Canada's Supremex Q4 revenue rises 5.6% on Packaging & Specialty Products unit strength

Overview

• Canada envelope maker's Q4 revenue rose 5.6% yr/yr

• Company acquired Elite Envelope to enhance U.S. market presence

Outlook

• Company sees economic volatility and trade uncertainty affecting product demand

• Supremex plans to expand in U.S. envelope market despite competitive pressures

• Company focuses on acquisitions in Packaging and Specialty Products segment

Result Drivers

• PACKAGING GROWTH - Packaging & Specialty Products segment revenue rose 18.3% due to higher folding carton sales and e-commerce packaging expansion

• ENVELOPE CHALLENGES - Envelope segment faced challenges with reduced sales to a large U.S. customer and Canada Post disruptions

• U.S. EXPANSION - Acquisition of Elite Envelope aimed at enhancing U.S. market presence

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the paper products peer group is "buy"

• Wall Street's median 12-month price target for Supremex Inc is C$5.00, about 31.2% above its February 18 closing price of C$3.81

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX7rNqhV

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