(Kingsey Falls) Cascades achieved an operating profit of 25 million in the third quarter of the current fiscal year, compared to 73 million in the corresponding quarter of fiscal 2021.
During the same period, adjusted operating profit remained stable at 44 million.
Sales of the Quebec paper giant rose from 1.03 billion to 1.174 billion. Cascades explains this increase by the improvement in prices and the assortment of products sold, as well as by the exchange rate of the Canadian dollar against the United States currency.
Cascades President and Chief Executive Officer, Mario Plourde, reports that third quarter performance is in line with expectations, even though the tissue paper sector continued to face unprecedented cost inflation and a decrease in its productivity. He explains this decline by the shortage of labor and certain production inefficiencies.
Mario Plourde expects stable sequential results in the packaging sectors in the short term. As for the tissue paper sector, it forecasts higher sequential results.
Cascades’ Board of Directors has declared a quarterly dividend of $0.12 per common share, payable on December 8th.
Company quoted in this dispatch: Cascades (TSX: CAS)