Inflation has not spared Cascades, which posted an operating loss in the first quarter of its 2022 fiscal year, which ended March 31.
The Quebec company thus recorded a loss of $ 4 million, or a loss of 15 cents per share, well below its profit of $ 44 million, or 22 cents per share, received in the first quarter of 2021.
However, sales increased for this first quarter of 2022, with a total of $1.038 billion compared to $942 million for the corresponding period of the previous year.
“The performance of our first quarter is disappointing and below our expectations,” Cascades President and CEO Mario Plourde said in a statement Thursday.
According to him, the increase in production and operating costs, but also in the price of raw materials and fuel, had an impact on the results. Transportation problems also delayed deliveries, resulting in a slight decrease in demand for Cascades’ products.
“Looking to the future, we are implementing price increases in our packaging sectors that will help offset the headwinds relating to input costs. These increases, combined with favorable demand for our packaging products as we begin the summer season, will gradually improve profitability levels in the months to come,” said Mr. Plourde.
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