Q3 2024 Cascades Inc Earnings Call Transcript
Key Points
- Third quarter sales levels increased 2% from Q2 and were stable year-over-year, driven by volume and pricing improvements.
- Consolidated EBITDA of $140 million increased 25% from Q2, reflecting stronger pricing and lower production costs.
- The Containerboard segment saw a 50% sequential EBITDA increase, benefiting from market price increases and lower production costs.
- Specialty Products division delivered solid results with a 4% EBITDA increase from Q2, driven by higher realized spreads.
- The company expects stable to slightly stronger results in the Tissue business for Q4, with stable to slightly higher volumes and lower raw material costs.
- Year-over-year consolidated EBITDA decreased 13%, impacted by higher raw material costs and less favorable volume and sales mix.
- The Tissue business experienced a 20% sequential EBITDA decrease due to higher raw material and transportation costs.
- Bear Island mill is currently 20% below its daily production target, affecting overall production efficiency.
- Net debt leverage increased slightly to 4.3x at the end of Q3 from 4.2x at the end of Q2.
- Q3 net earnings per share were only $0.01, a significant decrease from $0.34 in the same quarter last year.
Good morning. My name is Joelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cascades Third 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 your conference.
Thank you, operator. Good morning, everyone, and thank you for joining our third 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; Jean-David Tardif, President and COO of Tissue papers; and Luc Langevin, Senior VP of Corporate Services.
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