CCL Industries reports strong Q2 growth with cautious outlook, focusing on strategic expansion

From Investing.com: 2024-08-11 13:05:27

CCL Industries Inc. (CCL) reported strong sales growth in Q2 2024, with a 12.2% increase to $1.85 billion. Operating income rose by 25% to $303.5 million, excluding currency impacts. Net earnings were positively influenced by a revaluation gain of $279.5 million. The company maintains a solid balance sheet with a leverage ratio of 1.23x and substantial liquidity.

The company’s Q2 sales increase was driven by 8.5% organic growth, 3% from acquisitions, and favorable currency translation. Operating income saw a significant rise to $303.5 million. Net earnings benefited from a revaluation gain of $279.5 million. The company’s balance sheet remains strong with a leverage ratio of 1.23x and substantial liquidity.

CCL Industries’ CEO expressed uncertainty about August and September due to market conditions. Strong growth is expected in Asia Pacific and Latin America. The company plans share buybacks as the net debt-to-EBITDA ratio decreases. CCL focuses on bolt-on acquisitions and organic growth.

Despite strong Q2 performance, CCL Industries remains cautious about market conditions for the rest of the year. The company is focused on organic growth, acquisitions, and capacity expansion in high-growth areas like the RFID technology market. The CEO emphasized a strategic outlook despite market volatility.



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