TC Transcontinental’s revenues grew 0.6%, from $1,990.4 million to $2,002.2 million during 2015. Acquisitions, specifically Capri Packaging and the Quebec weekly newspapers, mainly contributed to revenues. The signing of new agreements in several niches and the appreciation of the US dollar against the Canadian dollar also had a favorable impact.
The increase in revenues was however mitigated by the impact of the market transformation on the results of the printing division and the Media Sector, the loss of certain customers early in the fiscal year, which affected the flyer printing and distribution operations, and the sale of certain assets. Adjusted operating earnings increased by 9.3%, from $253.2 million in 2014 to $276.7 million in 2015.
“We had an excellent year in 2015, said François Olivier, president and CEO of TC Transcontinental. Our printing division and our Media Sector showed once again resilience by increasing their profitability in a market in transformation.”
“In the printing division, we continued to optimize our platform, sign new agreements with customers and develop the promising in-store marketing market. In the Media Sector, we significantly increased our profitability by proactively managing our portfolio of publications, growing our digital sales and expanding our non-advertising sources of revenues.”
“In addition, I am especially satisfied with the major strides we made in our packaging division, a niche with a strong growth potential,” added Olivier. “Not only did we double our position in the market with the acquisition of Ultra Flex Packaging at the end of the year, we also signed a multi-year agreement with a leader in the North American dairy industry.”
Revenues for the fourth quarter of 2015 went from $548.2 million to $540.1 million. The decrease stems from the continued effects of the market transformation on the results of the printing division and the Media Sector. The loss of certain customers early in the fiscal year in the flyer printing operations was mitigated by previously announced new contracts, the progression of the in-store marketing product offering and an increase in revenues in the digital business. The existing flyer business remained relatively stable.
The appreciation of the US dollar against the Canadian dollar and the acquisition of Ultra Flex Packaging, announced in October 2015, also had a favorable impact. Adjusted operating earnings decreased 5.0%, from $92.4 million to $87.8 million in the fourth quarter of 2015.