Good morning, everyone. Today, we had the opportunity to listen in on the CCL Industries, Inc. Q2 2024 Earnings Conference Call. The call was led by Geoff Martin, the President, CEO, and Director of the company, along with Sean Washchuk, the CFO, and SVP. They provided us with an overview of the financial information for the second quarter of 2024.
In the second quarter, sales increased by 12.2%, with 8.5% organic growth, 3% acquisition-related growth, and a 0.7% positive impact from foreign currency translation. This resulted in sales of $1.85 billion compared to $1.64 billion in the second quarter of 2023. Operating income also saw a significant increase of 25% excluding the impact of foreign currency translation.
The company’s balance sheet showed a strong position with a balance sheet leverage ratio of approximately 1.23x, robust liquidity with $666 million in cash on hand, and $907 million of available undrawn credit capacity on the company’s revolving bank credit facility. The net earnings for the second quarter were $279.5 million compared to $155.9 million for the same period in 2023.
Geoff Martin discussed the highlights of the company’s capital spending, recent investments, and the performance of each segment, including CCL, Avery, Checkpoint, and Innovia. The company saw strong growth in the CCL segment, particularly in Asia Pacific and Latin America. Additionally, there was significant growth in the RFID business within the Checkpoint segment.
Looking ahead, the company expects steady progress in the Avery segment and continued growth in the CCL Design business. They also anticipate positive growth in the CCL segment in Q3, with comps easing in the second half of the year. The company remains focused on strategic investments, acquisitions, and maintaining a strong financial position.
Overall, it was a successful quarter for CCL Industries, Inc., and they are optimistic about their future performance. Thank you for joining us on the call today, and we look forward to updating you on our Q3 results in November. Goodbye for now.
