Cascades reports solid Q2 2023, up on same period last year

Cascades Inc. has reported its unaudited financial results for the three-month period ended June 30, 2023. Sales reached $1,168m ($1,119m in Q2 22) and operating income was $64m ($32m in Q2 22).

Mario Plourde, President and CEO, commented, “We had a solid second quarter, with consolidated sales and EBITDA levels increasing 4% and 55%, respectively, year-over-year. Results were driven by the Tissue Papers segment, which had its strongest performance since Q2 2020, reflecting benefits from commercial and operational initiatives. Slightly softer results in the Containerboard segment largely reflect lower index-linked selling prices, the effects of which more than offset the beneficial effect of lower raw material costs. As expected, Containerboard results include costs related to Bear Island as the facility continues to be ramped up. Lastly, results in the Specialty Packaging business decreased slightly year-over-year, as softer volumes and higher production costs more than offset higher selling prices.”

Plourde added, “On a consolidated basis, we are expecting a stable operational performance sequentially in the third quarter, with the Containerboard and Specialty Packaging businesses generating stable results and the Tissue Papers segment delivering a slightly stronger performance. Additionally, we anticipate continued progress in the ramp up of the Bear Island Mill. More broadly, while we are remaining prudent on the demand-side, raw material pricing for our Tissue business and lower transportation costs for all of our businesses are expected to be tailwinds in the third quarter. Production cost levels are expected to be stable sequentially while continuing to be more elevated than last year. Lastly, we anticipate that our leverage ratio will continue to improve in the coming quarters.”

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