Revenues for Transcontinental Inc. of Montreal were up 8.4 percent in the first quarter, increasing from $487.6 million to $528.7 million. The company stated the increase was mainly due to its March 2012 acquisition of Quad/Graphics Canada Inc. and its May 2012 acquisition of a majority stake in Redux Media, as well as the Métro Montréal daily commuter paper.
Transcontinental also points out its Q1 revenue increase was partly offset by the termination of its Zellers flyer printing and distribution contract, because of the closure of the Zellers stores.
Adjusted operating income for Transcontinental in its first quarter rose 6.3 percent, from $43.0 million to $45.7 million, again pointing to the above-mentioned conditions.
“The growth in our revenues and profitability demonstrates how effectively we executed our strategy,” stated François Olivier, President and Chief Executive Officer of TC Transcontinental. “In the Printing Sector, with the ongoing integration of Quad/Graphics Canada, Inc., we have generated further synergies this quarter.”
Olivier expects to continue improving Transcontinental’s profitability as Quad/Graphics Canada is further integrated. Also within its printing sector, Transcontinental recently concluded new multi-year printing agreements with several retailers, namely Shoppers Drug Mart, to print point-of-sale promotional materials, and with Safeway U.S. to print flyers. These agreements will add about $30 million in annual sales.
Transcontinental also signed several multi-year agreements, including a contract to print flyers for brands like Best Buy and Future Shop, with the addition of flyer distribution in Quebec and the Atlantic provinces.