CCL Industries Inc. Reports Strong Q2 2024 Earnings

Revenue and Earnings Surge, Outpacing Market Expectations

Continued Growth in Packaging and Specialty Products Drives Financial Performance

Toronto, Ontario – August 9, 2024 – CCL Industries Inc. (OTCPK: CCDBF), a leading global specialty packaging solutions company, today announced its financial results for the second quarter of 2024, demonstrating significant growth in revenue and earnings.

For the quarter ended June 30, 2024, CCL Industries reported revenue of $2.3 billion, a 12% increase compared to $2.1 billion in Q2 2023. Adjusted basic earnings per Class B share reached $1.13, a substantial 25.6% increase over the $0.90 earned in the corresponding quarter last year. This strong financial performance exceeded market expectations.

Packaging and Specialty Products Lead Growth

The company's continued growth is attributed to its strong performance in packaging and specialty products. CCL's packaging segment, which includes flexible packaging, labels, and specialty packaging, saw revenue rise by 10.5% to $1.7 billion. This growth was driven by increased demand for sustainable packaging solutions and e-commerce packaging. The specialty products segment, focusing on chemicals, coatings, and materials, contributed $600 million in revenue, a 15% increase. This growth was driven by rising demand from the automotive and industrial sectors.

Strategic Investments and Acquisitions

CCL Industries has continued to invest in strategic acquisitions and expansions to enhance its global reach and product offerings. Recent acquisitions include the purchase of the European specialty chemicals company Polyplex and the expansion of its specialty packaging operations in Asia.

Strong Financial Position

The company maintains a strong financial position with net debt as of June 30, 2024, at $1.61 billion, reflecting a modest increase from the previous quarter. Its robust cash flow generation and disciplined financial management have allowed CCL Industries to invest in growth initiatives while maintaining its financial strength.

Conclusion

CCL Industries' Q2 2024 financial results demonstrate the company's continued success in the global packaging and specialty products markets. The strong growth in revenue and earnings, coupled with strategic acquisitions and a solid financial position, positions CCL Industries for continued success and growth in the future.