Cascades has said its Tissue Papers division “executed well” in its latest results, with increased average selling prices for the division despite a context of elevated raw material prices and ongoing inflationary pressure.
First quarter sales of $1,109m decreased by $25m compared with the same period last year, and compared to $1,134m in Q1 2023.
The company said the decrease was driven by a $64m impact from lower selling prices in all its business segments.
However, it said this was partially offset by a $23m benefit from a more favourable sales mix in the Tissue segment, and a $16m benefit from higher volume.
The latter was a net result of a $46m volume benefit in the company’s packaging businesses and a $30m negative volume impact in its Tissue business, which it said reflects operational platform changes including closures completed in the past year.
Operating income of $9m compared with an operating loss of $(24)m in Q4 2023 and an operating loss of $(80)m in Q1 2023.
EBITDA of $103m compared with $122m in Q4 2023 and $134m in Q1 2023.
Mario Plourde, Cascades President and Chief Executive, said: “First quarter 2024 results met expectations, considering the context of elevated raw material prices, and ongoing inflationary pressure on operational costs.
“Sequentially, Tissue Papers executed well, with increased average selling prices partially offsetting the impacts from higher maintenance costs and softer seasonal volumes.
Plourde added that consolidated second quarter results are expected to be stronger sequentially, driven by improved performance in the company’s Containerboard segment as index price increases are implemented, and stable results in the Tissue Papers and Specialty Packaging businesses.
He said: “We are continuing to advance the Bear Island facility ramp-up.
“It is progressing well, and we are pleased that the mill has achieved production levels above its rated daily capacity on several occasions.
“Broadly, we are cautiously optimistic for near-term volumes in our packaging businesses given continued economic uncertainty, and remain focused on profitability, efficiency and productivity initiatives and the ramp-up of Bear Island to create value throughout our operations.”
