CCL Industries Inc (OTCPK:CCDBF)
$ 59.03 1 (1.72%) Market Cap: 10.60 Bil Enterprise Value: 11.69 Bil PE Ratio: 21.35 PB Ratio: 2.98 GF Score: 85/100
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Q2 2024 CCL Industries Inc Earnings Call Transcript

Aug 09, 2024 / 03:00PM GMT
Release Date Price: $53.87 (+5.67%)

Key Points

Positve
  • Sales increased by 12.2% year-over-year, reaching $1.85 billion.
  • Operating income rose by 25%, excluding the impact of foreign currency translation.
  • Net earnings for Q2 2024 were $279.5 million, a significant increase from $155.9 million in Q2 2023.
  • Free cash flow from operations remained strong at $118.8 million for Q2 2024.
  • The company's balance sheet remains robust with $666 million in cash and $907 million in available undrawn credit capacity.
Negative
  • Corporate expenses increased due to higher discretionary expenses and short-term variable compensation.
  • Net debt increased by $252 million compared to December 31, 2023, primarily due to capital expenditures, business acquisitions, and share buybacks.
  • The effective tax rate, excluding a noncash revaluation gain, remained high at 24.5%.
  • The automotive segment showed only modest growth, indicating potential sector-specific challenges.
  • The company faces uncertainties in the back-to-school season and potential volatility in replenishment orders.
Operator

Good morning, and welcome to the CCL Industries second quarter investor update call. (Operator Instructions) The moderator for today is Mr. Geoff Martin, President and Chief Executive Officer; and joining him is Mr. Sean Washchuk, Senior Vice President and Chief Financial Officer. Please go ahead, gentlemen.

Geoffrey Martin
CCL Industries Inc - President, Chief Executive Officer, Director

Good morning, everybody, and welcome to our second quarter call. I'm going to hand the call over to Sean Washchuk.

Sean Washchuk
CCL Industries Inc - Chief Financial Officer, Senior Vice President

Thanks, Geoff. I'll draw everyone's attention to slide 2, our disclaimer regarding forward-looking information. I'll remind everyone that our business faces known and unknown risks and opportunities. For further details of these key risks, please take a look at our 2023 annual report, particularly the section risks and opportunities. Our annual and quarterly reports can be found online at the company's website cclind.com or on sedarplus

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