WINNIPEG, MB, Oct. 26,
2023 /CNW/ - Winpak Ltd. (WPK) today reports
consolidated results in US dollars for the third quarter of 2023,
which ended on October 1, 2023.
|
Quarter Ended
(1)
|
|
Year-To-Date Ended
(1)
|
|
October 1
|
|
September 25
|
|
October 1
|
|
September 25
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
(thousands of US
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
Revenue
|
273,790
|
|
302,532
|
|
865,770
|
|
888,768
|
Net income
|
33,824
|
|
29,350
|
|
112,577
|
|
97,387
|
|
|
|
|
|
|
|
|
Income tax
expense
|
11,970
|
|
10,425
|
|
38,956
|
|
34,621
|
Net finance
income
|
(5,033)
|
|
(468)
|
|
(12,551)
|
|
(12)
|
Depreciation and
amortization
|
11,866
|
|
11,911
|
|
35,912
|
|
35,781
|
EBITDA (2)
|
52,627
|
|
51,218
|
|
174,894
|
|
167,777
|
|
|
|
|
|
|
|
|
Net income attributable
to equity holders of the Company
|
33,991
|
|
29,567
|
|
113,284
|
|
97,108
|
Net (loss) income
attributable to non-controlling interests
|
(167)
|
|
(217)
|
|
(707)
|
|
279
|
Net income
|
33,824
|
|
29,350
|
|
112,577
|
|
97,387
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share (cents)
|
52
|
|
45
|
|
174
|
|
149
|
Winpak Ltd. 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 healthcare applications.
1 The
2023 fiscal year comprises 53 weeks and the 2022 fiscal year
comprised 52 weeks. Each quarter of 2023 and 2022 comprises
13 weeks with the exception of the first quarter of 2023, which
comprised 14 weeks.
|
|
2 EBITDA is
not a recognized measure under International Financial Reporting
Standards (IFRS). Management believes that in addition to net
income, this measure provides useful supplemental information to
investors including an indication of cash available for
distribution prior to debt service, capital expenditures, payment
of lease liabilities and income taxes. Investors should be
cautioned, however, that this measure should not be construed as an
alternative to net income, determined in accordance with IFRS, as
an indicator of the Company's performance. The Company's
method of calculating this measure may differ from other companies
and, accordingly, the results may not be comparable.
|
(presented in US dollars)
Forward-looking statements: Certain statements made in the
following report contain forward-looking statements including, but
not limited to, statements concerning possible or assumed future
results of operations of the Company. Forward-looking
statements represent the Company's intentions, plans, expectations
and beliefs, and are not guarantees of future performance.
Such forward-looking statements represent Winpak's current views
based on information as at the date of this report. They
involve risks, uncertainties and assumptions and the Company's
actual results could differ, which in some cases may be material,
from those anticipated in these forward-looking statements.
Factors that could cause results to differ from those expected
include, but are not limited to: the terms, availability and costs
of acquiring raw materials and the ability to pass on price
increases to customers; ability to negotiate contracts with new
customers or renew existing customer contracts with less favorable
terms; timely response to changes in customer product needs and
market acceptance of our products; the potential loss of business
or increased costs due to customer or vendor consolidation;
competitive pressures, including new product development; industry
capacity, and changes in competitors' pricing; ability to maintain
or increase productivity levels; ability to contain or reduce
costs; foreign currency exchange rate fluctuations; changes in
governmental regulations, including environmental, health and
safety; changes in Canadian and foreign income tax rates, income
tax laws and regulations. Unless otherwise required by
applicable securities law, Winpak disclaims any intention or
obligation to publicly update or revise this information, whether
as a result of new information, future events or otherwise.
The Company cautions investors not to place undue reliance upon
forward-looking statements.
Financial Performance
Net income attributable to equity holders of the Company for the
third quarter of 2023 of $34.0
million or 52 cents in
earnings per share (EPS) increased by $4.4
million or 7 cents per share
from the comparable 2022 quarter. Net finance income raised
EPS by 5.5 cents. Gross profit
and foreign exchange were also influential, elevating EPS by
4.0 cents and 2.0 cents, respectively. Weaker sales
volumes had the opposite effect, lowering EPS by 3.0 cents. Operating expenses dampened EPS
by 1.5 cents.
For the nine months ended October 1,
2023, net income attributable to equity holders of the
Company advanced by 16.7 percent to $113.3
million or $1.74 per share
from the corresponding 2022 result of $97.1
million or $1.49 per
share. The improvement in gross profit was a key factor,
augmenting EPS by 9.0 cents.
Net finance income and foreign exchange bolstered EPS by
14.0 cents and 7.0 cents, respectively. The level of net
income attributable to non-controlling interests and income taxes
each added 1.5 cents to EPS.
The drop in sales volumes subtracted 3.5
cents from EPS. Operating expenses reduced EPS by a
further 4.5 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 2 percent to 2023 year-to-date sales
volumes and net income results.
Operating Segments and Product Groups
The Company provides three distinct types of packaging
technologies: a) flexible packaging, b) rigid packaging and
flexible lidding and c) packaging machinery. Each is deemed
to be a separate operating segment.
The flexible packaging segment includes the modified atmosphere
packaging, specialty films and biaxially oriented nylon product
groups. Modified atmosphere packaging extends the shelf life
of perishable foods, while at the same time maintains or improves
the quality of the product. The packaging is used for a wide
range of markets and applications, including fresh and processed
meats, poultry, cheese, medical device packaging, high performance
pouch applications and high-barrier films for converting
applications. Specialty films include a full line of barrier
and non-barrier films which are ideal for converting applications
such as printing, laminating and bag making, including shrink
bags. Biaxially oriented nylon film is stretched by length
and width to add stability for further conversion using printing,
metalizing or laminating processes and is ideal for food packaging
applications such as cheese, fluid and viscous liquids, and
industrial applications such as book covers and balloons.
The rigid packaging and flexible lidding segment includes the
rigid containers, lidding and specialized printed packaging product
groups. Rigid containers include portion control and
single-serve containers, as well as plastic sheet, custom and
retort trays, which are used for applications such as food, pet
food, beverage, dairy, industrial and healthcare. Lidding
products are available in die-cut, daisy chain and rollstock
formats and are used for applications such as food, dairy,
beverage, pet food, industrial and healthcare. Specialized
printed packaging provides packaging solutions to the
pharmaceutical, healthcare, nutraceutical, cosmetic and personal
care markets.
Packaging machinery includes a full line of horizontal fill/seal
machines for preformed containers and vertical form/fill/seal pouch
machines for pumpable liquid and semi-liquid products and certain
dry products.
Revenue
Revenue in the third quarter of 2023 was $273.8 million, falling short of the prior year
comparable level of $302.5 million by
9.5 percent. Volumes contracted by 6.0 percent.
Consistent with the experience of the second quarter, consumer
demand was constrained, stifling the Company's growth
aspirations. Within the flexible packaging operating segment,
volumes declined at the rate of 8 percent. For the modified
atmosphere packaging product group, much lower order levels for
protein applications were only partially offset by the inroads made
at cheese accounts. Specialty film volumes decreased by 19
percent due to customer loss. As a result of tempered demand
from core accounts, in addition to customers securing secondary
sources of supply, biaxially oriented nylon product group volumes
contracted by 16 percent. Volumes for the rigid packaging and
flexible lidding operating segment fell by 2 percent. Rigid
container volumes were virtually unchanged as the drop in specialty
beverage container shipments was offset by enhanced retort pet food
container activity. Lidding product group volumes decreased
by 5 percent due to the moderate drop in specialty beverage orders,
a function of the major customer working through excess
inventories. Attributed to the higher cost of capital and
economic uncertainty, several packaging machinery customers have
delayed order placement and volumes declined by 19 percent as a
result. Selling price and mix changes had an unfavorable
impact on revenue of 3.2 percent. Foreign exchange had a
minor negative effect on revenue.
For the first nine months of 2023, revenue decreased by
$23.0 million from the $888.8 million recorded in the corresponding
prior year period. Volumes receded by 2.1 percent. When
normalizing for the additional week in the first quarter of 2023,
volumes were 4 percent lower. The flexible packaging
operating segment recorded a reduction in volumes of 6
percent. Modified atmosphere packaging product group volumes
fell by 2 percent as demand for protein and healthcare applications
tapered off significantly. For the biaxially oriented nylon
product group, volumes declined by more than 20 percent because of
customer inventory destocking and losing sole supplier status at
key accounts. Stemming from customer loss, specialty film
volumes retreated by 17 percent. Within the rigid packaging
and flexible lidding operating segment, volumes were essentially
equivalent to the prior year. Healthy volume growth of 21
percent for the specialized printed packaging product group was
facilitated by pharmaceutical business gains. Lidding product
group volumes advanced by 1 percent. The stabilization of the
aluminum foil supply contributed favorably to volume growth,
however, this was substantially nullified by the performance of the
specialty beverage product line. This same product line similarly
influenced rigid container volumes, which decreased by 3
percent. With the sharp drop off in new machinery orders
placed in the current year, packaging machinery volumes dropped by
8 percent. Selling price and mix changes had a positive
effect on revenue of $0.6 million
whereas foreign exchange lowered revenue by $5.0 million.
Gross Profit Margins
Gross profit margins in the third quarter climbed by 2.3 percentage
points to 29.2 percent of revenue from the 26.9 percent recorded in
the same quarter of 2022. Material costs, which in the prior
year included the remaining aluminum foil air freight
transportation expenses, declined by a much larger extent than the
corresponding selling prices, generating an increase in EPS of
12.0 cents. The impact of
inflation on manufacturing costs and the unfavorable operating
leverage arising from weaker sales volumes was substantial,
lowering EPS by 8.0 cents.
For the first nine months of 2023, gross profit margins were
29.4 percent of revenue, expanding by 1.0 percentage point from the
28.4 percent of revenue achieved during the 2022 year-to-date
comparative period. Raw material costs dropped by 8.0 percent
whereas selling prices were virtually unchanged, generating an
uplift in EPS of 38.0 cents.
The pass-through of these savings onto customers governed by formal
price indexing arrangements follows a contractual delay,
temporarily benefitting the Company. Also noteworthy were the
substantial non-recurring expenses incurred in the prior year to
expedite the delivery of aluminum foil to the lidding plant in
Montreal. Although the rate of inflation has moderated in
recent months, the cumulative effect on the Company's cost
structure was considerable. Simultaneously, the effective
cost of production was hampered by diminished output levels, and on
a combined basis, these factors lowered EPS by 29.0 cents.
The raw material purchase price index decreased by 6 percent
compared to the second quarter of 2023. In relation to a year
earlier, the index has fallen by 21 percent. During the third
quarter, polypropylene and nylon resin prices each realized
declines ranging between 10 and 14 percent while other resins and
aluminum foil experienced more modest reductions.
Expenses and Other
Operating expenses in the third quarter of 2023, adjusted for
foreign exchange, declined at a rate that was approximately half of
the corresponding deceleration in sales volumes and as such,
lowered EPS by 1.5 cents. As a
consequence of the inflationary environment, personnel costs
advanced at a rate well above historical norms. This was
partially offset by the notable drop in freight and pre-production
expenses. Foreign exchange added 2.0
cents to EPS mainly on account of the diminished level of
unfavorable translation differences recorded on the revaluation of
monetary assets and liabilities denominated in Canadian dollars
relative to the third quarter of 2022. Due to the substantial
increase in the interest rates applied to the Company's cash and
cash equivalents, net finance income boosted EPS by 5.5 cents.
On a year-to-date basis, operating expenses, exclusive of
foreign exchange, advanced at a rate of 1.2 percent in comparison
to the 2.1 percent reduction in sales volumes, thereby having an
unfavorable impact on EPS of 4.5
cents. Inflationary forces raised employee
compensation expenses. In contrast, freight expenses, which
were heightened in the prior year, normalized in the current
year. Additionally, significant pre-production costs were
incurred during 2022 to commercialize a biaxially oriented
polyamide (BOPA) line. Foreign exchange had a positive effect
on EPS of 7.0 cents due to favorable
translation differences recorded on the revaluation of monetary
assets and liabilities in comparison to unfavorable translation
differences recorded in 2022. Furthermore, the Company
benefitted from the weakened value of the Canadian dollar that was
employed to translate transactions in that currency into US
dollars. Net finance income added 14.0
cents to EPS as the cash invested in short-term deposits and
money market accounts was at much higher rates of interest than a
year earlier. The effective income tax rate decreased by 0.5
percentage points in 2023, enhancing EPS by 1.5 cents. A smaller proportion of earnings
attributable to non-controlling interests raised EPS by
1.5 cents.
Capital Resources, Cash Flow and Liquidity
The
Company's cash and cash equivalents balance ended the third quarter
of 2023 at $513.0 million, an
increase of $58.3 million from the
end of the second quarter. Winpak continued to generate
strong cash flows from operating activities before changes in
working capital of $53.3
million. Working capital generated another
$36.4 million in cash. The
$26.0 million decrease in inventories
was impacted by the systematic unwinding of raw materials and
finished goods that had accumulated during 2022. Trade and
other receivables declined by $9.0
million, reflecting the lower revenue level relative to the
preceding quarter. Other cash outflows included: $22.9 million in property, plant and equipment
additions, income tax payments of $10.4
million, employee defined benefit plan contributions of
$1.5 million, dividend payments of
$1.5 million and other items
amounting to $0.3 million. Net
finance income provided cash of $5.2
million.
For the first nine months of 2023, the cash and cash equivalents
balance increased by $114.3
million. Cash flows generated from operating
activities before changes in working capital were solid at
$175.2 million. The net
investment in working capital decreased by $35.9 million. The sizeable $46.4 million reduction in inventories arose due
to the reversal of the strategic accumulation of raw materials in
2022 to combat supply chain challenges, especially with
aluminum foil. Lower sales volumes and raw material prices
also contributed to the contraction. In addition, trade and
other receivables fell by $14.7
million due to the lower level of revenue in the current
quarter compared to the final quarter of 2022. Stemming from
the magnitude of raw material purchases, trade payables and other
liabilities decreased by $18.0
million. Cash was utilized for income tax payments of
$56.8 million, property, plant and
equipment additions of $44.5 million,
dividend payments of $4.3 million,
employee defined benefit plan contributions of $2.3 million and other items totaling
$1.2 million. Net finance
income produced incremental cash of $12.3
million.
Summary of Quarterly
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thousands of US
dollars, except per share amounts (US cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
2023
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
273,790
|
|
287,464
|
|
304,516
|
|
292,365
|
|
302,532
|
|
310,254
|
|
275,982
|
|
279,053
|
Net income attributable
to equity holders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the
Company
|
33,991
|
|
40,006
|
|
39,287
|
|
31,235
|
|
29,567
|
|
33,671
|
|
33,870
|
|
30,031
|
EPS
|
52
|
|
62
|
|
60
|
|
48
|
|
45
|
|
52
|
|
52
|
|
46
|
Looking Forward
Although profitability reached an all-time high for the first three
quarters of 2023, Winpak is cautiously optimistic about the outlook
for the balance of 2023 and the upcoming year. Overall,
inflation has remained elevated for a longer period of time than
was anticipated a year ago. This has eroded consumer demand
and dampened projections for the North American economy, which is
still at risk for a recession. Additionally, the effect of
the developing crisis in the Middle
East, especially with respect to oil prices, is unclear at
the present time.
It is expected that weakened consumer demand will continue to be
impactful in the upcoming quarter and at least the first half of
2024. However, it is anticipated that this headwind will be
less severe than was experienced in the two most recent
quarters. The Company's growth strategy is focused on new
product launches, new customer onboarding and customer contract
renewals, especially within the rigid container, flexible lidding
and modified atmosphere packaging product groups. Based on
the preceding factors, the Company is projecting sales volume
growth in the range of 0 to 2 percent for the final quarter of
2023.
Current market expectations are for raw material costs to be
stable in the fourth quarter of 2023 and then advance moderately
throughout 2024. The reduction in raw material costs over the
past six months will benefit margins in the next two quarters until
they are fully passed through to customer selling prices.
With higher than normal unsold capacity in the product markets that
the Company participates, pricing pressure has intensified.
Overall, gross profit margins in the fourth quarter of 2023 should
be slightly higher than the immediately preceding quarter.
Capital expenditures for 2023 are forecast to be in the range of
$65 to $70
million. During the third quarter, the Company
dedicated significant resources to the multi-year expansion project
at the Winnipeg, Manitoba modified
atmosphere packaging facility. As the largest capital project
in Winpak's history, it will establish the foundation for sizeable
volume growth and the development of sustainable packaging
solutions. More immediately, a new cast co-extrusion line is
scheduled for start-up in early 2024 at the same facility,
targeting additional growth in the dairy market. Furthermore,
the Company is currently evaluating a potential building expansion
at one of its key manufacturing sites. Concurrently, Winpak
will continue to assess prospective acquisition opportunities that
align strategically with the Company's core strengths in
sophisticated high-barrier packaging for food, medical and
pharmaceutical applications that provide long-term shareholder
value.
Winpak Ltd.
Interim Condensed Consolidated
Financial Statements
Third Quarter Ended: October 1, 2023
These interim condensed consolidated financial statements have
not been audited or reviewed by the Company's independent external
auditors, KPMG LLP. For a complete set of notes to the
condensed consolidated financial statements, refer to www.sedar.com
or the Company's website, www.winpak.com.
Winpak
Ltd.
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1
|
|
December 25
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
513,021
|
|
398,673
|
Trade and
other receivables
|
|
|
189,376
|
|
204,040
|
Income
taxes receivable
|
|
|
4,224
|
|
3,573
|
Inventories
|
|
|
241,750
|
|
288,118
|
Prepaid
expenses
|
|
|
10,875
|
|
5,602
|
Derivative
financial instruments
|
|
|
128
|
|
-
|
|
|
|
959,374
|
|
900,006
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property,
plant and equipment
|
|
|
527,835
|
|
518,590
|
Intangible
assets and goodwill
|
|
|
32,223
|
|
33,110
|
Employee
benefit plan assets
|
|
|
11,119
|
|
10,783
|
|
|
|
571,177
|
|
562,483
|
Total
assets
|
|
|
1,530,551
|
|
1,462,489
|
|
|
|
|
|
|
Equity and
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Trade
payables and other liabilities
|
|
|
84,576
|
|
102,382
|
Contract
liabilities
|
|
|
757
|
|
2,621
|
Income
taxes payable
|
|
|
3,988
|
|
18,393
|
Derivative
financial instruments
|
|
|
335
|
|
1,328
|
|
|
|
89,656
|
|
124,724
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Employee
benefit plan liabilities
|
|
|
8,388
|
|
8,334
|
Deferred
income
|
|
|
17,347
|
|
17,946
|
Provisions
and other long-term liabilities
|
|
|
11,355
|
|
12,062
|
Deferred
tax liabilities
|
|
|
55,964
|
|
60,648
|
|
|
|
93,054
|
|
98,990
|
Total
liabilities
|
|
|
182,710
|
|
223,714
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Share
capital
|
|
|
29,195
|
|
29,195
|
Reserves
|
|
|
(132)
|
|
(972)
|
Retained
earnings
|
|
|
1,283,484
|
|
1,174,551
|
Total equity
attributable to equity holders of the Company
|
|
|
1,312,547
|
|
1,202,774
|
Non-controlling
interests
|
|
|
35,294
|
|
36,001
|
Total
equity
|
|
|
1,347,841
|
|
1,238,775
|
Total equity and
liabilities
|
|
|
1,530,551
|
|
1,462,489
|
|
|
|
|
|
|
Winpak
Ltd.
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
(thousands of US
dollars, except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
|
|
October 1
|
|
September 25
|
|
October 1
|
|
September 25
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
273,790
|
|
302,532
|
|
865,770
|
|
888,768
|
Cost of
sales
|
|
|
(193,781)
|
|
(221,051)
|
|
(611,010)
|
|
(636,503)
|
Gross profit
|
|
|
80,009
|
|
81,481
|
|
254,760
|
|
252,265
|
|
|
|
|
|
|
|
|
|
|
Sales, marketing and
distribution expenses
|
|
|
(22,564)
|
|
(23,881)
|
|
(70,517)
|
|
(72,168)
|
General and
administrative expenses
|
|
|
(10,647)
|
|
(9,524)
|
|
(30,758)
|
|
(28,773)
|
Research and technical
expenses
|
|
|
(4,980)
|
|
(4,380)
|
|
(14,738)
|
|
(13,130)
|
Pre-production
expenses
|
|
|
-
|
|
(1,995)
|
|
-
|
|
(2,915)
|
Other (expenses)
income
|
|
|
(1,057)
|
|
(2,394)
|
|
235
|
|
(3,283)
|
Income from
operations
|
|
|
40,761
|
|
39,307
|
|
138,982
|
|
131,996
|
Finance
income
|
|
|
6,697
|
|
1,847
|
|
17,150
|
|
2,802
|
Finance
expense
|
|
|
(1,664)
|
|
(1,379)
|
|
(4,599)
|
|
(2,790)
|
Income before income
taxes
|
|
|
45,794
|
|
39,775
|
|
151,533
|
|
132,008
|
Income tax
expense
|
|
|
(11,970)
|
|
(10,425)
|
|
(38,956)
|
|
(34,621)
|
Net income for the
period
|
|
|
33,824
|
|
29,350
|
|
112,577
|
|
97,387
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
33,991
|
|
29,567
|
|
113,284
|
|
97,108
|
Non-controlling
interests
|
|
|
(167)
|
|
(217)
|
|
(707)
|
|
279
|
|
|
|
33,824
|
|
29,350
|
|
112,577
|
|
97,387
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share - cents
|
|
|
52
|
|
45
|
|
174
|
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
|
|
October 1
|
|
September 25
|
|
October 1
|
|
September 25
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
|
33,824
|
|
29,350
|
|
112,577
|
|
97,387
|
|
|
|
|
|
|
|
|
|
|
Items that will not be
reclassified to the statements of income:
|
|
|
|
|
|
|
|
|
|
Cash flow hedge
(losses) gains recognized
|
|
|
(633)
|
|
-
|
|
133
|
|
-
|
Cash flow hedge gains
transferred to property, plant and equipment
|
|
|
(42)
|
|
-
|
|
(59)
|
|
-
|
|
|
|
(675)
|
|
-
|
|
74
|
|
-
|
Items that are or may
be reclassified subsequently to the statements of
income:
|
|
|
|
|
|
|
|
|
|
Cash flow hedge
(losses) gains recognized
|
|
|
(863)
|
|
(1,575)
|
|
91
|
|
(1,679)
|
Cash flow hedge losses
transferred to the statements of income
|
|
|
37
|
|
263
|
|
955
|
|
541
|
Income tax
effect
|
|
|
222
|
|
351
|
|
(280)
|
|
305
|
|
|
|
(604)
|
|
(961)
|
|
766
|
|
(833)
|
Other comprehensive
(loss) income for the period - net of income
tax
|
|
|
(1,279)
|
|
(961)
|
|
840
|
|
(833)
|
Comprehensive income
for the period
|
|
|
32,545
|
|
28,389
|
|
113,417
|
|
96,554
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
32,712
|
|
28,606
|
|
114,124
|
|
96,275
|
Non-controlling
interests
|
|
|
(167)
|
|
(217)
|
|
(707)
|
|
279
|
|
|
|
32,545
|
|
28,389
|
|
113,417
|
|
96,554
|
|
|
|
|
|
|
|
|
|
|
Winpak
Ltd.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Changes in Equity
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity
holders of the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-
|
|
|
|
Share
|
|
Retained
|
|
controlling
|
|
|
|
capital
|
Reserves
|
earnings
|
Total
|
interests
|
Total equity
|
|
|
|
|
|
|
|
|
Balance at December
27, 2021
|
|
29,195
|
(524)
|
1,050,949
|
1,079,620
|
36,119
|
1,115,739
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income for the period
|
|
|
|
|
|
|
|
Cash flow hedge
losses, net of tax
|
|
-
|
(1,230)
|
-
|
(1,230)
|
-
|
(1,230)
|
Cash flow hedge losses
transferred to the statements
|
|
|
|
|
|
|
|
of
income, net of tax
|
|
-
|
397
|
-
|
397
|
-
|
397
|
Other
comprehensive loss
|
|
-
|
(833)
|
-
|
(833)
|
-
|
(833)
|
Net
income for the period
|
|
-
|
-
|
97,108
|
97,108
|
279
|
97,387
|
Comprehensive (loss) income for the period
|
|
-
|
(833)
|
97,108
|
96,275
|
279
|
96,554
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
-
|
(4,512)
|
(4,512)
|
-
|
(4,512)
|
|
|
|
|
|
|
|
|
Balance at September
25, 2022
|
|
29,195
|
(1,357)
|
1,143,545
|
1,171,383
|
36,398
|
1,207,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December
26, 2022
|
|
29,195
|
(972)
|
1,174,551
|
1,202,774
|
36,001
|
1,238,775
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) for the period
|
|
|
|
|
|
|
|
Cash flow hedge gains,
net of tax
|
|
-
|
199
|
-
|
199
|
-
|
199
|
Cash flow hedge losses
transferred to the statements
|
|
|
|
|
|
|
|
of
income, net of tax
|
|
-
|
700
|
-
|
700
|
-
|
700
|
Cash flow hedge gains
transferred to property, plant and
|
|
|
|
|
|
|
|
equipment
|
|
-
|
(59)
|
-
|
(59)
|
-
|
(59)
|
Other
comprehensive income
|
|
-
|
840
|
-
|
840
|
-
|
840
|
Net
income (loss) for the period
|
|
-
|
-
|
113,284
|
113,284
|
(707)
|
112,577
|
Comprehensive income (loss) for the period
|
|
-
|
840
|
113,284
|
114,124
|
(707)
|
113,417
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
-
|
(4,351)
|
(4,351)
|
-
|
(4,351)
|
|
|
|
|
|
|
|
|
Balance at October
1, 2023
|
|
29,195
|
(132)
|
1,283,484
|
1,312,547
|
35,294
|
1,347,841
|
|
|
|
|
|
|
|
|
Winpak
Ltd.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
October 1
|
|
September 25
|
|
October 1
|
|
September 25
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
for the period
|
33,824
|
|
29,350
|
|
112,577
|
|
97,387
|
Items not
involving cash:
|
|
|
|
|
|
|
|
Depreciation
|
11,930
|
|
11,912
|
|
35,969
|
|
35,791
|
Amortization -
deferred income
|
(461)
|
|
(429)
|
|
(1,300)
|
|
(1,283)
|
Amortization -
intangible assets
|
397
|
|
428
|
|
1,243
|
|
1,273
|
Employee defined
benefit plan expenses
|
623
|
|
1,149
|
|
2,446
|
|
3,325
|
Net finance
income
|
(5,033)
|
|
(468)
|
|
(12,551)
|
|
(12)
|
Income tax
expense
|
11,970
|
|
10,425
|
|
38,956
|
|
34,621
|
Other
|
76
|
|
523
|
|
(2,178)
|
|
(2,336)
|
Cash flow from operating activities before the following
|
53,326
|
|
52,890
|
|
175,162
|
|
168,766
|
Change in
working capital:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
8,970
|
|
5,181
|
|
14,664
|
|
(28,854)
|
Inventories
|
26,003
|
|
(20,451)
|
|
46,368
|
|
(93,699)
|
Prepaid
expenses
|
(1,530)
|
|
1,987
|
|
(5,273)
|
|
(730)
|
Trade payables and
other liabilities
|
3,009
|
|
(15,692)
|
|
(18,003)
|
|
18,419
|
Contract
liabilities
|
(29)
|
|
(1,647)
|
|
(1,864)
|
|
(3,343)
|
|
|
|
|
|
|
|
|
Employee defined benefit plan contributions
|
(1,523)
|
|
(35)
|
|
(2,308)
|
|
(1,675)
|
Income tax paid
|
(10,407)
|
|
(902)
|
|
(56,780)
|
|
(18,205)
|
Interest received
|
6,700
|
|
1,703
|
|
16,782
|
|
2,438
|
Interest paid
|
(1,547)
|
|
(1,293)
|
|
(4,509)
|
|
(2,574)
|
Net cash from operating activities
|
82,972
|
|
21,741
|
|
164,239
|
|
40,543
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment - net
|
(22,921)
|
|
(11,801)
|
|
(44,506)
|
|
(35,292)
|
Acquisition of intangible assets
|
(70)
|
|
(22)
|
|
(356)
|
|
(253)
|
|
(22,991)
|
|
(11,823)
|
|
(44,862)
|
|
(35,545)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Payment of
lease liabilities
|
(234)
|
|
(219)
|
|
(680)
|
|
(647)
|
Dividends
paid
|
(1,472)
|
|
(1,512)
|
|
(4,349)
|
|
(4,597)
|
|
(1,706)
|
|
(1,731)
|
|
(5,029)
|
|
(5,244)
|
|
|
|
|
|
|
|
|
Change in cash and
cash equivalents
|
58,275
|
|
8,187
|
|
114,348
|
|
(246)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
454,746
|
|
369,028
|
|
398,673
|
|
377,461
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
513,021
|
|
377,215
|
|
513,021
|
|
377,215
|
|
|
|
|
|
|
|
|
SOURCE Winpak Ltd.