MONTREAL — Transcontinental Inc. says its net profit attributable to shareholders dropped by one-third in its latest quarter despite higher revenues as a COVID-19 variant disrupted operations.
The Montreal-based printing, media and packaging company says it earned $18.4 million or 21 cents per share in the first quarter, down from $27.7 million or 32 cents per share a year earlier.
Adjusted profits were $30 million or 35 cents per share, compared with $43.8 million or 50 cents per share in the first quarter of 2021.
Revenues for the three months ended Jan. 30 were $690.6 million, up 10.9 per cent from $622.7 million in the prior year quarter, mainly due to higher resin prices and acquisitions.
Analysts on average had forecast adjusted profits of 51 cents per share on $676.7 million of revenues, according to financial data firm Refinitiv.
Chief executive Peter Brues says the financial results didn't meet its expectations.
"The spread of the Omicron variant caused significant operational disruptions that hampered our ability to efficiently manage our business and, combined with inflationary pressures, had an adverse impact on our profitability," he said in a news release.
He said the printing sector produced strong organic growth in revenues and solid profitability despite the pandemic challenges, while the media sector's revenues and profitability was improved.
This report by The Canadian Press was first published March 8, 2022.
Companies in this story: (TSX:TCL.A)
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