Transcontinental Inc. Announces Results for the Third Quarter of Fiscal 2024

Sun Chemical is expanding its edible ink range with the launch of its FSR ink, which was developed to meet the specific needs of the food industry and verified for printing directly onto food including baked goods. Created to offer outstanding color and sharpness, while also complying with the highest levels of quality and safety regulations, Sun Chemical’s FSR ink range is based on synthetic colorants suitable for use for direct food printing using mid-viscosity range piezo printheads, such as the Ricoh GH2220 digital printhead. This completes a series of digital edible inks, complementing the existing low and high viscosity FSE and FSS lines, to enable food decoration with a full range of digital printhead technologies. The FSR range of inks has been developed using carefully selected synthetic food dyes that conform to FDA and EU legislation and is suitable for food printing when used in the right conditions for food production. The technology is also suitable for pharmaceutical and nutraceutical markets such as printing on pills and capsules. Sun Chemical is collaborating with printer manufacturers specifically targeting the food and pharmaceutical industries, highlighting the need to provide the market a fully capable and innovative food printing technology.

Revenues decreased by $83.1 million, or 11.8%, from $705.8 million in the first quarter of 2020 to $622.7 million in the corresponding period of 2021. This decline is mainly attributable to lower volume in the Printing Sector due to the impact of the COVID-19 pandemic and the sale of the paper packaging operations, which occurred toward the end of the first quarter of the previous year. This decrease was partially mitigated by the solid organic growth in revenues in the Packaging Sector and the revenues generated by the acquisition of Artisan Complete Limited in the Printing Sector. Operating earnings increased by $6.4 million, or 15.7%, from $40.8 million in the first quarter of 2020 to $47.2 million in the first quarter of 2021. The increase in operating earnings is explained by the organic growth in the Packaging Sector. In addition, in the Printing Sector, initiatives to optimize operational efficiency and the Canada Emergency Wage Subsidy offset a majority of the decrease in volume. Net earnings attributable to shareholders of the Corporation increased by $21.3 million, from $6.4 million in the first quarter of 2020 to $27.7 million in the first quarter of 2021. This increase is mostly explained by the income tax expense related to the sale of the paper packaging operations in the first quarter of 2020, higher operating earnings and the decrease in net financial expenses resulting from a reduction in net indebtedness and a lower weighted average interest rate.

*Increased Net Sales 5% in the first quarter of 2022, or 9% sales growth excluding divestitures, driven by increased pricing in response to inflationary cost pressures; print segment share gains from new clients; and Net Sales growth in Targeted Print and Agency Solutions. *Reported Net Loss of $1 million and Adjusted EBITDA of $49 million in the first quarter of 2022, compared to Net Earnings of $10 million and Adjusted EBITDA of $70 million in the first quarter of 2021. *Implemented additional price increase, effective May 15, 2022, to help offset inflationary cost pressures.