Cascades registers sales of $818.1m in third quarter of FY21
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Cascades registers sales of $818.1m in third quarter of FY21

12 Nov 2021 (Last Updated November 12th, 2021 09:14)

Cascades forecasts consistently stable results for the fourth quarter of the year.

Canada-based sustainable packaging company Cascades has posted sales of C$1.03bn ($818.1m) for the third quarter (Q3) of 2021 (FY21), which ended on 30 September.

During this period, the company’s sales increased by $16m, up by 2% compared with the same period of last year and an 8% growth from the second quarter (Q2) of FY21.

Cascades’ operating income, including specific items, rose by 35% to C$73m compared with the same period a year earlier.

The company’s adjusted operating income, excluding specific items, dropped by 31% from Q3 2020 to C$44m.

Its net earnings for the quarter were C$32m, compared to C$49m a year earlier.

Cascades expects the stable results trend to continue for the upcoming fourth quarter (Q4).

As part of its strategy to improve its financial stability, the company completed the repurchase of $299m of its long-term notes on 9 November.

It also monetised its 57.6% equity stake in Reno de Medici last month.

Cascades president and CEO Mario Plourde said: “Our third-quarter performance reflects the ongoing dynamic nature of the North American macro environment and the announced production impact in our containerboard segment related to water effluent treatment system issues at our Niagara Falls complex.

“We are encouraged with our results given this context, and with the sequential improvement in our tissue business.

“Looking ahead, we are forecasting sequentially stable results for the fourth quarter, with the impact of inflationary pressures on input costs largely mitigated by steady demand and the roll-out of price increases in our business segments.”

In August, Cascades introduced fully recycled plastic packaging for its entire Fluff and Tuff line.

The packaging was developed after several months of research and testing and was designed to meet customer expectations.

It is part of Cascades’ efforts to integrate its environmental values with technological innovation.