Supremex (TSE:SXP) Issues Earnings Results

Supremex (TSE:SXP) issued its quarterly earnings results on Thursday. The company reported C$0.03 earnings per share (EPS) for the quarter, FiscalAI reports. Supremex had a return on equity of 11.20% and a net margin of 4.27%. The firm had revenue of C$76.24 million during the quarter.

Here are the key takeaways from Supremex’s conference call:

• Supremex reported revenue up 16.1% to CAD 76.2 million and adjusted EBITDA up 38.5% to CAD 8.6 million, with margin expanding to 11.3%. Adjusted free cash flow rose to CAD 5.2 million, while net leverage declined to 1.09x.
• Packaging revenue grew 44.4%, including 10.5% organic growth from customer wins and increased business with existing customers. Management said Goldrich and iFlex are performing within expectations, though integration and growth efforts continue.
• Envelope adjusted EBITDA increased 43.5% and margin improved to 16.5%, supported by pricing, acquisition synergies, and plant consolidation. Volume declined 1.5%, but higher prices and Elite Envelope partly offset the drop.
• Tariffs are estimated to cost CAD 10–12 million annually before tax, even after existing mitigation. A restructuring plan is expected to generate CAD 5.7 million in annual savings—about half the tariff impact—leaving CAD 4–6 million to address, with a CAD 1.8 million restructuring charge expected in Q4.
• Adjusted net earnings were CAD 0.8 million, or CAD 0.03 per share, compared with CAD 0.19 per share a year earlier. Commercial print remains weak and recorded a CAD 400,000 quarterly loss, prompting further footprint reductions.

Supremex Price Performance

Shares of TSE SXP traded up C$0.10 during trading hours on Thursday, reaching C$3.22. 24,748 shares of the stock traded hands, compared to its average volume of 15,728. The company has a market capitalization of C$79.08 million, a P/E ratio of 6.57, a price-to-earnings-growth ratio of 0.31 and a beta of 0.11. The company has a quick ratio of 1.00, a current ratio of 1.83 and a debt-to-equity ratio of 137.06. Supremex has a 52-week low of C$2.88 and a 52-week high of C$3.95. The company’s 50-day simple moving average is C$3.34 and its two-hundred day simple moving average is C$3.59.

Supremex Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 11th. Stockholders of record on Friday, September 11th were given a dividend of $0.05 per share. The ex-dividend date was Thursday, August 27th. This represents a $0.20 annualized dividend and a dividend yield of 6.2%. Supremex’s dividend payout ratio is 40.82%.

Supremex Company Profile

Supremex is a growing provider of paper-based packaging solutions and a leading North American manufacturer and marketer of envelopes. Supremex operates nine manufacturing facilities across four provinces in Canada and four manufacturing facilities in three states in the United States employing approximately 1,000 people. Supremex’ extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs and solutions providers.