Transcontinental Q2 profit drops to $28.3 million without COVID wage subsidy

MONTREAL – Transcontinental Inc. says its net profit attributable to shareholders dropped more than 20 per cent to $28.3 million in its latest quarter with the ending of a COVID-19 wage subsidy.

The Montreal-based printing, media and packaging company says it earned 33 cents per share in what was the second quarter of its financial year, down from $35.6 million or 41 cents per share a year earlier.

The results last year included $7.5 million from the Canada Emergency Wage Subsidy.

The company’s adjusted profit for the quarter was $41.7 million or 48 cents per share, compared with $47.8 million or 55 cents per share in the same quarter last year.

Revenue for the three months ended May 1 were $715.5 million, up 14.8 per cent from $623.3 million in the prior year quarter,with packaging revenue climbing 21 per cent and printing up nine per cent.

Analysts on average had forecast adjusted profits of 43 cents per share on $678.7 million of revenues, according to financial data firm Refinitiv.

This report by The Canadian Press was first published June 8, 2022.

Companies in this story: (TSX:TCL.A)