CCL Industries (CCDBF, Financial) has announced the passing of Vincent Galifi, a respected member of its Board of Directors. Galifi joined the company’s board in December 2016, bringing significant expertise and leadership to his roles. In May 2019, he was appointed as the Chair of the Audit Committee, where he played a crucial role in overseeing financial operations and ensuring regulatory compliance.
Additionally, since May 2017, Galifi contributed to the Human Resources Committee, using his extensive knowledge to support the company’s strategic human resource initiatives. His passing is a great loss to the company, and his contributions will be remembered by his colleagues and the broader CCL Industries community.
CCDBF Key Business Developments
Release Date: February 20, 2025
- Sales: $1.81 billion for Q4 2024, a 9% increase from $1.66 billion in Q4 2023.
- Operating Income: $267.9 million for Q4 2024, up 5% from $254.8 million in Q4 2023.
- Net Earnings: $179.8 million for Q4 2024, compared to $38.8 million in Q4 2023.
- Effective Tax Rate: 22.9% for Q4 2024, down from 57% in Q4 2023.
- Free Cash Flow from Operations: $261.7 million for Q4 2024, compared to $273.8 million in Q4 2023.
- Net Debt: $1.62 billion as of December 31, 2024, an increase of $110.7 million from December 31, 2023.
- Basic Earnings per Share (EPS): $1.01 for Q4 2024, compared to $0.22 for Q4 2023.
- Adjusted EPS: $1.02 for Q4 2024, a 5.2% increase from $0.97 in Q4 2023.
- Dividend Payout: $206.4 million year-to-date for 2024, with a 9.4% increase in annual dividend.
- Cash on Hand: $829 million as of December 31, 2024.
- Balance Sheet Leverage Ratio: 1.08 times as of December 31, 2024, down from 1.13 times at the end of 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sales increased by 9% in the fourth quarter of 2024, with 6.8% organic growth.
- Operating income rose by 5% in the fourth quarter of 2024 compared to the same period in 2023.
- Net earnings for the fourth quarter of 2024 were significantly higher at $179.8 million compared to $38.8 million in 2023.
- The company repurchased 2.6 million shares and increased the annual dividend by 9.4% in 2024.
- Liquidity remains strong with $829 million of cash on hand and approximately $1 billion of available undrawn credit capacity.
Negative Points
- Free cash flow from operations in the fourth quarter of 2024 was slightly behind the same period in 2023.
- Net debt increased by $110.7 million as of December 31, 2024, due to capital expenditures, business acquisitions, and share buybacks.
- The Checkpoint segment experienced a decline in margins due to unfavorable foreign exchange impacts and a weak performance in Brazil.
- The automotive industry slowdown poses a challenge for the CCL Design segment.
- Startup costs for new plants, including those in Germany and Vietnam, are expected to impact future financials.
