|
| |
Unaudited (In millions of Canadian dollars) |
| Three months ended March 31, 2025 |
| |
Cash provided by operating activities |
| $ | 152.7 |
|
Less: Additions to property, plant and equipment |
|
| (114.3 | ) |
Add: Proceeds on disposal of property, plant and equipment |
|
| 0.7 |
|
Free cash flow from operations |
| $ | 39.1 |
|
(5) Leverage ratio is a measure that indicates the Company's ability to service its existing debt. Leverage ratio is calculated as net debt divided by Adjusted EBITDA.
Unaudited (In millions of Canadian dollars) |
| March 31, |
| |
Current portion of long-term debt |
| $ | 3.5 |
|
Current lease liabilities |
|
| 50.4 |
|
Long-term debt |
|
| 2,357.0 |
|
Long-term lease liabilities |
|
| 162.7 |
|
Total debt |
|
| 2,573.6 |
|
Cash and cash equivalents |
|
| (821.0 | ) |
Net debt |
| $ | 1,752.6 |
|
Adjusted EBITDA for 12 months ending March 31, 2025 (see below) |
| $ | 1,537.0 |
|
Leverage Ratio |
|
| 1.14 |
|
Adjusted EBITDA for 12 months ended December 31, 2024 |
| $ | 1,497.1 |
|
less: Adjusted EBITDA for three months ended March 31, 2024 |
|
| (368.1 | ) |
add: Adjusted EBITDA for three months ended March 31, 2025 |
| $ | 408.0 |
|
Adjusted EBITDA for 12 months ended March 31, 2025 |
| $ | 1,537.0 |
|
Supplemental Financial Information
Sales Change Analysis
Revenue Growth Rates (%) |
|
|
| |||||||||
|
|
|
| |||||||||
| Three Months Ended |
| ||||||||||
|
| Organic |
|
| Acquisition |
|
| FX |
|
|
|
|
|
| Growth |
|
| Growth |
|
| Translation |
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CCL |
| 4.5% |
|
| 2.2% |
|
| 3.0% |
|
| 9.7% |
|
Avery |
| (1.7%) |
|
| - |
|
| 4.1% |
|
| 2.4% |
|
Checkpoint |
| 3.9% |
|
| - |
|
| 3.4% |
|
| 7.3% |
|
Innovia |
| 7.2% |
|
| - |
|
| 5.7% |
|
| 12.9% |
|
Total |
| 3.8% |
|
| 1.4% |
|
| 3.4% |
|
| 8.6% |
|
Business Description
CCL Industries Inc. employs approximately 26,300 people operating 213 production facilities in 42 countries with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCL is the world's largest converter of pressure sensitive and specialty extruded film materials for a wide range of decorative, instructional, functional and security applications for government institutions and large global customers in the consumer packaging, healthcare & chemicals, consumer electronic device and automotive markets. Extruded & laminated plastic tubes, aluminum aerosols & specialty bottles, folded instructional leaflets, precision decorated & die cut components, electronic displays, polymer banknote substrate and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications for businesses and consumers available alongside complementary products sold through distributors, mass market stores and e-commerce retailers. Checkpoint is a leading developer of RF and RFID based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions, for the retail and apparel industries worldwide. Innovia is a leading global producer of specialty, high performance, multi-layer, surface engineered films for label, packaging and security applications. The Company is partly backward integrated into materials science with capabilities in polymer extrusion, adhesive development, coating & lamination, surface engineering and metallurgy; deployed as needed across the four business segments.
SOURCE: CCL Industries Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/paper-and-packaging/ccl-industries-announces-record-results-for-2025-first-quarter-1025125
