Good morning, and welcome to CCL Industries' Q3 investor Update. Please note that there will be a question and answer session after the call. The moderator for today is Mr. Geoff Martin, President and Chief Executive Officer, and joining him is Mr. Sean Washchuk, Senior Vice President and Chief Financial Officer. Please go ahead, gentlemen. Good morning, everybody, and welcome to our call. We're dialing into you today from our operations in Germany, in Stuttgart. I'm gonna hand you over right away to Mr. Sean Washchuk, who's going to take you through the numbers for the quarter. Thank you, Geoff. If everyone could turn to slide two, I'll draw your attention to our disclaimer regarding forward-looking statements. I'll remind everyone that our business faces known and unknown risks and opportunities. For further details on these key risks, please take a look at our 2022 annual report under the section: Risks and Uncertainties. Our annual and quarterly reports can be found online at the company's website or at SEDAR.com. We'll move forward to slide number three. Our summary of operations for the quarter and year to date. For the Q3, our 2023 sales increased 2%, with 2.6% acquisition-related growth, 5.4% positive impact from foreign currency translation, partially offset by 6% organic decline, resulting in sales of $1.69 billion compared to $1.66 billion in the Q3 of 2022. Operating income was $256.1 million for the 2023 Q3, compared to $246.8 million for the Q3 of 2022. A 2% decrease, excluding the impact of foreign currency translation. Geoff will expand on our segmented operating results for the CCL, Avery, Checkpoint, and Innovia segments momentarily. Corporate expenses were down through the quarter due to lower discretionary expenses and short-term variable compensation expense versus the prior year quarter. Consolidated EBITDA for the 2023 Q3, excluding the impact of foreign currency translation, increased 2% compared to the same period in 2022. Net finance expense was CAD 20.3 million for the Q3 of 2023, compared to CAD 17.1 million in the 2022 Q3, due to an increase in interest rates on variable rate debt. The overall effective tax rate was 24.5% for the 2023 Q3, compared to an effective tax rate of 22.9% recorded for the Q3 of 2022, due to higher withholding taxes on foreign dividends. The effective tax rate may change in future periods, depending on the proportion of taxable income earned in different tax jurisdictions with different rates. Net earnings for the 2023 Q3 were CAD 169.1 million, compared to CAD 163.9 million for the 2022 Q3. The nine-month period, sales and operating income decreased 1%. Net earnings decreased 3% compared to the nine-month period in 2022. 2023 included the results from 11 acquisitions completed since January 1, 2022, delivering acquisition-related sales growth for the period of 2.2%. Foreign currency translation tailwind added 5% to sales, partially offset by a 3.2% organic sales decline. Moving to the next slide, our EPS. Basic earnings per Class B share were CAD 0.95 for the Q3 of 2023, compared to CAD 0.93 for the Q3 of 2022. Adjusted basic earnings per Class B share were CAD 0.95 for 2023 and 2022 Q3s. We delivered this CAD 0.95, principally attributable to a decrease in operating income of CAD 0.03, increase in taxes of CAD 0.02, increased finance costs of CAD 0.01, offset by CAD 0.05 positive foreign currency translation and CAD 0.01 improvement in our joint venture equity pickup. Moving to our next slide, free cash flow from operations. For the Q3 of 2023, free cash flow from operations was an inflow of $182.2 million, compared to an inflow of $148.7 million in the 2022 Q3. The increase in free cash flow from operations of $33.5 million is primarily due to improved working capital, higher cash earnings, slightly offset with higher net CapEx in the Q3 of this year compared to 2022 Q3. For the 12 months ended September 30, 2023, free cash flow from operations increased $58.3 million compared to 12 months ended December 30, 2022. This comparative improvement is primarily attributable to an increased earnings, better comparative working capital management, offsetting an increase in net capital expenditures and higher taxes paid. Moving to our next slide, our cash and debt summary. Net debt as at September 30, 2023, was CAD 1.76 billion, an increase of CAD 237.7 million compared to December 31, 2022. This increase is principally a result of increased borrowings and a lower cash balance at Q3 2023 versus December 2022, to fund the eight acquisitions completed this year. Although the company's net debt increased, the balance sheet closed the quarter in a strong position. Our balance sheet levered ratio is only 1.37 times, up slightly from 1.24 at December 31, 2022. Liquidity was robust, with CAD 773 million of cash on hand and $0.8 billion of available undrawn credit capacity on the company's revolving bank credit facility. The company's overall average finance rate was approximately 3% at September 30, 2023, compared to 2.9% at December 31, 2022. This reflects an increase in variable interest rates on the company's outstanding borrowings under its revolving credit facility. The company's balance sheet continues to be well positioned to move through the end of fiscal 2023 and beyond. Geoff, over to you. Thank you, Sean, and hello again, everybody. I'm on slide seven, highlights of our capital spending. CAD 362 million net year to date, 2023, and we anticipate that number rising to the CAD 440 million-CAD 450 million range for the year as a whole. Some highlights on slide eight of things we're putting our money into. We're building a big new CCL Label healthcare plant in North Carolina, which is due to come on stream in mid-2024. Key focus of that plant are labels and literature products for the GLP-1 blockbuster drugs that are coming onto the market, which you've all seen the adverts on TV for. Second big investment we're making is in a second RFID inlay plant in Mexico City, which will be built alongside our CCL Label plant in the same location, but in a different building. The main focus of this capacity will be on applications outside of apparel in logistics, pharmaceuticals, general merchandise, and food. That operation is expected to come on stream in mid-2024, and alongside investments already in place in China, should increase our capacity to make RFID inlays at three times over our current 2023 forecast sales. Moving on to Slide nine, highlights of the CCL segment quarter. We had a big organic growth year last year, 13.2% in this Q3 of 2022, so it was all the high bar to reach. So, 3.67 organic sales decline, we're not entirely surprised by that. Almost flat in the Americas, mid-single digit decline in Europe, double-digit decline in Asia Pacific. Profit gains in all sectors of the CCL segment, except CCL Design, where gains in automotive continue to be more than offset by some weakness still in electronics markets, although we'll cycle through the change in that regard in the coming quarter. Results were augmented by FX tailwinds and solid contributions from new acquisitions. Slide 10, results from the joint ventures. As Sean said, we had a pick-up there in earnings, which is good. Slide 11, results from Avery. Very solid back-to-school season in North America drove the performance here on top of solid results internationally. Our horticultural business loses money in this quarter, but it was flat to prior year, and we started to get into the money-making period in the latter part of the Q4 that's coming soon. Page 12, highlights for Checkpoint. I'll draw your attention to the second bullet point. Last year, in the Q3, we had a CAD 11.9 million gain on the real estate disposal, which we highlighted to you last year. Excluding that, Q3 operating profit was up 24%, and we had strong sales progress in all regions in the MAS business and also very good growth, organic growth, driven by RFID in the apparel labeling space. Slide 13, results for Innovia. Double-digit demand drops in the pressure-sensitive label materials industry continues to be the challenge here, especially in Europe, but also in North America. Lower resin pass-through was a significant factor also in the top-line sales decline, but profitability improved modestly on easing inflation, very good cost controls in a difficult volume market. Slide 14, our outlooks for the coming quarter. Core CCL business units, we expect to be a more or less a repeat of what we went through in Q3. We do expect CCL Design to do better comparatively as we lap the change in the demand picture in the electronics industry. CCL Secure should also post modest progress. Avery results are expected to be stable. Horticulture will move into its profitable period. Checkpoint faces tough comps compared to a strong end of 2022, and RFID continues to grow. We had a pretty solid October, little better than we expected, so maybe that, comment won't be quite as soft as we, as we initially first thought. Innovia expect to outperform, but against a weak Q4 2022. Perhaps significantly, if the label materials industry volume recovery gains traction, we saw a little sign of that in October in order intake, not so much in revenue though. FX tailwind continues, should continue at current exchange rates. And with that, operator, we'd like to open up the call for your questions. Certainly. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Your first question for today is coming from Stephen MacLeod with BMO Capital Markets. Thank you. Good morning, guys. Hi, Steve. How are you? Hi, good, thanks. How are you? Good. Good. Good. Great. Well, I just had, I just had a couple of questions I wanted to follow up on. Just in terms of, your-- the two-- you, you highlighted sort of two interesting CapEx investments on the GLP for healthcare and then also on RFID. And I was just wondering if, might be too soon, but if you were able to give a little bit of color around, sort of what, what kind of capacity and dollars those, those investments could, could produce in terms of sales. Yeah. Don't want to get into that. I think we've given you some color on the indication about the RFID capacity. We're trebling it, so we're not by any means the market leader in RFID, so we're certainly a top five or six player, but we're planning to come up the totem pole a lot faster and a lot quicker in the next year or two. So that's what that one's about. The GLP investment, very customer specific. Can't go into that for any details for that reason, but it's obviously an exciting product area for our healthcare business to be involved in. Yeah. Okay, that's great. And then just on the RFID, are you able... You talked about an increase in capacity three times over 2023 sales. Can you just able to give a run rate of where that business stands right now? not right now. Okay. Okay, thank you. And then, and then just on the, on the CCL business, you know, in terms of the outlook heading into Q4, you know, obviously, you had a tough comp in Q3, but the comp eases a little bit in Q4. Would you expect, based on what you know today and based on the outlook for organic sales, to be up year-over-year in Q4? Well, if they were up, it wouldn't be by very much. And they could also- Okay ... be down a little bit. So it's a very difficult quarter to forecast, Steve, because you've got Thanksgiving in the US in November and the Christmas season in December. It's always a somewhat volatile quarter. Yeah. So we might be able to post organic growth in Q4, we might post a small organic decline. So but we'll just have to wait and see how things unfold. Okay. I think the big change is really going to be the impact of the CCL Design business, which has been declining at a, you know, kind of a high single digit rate for most of the year. That should stop in Q4 because we lap the change in electronics, so that's probably the will be the most impactful change in the coming quarter. Okay. Okay, that's great. Thanks, Geoff. I'll pass it back to the line and get on, get in line. Thank you. Yeah. Thank you. Your next question is coming from Ahmed Abdullah with National Bank of Canada. Hey, good morning, guys. So on the core CCL segment outlook commentary, can you give us some more color on which geographies or customer segments you think are likely to underperform or outperform? And do you think mix plays a part here to help margins in the coming quarter? Well, I think the most important comment I've just made about CCL Design, so that business has been declining, as I said, high single digits for the last few quarters. That should stop in Q4. The Latin America region in total is the one that's been outperforming other regions in total, in the CCL segment space. So I don't see any reason why that should continue to change. And we'll just have to wait and see how what the quarter brings. And regionally, Asia will do a lot better because CCL Design will do better. So that's really one and the same thing. So we expect a flat to slightly up or flat to slightly down outcoming Q4, driven by those dynamics. Okay, thanks for the color. The expectation for Innovia to outperform Q4 last year, is that on top line and adjusted EBITDA? It's on the bottom line. So we certainly won't outperform the top line because we've got the much lower resin costs this year than we had last year. So top line will still be down, but we do expect to make more money this quarter than we made in the Q4 of last year, driven by, really driven by inflationary factors that were still present last year, being largely absent now in that business. Although resins have ticked up a little bit in the last month or so. Okay, thanks for the color. Just last one for me. Where do volumes and this segment stand versus historical levels? Like, are we close to a more normalized point? ... in this quarter? No, no, no. We still, we still see a dramatic drop in the big change in this business has really been in the pressure-sensitive label materials industry. So the public companies in that space, you know, both reported, you know, 20, 20 and 25% volume drops in their businesses in North America and Europe. And that's where really we're seeing. That's what really needs to recover before we'll see volume gain. We did see some improvement in order intake in October, but not so much in shipments out. So we saw a slight tick up, but it's not yet running at any pace that's getting us terribly excited, but it has slightly ticked up. Okay, thanks for the color. I'll pass the line. Okay. Your next question for today is coming from Walter Spracklin with RBC Capital Markets. Yeah, thanks very much. Good morning, everyone. Good morning. So perhaps we'll start with just margins. I know there had been some fairly extraordinary moves in margins during the pandemic, that, that led to certain areas of your business, Geoff, getting, getting some strength that, that perhaps wouldn't be normal and speaking to CCL Secure and, and, and currency hoarding and so on. But it seems that with this year now, margins have normalized somewhat. So I just wanted to make it-- make sure that there isn't anything left that you would... You know, you're, you prudently called it out for us last time, just to make sure that we, we didn't go too far in any one direction. But it seems CCL is back to 22% range, maybe a stick below. Avery's at 23%, Checkpoint at 20%. I'm gonna get to Innovia in a second, but within those three divisions, is there anything in that mix that you think is still going to iron itself out and therefore have an impact on the longer-term kind of normal margins you would expect in those businesses? I think you've called it right, Walter. We're through most of it, and what's left to go through, I think, won't move the needle enough on the CCL segment. There's nothing that any one business will do that will move the needle very much that way. So Q4 is always a lower quarter for us, so, you know, sequentially, we'll see some change. But, but, in terms of where we've cycled through the pandemic era, that those sort of last three years we've had, you know, I certainly feel when we get into 2024, we'll be kind of back to normal. Okay, perfect. There's not much left to iron out. Fantastic. And you touched on another part of my question. When you say, business conditions are stable, do you mean? Because seasonally, you do have weakness, do you expect that seasonal weakness to come down, or do you mean stable in a dollar value that the seasonal, typical seasonal Q4 doesn't come down and that it's stable relative to third in a dollar perspective? I think, I think you meant in percentage terms, that the seasonality will still continue, but similar stable growth, or business activity levels that you would expect. Is that right? Yeah, I think we meant stable, actually, relative to the comparative quarter in the prior year. Got it. Perfect. Good, good question. Got it. So- Okay. We still expect the normal seasonal pattern, but we're not expecting to see any more kinks. Okay, and last question here on Innovia. That one has swung around quite a bit. I know back before you had done the realignment in Mexico, you were kind of guiding towards 15% EBITDA margin, and then did very well, went up into the high teens, and then it even touched into above 20% and has now since come down. Is there, is there-- I know resin prices has a lot, a lot to do with that, but is there any margin target that you have? Or it looks like 15% is, is where we're, we're flattening out here now. Is that a fair number, or is that-- is there another way we should be looking at margins within the Innovia division? Yeah. It's a pass-through industry, Walter, so margins move up and down relative to what's happening to resin. Yeah. So, you know, there's always a factor involved in that. But, in terms of the overall performance at Innovia, we really need to see volume come back before we'll get the step change. We need to see, and that's kind of what all our eyes are focused on, particularly in Europe. Less so in the Americas, but particularly in Europe, we need to see the label materials industry come back to the more typical regular ordering patterns. And, so they're all saying that's going to change and improve in the Q4. We did see a little bit of uptick in October in order intake, not so much in terms of order shipments, but, hopefully, their aspirations will prove to be correct. As we go through Q4 and certainly into next year, we'll see top line in that business improve on a volume basis, and that's what we're most anxious to see. Got it. Okay, that's great color. Really appreciate it, Geoff. Thank you. Sure. Your next question is coming from Michael Glen with Raymond James. Hey, good morning. Geoff, just to start, one of your suppliers has been speaking about a deflationary environment for label materials. I'm just wondering if you could give us a sense as to how you handle that sort of situation with your customer base. Yeah, so the label material space was very inflationary in the years of 2021 and 2022 in particular, and that sort of began to certainly been reversing, but not back to where we were. But raw material costs have been coming down, and as those raw material costs come down, they get built into the price calculations we make for the products we make here. And that's hundreds of thousands of transactions, so we don't know where we are in that. But that's how our business works. It takes its raw material input costs at the most recent price and makes its calculation, and "Hey, Presley, you have new pricing." And that's basically what happens. We don't do price through in the pass-through in the label industry because the labels change all the time anyway, so we just wait till the next change, and then the pass-through happens when the next change occurs. Okay, but that... So it's integrated into the pricing mechanism in some form? Correct. Correct. Okay. The RFID, can you just describe just a little, give a little more detail on the application set that you're discussing here? You're talking pharma and food. Like, how, what, what's sort of the end market here? I'm just trying to understand how that... I understand what you're selling into apparel right now, but what's sort of what are you targeting here with this new plan exactly? Well, well, well, some of the big retailers in the U.S. have started to mandate some of their vendors to put RFID inlays onto their products. So we've actually been mandated to do that at Avery by some of our retail customers. We want RFID label products inserted on boxes of labels and binders and indexes we sell in the trade channels in the U.S. So, but it's across a range of what these retailers are called general merchandise. So it's not grocery-type products, it's general merchandise-type products. So we've been doing it on things like that, electronic toothbrushes, shavers, things of that ilk. In the drug industry, it's a lot of it to do with hospital supplies. So hospitals are beginning to use RFID as a track and trace system in wards. So, drug manufacturers who supply drugs into the hospital channel are beginning to use RFID products, automotive parts. In the food business, it's more the kind of food that's used at retail, so cold cabinets in retail stores that have individual priced portions of meats and things like that in cold cabinets, and have to worry about when that expiry date has been reached. Now they can scan those products inside the grocery stores and get an automatic read on what's expired and what's not. And those are pretty significant waste benefits and productivity benefits for retailers. So those are the applications we're seeing in food. So since you've bought Checkpoint, how much has, like, what's happened with pricing on an individual tag over that timeframe, say, over the last five to six years? It must be down- I think it's changed. Quite. It's not changed all that much, to be honest with you. It's... Yeah, 'cause what's happening now is, what we're all realizing is these tags are custom-made for each application, so the antenna design is different. So some tags are low cost, some tags are not. And so there's not a generic price point for this stuff. And, we weren't making RFID labels at all when we bought Checkpoint. They weren't making these products at all. We invested to give them the capability to do it. We initially done it in the core business they have, which is apparel, moved into retail now into the CCL segments, where we're also active with the technology, and we expect to see it grow as the industry does in general, quite significantly over the next period of time. Okay, and just one more. So, your CapEx guide for the year would seem to indicate a step down in Q4. I just want to know if that's accurate, and then- That's right. Any early read on... Okay. And then early read on CapEx for 2024. It'd be in the same range, CAD 450 million-ish, but we'll confirm that number in Q1, but it'd be in the same range. Okay, thank you. No problem. Your next question for today is coming from Ben Jekic with PI Financial. Hi, good morning. Most of my questions have been asked, but I do have one, just to make sure. Geoff, when you said, for the Q4, somebody asked, and you mentioned flat to slightly up or flat to slightly down, I'm assuming that is meant, quarter to quarter. No, that's comparatively to the prior year. To the prior year. Okay. That, that's it for me. Yeah, and that comment was for the CCL segment. Okay. It was in response to a question about the CCL segment. Thank you. Your next question is a follow-up question coming from Stephen MacLeod with BMO Capital Markets. Thank you. I just had two follow-up questions. The first is, I just wanted to clarify, for Innovia, did you say that sales would be, in terms of your outlook, you're expecting profits to be up and sales to be down? I just wanted to confirm that I heard that right, because last year it looked like- Mm-hmm. Sales were down 11%. That's correct. Yeah, 'cause we've got resin pass-through, pretty significant resin pass-through. So unless volume returns, like in a massive wave all of a sudden, it would be hard to imagine our sales would be up in Q4 because of the pass-through pricing on resin. Yeah. Okay. Okay, that's great. And then, and then just on, just on Avery, I know you addressed this, the margin question earlier, but I just wanted to confirm. It sort of looked like, Avery's kind of running at like a 19% EBIT margin on a year-to-date basis. Is that something to expect going forward? Is that because of the horticultural business kind of taking that margin down a little bit? Yeah, it takes it down in this quarter, in this quarter, because horticulture is in its loss-making, its loss-making seasons. Yeah. So, you know, when we get into Q1, you'll see that change differently. But, so it moves it about a little bit, but there was no operating profit in the Q3, so it was a drag. If you excluded horticulture, margin would definitely be north of 20% for sure. Oh, okay. Okay, that's great. Thanks, Geoff. Thanks, Sean. Appreciate it. Okay. Once again, if there are any questions, please press Star one. We have reached the end of the question and answer session, and I will now turn the call over to Geoff for closing remarks. Okay, operator. Thank you very much, everybody, for joining the call, and we look forward to talking to you, what will now be sometime next year. Thank you very much for joining. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.