Supremex (TSE:SXP) Issues Earnings Results

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

Supremex stock opened at C$3.70 on Friday. The stock has a market capitalization of C$90.02 million, a PE ratio of 8.41, a price-to-earnings-growth ratio of 0.31 and a beta of 0.52. Supremex has a 12 month low of C$3.44 and a 12 month high of C$4.64. The business has a 50 day simple moving average of C$3.64 and a 200-day simple moving average of C$3.68. The company has a debt-to-equity ratio of 100.62, a current ratio of 1.95 and a quick ratio of 1.00.

Supremex Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 18th were issued a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 5.4%. The ex-dividend date of this dividend was Thursday, June 4th. Supremex’s dividend payout ratio (DPR) is presently 45.45%.

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.