Supremex Inc. announced its results for the Q1 ended March 31, 2025. Total revenue was $70.2 million, representing a decrease of $3.0 million, or 4.1%, from the equivalent quarter of 2024.
Q1 2025 EBITDA was $8.5 million, compared to $10.5 million in the Q1 2024. Adjusted EBITDA was $8.8 million, versus $10.5 million in the Q1 2024. The decrease reflects lower revenue and higher selling, general and administrative expenses, partially offset by lower operating expenses. The Adjusted EBITDA margin was 12.6% of revenue, versus 14.3% in the equivalent quarter of 2024.
Net earnings were $1.9 million or $0.08 per share for the three-month period ended March 31, 2025, compared to $3.5 million or $0.14 per share for the equivalent period last year. Adjusted net earnings were $2.2 million or $0.09 per share for the three-month period ended March 31, 2025, compared to $3.5 million or $0.14 per share for the equivalent period in 2024.
“Supremex generated healthy financial results despite uncertainty caused by the threat of North American tariffs,” said Stewart Emerson, President and CEO of Supremex. “Driven by an increasingly larger reach in the U.S. market, our envelope business delivered its fourth consecutive quarter of year-over-year volume growth, although pricing remains affected by mix-related factors. In packaging, solid volume improvement in folding carton and robust demand for e-commerce fulfilment solutions produced sales growth of nearly 10% and a significant rise in profitability.”
“As we look ahead, we expect Supremex’ well-established position in key markets to support volume momentum, further improving absorption. Efficiency and productivity gains, as well as cost savings from optimization initiatives, should also support additional profitability improvement. In parallel, our strong balance sheet and cash flow generation provide us with the flexibility to pursue strategic initiatives, including tuck-in acquisitions across our two businesses that we can efficiently and rapidly integrate into our network. Finally, we continue to progress towards concluding a sale-leaseback transaction on two properties to unlock value for our shareholders,” concluded Mr. Emerson.
Outlook
Following challenging market conditions for 2023 and 2024, demand for the Company’s products is gradually normalizing, although the current economic volatility and ongoing trade uncertainty are causing unpredictability. As it continues to expand in the vast and fragmented U.S. envelope market, Supremex will be increasingly subject to competitive pressures, but the Company will rely on its solid reputation and geographic reach to stimulate sales while continuing to proactively control expenses.
The Company continues to focus on optimizing operating efficiency, productivity and capacity utilization throughout its network, evidenced by the initiatives announced in July 2024 for the Envelope segment and in October 2023 for the Packaging & Specialty Products segment, as well as on capturing all sales and cost synergies form recent business acquisitions.
With respect to capital deployment, the Company will continue to look for strategic acquisitions, mainly in the Packaging & Specialty Products segment, while sustaining capital returns to shareholders.
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions.
