Canada-based flexible packaging supplier Transcontinental has reported that its full-year revenue for the fiscal year 2021 (FY21) rose by 2.7% to C$2.64bn ($2.08bn).
The company said this growth was due to the impact of higher resin prices and volumes in its Packaging sector, as well as acquisitions and a greater level of in-store marketing activities in its Printing sector.
Transcontinental’s operating earnings decreased by 3.1% to C$233.8m, while its adjusted operating earnings declined by 11.1% to C$313.5m.
The firm’s net earnings attributable to its shareholders dropped by 0.8% to C$130.6m and its earnings per share (EPS) fell from C$1.51 to C$1.50.
During the year, adjusted net earnings attributable to Transcontinental’s shareholders decreased by 9.1% to C$206.4m and from C$2.61 to C$2.37 on an EPS basis.
The company’s revenue for the fourth quarter (Q4) increased by 18.3% to C$775.8m.
For the three months to 31 October, Transcontinental’s operating earnings dropped by $0.7m, representing a 0.9% decline.
The firm’s adjusted operating earnings also decreased by 4.7% to C$104.9m during this quarter.
Driven by an increase in income taxes, the company’s net earnings attributable to shareholders dropped by C$12.1m to C$39.2m in Q4.
Transcontinental outgoing president and CEO François Olivier said: “In our Packaging sector, our main engine of long-term growth, demand remains strong.
“Through our operational efficiency initiatives and our price increases resulting from higher raw material costs, we successfully offset inflationary pressures, especially with respect to resin prices.
“We continued to invest in our innovation initiatives to meet our customers’ sustainability objectives based on the conviction that our sustainable packaging will be a key driver of our long-term growth.”
Transcontinental said that it expects its full-year operating earnings for FY22 to be better than those recorded in the last fiscal year (FY21).
Last month, the company acquired US-based die-cut lid and label maker HS Crocker for an undisclosed sum.