Supremex Inc. announced its results for the 3Q ended September 30, 2018. Revenue for the 3Q 2018, increased by 4%, or $1.8 million, reaching $45.2 million compared to $43.4 million during the three-month period ended September 30, 2017. Revenue growth comes primarily from packaging and specialty products, which now represents 28.7% of the Company's revenues in the quarter.
Adjusted EBITDA stood at $5 million, compared with $6.4 million in the 3Q 2017, representing a decrease of $1.4 million, or 21.8%, from the loss of envelope sales volume combined with inflationary pressures on input costs, mainly paper and transportation. 3Q 2018 Adjusted EBITDA margins stood at 11% of revenues compared with 14.6% in the equivalent quarter of 2017.
Net earnings reached $1.2 million for the three-month period ended September 30, 2018, compared with $3.2 million for the equivalent period in 2017.
Adjusted net earnings reached $2.1 million for the three-month period ended September 30, 2018, compared with $3.5 million for the equivalent period in 2017.
"Revenues increased 4% in the quarter resulting from our diversification strategy into the growing packaging market. Although we have experienced growth in the packaging side, profitability was dragged down by a combination of envelope volume reduction and margin pressures related to rapidly rising input costs. The loss of volume was exclusively from the envelope business, primarily from secular decline, the impact of 3Q and 4Q 2017 customer movement and the potential effect of a Canada Post disruption," said Stewart Emerson, President & CEO of Supremex.
Supremex Inc. is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions.
