Supremex (TSE:SXP) Posts Quarterly Earnings Results

Supremex (TSE:SXP) released its quarterly earnings data on Friday. The company reported C$0.06 earnings per share (EPS) for the quarter, FiscalAI reports. Supremex had a return on equity of 9.93% and a net margin of 3.90%.The business had revenue of C$71.56 million for the quarter.

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

• Strong second-quarter results: Revenue increased 8.5% year over year to CAD 71.6 million, while adjusted EBITDA rose nearly 34% to CAD 7.8 million, expanding the margin by 210 basis points to 10.9%. The company returned to reported profitability and generated CAD 3.6 million in free cash flow.
• Packaging continued to drive growth: Packaging revenue grew 19% to CAD 26.4 million, or nearly 28% excluding commercial print, supported by folding-carton wins, e-commerce demand, and the Trans-Graphique acquisition. Packaging now represents 37% of consolidated revenue, reinforcing management’s strategy to shift toward a more balanced business mix.
• Acquisitions and cost initiatives are progressing: The Goldrich Printpak acquisition adds an approximately CAD 30 million-revenue folding-carton platform in Ontario, with early purchasing and manufacturing synergies already underway. U.S. envelope optimization initiatives are also delivering savings, with roughly one-quarter of the expected CAD 1.4 million annual benefit realized in the second quarter.
• Tariffs remain a material risk: Management expects an impact if proposed U.S. tariffs are implemented, although it declined to quantify cross-border exposure. Supremex is staging inventory in the U.S., using available capacity at American facilities, and temporarily limiting certain cross-border shipments to mitigate the risk.
• Management remains cautiously optimistic: It cited economic and trade uncertainty, postage increases, reduced U.S. Postal Service coverage, and Canada Post reputational challenges, while emphasizing continued U.S. envelope expansion, packaging growth, further M&A, dividends, and share repurchases as key priorities.

Supremex Stock Performance

Shares of SXP stock remained flat at C$3.70 on Friday. The stock had a trading volume of 7,309 shares, compared to its average volume of 17,132. The company has a debt-to-equity ratio of 100.62, a quick ratio of 1.00 and a current ratio of 1.95. The firm has a market cap of C$90.02 million, a PE ratio of 8.41, a P/E/G ratio of 0.31 and a beta of 0.52. The stock’s 50-day simple moving average is C$3.64 and its 200 day simple moving average is C$3.68. Supremex has a 52-week low of C$3.44 and a 52-week high of C$4.64.

Supremex Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 18th were issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 5.4%. The ex-dividend date of this dividend was Thursday, June 4th. Supremex’s dividend payout ratio is presently 45.45%.

Supremex Company Profile

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.