Mr. S.M. Taylor reports

WINPAK REPORTS 2023 SECOND QUARTER RESULTS

Winpak Ltd. has released its consolidated results in United States dollars for the second quarter of 2023, which ended on July 2, 2023.

Winpak manufactures and distributes high-quality packaging materials and related packaging machines. The company's products are used primarily for the packaging of perishable foods, beverages and in health care applications.

Financial performance

Net income attributable to equity holders of the company for the second quarter of 2023 of $40-million, or 62 cents in earnings per share (EPS), increased by 18.8 per cent from the $33.7-million, or 52 cents per share, recorded in the corresponding quarter in 2022. This represented the highest quarterly earnings achievement in the company's history. Gross profit augmented EPS by 5.5 cents. Net finance income and foreign exchange elevated EPS by 4.5 cents and 3.5 cents, respectively. Furthermore, the level of net income attributable to non-controlling interests and income taxes each added one cent to EPS. Conversely, weaker sales volumes lowered EPS by 4.5 cents. In addition, higher operating expenses led to a contraction in EPS of one cent.

For the six months ended July 2, 2023, net income attributable to equity holders of the company amounted to $79.3-million, or 122 cents per share, an increase of 17.4 per cent compared with the 2022 first half result of $67.5-million, or 104 cents per share. Net finance income raised EPS by nine cents. Gross profit and foreign exchange were also influential with both items bolstering EPS by 4.5 cents. Income taxes and the level of net income attributable to non-controlling interests each benefitted EPS by 1.5 cents. Operating expenses had the opposite effect, dampening EPS by three cents.

The fiscal year of the company ends on the last Sunday of the calendar year and is usually 52 weeks in duration. However, the 2023 fiscal year consists of 53 weeks, with the first quarter comprising 14 weeks, one more week than the prior year. The additional week included in the 2023 first quarter was essentially the last week of the 2022 calendar year which contained several statutory holidays. Consequently, it is estimated that this additional week contributed 3.0 per cent to first half 2023 sales volumes and net income results.

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