WINNIPEG, MB, July 27,
2023 /CNW/ - Winpak Ltd. (WPK) today reports
consolidated results in US dollars for the second quarter of 2023,
which ended on July 2, 2023.
|
Quarter Ended
(1)
|
|
Year-To-Date Ended
(1)
|
|
July 2
|
|
June 26
|
|
July 2
|
|
June 26
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
(thousands of US
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
Revenue
|
287,464
|
|
310,254
|
|
591,980
|
|
586,236
|
Net income
|
40,017
|
|
34,108
|
|
78,753
|
|
68,037
|
|
|
|
|
|
|
|
|
Income tax
expense
|
13,538
|
|
12,495
|
|
26,986
|
|
24,196
|
Net finance (income)
expense
|
(3,884)
|
|
173
|
|
(7,518)
|
|
456
|
Depreciation and
amortization
|
11,950
|
|
11,961
|
|
24,046
|
|
23,870
|
EBITDA (2)
|
61,621
|
|
58,737
|
|
122,267
|
|
116,559
|
|
|
|
|
|
|
|
|
Net income attributable
to equity holders of the Company
|
40,006
|
|
33,671
|
|
79,293
|
|
67,541
|
Net income (loss)
attributable to non-controlling interests
|
11
|
|
437
|
|
(540)
|
|
496
|
Net income
|
40,017
|
|
34,108
|
|
78,753
|
|
68,037
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share (cents)
|
62
|
|
52
|
|
122
|
|
104
|
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 second quarter of 2023 of
$40.0 million or 62 cents in earnings per share (EPS) increased by
18.8 percent 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 1.0 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 1.0 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 percent compared to the 2022 first half result of $67.5 million or 104
cents per share. Net finance income raised EPS by
9.0 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 3.0 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 percent to first half 2023 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 second quarter of 2023 was $287.5 million, $22.8
million or 7.3 percent less than the second quarter of
2022. Volumes receded by 7.8 percent when compared to the
second quarter of 2022. The negative impact of customer
destocking and softer consumer demand varied amongst the Company's
product groups. The flexible packaging operating segment
recorded a reduction in volumes of 10 percent. For the
modified atmosphere packaging product group, weakened order levels
for protein, cheese and frozen food applications were
experienced. Specialty films volumes retreated largely
because of customer loss and the targeted exit from certain
low-margin business. For the biaxially oriented nylon product
group, volumes declined significantly as the activity level with
customers that had accumulated above average inventory levels
during the recent supply chain challenges was well below
normal. Within the rigid packaging and flexible lidding
operating segment, volumes dropped by 5 percent. The rigid
container product group experienced a 7 percent decline in volumes
stemming from lower specialty beverage container shipments.
For the lidding product group, capacity constraints relating to
daisy chain lidding and a temporary reduction in retort pet food
business caused volumes to contract by 9 percent. As a result
of the pharmaceutical accounts secured during 2022, sizeable volume
growth of nearly 50 percent was generated by the specialized
printed packaging product group. Packaging machinery volumes
fell short of the comparable 2022 quarter as customers scaled back
on purchases due to the rising cost of capital and economic
uncertainty. Selling price and mix changes had a positive
effect on revenue of $3.6 million
whereas foreign exchange lowered revenue by $2.1 million.
For the first six months of 2023, revenue grew by 1.0 percent to
$592.0 million from $586.2 million in the comparable prior year
period. Volumes were virtually unchanged. After
accounting for the additional week in the first quarter of 2023,
volumes were 3 percent lower. Within the flexible packaging
operating segment, volume losses amounted to 5 percent. After
realizing healthy volume growth in both 2021 and 2022, modified
atmosphere packaging product group volumes were relatively
stable. As a result of the tempered demand from core
accounts, biaxially oriented nylon product group volumes contracted
by more than 20 percent. Specialty film volumes decreased by
17 percent on account of customer loss. The rigid packaging
and flexible lidding operating segment volumes advanced by 1
percent. Exceptional volume growth for the specialized
printed packaging product group reflected pharmaceutical business
gains. Rigid container volumes decreased by 4 percent due to
a moderate drop in specialty beverage shipments. Lidding
product group volumes rebounded by 5 percent following the
stabilization of the aluminum foil supply chain and improvement in
productive capacity. Packaging machinery volumes were similar
to the prior year. Selling price and mix changes had a
favorable impact on revenue of 1.7 percent. Foreign exchange
had a minor negative effect on revenue.
Gross Profit Margins
Gross profit margins in the current quarter of 30.2 percent of
revenue ascended by 1.4 percentage points from the 2022 second
quarter result of 28.8 percent of revenue. Selling prices
advanced in contrast to the modest reduction in material costs,
which in the prior year included aluminum foil air freight
transportation expenses. The favorable divergence lifted EPS
by 19.0 cents. With respect to
operating leverage, manufacturing costs expanded while sales
volumes retreated, tempering EPS by 13.5
cents. The Company's cost structure was adversely
affected by inflationary pressures, especially personnel and
consumable expenses.
For the first six months of 2023, gross profit margins were 29.5
percent of revenue, a narrow expansion of 0.4 percentage points
from the 29.1 percent of revenue achieved during the 2022
year-to-date comparative period. Accordingly, EPS climbed by
4.5 cents. Selling price and
mix increases of $10.2 million were
complemented by a 4.6 percent decline in raw material costs,
leading to an increase in EPS of 26.0
cents. The Company benefitted from the 12 percent
reduction in raw material costs that took place over the two
preceding quarters and the contractual delay in passing these along
to customers with formal price indexing arrangements.
Additionally, exceptional expenses incurred to expedite aluminum
foil were embedded within the 2022 raw material costs. The
impact of inflation on manufacturing costs, most notably personnel
and consumable expenses, was substantial, lowering EPS by
21.5 cents. Higher outside
warehousing costs were offset by the improvement in inventory
obsolescence expenses.
The raw material purchase price index dropped by 4 percent
compared to the first quarter of 2023. In the past 12 months,
the decrease in the index was 16 percent. During the second
quarter, polyethylene, polypropylene and nylon resin prices each
realized declines ranging between 10 and 12 percent.
Expenses and Other
Operating expenses in the second quarter of 2023, exclusive of
foreign exchange, contracted at a slightly lower rate relative to
the reduction in sales volumes, thereby subtracting 1.0 cent from EPS. Inflationary forces
raised employee compensation expenses. In contrast, freight
and distribution costs, which were heightened in the prior year,
normalized in the current year. Foreign exchange had a
positive effect on EPS of 3.5 cents
due to the favorable translation differences recorded on the
revaluation of monetary assets and liabilities in comparison to the
unfavorable translation differences recorded in the same quarter in
2022. Additionally, 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 4.5 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 1.5 percentage points in the
second quarter of 2023, enhancing EPS by 1.0
cent. A smaller proportion of earnings attributable to
non-controlling interests raised EPS by 1.0
cent.
On a year-to-date basis, operating expenses, adjusted for
foreign exchange, increased at a rate of 3.4 percent in relation to
the virtually unchanged sales volumes, having a negative impact on
EPS of 3.0 cents. As a
consequence of the inflationary environment, personnel costs
advanced at a rate well above historical norms. This was
partially offset by the sizeable drop in freight and distribution
costs. Foreign exchange contributed 4.5 cents to EPS. The 6.2 percent
depreciation in the average exchange rate of the Canadian dollar in
relation to the US dollar was a positive influence.
Furthermore, the favorable translation differences recorded on the
revaluation of monetary assets and liabilities denominated in
Canadian dollars was in contrast to the unfavorable translation
differences recorded in the first six months 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 9.0 cents. The effective
income tax rate was marginally lower in 2023, providing
1.5 cents to EPS. Lastly, the
level of net income attributable to non-controlling interests
enhanced EPS by 1.5 cents.
Capital Resources, Cash Flow and Liquidity
The
Company's cash and cash equivalents balance ended the second
quarter of 2023 at $454.7 million, an
increase of $34.3 million from the
end of the prior quarter. Winpak generated strong cash flows
from operating activities before changes in working capital of
$61.8 million. The net
investment in working capital decreased by $3.7 million. Inventory amounts fell by
$13.8 million mainly as a result of
unwinding finished goods inventories that had accumulated over the
previous twelve months. Largely due to the lower inventory
purchases, trade payables and other liabilities declined by
$10.4 million. Cash was used
for income tax payments of $20.9
million, property, plant and equipment additions of
$12.1 million, dividend payments of
$1.4 million and other items totaling
$0.3 million. Net finance
income provided cash of $3.5
million.
For the first half of 2023, the cash and cash equivalents
balance advanced by $56.1
million. Cash flows generated from operating
activities before changes in working capital were solid at
$121.8 million. Working capital
consumed $0.5 million in cash.
The $20.4 million decrease in
inventories reflected the physical drawdown of raw material
inventories in combination with the overall drop in raw material
costs since the start of the year. Trade payables and other
liabilities receded by $21.0 million
on account of the diminished level of raw material purchases.
Cash outflows included: income tax payments of $46.4 million, property, plant and equipment
additions of $21.6 million, dividend
payments of $2.9 million and other
items amounting to $1.4
million. Net finance income produced incremental cash
of $7.1 million.
Summary of Quarterly Results
|
|
|
Thousands of US
dollars, except per share amounts (US cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
2023
|
|
2023
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
287,464
|
|
304,516
|
|
292,365
|
|
302,532
|
|
310,254
|
|
275,982
|
|
279,053
|
|
254,166
|
Net income attributable
to equity holders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the
Company
|
40,006
|
|
39,287
|
|
31,235
|
|
29,567
|
|
33,671
|
|
33,870
|
|
30,031
|
|
20,762
|
EPS
|
62
|
|
60
|
|
48
|
|
45
|
|
52
|
|
52
|
|
46
|
|
32
|
Looking Forward
Building upon the record-setting
profitability performance in the first half of 2023, Winpak is
optimistic about the second half of the year. With inflation
trending towards the targets set by central banks, it appears that
the cycle of aggressive monetary policy is nearly complete.
Expectations regarding economic growth in North America have improved somewhat for the
second half of 2023, but have been downgraded slightly for
2024.
Weakened consumer demand and customer destocking had a greater
influence on second quarter sales volumes than had been
forecasted. These headwinds will continue to be influential
in the upcoming quarter but should abate as the year
progresses. For the balance of 2023, the Company is
optimistic that sales volumes will be favorably impacted by new
product launches, new customer onboarding and the timing of
order fulfillment, especially within the rigid container product
group. Based on the challenging operating environment, Winpak
has adjusted the outlook for the remainder of 2023, projecting
sales volume growth in the range of 1 to 3 percent.
Thus far in 2023, raw materials costs have fallen by 7
percent. Current market views are for additional, moderate
reductions in the next six months. The Company will benefit
from this trend as the pass-through of these savings are estimated
to be delayed by an average of four months. In the product
markets that the Company participates, packaging manufacturers, in
aggregate, are experiencing higher than normal levels of unsold
capacity. With this intensified competitive landscape,
further selling price increases are unlikely and at certain
accounts, concessions may be required. Taking the above
factors into account, gross profit margins for the final two
quarters of 2023 should be relatively stable.
Capital expenditures are expected to accelerate in the second
half of the year and are forecast to be in the range of
$80 to 90 million for 2023. In
February 2023, the Board of Directors
approved a significant, multi-year expansion project at the
Winnipeg, Manitoba modified
atmosphere packaging facility. The building expansion of more
than 200,000 square feet should be completed in early 2025 and the
new cast co-extrusion line will be available soon after,
establishing the footprint for sizeable volume growth. In the
upcoming quarter, the injection molded rigid container capacity
will become available, supporting the Company's more immediate
growth aspirations. In addition, a much needed cast
co-extrusion line is scheduled for start-up in early 2024 at the
modified atmosphere packaging facility. Complementary
acquisition candidates will be seriously considered and evaluated,
especially in light of current business valuations within this
elevated cost of capital environment.
Winpak Ltd.
Interim Condensed Consolidated
Financial Statements
Second Quarter Ended: July 2, 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)
|
|
|
|
|
|
|
|
|
|
|
|
July 2
|
|
December 25
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
454,746
|
|
398,673
|
Trade and
other receivables
|
198,346
|
|
204,040
|
Income
taxes receivable
|
|
|
4,905
|
|
3,573
|
Inventories
|
|
|
267,753
|
|
288,118
|
Prepaid
expenses
|
|
|
9,345
|
|
5,602
|
Derivative
financial instruments
|
1,317
|
|
-
|
|
|
|
936,412
|
|
900,006
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
Property,
plant and equipment
|
516,740
|
|
518,590
|
Intangible
assets and goodwill
|
32,551
|
|
33,110
|
Employee
benefit plan assets
|
11,287
|
|
10,783
|
|
|
|
560,578
|
|
562,483
|
Total assets
|
|
|
1,496,990
|
|
1,462,489
|
|
|
|
|
|
|
Equity and Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Trade
payables and other liabilities
|
81,369
|
|
102,382
|
Contract
liabilities
|
|
|
786
|
|
2,621
|
Income
taxes payable
|
|
|
3,284
|
|
18,393
|
Derivative
financial instruments
|
24
|
|
1,328
|
|
|
|
85,463
|
|
124,724
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
Employee
benefit plan liabilities
|
9,237
|
|
8,334
|
Deferred
income
|
|
|
17,712
|
|
17,946
|
Provisions
and other long-term liabilities
|
11,613
|
|
12,062
|
Deferred
tax liabilities
|
|
|
56,232
|
|
60,648
|
|
|
|
94,794
|
|
98,990
|
Total liabilities
|
|
|
180,257
|
|
223,714
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Share
capital
|
|
|
29,195
|
|
29,195
|
Reserves
|
|
|
1,147
|
|
(972)
|
Retained
earnings
|
|
|
1,250,930
|
|
1,174,551
|
Total equity attributable to equity holders of the
Company
|
1,281,272
|
|
1,202,774
|
Non-controlling interests
|
|
35,461
|
|
36,001
|
Total equity
|
|
|
1,316,733
|
|
1,238,775
|
Total equity and liabilities
|
|
1,496,990
|
|
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
|
|
|
|
July 2
|
|
June 26
|
|
July 2
|
|
June 26
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
287,464
|
|
310,254
|
|
591,980
|
|
586,236
|
Cost of
sales
|
|
|
(200,563)
|
|
(221,000)
|
|
(417,229)
|
|
(415,452)
|
Gross profit
|
|
|
86,901
|
|
89,254
|
|
174,751
|
|
170,784
|
|
|
|
|
|
|
|
|
|
|
Sales, marketing and
distribution expenses
|
|
|
(22,559)
|
|
(25,497)
|
|
(47,953)
|
|
(48,287)
|
General and
administrative expenses
|
|
|
(9,595)
|
|
(10,498)
|
|
(20,111)
|
|
(19,249)
|
Research and technical
expenses
|
|
|
(5,480)
|
|
(4,485)
|
|
(9,758)
|
|
(8,750)
|
Pre-production
expenses
|
|
|
-
|
|
(518)
|
|
-
|
|
(920)
|
Other income
(expense)
|
|
|
404
|
|
(1,480)
|
|
1,292
|
|
(889)
|
Income from operations
|
|
|
49,671
|
|
46,776
|
|
98,221
|
|
92,689
|
Finance
income
|
|
|
5,461
|
|
682
|
|
10,453
|
|
955
|
Finance
expense
|
|
|
(1,577)
|
|
(855)
|
|
(2,935)
|
|
(1,411)
|
Income before income
taxes
|
|
|
53,555
|
|
46,603
|
|
105,739
|
|
92,233
|
Income tax
expense
|
|
|
(13,538)
|
|
(12,495)
|
|
(26,986)
|
|
(24,196)
|
Net income for the period
|
|
|
40,017
|
|
34,108
|
|
78,753
|
|
68,037
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
40,006
|
|
33,671
|
|
79,293
|
|
67,541
|
Non-controlling
interests
|
|
|
11
|
|
437
|
|
(540)
|
|
496
|
|
|
|
40,017
|
|
34,108
|
|
78,753
|
|
68,037
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share -
cents
|
|
|
62
|
|
52
|
|
122
|
|
104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive
Income
|
|
|
|
|
|
|
|
|
|
(thousands of US dollars)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
|
|
July 2
|
|
June 26
|
|
July 2
|
|
June 26
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Net income for the period
|
|
|
40,017
|
|
34,108
|
|
78,753
|
|
68,037
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to the statements
of income:
|
|
|
|
|
|
|
|
|
|
Cash flow hedge gains
recognized
|
|
|
478
|
|
-
|
|
766
|
|
-
|
Cash flow hedge gains
transferred to property, plant, and equipment
|
|
|
(17)
|
|
-
|
|
(17)
|
|
-
|
|
|
|
461
|
|
-
|
|
749
|
|
-
|
Items that are or may be reclassified subsequently to
the statements of income:
|
|
|
|
|
|
|
|
|
|
Cash flow hedge gains
(losses) recognized
|
|
|
544
|
|
(948)
|
|
954
|
|
(104)
|
Cash flow hedge losses
transferred to the statements of income
|
|
|
632
|
|
178
|
|
918
|
|
278
|
Income tax
effect
|
|
|
(315)
|
|
206
|
|
(502)
|
|
(46)
|
|
|
|
861
|
|
(564)
|
|
1,370
|
|
128
|
Other comprehensive income (loss) for the
period - net of income tax
|
|
|
1,322
|
|
(564)
|
|
2,119
|
|
128
|
Comprehensive income for the
period
|
|
|
41,339
|
|
33,544
|
|
80,872
|
|
68,165
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
|
41,328
|
|
33,107
|
|
81,412
|
|
67,669
|
Non-controlling
interests
|
|
|
11
|
|
437
|
|
(540)
|
|
496
|
|
|
|
41,339
|
|
33,544
|
|
80,872
|
|
68,165
|
Winpak Ltd.
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Changes in Equity
|
|
|
|
|
|
|
(thousands of US dollars)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity
holders of the Company
|
|
|
|
|
|
Share
capital
|
|
Retained
earnings
|
|
Non-
controlling
interests
|
|
|
|
|
Reserves
|
Total
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
Balance at December 27, 2021
|
|
29,195
|
(524)
|
1,050,949
|
1,079,620
|
36,119
|
1,115,739
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the
period
|
|
|
|
|
|
|
|
|
Cash flow hedge
losses, net of tax
|
|
-
|
(76)
|
-
|
(76)
|
-
|
(76)
|
|
Cash flow hedge losses
transferred to the statements
|
|
|
|
|
|
|
|
|
of
income, net of tax
|
|
-
|
204
|
-
|
204
|
-
|
204
|
|
Other comprehensive
income
|
|
-
|
128
|
-
|
128
|
-
|
128
|
|
Net income for the
period
|
|
-
|
-
|
67,541
|
67,541
|
496
|
68,037
|
|
Comprehensive income for the
period
|
|
-
|
128
|
67,541
|
67,669
|
496
|
68,165
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
-
|
(3,076)
|
(3,076)
|
-
|
(3,076)
|
|
|
|
|
|
|
|
|
|
|
Balance at June 26, 2022
|
|
29,195
|
(396)
|
1,115,414
|
1,144,213
|
36,615
|
1,180,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 26, 2022
|
|
29,195
|
(972)
|
1,174,551
|
1,202,774
|
36,001
|
1,238,775
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the
period
|
|
|
|
|
|
|
|
|
Cash flow hedge gains,
net of tax
|
|
-
|
1,464
|
-
|
1,464
|
-
|
1,464
|
|
Cash flow hedge losses
transferred to the statements
|
|
|
|
|
|
|
|
|
of
income, net of tax
|
|
-
|
672
|
-
|
672
|
-
|
672
|
|
Cash flow hedge gains
transferred to property, plant and
|
|
|
|
|
|
|
|
|
equipment
|
|
-
|
(17)
|
-
|
(17)
|
-
|
(17)
|
|
Other comprehensive
income
|
|
-
|
2,119
|
-
|
2,119
|
-
|
2,119
|
|
Net
income (loss) for the period
|
|
-
|
-
|
79,293
|
79,293
|
(540)
|
78,753
|
|
Comprehensive income (loss) for the period
|
|
-
|
2,119
|
79,293
|
81,412
|
(540)
|
80,872
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
-
|
(2,914)
|
(2,914)
|
-
|
(2,914)
|
|
|
|
|
|
|
|
|
|
|
Balance at July 2, 2023
|
|
29,195
|
1,147
|
1,250,930
|
1,281,272
|
35,461
|
1,316,733
|
|
Winpak Ltd.
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
(thousands of US dollars)
(unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year-To-Date
Ended
|
|
July 2
|
|
June 26
|
|
July 2
|
|
June 26
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Cash provided by (used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
for the period
|
40,017
|
|
34,108
|
|
78,753
|
|
68,037
|
Items not
involving cash:
|
|
|
|
|
|
|
|
Depreciation
|
11,952
|
|
11,962
|
|
24,039
|
|
23,879
|
Amortization -
deferred income
|
(421)
|
|
(428)
|
|
(839)
|
|
(854)
|
Amortization -
intangible assets
|
419
|
|
427
|
|
846
|
|
845
|
Employee defined
benefit plan expenses
|
1,072
|
|
1,092
|
|
1,823
|
|
2,176
|
Net finance (income)
expense
|
(3,884)
|
|
173
|
|
(7,518)
|
|
456
|
Income tax
expense
|
13,538
|
|
12,495
|
|
26,986
|
|
24,196
|
Other
|
(854)
|
|
(8)
|
|
(2,254)
|
|
(2,859)
|
Cash flow from operating activities before the following
|
61,839
|
|
59,821
|
|
121,836
|
|
115,876
|
Change in
working capital:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
2,092
|
|
(21,217)
|
|
5,694
|
|
(34,035)
|
Inventories
|
13,794
|
|
(49,242)
|
|
20,365
|
|
(73,248)
|
Prepaid
expenses
|
(1,296)
|
|
341
|
|
(3,743)
|
|
(2,717)
|
Trade payables and
other liabilities
|
(10,423)
|
|
17,555
|
|
(21,012)
|
|
34,111
|
Contract
liabilities
|
(503)
|
|
(816)
|
|
(1,835)
|
|
(1,696)
|
|
|
|
|
|
|
|
|
Employee defined benefit plan contributions
|
(28)
|
|
(146)
|
|
(785)
|
|
(1,640)
|
Income tax paid
|
(20,856)
|
|
(10,774)
|
|
(46,373)
|
|
(17,303)
|
Interest received
|
5,141
|
|
568
|
|
10,082
|
|
735
|
Interest paid
|
(1,593)
|
|
(785)
|
|
(2,962)
|
|
(1,281)
|
Net cash from operating activities
|
48,167
|
|
(4,695)
|
|
81,267
|
|
18,802
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment - net
|
(12,142)
|
|
(11,555)
|
|
(21,585)
|
|
(23,491)
|
Acquisition of intangible assets
|
(79)
|
|
(56)
|
|
(286)
|
|
(231)
|
|
(12,221)
|
|
(11,611)
|
|
(21,871)
|
|
(23,722)
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Payment of
lease liabilities
|
(227)
|
|
(220)
|
|
(446)
|
|
(428)
|
Dividends
paid
|
(1,443)
|
|
(1,563)
|
|
(2,877)
|
|
(3,085)
|
|
(1,670)
|
|
(1,783)
|
|
(3,323)
|
|
(3,513)
|
|
|
|
|
|
|
|
|
Change in cash and cash
equivalents
|
34,276
|
|
(18,089)
|
|
56,073
|
|
(8,433)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of
period
|
420,470
|
|
387,117
|
|
398,673
|
|
377,461
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of
period
|
454,746
|
|
369,028
|
|
454,746
|
|
369,028
|
SOURCE Winpak Ltd.