Q2 2024 Cascades Inc Earnings Call Transcript
Key Points
- Cascades Inc (CADNF) reported a 6% increase in sales from Q1, driven by volume, pricing, and exchange rate improvements.
- Consolidated EBITDA increased by 9% from Q1, reflecting stronger pricing and favorable volume and mix.
- The specialty products division delivered strong results with a 4% increase in sales and stable EBITDA margins.
- The tissue business saw an 8% sequential increase in sales, largely due to volume increases in the away-from-home and retail markets.
- Cascades Inc (CADNF) secured additional US retail tissue business volume starting in Q4, indicating future growth potential.
- Year-over-year consolidated EBITDA decreased by 20% due to higher raw material costs and lower average selling prices.
- The company faced a $5 million one-time compensation expense related to CEO transition.
- Net debt increased by $73 million in Q2, despite higher cash flow from operations.
- The tissue business experienced a 5% year-over-year decrease in sales due to lower shipment levels.
- Cascades Inc (CADNF) anticipates higher raw material costs to continue being a headwind for the business.
Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cascade second quarter 2024 financial results conference call. (Operator instructions)
I will now pass the call to Jennifer Aitken, Director of Investor Relations for Cascades. Ms. Aitken, you may begin.
Thank you, Sylvie, and good morning, everyone, and thank you for joining our second quarter 2024 conference call. We will begin with an overview of our operational and financial results followed by some concluding remarks, after which we will begin the question period.
Today's speakers will be Hugues Simon, President and CEO; and Allan Hogg, CFO. Also joining us for the question period at the end of the call are Charles Malo, President and COO of Containerboard Packaging; Jerome Porlier, President and COO of Specialty Products Segment; and Jean-David Tardif, President and COO of Tissue Papers; and Luc Langevin, Senior VP of Corporate Services.
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