The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: I just wanted to clarify, Geoff, just one thing from your commentary on the call, I just missed it, but you gave some color on the CCL segment about
a CAD 30 million impact and 100 basis points on unrecovered inflation. Can you just clarify...
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. So about 100 basis points margin headwind.
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. Obviously, lots of moving parts on the CCL segment heading into Q4 and into next year. But on balance, is it fair to assume that the Q4
outlook in terms of the CCL segment is on balance positive? I mean, is it -- or is it more sort of flattish to potentially negative?
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NOVEMBER 11, 2021 / 12:30PM, CCLb.TO - Q3 2021 CCL Industries Inc Earnings Call
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. That's great. And then lots of impacts of inflation and supply chain issues. I'm just curious, when you're facing those issues in the business
broadly, what are you managing to? Are you managing to surety of supply? Are you managing to a margin level? I'm just curious how you think
about facing these challenges overall?
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Right. Okay. And then maybe just 2 last questions. On the Checkpoint business, you indicated you have some price increases going through to
offset inflation. Can you just give a little bit of color about what the lags are on that -- on those price increases going through? And then maybe on
the Checkpoint business, secondly, what's sort of the long-term margin profile here? It's moved around a bit on a quarter-to-quarter basis. And I'm
just curious how we think about that over the longer term.
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. That's great. And then on the price increases, how long does it typically take to offset the inflation that you're seeing?
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NOVEMBER 11, 2021 / 12:30PM, CCLb.TO - Q3 2021 CCL Industries Inc Earnings Call
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Maybe just first point of clarification on the challenge to match Q4. Would you still expect -- it sounds like it, but would you still expect sort of to
see positive revenue comps across the business in 4Q?
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. Geoff, you mentioned it was somewhere in the, I think, the MD&A or in the release, pricing -- difficult pricing in Home & Personal Care, Asia.
I was just curious what that was.
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. And just on the CCL segment on inflation. The impact was 100 basis points. I mean all things considered not that large, but I guess I was
under the impression it was -- everything was sort of produced, consumed locally. So I'm just sort of curious the inflationary pressures, it was on
the material? And I just want to make...
Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst
: Got it. Maybe just one last one, just on M&A. I'll ask the question, Geoff. I'm just curious what your thoughts around that. I don't know if you're able
to -- travel is still a bit difficult, but...
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: I just had a quick follow-up on the Innovia segment. You had a big benefit, obviously, as you talked about the price versus mix in the revenue. Do
you -- has most of that already gone through? Or will you still see some price impact coming through in Q4?
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Okay. And then maybe just following on to Adam's question about 2022 and sort of how you're thinking about the business for CCL. That's -- thank
you for the color on the organic sales growth. Margin-wise, would you expect to sort of maintain that historical range of like 15% to 16% on the
EBIT line in 2022?
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: Yes. Okay. And then just finally, the Avery margins were quite strong in the quarter, and they were weaker in 2020 for obvious reasons. But would
you expect next year to sort of return back to historical levels in that 20% to 21% -- 21%, 22% range?
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