BMO Capital's analyst, Stephen MacLeod, has revised the firm's price target for CCL Industries (CCDBF, Financial), increasing it from C$90 to C$91. The analyst maintains an Outperform rating, indicating a positive outlook for the company's shares.
CCDBF Key Business Developments
Release Date: May 08, 2025
- Sales: $1.89 billion, an increase of 8.6% from Q1 2024.
- Operating Income: $316.9 million, a 9% increase excluding foreign currency impact.
- Net Earnings: $207.4 million, a 6% increase excluding foreign currency impact.
- Basic and Adjusted EPS: $1.18, up from $1.08 in Q1 2024.
- Free Cash Flow from Operations: $39.1 million inflow, compared to a $7 million outflow in Q1 2024.
- Net Debt: $1.75 billion as of March 31, 2025, an increase of $134 million from December 31, 2024.
- Liquidity: $821 million cash on hand and $1.9 billion available undrawn credit capacity.
- Corporate Expenses: Increased due to higher variable compensation and general items.
- Effective Tax Rate: 24.7%, unchanged from the prior year.
- Share Repurchase: $1.4 million shares for $100 million.
- Annual Dividend Increase: 10.3% announced in February 2025.
- Capital Expenditures: $114 million for Q1 2025, with a full-year expectation of $485 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sales increased by 8.6% in the first quarter of 2025, with 3.8% organic growth.
- Operating income rose by 9% compared to the first quarter of 2024, excluding foreign currency impacts.
- Free cash flow from operations was an inflow of $39.1 million, a significant improvement from an outflow of $7 million in the previous year.
- The company repurchased $1.4 million shares for $100 million and announced a 10.3% increase in the annual dividend.
- Innovia segment reported strong volume growth and share gain, especially in North America, leading to outsized profitability improvements.
Negative Points
- Corporate expenses increased due to higher variable compensation and other general items.
- Net debt increased by $134 million, primarily due to capital expenditures and share buybacks.
- Checkpoint segment experienced declines in regions outside Europe, particularly in the Americas.
- Avery segment faced uncertainty regarding the US back-to-school season due to potential tariff impacts.
- The automotive market showed signs of slowing, affecting the CCL design segment.
