Cascades has reported lower first quarter volumes across its business following uncertainty regarding tariffs and higher seasonal energy costs, adding that stronger second quarter results including an improved tissue performance driven by volume growth are expected.
For the three-month period ended 31 March sales of $1,154m compared with $1,211m in Q4 2024 and $1,109m in Q1 2024.
Operating income for the period was $50m compared with $16 in Q4 2024 and $9m in Q1 2024.
Hugues Simon, President and Chief Executive, said: “Our first quarter performance was driven by lower volumes across our businesses as uncertainty regarding tariffs led to a deterioration in consumer and business sentiment beginning in mid-February, resulting in lower sales and profitability levels sequentially.
“Results were similarly impacted by usual higher seasonal energy costs, increased operational costs due to lower production, and higher transportation costs.
“Offsetting these factors were favourable average selling prices and raw material costs across our businesses.
“Broadly, the depreciation of the Canadian dollar benefited quarterly results.”
Simon added that the business is expecting to see “stronger second quarter results.”
He said: The sequential improvement in packaging will reflect benefits from the implementation of previously announced price increases.
“We expect improved tissue performance to be driven by volume growth, with positive retail tissue trends and a pick-up in AfH, along with pricing initiatives, the benefits of which are expected to mitigate higher raw material costs.
“Broadly, continued uncertainty in the macro-economic environment may impact future demand levels across North America and our outlook.”
