Revenue at Pro-Pac Packaging for the half year slipped by two per cent, but losses increased to $6.2m as the company faced challenges in its Flexibles business.
Sales were $183.3m, down by $3.8m from $187.1m in the same period in the prior year. Profit before tax sank further into the red, growing by $5.4m from $900,000 last year. Pre-AASB 16 EBITDA also fell into the red, to the tune of $800,000, down by $5.7m from last year.
Flexibles revenue decreased a tad, by one per cent to $143.4m, but its Flexibles EBITDA pre-AASB 16 figure fell from $6m in the black to zero, with EBIT moving from $4.2m in the black to $2.9m in the red, while profit before tax also fell into the red, to a $3.8m loss, from a $2.6m profit last year.
Its Industrial Speciality Packaging division saw revenue fall by 5.5 per cent to $39.9m, but Pro-Pac managed to turn around its losses, scraping over the line into the red in EBITDA pre-AASB 16, EBIT and profit before tax was recorded at $300,000.
John Cerini, CEO and managing director, said: “We have been resolutely focused on delivering our strategy in the face of difficult operating conditions.”
According to Cerini, Pro-Pac has "an increasing pipeline of attractive opportunities" for which the company intends to use its "manufacturing capabilities and expertise" to convert into profitable revenue.
The company says its focus on cost and labour savings will deliver a $10m benefit in the next financial year.
