Taiga Continues to Benefit From High Commodity Prices
Taiga Building Products Ltd. (“Taiga” or the “Company”) reported its financial results for the three months ended March 31, 2022.
First Quarter Ended March 31, 2022 Earnings Results
The Company’s consolidated net sales for the quarter ended March 31, 2022 were $612.7 million compared to $535.9 million over the same period last year. The increase in sales by $76.8 million or 14% was largely due to increased selling prices for commodity products.
Gross margin for the quarter ended March 31, 2022 increased to $108.9 million from $90.4 million over the same period last year. The increase in gross margin was primarily due to rising commodity prices during the quarter.
Net earnings for the quarter ended March 31, 2022 increased to $39.5 million from $29.2 million over the same period last year primarily due to increased gross margin.
EBITDA for the quarter ended March 31, 2022 was $58.6 million compared to $45.1 million for the same period last year.
Management Update on the COVID-19 Pandemic
The outbreak of the coronavirus, also known as “COVID-19”, has spread across the globe and continues to impact worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. As at the financial statement approval date, the pandemic has had a positive impact on Taiga’s business and financial performance in the first quarter of fiscal 2022. This is a direct result of the increased demand for detached housing, high commodity prices and low borrowing rates experienced during the period. However, commodity prices have been volatile at times during the pandemic including a drastic decline in the third quarter of fiscal year 2021 although prices did recover in the subsequent quarter. The extent to which these events may continue to impact the Company’s business activities in the same manner in future periods will depend on a number of factors, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, the rate at which vaccines are administered, the effectiveness of vaccines against the coronavirus and its mutations, subsequent outbreaks, business disruptions, and the effectiveness of actions taken in Canada, the United States and other countries to contain and treat the disease, the demand for detached housing in North America, future commodity prices, interest rates and the strength of the general economy. These events are highly uncertain and as such, the Company cannot predict with any certainty how the progression of the coronavirus pandemic and these events will ultimately impact the Company’s financial performance in 2022.
For the full first quarter results, click here.
Mark Schneidereit-Hsu – CFO and VP, Finance & Administration – email@example.com – (604) 438-1471
Source: Taiga Building Products Ltd.