- TC Transcontinental (TCL.A) ended the year on a strong note with $775.8 million of reported revenue for the fourth quarter of 2021
- Increased revenues were led by solid profitability in the company’s packaging and print sector
- Recovery in the printing sector is expected to continue, combined with growth in Transcontinental’s in-store marketing activities and other growth activities
- Transcontinental is a Canadian printer and flexible packaging provider
- Shares in Transcontinental Inc. (TCL.A) are up 3.13 per cent, trading at $19.915 per share
TC Transcontinental (TCL.A) ended the year on a strong note with $775.8 million of reported revenue for the fourth quarter of 2021.
Compared to the $655.7 million in fourth-quarter revenue reported in 2020, this year’s Q4 demonstrated an 18.3 per cent increase year-over-year.
Increased revenues were led by solid profitability in the company’s packaging and print sector for the quarter, driven by the rising price of resin and higher volumes.
Despite the increase in volume and operational efficiency initiatives in TC Transcontinental’s three sectors, operating earnings decreased, representing a 1.3 per cent change year-over-year and a 3.6 per cent change for the 2021 fiscal year compared to 2020.
The decline in operating earnings and adjusted operating earnings is mostly due to the short-term effects of rising resin prices, a decrease in the Canada Emergency Wage Subsidy, exchange rate variations, and higher stock-based compensation expenses.
“I’m very satisfied with the results for the fiscal year 2021, said François Olivier, president and CEO of TC Transcontinental, who announced his retirement in September.
“Following the success of our transformation,” said Mr. Olivier, “I am proud to leave behind an international company that is well positioned in its three sectors and has a solid financial position, a proven strategy as well as a seasoned new President and Chief Executive Officer and management team.”
Recovery in the printing sector is expected to continue. Combined with growth in Transcontinental’s in-store marketing activities and other growth activities, the company looks forward to a positive impact on the fiscal year 2022.
Transcontinental is a Canadian printer and flexible packaging provider that operates in three segments: packaging, printing, and other.
Shares in Transcontinental Inc. (TCL.A) are up 3.13 per cent, trading at $19.915 per share as of 3:20 pm EST.
