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May 13, 2022

Cascades delivers $796.73m in sales for first quarter of FY22

The company expects its full-year performance to be in the range of the 2022 target that it revealed in February.

Canadian paper and packaging company Cascades has registered C$1.03bn ($796.73m) in sales for the first quarter (Q1) of the fiscal year 2022 (FY22).

This figure represents an increase from C$942m in the same period of the previous year.

During the three months to 31 March, the company suffered an operating loss of C$4m against an operating income of C$44m in Q1 2021, while its adjusted operating loss for the quarter was C$2m.

Cascades registered a net loss of C$15m compared with net earnings of C$29m in the same period of FY21.

Its net loss for each common share was C$0.15 in the quarter, against net earnings of C$0.22 for each common share in Q1 2021.

Cascades president and CEO Mario Plourde said: “Our first-quarter performance was disappointing and lower than our expectations.

“While demand levels were stable for our packaging segments and continued to show positive underlying momentum in tissue, two main factors caused results to come in below our outlook.

“The first was the important escalation in production and operational costs, the effects of which were further compounded for our Tissue segment by persistently higher raw material prices.

“The second was logistics from both a cost and availability standpoint. Inflation driven fuel surcharges increased already elevated cost levels.”

Cascades plans to implement price increases in its packaging segments to balance input cost headwinds during the rest of FY22.

Plourde added: “Despite significant cost headwinds, we remain confident that we will be in the range of the 2022 target disclosed in our February strategic update.

“Benefits from previously announced price increases will begin to support this segment’s results in the second quarter and will be further supplemented by additional price increases for Away-from-Home products announced for 1 July, as well as continued revenue and cost optimisation initiatives.”

In February this year, Cascades commissioned an isothermal packaging production site in Tacoma, Washington.

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