Toronto-based packaging company CCL Industries Inc. said that despite strong demand for labels for over-the-counter medicine, hand sanitizer and skin cleanser, second-quarter sales were hurt by "severe" declines in products such as Avery event badges.
Net earnings were $103.9 million in the three months ending June 30, down from $121.3 million in the year-ago period.
Second-quarter sales slid 9.8 per cent to $1.22 billion, down from $1.35 billion over the same period in 2019.
Adjusted earnings per share were 59 cents, compared to 46 cents per share expected by analysts.
The company's board also approved a 18-cent-per-share dividend for non-voting shares, and shares rose more than 8 per cent heading into Friday’s close.
Chief executive Geoffrey Martin said the company dealt with dramatic changes in demand during the quarter, with some essential businesses almost doubling while other product lines evaporated.
Martin cited tepid orders of luxury skincare and cosmetics, surging back-to-school paper demand, shutdown of certain central bank currency printing operations, and restructuring of wine label businesses in Australia and Chile as some of the varying challenges faced by the company.
This report by The Canadian Press was first published Aug. 7, 2020.