Transcontinental Inc. Announces Results for the First Quarter of Fiscal 2025
Highlights
- Revenues of $643.0 million for the quarter ended January 26, 2025; operating earnings of $88.7 million; and net earnings attributable to shareholders of the Corporation of $55.6 million ($0.66 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $97.5 million for the quarter ended January 26, 2025; adjusted operating earnings(1) of $59.6 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $41.5 million ($0.49 per share).
- Growth in adjusted operating earnings before depreciation and amortization(1) of 1.5% for the quarter ended January 26, 2025, with an increase of 6.1% in the Retail Services and Printing Sector.
- Improvement of the net indebtedness ratio(1) to 1.53x as at January 26, 2025.
- Sale of the industrial packaging operations to Hood Packaging Corporation for an amount of $132.0 million (US$95.0 million) on October 28, 2024.
- Repurchase of 938,034 shares during the quarter ended January 26, 2025, for a total consideration of $16.3 million, as part of the normal course issuer bid. Since the beginning of this bid in June 2024, 3,005,251 shares have been repurchased for a total consideration of $48.6 million.
- Declaration of a special dividend of $1.00 per share.
(1) Please refer to the section entitled "Non-IFRS Financial Measures" in this press release for a definition of these measures.
MONTRÉAL, March 11, 2025 (GLOBE NEWSWIRE) -- Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the first quarter of fiscal 2025, which ended January 26, 2025.
"The results for this quarter continue to demonstrate the positive impact of the implementation of our program aimed at improving our profitability and our financial position announced in December 2023," said Thomas Morin, President and Chief Executive Officer of TC Transcontinental.
"The Packaging Sector faced weaker demand in its Latin America operations and in the medical market. However, the initiatives put in place to reduce our costs as well as growth in our cheese and dairy products packaging contributed to maintaining the sector's profitability for the quarter.
"The Retail Services and Printing Sector posted a 6.1% increase in adjusted operating earnings before depreciation and amortization for the quarter. The impact of the labour conflict at Canada Post was more than offset by the actions taken to improve our cost structure and mitigate the effects of that conflict, a more favourable product mix, including the roll-out of raddarTM, as well as an increase in book printing and specialized solutions activities."
"The significant cash flows generated and the sale of the industrial packaging operations enabled us to reduce our net indebtedness ratio to 1.53x adjusted operating earnings before depreciation and amortization," added Donald LeCavalier, Executive Vice President and Chief Financial Officer of TC Transcontinental. "This ratio, which includes the impact of share repurchases totalling $48.6 million since June 2024, stands at its lowest level since the acquisition of Coveris Americas in 2018. As a result, our solid financial position provides us the flexibility needed to return more capital to shareholders while pursuing targeted acquisitions."
Financial Highlights
| (in millions of dollars, except per share amounts) | Q1-2025 | Q1-2024 | Variation in % | |
| Revenues | $643.0 | $680.4 | (5.5 | ) % |
| Operating earnings before depreciation and amortization | 141.4 | 82.7 | 71.0 | |
| Adjusted operating earnings before depreciation and amortization (1) | 97.5 | 96.1 | 1.5 | |
| Operating earnings | 88.7 | 27.8 | 219.1 | |
| Adjusted operating earnings (1) | 59.6 | 59.0 | 1.0 | |
| Net earnings attributable to shareholders of the Corporation | 55.6 | 13.9 | 300.0 | |
| Net earnings attributable to shareholders of the Corporation per share | 0.66 | 0.16 | 312.5 | |
| Adjusted net earnings attributable to shareholders of the Corporation (1) | 41.5 | 37.4 | 11.0 | |
| Adjusted net earnings attributable to shareholders of the Corporation per share (1) | 0.49 | 0.43 | 14.0 | |
| (1) Please refer to the section entitled "Reconciliation of Non-IFRS Financial Measures" in this Press release for adjusted data presented above. | ||||
Results for the First Quarter of Fiscal 2025
Revenues decreased by $37.4 million, or 5.5%, from $680.4 million in the first quarter of 2024 to $643.0 million in the corresponding period of 2025. This decrease is due to lower volume and the impact of the sale of the industrial packaging operations, partially mitigated by the favourable effect of exchange rate fluctuations.
Operating earnings before depreciation and amortization increased by $58.7 million, or 71.0%, from $82.7 million in the first quarter of 2024 to $141.4 million in the first quarter of 2025. This increase is mainly attributable to the gain on the sale of the industrial packaging operations, cost reduction initiatives and the favourable effect of exchange rate fluctuations, partially offset by lower volume and the impact of the sale of the industrial packaging operations.
Adjusted operating earnings before depreciation and amortization increased by $1.4 million, or 1.5%, from $96.1 million in the first quarter of 2024 to $97.5 million in the first quarter of 2025. This increase is mainly attributable to the favourable impact of cost reduction initiatives, the positive effect of exchange rate fluctuations and the improved performance of the Retail Services and Printing Sector, partially offset by lower volume and the impact of the labour conflict at Canada Post and the sale of the industrial packaging operations.
Net earnings attributable to shareholders of the Corporation increased by $41.7 million, or 300.0%, from $13.9 million in the first quarter of 2024 to $55.6 million in the first quarter of 2025. This increase is mainly attributable to the previously explained increase in operating earnings before depreciation and amortization, lower financial expenses and the decrease in depreciation and amortization, partially offset by higher income taxes. On a per share basis, net earnings attributable to shareholders of the Corporation went from $0.16 to $0.66, respectively.
Adjusted net earnings attributable to shareholders of the Corporation increased by $4.1 million, or 11.0%, from $37.4 million in the first quarter of 2024 to $41.5 million in the first quarter of 2025. This increase is mainly attributable to the previously explained increase in adjusted operating earnings before depreciation and amortization, lower financial expenses and the decrease in depreciation and amortization, partially offset by higher income taxes. On a per share basis, adjusted net earnings attributable to shareholders of the Corporation went from $0.43 to $0.49, respectively.
For more detailed financial information, please see the Management’s Discussion and Analysis for the first quarter ended January 26, 2025, as well as the financial statements in the “Investors” section of our website at .
Outlook
We are assessing the direct and indirect potential impacts on our operations of the implementation of protectionist trade measures between the United States, Canada and Mexico. Our current outlook does not include these impacts which could affect our future results.
The investments in our growth activities, including flexible packaging and in-store marketing, position us well for the future and should be a key driver of our long-term growth.
In terms of profitability, we expect to generate organic growth in adjusted operating earnings before depreciation and amortization of the Packaging Sector for fiscal 2025 compared to fiscal 2024. In the Retail Services and Printing Sector, we expect adjusted operating earnings before depreciation and amortization for fiscal 2025 to be stable compared to fiscal 2024.
Lastly, in addition to the amount received for the sale of our industrial packaging operations, we expect to continue generating significant cash flows from operating activities, which will enable us to reduce our net indebtedness while continuing to make strategic investments and return capital to our shareholders.
SUBSEQUENT EVENTS
Repayment of unsecured notes
On February 3, 2025, the Corporation repaid at maturity the unsecured notes (issued in 2022) amounting to $200.0 million. Concurrently with the repayment of the unsecured notes, the Corporation repaid its cross-currency fixed-to-floating interest rate swaps (CAD fixed/USD floating) amounting to $200.0 million (US$157.1 million).
Tariffs
Since February 1, 2025, the President of the United States issued several executive orders instructing the United States to impose new tariffs on imports from Canada, Mexico and China. The Corporation is assessing the direct and indirect potential impacts on its operations of the implementation of these tariffs, counter-tariffs, reciprocal tariffs or other protectionist trade measures between the United States, Canada and Mexico as this situation develops. The impacts of these protectionist trade measures could affect the future results of the Corporation.
Non-IFRS Financial Measures
In this document, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Accounting Standards ("IFRS") and the term "dollar", as well as the symbol "$" designate Canadian dollars.
In addition, in this press release, we also use certain non-IFRS financial measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented in the section entitled "Reconciliation of Non-IFRS Financial Measures" and in Note 3, "Segmented Information", to the unaudited condensed interim consolidated financial statements for the first quarter ended January 26, 2025.
| Terms Used | Definitions |
| Adjusted operating earnings before depreciation and amortization | Operating earnings before depreciation and amortization as well as restructuring and other costs (revenues) and impairment of assets. |
| Adjusted operating earnings | Operating earnings before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations and impairment of assets. |
| Adjusted income taxes | Income taxes before income taxes on restructuring and other costs (revenues), amortization of intangible assets arising from business combinations, impairment of assets as well as the recognition of previous years tax assets of an acquired company. |
| Adjusted net earnings attributable to shareholders of the Corporation | Net earnings attributable to shareholders of the Corporation before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations and impairment of assets, net of related income taxes as well as the recognition of previous years tax assets of an acquired company. |
| Net indebtedness | Total of long-term debt, of current portion of long-term debt, of lease liabilities and of current portion of lease liabilities, less cash. |
| Net indebtedness ratio | Net indebtedness divided by the last 12 months’ adjusted operating earnings before depreciation and amortization. |
Reconciliation of Non-IFRS Financial Measures
The financial information has been prepared in accordance with IFRS. However, financial measures used, namely adjusted operating earnings before depreciation and amortization, adjusted operating earnings, adjusted income taxes, adjusted net earnings attributable to shareholders of the Corporation, adjusted net earnings attributable to shareholders of the Corporation per share, net indebtedness and net indebtedness ratio, for which a reconciliation is presented in the following table, do not have any standardized meaning under IFRS and could be calculated differently by other companies. We believe that many of our readers analyze the financial performance of the Corporation’s activities based on these non-IFRS financial measures as such measures may allow for easier comparisons between periods. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them.
The Corporation also believes that these measures are useful indicators of the performance of its operations and its ability to meet its financial obligations. Furthermore, management also uses some of these non-IFRS financial measures to assess the performance of its activities and managers.
| Reconciliation of operating earnings - First quarter | ||||
| Three months ended | ||||
| (in millions of dollars) | January 26, 2025 | January 28, 2024 | ||
| Operating earnings | $88.7 | $27.8 | ||
| Restructuring and other costs (revenues) | (43.9 | ) | 11.3 | |
| Amortization of intangible assets arising from business combinations (1) | 14.8 | 17.8 | ||
| Impairment of assets | — | 2.1 | ||
| Adjusted operating earnings | $59.6 | $59.0 | ||
| Depreciation and amortization (2) | 37.9 | 37.1 | ||
| Adjusted operating earnings before depreciation and amortization | $97.5 | $96.1 | ||
| (1) Amortization of intangible assets arising from business combinations includes our customer relationships, non-compete agreements, rights of first refusal and educational book titles. | ||||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||
| Reconciliation of operating earnings - First quarter for the Packaging Sector | ||||
| Three months ended | ||||
| (in millions of dollars) | January 26, 2025 | January 28, 2024 | ||
| Operating earnings | $69.7 | $22.4 | ||
| Restructuring and other costs (revenues) | (45.2 | ) | 3.6 | |
| Amortization of intangible assets arising from business combinations (1) | 13.8 | 16.1 | ||
| Impairment of assets | — | 0.3 | ||
| Adjusted operating earnings | $38.3 | $42.4 | ||
| Depreciation and amortization (2) | 20.7 | 18.0 | ||
| Adjusted operating earnings before depreciation and amortization | $59.0 | $60.4 | ||
| (1) Amortization of intangible assets arising from business combinations includes our customer relationships. | ||||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||
| Reconciliation of operating earnings - First quarter for the Retail Services and Printing Sector | ||||
| Three months ended | ||||
| (in millions of dollars) | January 26, 2025 | January 28, 2024 | ||
| Operating earnings | $27.7 | $17.6 | ||
| Restructuring and other costs | 3.1 | 6.1 | ||
| Amortization of intangible assets arising from business combinations(1) | 0.6 | 1.3 | ||
| Impairment of assets | — | 1.8 | ||
| Adjusted operating earnings | $31.4 | $26.8 | ||
| Depreciation and amortization(2) | 10.5 | 12.7 | ||
| Adjusted operating earnings before depreciation and amortization | $41.9 | $39.5 | ||
| (1) Amortization of intangible assets arising from business combinations includes our customer relationships. | ||||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||
| Reconciliation of operating earnings - First quarter for the Other Sector | ||||
| Three months ended | ||||
| (in millions of dollars) | January 26, 2025 | January 28, 2024 | ||
| Operating earnings | $(8.7 | ) | $(12.2 | ) |
| Restructuring and other costs (revenues) | (1.8 | ) | 1.6 | |
| Amortization of intangible assets arising from business combinations (1) | 0.4 | 0.4 | ||
| Adjusted operating earnings | $(10.1 | ) | $(10.2 | ) |
| Depreciation and amortization (2) | 6.7 | 6.4 | ||
| Adjusted operating earnings before depreciation and amortization | $(3.4 | ) | $(3.8 | ) |
| (1) Amortization of intangible assets arising from business combinations includes non-compete agreements, rights of first refusal and educational book titles. | ||||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||
| Reconciliation of net earnings attributable to shareholders of the Corporation - First quarter | ||||
| Three months ended | ||||
| (in millions of dollars, except per share amounts) | January 26, 2025 | January 28, 2024 | ||
| Net earnings attributable to shareholders of the Corporation | $55.6 | $13.9 | ||
| Restructuring and other costs (revenues) | (43.9 | ) | 11.3 | |
| Tax on restructuring and other costs (revenues) | 18.7 | (2.8 | ) | |
| Amortization of intangible assets arising from business combinations (1) | 14.8 | 17.8 | ||
| Tax on amortization of intangible assets arising from business combinations | (3.7 | ) | (4.4 | ) |
| Impairment of assets | — | 2.1 | ||
| Tax on impairment of assets | — | (0.5 | ) | |
| Adjusted net earnings attributable to shareholders of the Corporation | $41.5 | $37.4 | ||
| Net earnings attributable to shareholders of the Corporation per share | $0.66 | $0.16 | ||
| Adjusted net earnings attributable to shareholders of the Corporation per share | $0.49 | $0.43 | ||
| Weighted average number of shares outstanding | 84.2 | 86.6 | ||
| (1) Amortization of intangible assets arising from business combinations includes our customer relationships, non-compete agreements, rights of first refusal and educational book titles. | ||||
| Reconciliation of net indebtedness | ||||
| (in millions of dollars, except ratios) | As at January 26, 2025 | As at October 27, 2024 | ||
| Long-term debt | $678.0 | $668.1 | ||
| Current portion of long-term debt | 202.0 | 201.0 | ||
| Lease liabilities | 90.7 | 95.8 | ||
| Current portion of lease liabilities | 23.5 | 24.1 | ||
| Cash | (273.1 | ) | (185.2 | ) |
| Net indebtedness | $721.1 | $803.8 | ||
| Adjusted operating earnings before depreciation and amortization (last 12 months) | $470.8 | $469.4 | ||
| Net indebtedness ratio | 1.53 | x | 1.71 | x |
Dividend
The Corporation's Board of Directors declared a quarterly dividend of $0.225 per share on Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on April 23, 2025, to shareholders of record at the close of business on April 3, 2025.
In addition, the Corporation's Board of Directors declared a special dividend of $1.00 per share on Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on April 23, 2025, to shareholders of record at the close of business on April 3, 2025.
Normal Course Issuer Bid
On June 12, 2024, the Corporation was authorized to repurchase, for cancellation on the open market, or subject to the approval of any securities authority by private agreements, between June 17, 2024 and June 16, 2025, or at an earlier date if the Corporation concludes or cancels the offer, up to 3,662,967 of its Class A Subordinate Voting Shares and up to 668,241 of its Class B Shares. The repurchases are made in the normal course of business at market prices through the Toronto Stock Exchange.
During the first three months of fiscal 2025, as part of the normal course issuer bid, the Corporation repurchased and cancelled 934,434 Class A Subordinate Voting Shares at a weighted average price of $17.38 and 3,600 Class B Shares at a weighted average price of $17.27, for a total cash consideration of $16.3 million.
Additional information
Conference Call
Upon releasing its results for the first quarter of fiscal 2025, the Corporation will hold a conference call for the financial community on March 11, 2025, at 4:30 p.m. The dial-in numbers are 1-289-514-5100 or 1-800-717-1738. Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on TC Transcontinental’s website, which will then be archived for 30 days. For media requests or interviews, please contact Nathalie St-Jean, Senior Advisor, Corporate Communications of TC Transcontinental, at 514-954-3581.
Profile
TC Transcontinental is a leader in flexible packaging in North America and in retail services in Canada, and is Canada’s largest printer. The Corporation is also the leading Canadian French-language educational publishing group. Since 1976, TC Transcontinental's mission has been to create quality products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are the strong values held by the Corporation and its employees. TC Transcontinental's commitment to its stakeholders is to pursue its business activities in a responsible manner.
Transcontinental Inc. (TSX: TCL.A TCL.B), known as TC Transcontinental, has approximately 7,400 employees, the majority of which are based in Canada, the United States and Latin America. TC Transcontinental generated revenues of $2.8 billion during the fiscal year ended October 27, 2024. For more information, visit TC Transcontinental's website at .
Forward-looking Statements
Our public communications often contain oral or written forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward-looking statements are derived from both general and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation's objectives, strategy, anticipated financial results and business outlook. The Corporation's future performance may also be affected by a number of factors, many of which are beyond the Corporation's will or control. These factors include, but are not limited to the impact of digital product development and adoption, the impact of changes in the participants in the distribution of newspapers and printed advertising materials and the disruption in their activities resulting mainly from labour disputes, including at Canada Post, the impact of regulations or legislation regarding door-to-door distribution on the printing of paper flyers or printed advertising materials, inflation and recession risks, economic conditions and geopolitical uncertainty, environmental risks as well as adoption of new regulations or amendments and changes to consumption habits, risk of an operational disruption that could be harmful to its ability to meet deadlines, the worldwide outbreak of a disease, a virus or any other contagious disease could have an adverse impact on the Corporation’s operations, the ability to generate organic long-term growth and face competition, a significant increase in the cost of raw materials, the availability of those materials and energy consumption could have an adverse impact on the Corporation’s activities, the ability to complete acquisitions and properly integrate them, cybersecurity, data protection, warehousing and usage, the impact of digital product development and adoption on the demand for printed products other than flyers, the failure of patents, trademarks and confidentiality agreements to protect intellectual property, a difficulty to attract and retain employees in the main operating sectors, the safety and quality of packaging products used in the food industry, bad debts from certain customers, import and export controls, duties, tariffs or taxes, exchange rate fluctuations, increase in market interest rates with respect to our financial instruments as well as availability of capital at a reasonable cost, the legal risks related to its activities and the compliance of its activities with applicable regulations, the impact of major market fluctuations on the solvency of defined benefit pension plans, changes in tax legislation and disputes with tax authorities or amendments to statutory tax rates in force, the impact of impairment tests on the value of assets and a conflict of interest between the controlling shareholder and other shareholders. The main risks, uncertainties and factors that could influence actual results are described in the Management's Discussion and Analysis for the fiscal year ended October 27, 2024 and in the latest Annual Information Form.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of non-recurring or other unusual items, nor of disposals, business combinations, mergers or acquisitions which may be announced or entered into after the date of March 11, 2025. The forward-looking statements in this press release are made pursuant to the “safe harbour” provisions of applicable Canadian securities legislation. The forward-looking statements in this release are based on current expectations and information available as at March 11, 2025. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation's management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
For information:
| Media Nathalie St-Jean Senior Advisor, Corporate Communications TC Transcontinental Telephone: 514-954-3581 | Financial Community Yan Lapointe Senior Director, Investor Relations and Treasury TC Transcontinental Telephone: 514-954-3574 |
CONSOLIDATED STATEMENTS OF EARNINGS
Unaudited
(in millions of Canadian dollars, unless otherwise indicated and per share data)
| Three months ended | ||||
| January 26, | January 28, | |||
| 2025 | 2024 | |||
| Revenues | $643.0 | $680.4 | ||
| Operating expenses | 545.5 | 584.3 | ||
| Restructuring and other costs (revenues) | (43.9 | ) | 11.3 | |
| Impairment of assets | — | 2.1 | ||
| Operating earnings before depreciation and amortization | 141.4 | 82.7 | ||
| Depreciation and amortization | 52.7 | 54.9 | ||
| Operating earnings | 88.7 | 27.8 | ||
| Net financial expenses | 9.3 | 13.9 | ||
| Earnings before income taxes | 79.4 | 13.9 | ||
| Income taxes (recovery) | 23.7 | (0.2 | ) | |
| Net earnings | 55.7 | 14.1 | ||
| Non-controlling interests | 0.1 | 0.2 | ||
| Net earnings attributable to shareholders of the Corporation | $55.6 | $13.9 | ||
| Net earnings attributable to shareholders of the Corporation per share - basic and diluted | $0.66 | $0.16 | ||
| Weighted average number of shares outstanding - basic and diluted (in millions) | 84.2 | 86.6 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Unaudited
(in millions of Canadian dollars)
| Three months ended | ||||
| January 26, | January 28, | |||
| 2025 | 2024 | |||
| Net earnings | $55.7 | $14.1 | ||
| Other comprehensive income (loss) | ||||
| Items that may be subsequently reclassified to net earnings | ||||
| Net change related to cash flow hedges(1) | ||||
| Net change in the fair value of designated derivatives - foreign exchange risk | (10.0 | ) | 6.0 | |
| Net change in the fair value of designated derivatives - interest rate risk | 1.4 | (2.8 | ) | |
| Reclassification of the net change in the fair value of designated derivatives recognized in net earnings during the period | 2.0 | 0.8 | ||
| Related (recovery) income taxes | (1.8 | ) | 1.0 | |
| (4.8 | ) | 3.0 | ||
| Cumulative translation differences | ||||
| Net unrealized exchange gains (losses) on the translation of the financial statements of foreign operations | 54.1 | (40.9 | ) | |
| Reclassification to net earnings of net exchange gains on the translation of the financial statements of foreign operations during the period | (8.2 | ) | — | |
| Net (losses) gains on hedge of the net investment in foreign operations | (24.4 | ) | 15.2 | |
| Related income taxes (recovery) | 1.5 | (0.7 | ) | |
| 20.0 | (25.0 | ) | ||
| Items that will not be reclassified to net earnings | ||||
| Changes related to defined benefit plans | ||||
| Actuarial gain (losses) on defined benefit plans | 0.6 | (2.9 | ) | |
| Related income taxes (recovery) | 0.1 | (0.8 | ) | |
| 0.5 | (2.1 | ) | ||
| Other comprehensive income (loss) | 15.7 | (24.1 | ) | |
| Comprehensive income (loss) | $71.4 | $(10.0 | ) | |
| (1) For the three-month period ended January 28, 2024, an amount of $1.6 million was reclassified to Net change in the fair value of designated derivatives - foreign exchange risk and Net change in the fair value of designated derivatives - interest rate risk. This amount was previously reported under Reclassification of the net change in the fair value of designated derivatives recognized in net earnings during the period. This reclassification had no impact on comprehensive income or net earnings. | ||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Unaudited
(in millions of Canadian dollars)
| Accumulated | ||||||||||||||
| other | Non- | |||||||||||||
| Share | Contributed | Retained | comprehensive | controlling | Total | |||||||||
| capital | surplus | earnings | income | Total | interests | equity | ||||||||
| Balance as at October 27, 2024 | $619.2 | $0.9 | $1,237.5 | $51.7 | $1,909.3 | $5.5 | $1,914.8 | |||||||
| Net earnings | — | — | 55.6 | — | 55.6 | 0.1 | 55.7 | |||||||
| Other comprehensive income | — | — | — | 15.7 | 15.7 | — | 15.7 | |||||||
| Shareholders' contributions and distributions to shareholders | ||||||||||||||
| Share repurchases and related income taxes | (7.8 | ) | — | 8.8 | — | 1.0 | — | 1.0 | ||||||
| Dividends | — | — | (18.9 | ) | — | (18.9 | ) | — | (18.9 | ) | ||||
| Balance as at January 26, 2025 | $611.4 | $0.9 | $1,283.0 | $67.4 | $1,962.7 | $5.6 | $1,968.3 | |||||||
| Balance as at October 29, 2023 | $636.6 | $0.9 | $1,226.8 | $37.0 | $1,901.3 | $4.9 | $1,906.2 | |||||||
| Net earnings | — | — | 13.9 | — | 13.9 | 0.2 | 14.1 | |||||||
| Other comprehensive loss | — | — | — | (24.1 | ) | (24.1 | ) | — | (24.1 | ) | ||||
| Shareholders' contributions and distributions to shareholders | ||||||||||||||
| Dividends | — | — | (19.5 | ) | — | (19.5 | ) | — | (19.5 | ) | ||||
| Balance as at January 28, 2024 | $636.6 | $0.9 | $1,221.2 | $12.9 | $1,871.6 | $5.1 | $1,876.7 | |||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
(in millions of Canadian dollars)
| As at | As at | |||
| January 26, | October 27, | |||
| 2025 | 2024 | |||
| Current assets | ||||
| Cash | $273.1 | $185.2 | ||
| Accounts receivable | 460.4 | 504.4 | ||
| Income taxes receivable | 20.7 | 28.7 | ||
| Inventories | 381.1 | 365.7 | ||
| Prepaid expenses and other current assets | 23.8 | 21.7 | ||
| Assets held for sale | 6.6 | 108.9 | ||
| 1,165.7 | 1,214.6 | |||
| Property, plant and equipment | 756.4 | 751.4 | ||
| Right-of-use assets | 94.6 | 99.6 | ||
| Intangible assets | 350.6 | 354.5 | ||
| Goodwill | 1,173.8 | 1,154.0 | ||
| Deferred taxes | 37.1 | 35.9 | ||
| Other assets | 37.0 | 31.3 | ||
| $3,615.2 | $3,641.3 | |||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | $397.5 | $495.1 | ||
| Income taxes payable | 30.5 | 21.1 | ||
| Deferred revenues and deposits | 14.8 | 10.9 | ||
| Current portion of long-term debt | 202.0 | 201.0 | ||
| Current portion of lease liabilities | 23.5 | 24.1 | ||
| Liabilities held for sale | — | 13.1 | ||
| 668.3 | 765.3 | |||
| Long-term debt | 678.0 | 668.1 | ||
| Lease liabilities | 90.7 | 95.8 | ||
| Deferred taxes | 74.4 | 70.3 | ||
| Other liabilities | 135.5 | 127.0 | ||
| 1,646.9 | 1,726.5 | |||
| Equity | ||||
| Share capital | 611.4 | 619.2 | ||
| Contributed surplus | 0.9 | 0.9 | ||
| Retained earnings | 1,283.0 | 1,237.5 | ||
| Accumulated other comprehensive income | 67.4 | 51.7 | ||
| Attributable to shareholders of the Corporation | 1,962.7 | 1,909.3 | ||
| Non-controlling interests | 5.6 | 5.5 | ||
| 1,968.3 | 1,914.8 | |||
| $3,615.2 | $3,641.3 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(in millions of Canadian dollars)
| Three months ended | ||||
| January 26, | January 28, | |||
| 2025 | 2024 | |||
| Operating activities | ||||
| Net earnings | $55.7 | $14.1 | ||
| Adjustments to reconcile net earnings and cash flows from operating activities: | ||||
| Impairment of assets | — | 2.1 | ||
| Depreciation and amortization | 52.7 | 54.9 | ||
| Financial expenses on long-term debt and lease liabilities | 12.3 | 12.0 | ||
| Net gains on disposal of assets | (0.1 | ) | (0.1 | ) |
| Net gain on business disposal | (46.3 | ) | — | |
| Income taxes (recovery) | 23.7 | (0.2 | ) | |
| Net foreign exchange differences and other | (3.3 | ) | 0.7 | |
| Cash flows generated by operating activities before changes in non-cash operating items and income taxes paid | 94.7 | 83.5 | ||
| Changes in non-cash operating items | (59.6 | ) | (20.0 | ) |
| Income taxes paid | (11.5 | ) | (6.1 | ) |
| Cash flows from operating activities | 23.6 | 57.4 | ||
| Investing activities | ||||
| Business disposal | 132.0 | — | ||
| Acquisitions of property, plant and equipment | (14.7 | ) | (30.1 | ) |
| Disposals of property, plant and equipment and other | 0.1 | 1.4 | ||
| Increase in intangible assets | (7.4 | ) | (6.5 | ) |
| Cash flows from investing activities | 110.0 | (35.2 | ) | |
| Financing activities | ||||
| Reimbursement of long-term debt | (0.6 | ) | (1.2 | ) |
| Net decrease in credit facilities | — | (75.4 | ) | |
| Financial expenses paid on long-term debt and credit facilities | (8.2 | ) | (7.4 | ) |
| Repayment of principal on lease liabilities | (6.1 | ) | (5.9 | ) |
| Interest paid on lease liabilities | (1.0 | ) | (0.8 | ) |
| Dividends | (18.9 | ) | (19.5 | ) |
| Shares repurchased | (16.3 | ) | — | |
| Cash flows from financing activities | (51.1 | ) | (110.2 | ) |
| Effect of exchange rate changes on cash denominated in foreign currencies | 5.4 | 2.5 | ||
| Net change in cash | 87.9 | (85.5 | ) | |
| Cash at beginning of the period | 185.2 | 137.0 | ||
| Cash at end of period | $273.1 | $51.5 | ||
| Non-cash investing activities | ||||
| Net change in capital asset acquisitions financed by accounts payable | $(0.5 | ) | $(11.2 | ) |
