Winpak posts 10.3% growth in revenue in first quarter of fiscal year 2023

CANADA – Winnipeg-based packaging manufacturer Winpak has posted a total revenue of $304.5 million in the first quarter (Q1) of fiscal year 2023 (FY23), 10.3% growth compared to Q1 FY22.

During the quarter ending 2 April 2023, the company’s gross profit margins declined to 28.8% of revenue against 29.5% in Q1 FY22.

Winpak posted income from operations of US$48.55 million over the quarter against US$45.91 million in Q1 FY22.

The company’s net income for the quarter was US$38.73 million, compared to US$33.92 million a year ago, while net income attributable to its equity holders was US$39.3 million in Q1 FY23, increasing 16.0% from US$33.9 million in the prior year’s quarter.

During the quarter, its basic and diluted earnings per share (EPS) was US$0.60 compared to US$0.52 a year ago.

In a statement, the company said: “This represented the highest first-quarter earnings achievement for the company.

“Organic volume growth elevated EPS by ¢4.5. Net finance income and foreign exchange augmented EPS by ¢4.0 and ¢1.5 respectively.

“The level of income attributable to non-controlling interests added a further ¢1.0. Conversely, higher operating expenses lowered EPS by ¢2.0. In addition, gross profit led to a contraction in EPS of ¢1.0.”

In addition, the company said that its volume growth for Q1 FY23 was 8.7% higher than QI FY22.

Volumes for the flexible packaging operating segment grew by 1% and the specialty film segment registered a decline in volumes due to customer loss.

The rigid packaging and flexible lidding operating segment recorded volume growth of 8%, and packaging machinery volumes also rose by 6%.

Winpak added: “In the first quarter of 2022, volumes were constrained by the inability to procure sufficient levels of aluminium foil. Furthermore, improvements in productive capacity have been realized over the past 12 months.

“Rigid container volumes fell slightly as gains in retort pet food packaging were eclipsed by lower condiment container activity.”

Winpak manufactures and distributes high-quality packaging materials and machines for various sectors, including the food and beverages, pharmaceutical, medical and personal care sectors.

Early this year, the company provided an update on its sustainable product lineup. Following up on the 2019 launch of its ReFresh™ Recycle-Ready product portfolio, Winpak said it has made significant progress within the last 18 months on the commercialization of its forming and non-forming recycle-ready films – ReForm and ReLam.

Anchored in its vision “To Provide the Best Packaging Solutions for People and Planet”, Winpak has already onboarded customers throughout North America on a fully commercial scale.

ReForm and ReLam are over 95 percent from the Polyolefin family and would meet the requirements for Polyethylene mono-material recycling streams with a barrier component of less than 5 percent to maintain the highest shelf-life standards required in the food industry.

Their superior machineability, optics and performance are comparable to traditional multilayer structures.

Both materials are pre-qualified* through the How2Recycle^TM and NexTrex^TM store drop-off recycling programs.

For brand owners and retailers looking to follow the “Golden Design Rules” by the Consumer Goods Forum (CGF) for flexible packaging, ReForm and ReLam are excellent choices.

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