Supremex (TSE:SXP) Issues Quarterly Earnings Results

Supremex (TSE:SXP) announced its earnings results on Thursday. The company reported C$0.08 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of C$74.84 million during the quarter. Supremex had a net margin of 4.38% and a return on equity of 10.80%.

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 Stock Performance

Shares of TSE SXP opened at C$3.64 on Friday. The firm has a 50 day moving average of C$3.66 and a 200 day moving average of C$3.67. The company has a current ratio of 1.68, a quick ratio of 1.01 and a debt-to-equity ratio of 185.57. The firm 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 has a 12-month low of C$3.44 and a 12-month high of C$4.64.

Supremex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, April 2nd were given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 5.5%. The ex-dividend date was Thursday, March 19th. Supremex’s payout ratio is 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.