07:36 AM EST, 02/20/2025 (MT Newswires) -- Cascades (CAS.TO) on Thursday, reported a fourth-quarter sales beat and an increase in adjusted earnings per share as favourable average selling prices and raw material costs in the containerboard business drove stronger sequential results, offsetting the impact of lower seasonal volumes.

The company reported an increase in adjusted net earnings for the three-months ended Dec. 31, to $25 million compared with $5 million in the prior year period. Adjusted net earnings per common share was $0.25 compared with $0.05 in the previous year but missed analyst forecasts polled by FactSet of $0.29.

Sales rose to $1.21 billion in Q4 from $1.14 billion a year earlier, beating analyst expectations of $1.19 billion.

Cascades Chief Executive Hugues Simon commented: "Broadly, the depreciation of the Canadian dollar benefited quarterly results, but led to higher reported debt levels at the end of the year given the company's $1.3 billion of US denominated debts."

Simon added that raw material costs remain a tailwind in the first quarter. Cascades said it would not provide near-term financial outlook given the uncertainties regarding the implementation of bilateral tariffs between Canada and the United States.

The company also added that about 11% of its annual sales were derived from finished products made in Canada and sold to U.S. customers. "Cross-border inter-company transfers, and raw material sourcing increases this potential annual exposure to tariffs to about 15% of revenues." However, Cascades said it had started proactive steps to mitigate these impacts.

The board declared a quarterly dividend of $0.12 per common share, unchanged from the prior quarter, to be paid on March 20 to shareholders of record at the close of business on March 6.

Shares of the company closed down $0.06, or 0.5%, at $12.80 on Wednesday on the Toronto Stock Exchange.