"Our first quarter performance was driven by lower volumes across our businesses as uncertainty regarding tariffs led to a deterioration in consumer and business sentiment beginning in mid-February," – Hugues Simon, President and CEO of Cascades.
May 8, 2025 - Cascades Inc. (TSX: CAS) has reported its unaudited financial results for the three-month period ended March 31, 2025.
Hugues Simon, President and CEO, commented, "Our first quarter performance was driven by lower volumes across our businesses as uncertainty regarding tariffs led to a deterioration in consumer and business sentiment beginning in mid-February, resulting in lower sales and profitability levels sequentially. Results were similarly impacted by usual higher seasonal energy costs, increased operational costs due to lower production, and higher transportation costs. Offsetting these factors were favourable average selling prices and raw material costs across our businesses. Broadly, the depreciation of the Canadian dollar benefited quarterly results."
Discussing near-term outlook, Mr. Simon commented, "We are expecting stronger second quarter results. The sequential improvement in packaging will reflect benefits from the implementation of previously announced price increases. We expect improved tissue performance to be driven by volume growth, with positive retail tissue trends and a pick-up in Away-from-Home, along with pricing initiatives, the benefits of which are expected to mitigate higher raw material costs. Broadly, continued uncertainty in the macro-economic environment may impact future demand levels across North America and our outlook."
The Corporation's first quarter sales of $1,154 million increased by $45 million compared with the same period last year. This increase was driven by consolidated net benefits of $47 million from higher selling prices and $45 million from a more favourable foreign exchange. These were partially offset by $48 million from lower volumes.
The first quarter EBITDA (A)1 totaled $125 million, an increase of $22 million, or 21%, from the $103 million generated in the same period last year. This increase was driven by net benefits of $47 million from higher selling prices, mainly in the packaging products segment and a more favourable exchange rate. These were partially offset by net impacts of $10 million from higher production and energy costs and $15 million from lower volumes.
The main specific items, before income taxes, that impacted our first quarter of 2025 operating income and/or net earnings were:
For the three-month period ended March 31, 2025, the Corporation posted net earnings of $7 million, or $0.07 per common share, compared to a net loss of $(20) million, or ($0.20) per common share, in the same period of 2024. On an adjusted basis1, the Corporation posted net earnings of $13 million in the first quarter of 2025, or $0.13 per common share, compared to a net loss of less than a million dollars, or $0.00 per common share, in the same period of 2024.
Founded in 1964, Cascades (TSX: CAS) offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 9,700 women and men across a network of 68 operating facilities, including 18 Recovery and Recycling facilities which are part of Corporate Activities and joint ventures managed by the Corporation, in North America.
SOURCE: Cascades Inc.