Taiga's Q2 results affected by reduced commodity prices

Taiga Building Products Ltd. (Taiga) has released its financial results for Q2 2023, covering the period ending on June 30. Sales during this period totaled $446.9 million, marking a 31% drop of $199.2 million in comparison to the corresponding period last year. This decline primarily stemmed from reduced commodity product prices.

The gross margin for Q2 2023 stood at $52.4 million, a decrease from the $69.0 million recorded a year ago. The gross margin percentage for this quarter was 11.7%, up from 10.7% in the same period last year. This change was mainly due to falling commodity prices experienced throughout the quarter. Net earnings for Q2 2023 were $17.0 million, down from the $20.8 million reported during the same time frame in the previous year, primarily due to the decreased gross margin dollars.

For the six months ending June 30, 2023, Taiga's sales reached $855.4 million, indicating a 32% decrease of $403.4 million compared to the prior year. This decline resulted largely from diminished selling prices of the company's commodity products. Over the same six-month period, the gross margin decreased to $99.5 million from $177.9 million, reflecting a gross margin percentage of 11.6% compared to 14.1% last year. These changes were mainly due to declining commodity prices.

Net earnings for the first half of 2023 totaled $30.5 million, down from the $60.3 million reported for the same period in the preceding year, largely due to reduced gross margin. EBITDA for the six-month period ending June 30 was $50.5 million, in contrast to the $92.3 million reported for the same period last year. This decline primarily resulted from lower margin earnings during the period.