Revenue at Pro-Pac Packaging rose by five per cent in the quarter to December 31, driven by new flexibles customers, in what the company said was a challenging market.
Sales rose to $81.1m for the quarter, up from $77.8m in the previous three months, with flexibles up to $63.9m from $60.6m, while specialty packaging was steady at $17.2m.
Pro-Pac said the trading environment “continues to be challenging” as the cost of living crisis impacts on discretionary spending for consumers.
Cashflow at Pro-Pac for the quarter was an outflow of $2m, predominantly due to a seasonal increase in net working capital for the quarter. The company’s payments included $2.5m for a new printing press, with installation completed this month; it will be operational by the end of this quarter.
Pro-Pac has $2.5m in cash on hand, and of its $39m in financing facilities, it has unused credit facilities of $16.8m, including $5.6m from a government grant.
During the quarter it made $3.4m in payments to related parties, including $385,000 to directors and execs, and $3m to Visy “on arm’s length terms”.
