11.12.21
CCL Industries Inc. reported 2021 third quarter results.
Sales for the third quarter of 2021 increased 8.4% to $1,488.2 million compared to $1,373.4 million for the third quarter of 2020, with organic growth of 10.3% and acquisition-related growth of 2.2%, partially offset by 4.1% negative impact from foreign currency translation.
Operating income for the third quarter of 2021 declined 9.1% to $223.9 million compared to $246.3 million for the comparable quarter of 2020.
“I am pleased to report strong third quarter results, significantly ahead of the same period in 2019, but as expected below the record 2020 third quarter, which included high margin, windfall banknote substrate orders for CCL Secure,” said CEO Geoffrey T. Martin.
“Excluding the heavy comparative decline at CCL Secure, the rest of the CCL Segment delivered good 6.1% organic sales growth,” Martin added. “Sales growth at CCL Design, driven by extensive gains in electronics markets, could not offset higher operating costs and the semiconductor crisis severely affecting demand across the automotive industry. Healthcare & Specialty sales increased modestly, although profits declined slightly compared to a mix-driven, pandemic related tailwind in the prior year period. Food & Beverage results improved as ‘on premise’ demand normalized in many markets.
Checkpoint’s sales increased 11.5% to $189.3 million, on organic growth of 11%, 5.1% acquisition contribution partially offset by 4.6% negative impact from foreign currency translation. Operating income was $24.6 million, down 16.9%, with a 13% operating margin, down 440 bps.
“Checkpoint delivered double-digit organic sales growth but normalized operating costs combined with freight and materials inflation, reduced profit margins compared to the strong recovery period in 2020,” he added.
“Inflationary pressures progressively developed across the company in 2021 and are expected to continue well into 2022,” Martin noted. “Offsetting productivity and product re-engineering initiatives and, where appropriate, sales price increases are all front of mind for the coming quarters.”
Sales for the third quarter of 2021 increased 8.4% to $1,488.2 million compared to $1,373.4 million for the third quarter of 2020, with organic growth of 10.3% and acquisition-related growth of 2.2%, partially offset by 4.1% negative impact from foreign currency translation.
Operating income for the third quarter of 2021 declined 9.1% to $223.9 million compared to $246.3 million for the comparable quarter of 2020.
“I am pleased to report strong third quarter results, significantly ahead of the same period in 2019, but as expected below the record 2020 third quarter, which included high margin, windfall banknote substrate orders for CCL Secure,” said CEO Geoffrey T. Martin.
“Excluding the heavy comparative decline at CCL Secure, the rest of the CCL Segment delivered good 6.1% organic sales growth,” Martin added. “Sales growth at CCL Design, driven by extensive gains in electronics markets, could not offset higher operating costs and the semiconductor crisis severely affecting demand across the automotive industry. Healthcare & Specialty sales increased modestly, although profits declined slightly compared to a mix-driven, pandemic related tailwind in the prior year period. Food & Beverage results improved as ‘on premise’ demand normalized in many markets.
Checkpoint’s sales increased 11.5% to $189.3 million, on organic growth of 11%, 5.1% acquisition contribution partially offset by 4.6% negative impact from foreign currency translation. Operating income was $24.6 million, down 16.9%, with a 13% operating margin, down 440 bps.
“Checkpoint delivered double-digit organic sales growth but normalized operating costs combined with freight and materials inflation, reduced profit margins compared to the strong recovery period in 2020,” he added.
“Inflationary pressures progressively developed across the company in 2021 and are expected to continue well into 2022,” Martin noted. “Offsetting productivity and product re-engineering initiatives and, where appropriate, sales price increases are all front of mind for the coming quarters.”