WINNIPEG, MB, Feb. 28,
2023 /CNW/ - Winpak Ltd. (WPK) today reports
consolidated results in US dollars for the fourth quarter of 2022,
which ended on December 25, 2022.
|
Quarter
Ended
|
|
Year Ended
|
|
December 25
|
|
December 26
|
|
December 25
|
|
December 26
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
(thousands of US
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
292,365
|
|
279,053
|
|
1,181,133
|
|
1,001,994
|
Net income
|
30,838
|
|
30,317
|
|
128,225
|
|
106,348
|
|
|
|
|
|
|
|
|
Income tax
expense
|
11,240
|
|
10,846
|
|
45,861
|
|
35,265
|
Net finance (income)
expense
|
(1,790)
|
|
210
|
|
(1,802)
|
|
825
|
Depreciation and
amortization
|
11,918
|
|
11,640
|
|
47,699
|
|
45,383
|
EBITDA (1)
|
52,206
|
|
53,013
|
|
219,983
|
|
187,821
|
|
|
|
|
|
|
|
|
Net income attributable
to equity holders of the Company
|
31,235
|
|
30,031
|
|
128,343
|
|
103,808
|
Net (loss) income
attributable to non-controlling interests
|
(397)
|
|
286
|
|
(118)
|
|
2,540
|
Net income
|
30,838
|
|
30,317
|
|
128,225
|
|
106,348
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share (cents)
|
48
|
|
46
|
|
197
|
|
160
|
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 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. In addition, factors arising as a result of the
Coronavirus (COVID-19) global pandemic that could cause results to
differ from those expected include, but are not limited to:
potential government actions, changes in consumer behaviors and
demand, changes in customer requirements, disruptions of the
Company's suppliers and supply chain, availability of personnel and
uncertainty about the extent and duration of the pandemic. 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
fourth quarter of 2022 amounted to $31.2
million or 48 cents in
earnings per share (EPS), surpassing the 2021 corresponding result
of $30.0 million or 46 cents per share by 4.0 percent. The
improvement in gross profit was the main factor and positively
impacted EPS by 6.0 cents. Net
finance income and foreign exchange added 2.5 cents and 1.5
cents, respectively, to EPS. The level of net income
attributable to non-controlling interests augmented EPS by a
further 1.0 cent. Conversely,
operating expenses lessened EPS by 7.0
cents. In addition, lower sales volumes caused EPS to
decline by 2.0 cents.
For the year ended December 25,
2022, net income attributable to equity holders of the
Company of $128.3 million or
$1.97 per share, representing the
highest level in Winpak's history, advanced from the prior year's
income of $103.8 million or
$1.60 per share by 23.6 percent.
Gross profit propelled EPS forward by 62.5
cents. Net finance income elevated EPS by 3.0 cents and the level of net income
attributable to non-controlling interests raised EPS by an
additional 4.0 cents. Modestly higher
sales volumes benefitted EPS by 1.0
cent. Operating expenses had the opposite effect, dampening
EPS by 26.5 cents. Foreign exchange
and income taxes each lowered EPS by 3.5
cents.
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 fourth quarter of 2022 was $292.4 million, surpassing the prior year level
of $279.1 million by 4.8 percent.
Volumes contracted by 4.3 percent. The flexible packaging operating
segment recorded a reduction in volumes of 1 percent. The modified
atmosphere packaging product group realized modest volume growth
following the healthy demand for retail meat and cheese products.
For the biaxially oriented nylon product group, volumes declined
sharply as most customers unwound the exceptional inventory levels
that were previously established to combat the unstable supply
chain environment. Within the rigid packaging and flexible lidding
operating segment, volumes retreated by 7 percent. Rigid container
volumes decreased by 10 percent due to lower condiment container
activity, which was exceptionally strong in the fourth quarter of
2021. For the lidding product group, the availability of labor
continued to constrain manufacturing output and volumes declined by
5 percent as a result. Packaging machinery volumes declined in the
quarter as customers temporarily scaled back on capital purchases
with the uncertainty prevailing in the current economic
environment. Selling price and mix changes had a notable positive
effect on revenue of 9.8 percent, which was largely due to the
magnitude of raw material pass-through adjustments to customer
selling prices. Foreign exchange had a minor negative influence on
revenue.
For 2022, revenue reached an all-time high of $1,181.1 million, growing by 17.9 percent from
the 2021 level of $1,002.0 million.
Volumes were virtually unchanged, advancing by 0.6 percent. Within
the flexible packaging operating segment, volume gains amounted to
4 percent. Growth for the modified atmosphere packaging product
group reached 11 percent, fueled by the frozen food packaging
business as well as heightened demand for protein and cheese
packaging, particularly for customers that supply retail food
industries. Conversely, specialty film volumes retreated because of
customer loss and the strategic exit from certain low-margin
business. Biaxially oriented nylon volumes fell significantly as
several key customers altered their order patterns in response to
the excess inventory they had accumulated in the prior year as a
means to counteract the severe supply chain challenges. The rigid
packaging and flexible lidding operating segment volumes receded by
3 percent. For the rigid container product group, lower condiment
and specialty beverage shipments caused volumes to decline by 5
percent. The lidding product group experienced a shortage of
manufacturing labor throughout 2022, limiting productive capacity.
Additionally, severe aluminum foil procurement obstacles prevailed
during the first quarter of 2022. Consequently, volumes contracted
by 3 percent. Stemming from the nutraceutical packaging business
secured during 2021, sizeable volume growth was generated by the
specialized printed packaging group. Packaging machinery volumes
were essentially equal to the prior year. Selling price and mix
changes had a large favorable effect on revenue of 17.6 percent as
the substantial overall rise in raw material and other costs over
the past 18 months generated much higher selling prices to
customers. Foreign exchange had virtually no effect on revenue.
Gross Profit Margins
Gross profit margins of 27.2 percent of revenue in the fourth
quarter of 2022 fell slightly from the 27.6 percent recorded in the
same quarter of 2021. In dollar terms, gross profit improved by 3.4
percent from the fourth quarter of 2021 even though sales volumes
contracted over the same time horizon. Accordingly, EPS was
augmented by 6.0 cents. The magnitude
of selling price increases significantly outpaced the corresponding
rise in raw material costs. This divergence elevated EPS by
18.5 cents. This was a function of
both sales mix and the sequence of inflationary selling price
adjustments that have been implemented over the past 15 months. In
terms of operating leverage, manufacturing costs increased by more
than 10 percent while sales volumes narrowed, lowering EPS by
12.5 cents.
For the current year, gross profit margins of 28.1 percent of
revenue exceeded the 2021 level of 27.4 percent. More importantly,
gross profit surged by 20.9 percent from $274.4 million to $331.8
million over the same time period while sales volumes
expanded by only 0.6 percent. A sizeable increase in EPS of
62.5 cents took place as a result.
Selling prices rose to a much larger extent than raw material
costs, which included significant aluminum foil transportation
costs, raising EPS by 94.0 cents.
During 2021, on account of the inherent delay prescribed within
formal customer price indexing programs, raw material costs
escalated much greater than the related selling price adjustments.
The opposite dynamic took place in 2022. Additionally, since the
final quarter of 2021, a series of inflationary selling price
increases have been enacted to combat the growth in operating
expenses. Compared to 2021, the rate of acceleration of fixed
manufacturing overheads exceeded the muted rate of sales volume
growth, tempering EPS by 31.5
cents.
The raw material purchase price index declined by 9 percent from
the third quarter of 2022. Since the start of 2022, the index
receded by 5 percent. During the fourth quarter, polypropylene
resin experienced a considerable decrease of 27 percent.
Additionally, aluminum foil and nylon and polyethylene resins each
realized decreases ranging between 8 and 10 percent.
Expenses and Other
Operating expenses in the fourth quarter of 2022, adjusted for
foreign exchange, expanded by 13.9 percent relative to the drop in
sales volumes and consequently, lowered EPS by 7.0 cents. Personnel costs, as well as freight
and distribution expenses, were the leading factors. Also
influential were the significant, non-recurring credit loss
recoveries on trade and other receivables recorded in the fourth
quarter of 2021. Foreign exchange benefitted EPS by 1.5 cents in the quarter with the overriding
component being the weakened value of the Canadian dollar that was
employed to translate transactions in that currency into US
dollars. The cash invested in money market accounts and short-term
deposits was at much higher rates of interest in the quarter. Thus,
net finance income elevated EPS by 2.5
cents. The proportion of net earnings attributable to
non-controlling interests added 1.0
cent to EPS.
For the 2022 fiscal year, operating expenses, adjusted for
foreign exchange, advanced at a rate of 18.2 percent in comparison
to the 0.6 percent expansion in sales volumes, subtracting
26.5 cents from EPS. Heightened
freight and distribution costs, in combination with higher
personnel and expected credit loss expenses, were the key variables
leading to the rise in operating expenses. Furthermore,
pre-production costs, which related mainly to the commercialization
of the new biaxially oriented polyamide (BOPA) line, were
significant. Overall, foreign exchange reduced EPS by 3.5 cents. Significantly higher negative
translation differences were recorded on the revaluation of
Canadian dollar monetary assets and liabilities in the current
year. Additionally, losses were realized on foreign exchange
contracts in 2022 in contrast to the gains that were recorded in
2021. These occurrences were only partially mitigated by the
Company's Canadian dollar transactions being translated at a more
advantageous average exchange rate in 2022. The effective income
tax rate advanced by 1.4 percentage points, subtracting
3.5 cents from EPS. Due to the
substantial increase in the rates of interest earned on the
Company's cash and cash equivalent amounts throughout 2022, net
finance income boosted EPS by 3.0
cents. Lastly, the level of net income attributable to
non-controlling interests enhanced EPS by 4.0 cents.
Capital Resources, Cash Flow and Liquidity
The Company's cash and cash equivalents balance ended the current
year at $398.7 million, an increase
of $21.5 million from the end of the
third quarter. Winpak continued to generate strong cash flows from
operating activities before changes in working capital of
$52.4 million. Cash was consumed by
net working capital additions of $8.3
million. Inventories grew by $7.4
million as sales volumes did not reach the anticipated
level. Trade payables declined by $7.9
million, reflecting the timing of supplier payments. Cash
was utilized for plant and equipment additions of $13.8 million, income tax payments of
$8.6 million, dividend payments of
$1.4 million and other items totaling
$0.5 million while net finance income
provided cash of $1.7 million.
For the year, the cash and cash equivalents balance ascended by
$21.2 million, led by the exceptional
cash flow generated from operating activities before changes in
working capital of $221.2 million.
The net investment in working capital amounted to $116.4 million. Inventory balances climbed by
$101.1 million mainly as a result of
the substantial increase in aluminum foil inventories and to a
lesser extent, due to the offering of customer inventory programs
to help mitigate the unprecedented supply chain challenges. Trade
and other receivables expanded by $26.2
million following the growth in revenue in the final quarter
of the year relative to the fourth quarter of 2021. Largely due to
higher inventory balances, trade payables and other liabilities
advanced by $10.6 million. Property,
plant and equipment additions were $49.1
million. The Company acquired land and building adjacent to
the Winnipeg, Manitoba modified
atmosphere packaging facility to accommodate future expansion
endeavors and to reduce the reliance on outside warehousing.
Furthermore, new conversion capacity was added to the modified
atmosphere packaging plant and the next phase of the injection
molded container initiative at the Sauk
Village, Illinois rigid container site commenced. Other uses
of cash included: income tax payments of $26.8 million, dividend payments of $6.0 million and other items amounting to
$3.2 million. Net finance income
produced incremental cash of $1.5
million.
Summary of Quarterly Results
|
|
|
Thousands of US
dollars, except per share amounts (US cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
292,365
|
|
302,532
|
|
310,254
|
|
275,982
|
|
279,053
|
|
254,166
|
|
243,969
|
|
224,806
|
Net income attributable
to equity holders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the
Company
|
31,235
|
|
29,567
|
|
33,671
|
|
33,870
|
|
30,031
|
|
20,762
|
|
28,520
|
|
24,495
|
EPS
|
48
|
|
45
|
|
52
|
|
52
|
|
46
|
|
32
|
|
44
|
|
38
|
Looking Forward
Winpak is currently well positioned to build upon the
record-setting revenue and profitability levels achieved in 2022 in
both the upcoming year and over the long-term.
Central banks raised interest rates aggressively during 2022 and
by the fourth quarter, the rate of inflation declined from the peak
experienced earlier in the year. Throughout 2023, it is forecast
that the rate of inflation will decline considerably. This
expectation, in addition to the continued easing of global supply
chain disruptions, the resilience of consumer consumption in
the United States and the
favorable shift in COVID-19 policies in China, has improved the economic outlook for
the upcoming year in relation to projections made in the final two
quarters of 2022.
As new production capacity becomes available in 2023, business
gains will be sought by the modified atmosphere packaging,
biaxially oriented nylon and rigid container product groups.
Additionally, both the rigid container and flexible lidding product
groups will benefit from gains in retort pet food and snack food
activity. New nutraceutical and pharmaceutical business has been
awarded to the specialized printed packaging product group.
Overall, the challenges faced in 2022 regarding supply chain and
availability of labor will persist again in 2023 but are expected
to moderate. On the other hand, indications are that customers will
continue to significantly reduce the abnormally high level of
inventories that was built up in the preceding year, reducing
demand for the Company's products. This headwind is projected to
have a more profound influence on the first half of 2023. Taking
the above factors into account, Winpak expects sales volume growth
in 2023 to moderately outpace the 0.6 percent increase achieved in
2022.
After experiencing tremendous volatility in 2021, and to a
lesser extent in 2022, current market views are for raw material
costs to be relatively stable throughout the upcoming year in
relation to the prices in effect at the start of 2023. Falling
energy prices and weaker economic conditions are putting downward
pressure on raw material costs. In response, suppliers have
curtailed supply in order to maintain the current pricing levels to
the extent possible. During the first half of 2023, Winpak should
benefit from the notable drop in raw material costs that took place
in the fourth quarter of 2022 as the pass-through of these declines
to customers with selling price indexing agreements are estimated
to be delayed by an average of four months. Although inflationary
forces have begun to abate, the rate of inflation is still well
above historical norms. In addition, the limited availability of
labor resources will put further pressure on the Company's cost
structure. Rising costs will likely dampen profitability as the
ability to implement additional selling price increases will be
limited given the large cumulative adjustments already put into
effect over the past two years.
Capital spending for the upcoming year is anticipated to be
significantly higher than the 2022 level and is forecast to be in
the range of $80 to $90 million. Extensive pre-production activities
relating to the installation of the new BOPA line in Winnipeg, Manitoba were undertaken during 2022
and it is currently projected that the line will be fully
operational by the fourth quarter of 2023. In the second half of
2023, new co-extrusion modified atmosphere packaging and injection
molded rigid container capacity will become available and
contribute favorably to the Company's growth aspirations, including
the strategy to enter adjacent product markets. At two of its main
production facilities, Winpak is also poised to undertake sizeable
building expansions and acquire additional extrusion capacity. As a
complement to this robust, internal capital spending plan,
acquisition candidates will be considered and evaluated when they
align strategically with the Company's strengths in sophisticated
packaging for food, beverage and healthcare applications and
provide a satisfactory economic return for shareholders.
Winpak Ltd.
Interim Condensed Consolidated
Financial Statements
Fourth Quarter Ended: December 25, 2022
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)
|
|
|
|
|
|
|
|
December 25
|
|
December 26
|
|
|
2022
|
|
2021
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
398,673
|
|
377,461
|
Trade and
other receivables
|
|
204,040
|
|
177,382
|
Income
taxes receivable
|
|
3,573
|
|
9,825
|
Inventories
|
|
288,118
|
|
187,058
|
Prepaid
expenses
|
|
5,602
|
|
6,702
|
|
|
900,006
|
|
758,428
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
Property,
plant and equipment
|
|
518,590
|
|
515,247
|
Intangible
assets and goodwill
|
|
33,110
|
|
34,472
|
Employee
benefit plan assets
|
|
10,783
|
|
13,547
|
|
|
562,483
|
|
563,266
|
Total
assets
|
|
1,462,489
|
|
1,321,694
|
|
|
|
|
|
Equity and
Liabilities
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade
payables and other liabilities
|
|
102,382
|
|
91,717
|
Contract
liabilities
|
|
2,621
|
|
3,503
|
Income
taxes payable
|
|
18,393
|
|
1,102
|
Derivative
financial instruments
|
|
1,328
|
|
715
|
|
|
124,724
|
|
97,037
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Employee
benefit plan liabilities
|
|
8,334
|
|
9,837
|
Deferred
income
|
|
17,946
|
|
17,685
|
Provisions
and other long-term liabilities
|
|
12,062
|
|
13,029
|
Deferred
tax liabilities
|
|
60,648
|
|
68,367
|
|
|
98,990
|
|
108,918
|
Total
liabilities
|
|
223,714
|
|
205,955
|
|
|
|
|
|
Equity:
|
|
|
|
|
Share
capital
|
|
29,195
|
|
29,195
|
Reserves
|
|
(972)
|
|
(524)
|
Retained
earnings
|
|
1,174,551
|
|
1,050,949
|
Total equity
attributable to equity holders of the Company
|
|
1,202,774
|
|
1,079,620
|
Non-controlling
interests
|
|
36,001
|
|
36,119
|
Total
equity
|
|
1,238,775
|
|
1,115,739
|
Total equity and
liabilities
|
|
1,462,489
|
|
1,321,694
|
Winpak
Ltd.
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
(thousands of US
dollars, except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
|
December 25
|
|
December 26
|
|
December 25
|
|
December 26
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
292,365
|
|
279,053
|
|
1,181,133
|
|
1,001,994
|
Cost of
sales
|
|
(212,866)
|
|
(202,158)
|
|
(849,369)
|
|
(727,546)
|
Gross profit
|
|
79,499
|
|
76,895
|
|
331,764
|
|
274,448
|
|
|
|
|
|
|
|
|
|
Sales, marketing and
distribution expenses
|
|
(23,210)
|
|
(22,704)
|
|
(95,378)
|
|
(83,848)
|
General and
administrative expenses
|
|
(10,010)
|
|
(7,538)
|
|
(38,783)
|
|
(31,556)
|
Research and technical
expenses
|
|
(5,119)
|
|
(4,701)
|
|
(18,249)
|
|
(17,831)
|
Pre-production
expenses
|
|
(486)
|
|
(43)
|
|
(3,401)
|
|
(43)
|
Other (expenses)
income
|
|
(386)
|
|
(536)
|
|
(3,669)
|
|
1,268
|
Income from
operations
|
|
40,288
|
|
41,373
|
|
172,284
|
|
142,438
|
Finance
income
|
|
3,612
|
|
187
|
|
6,414
|
|
913
|
Finance
expense
|
|
(1,822)
|
|
(397)
|
|
(4,612)
|
|
(1,738)
|
Income before income
taxes
|
|
42,078
|
|
41,163
|
|
174,086
|
|
141,613
|
Income tax
expense
|
|
(11,240)
|
|
(10,846)
|
|
(45,861)
|
|
(35,265)
|
Net income for the
period
|
|
30,838
|
|
30,317
|
|
128,225
|
|
106,348
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
31,235
|
|
30,031
|
|
128,343
|
|
103,808
|
Non-controlling
interests
|
|
(397)
|
|
286
|
|
(118)
|
|
2,540
|
|
|
30,838
|
|
30,317
|
|
128,225
|
|
106,348
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share - cents
|
|
48
|
|
46
|
|
197
|
|
160
|
Condensed
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
|
December 25
|
|
December 26
|
|
December 25
|
|
December 26
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
30,838
|
|
30,317
|
|
128,225
|
|
106,348
|
|
|
|
|
|
|
|
|
|
Items that will not be
reclassified to the statements of income:
|
|
|
|
|
|
|
|
|
Cash flow hedge losses
recognized
|
|
-
|
|
-
|
|
-
|
|
(867)
|
Employee benefit plan
remeasurements
|
|
1,578
|
|
12,727
|
|
1,578
|
|
12,727
|
Income tax
effect
|
|
(372)
|
|
(3,419)
|
|
(372)
|
|
(3,419)
|
|
|
1,206
|
|
9,308
|
|
1,206
|
|
8,441
|
Items that are or may
be reclassified subsequently to the statements of
income:
|
|
|
|
|
|
|
|
|
Cash flow hedge losses
recognized
|
|
(24)
|
|
(384)
|
|
(1,703)
|
|
(102)
|
Cash flow hedge losses
(gains) transferred to the statements of income
|
|
549
|
|
(136)
|
|
1,090
|
|
(1,751)
|
Income tax
effect
|
|
(140)
|
|
139
|
|
165
|
|
495
|
|
|
385
|
|
(381)
|
|
(448)
|
|
(1,358)
|
Other comprehensive
income for the period - net of income tax
|
|
1,591
|
|
8,927
|
|
758
|
|
7,083
|
Comprehensive income
for the period
|
|
32,429
|
|
39,244
|
|
128,983
|
|
113,431
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
32,826
|
|
38,958
|
|
129,101
|
|
110,891
|
Non-controlling
interests
|
|
(397)
|
|
286
|
|
(118)
|
|
2,540
|
|
|
32,429
|
|
39,244
|
|
128,983
|
|
113,431
|
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
28, 2020
|
|
29,195
|
834
|
1,103,435
|
1,133,464
|
33,579
|
1,167,043
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income for the year
|
|
|
|
|
|
|
|
Cash flow hedge
losses, net of tax
|
|
-
|
(75)
|
(867)
|
(942)
|
-
|
(942)
|
Cash flow hedge gains
transferred to the statements
|
|
|
|
|
|
|
|
of
income, net of tax
|
|
-
|
(1,283)
|
-
|
(1,283)
|
-
|
(1,283)
|
Employee benefit plan
remeasurements, net of tax
|
|
-
|
-
|
9,308
|
9,308
|
-
|
9,308
|
Other
comprehensive (loss) income
|
|
-
|
(1,358)
|
8,441
|
7,083
|
-
|
7,083
|
Net
income for the year
|
|
-
|
-
|
103,808
|
103,808
|
2,540
|
106,348
|
Comprehensive (loss) income for the year
|
|
-
|
(1,358)
|
112,249
|
110,891
|
2,540
|
113,431
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
-
|
(164,735)
|
(164,735)
|
-
|
(164,735)
|
|
|
|
|
|
|
|
|
Balance at December
26, 2021
|
|
29,195
|
(524)
|
1,050,949
|
1,079,620
|
36,119
|
1,115,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December
27, 2021
|
|
29,195
|
(524)
|
1,050,949
|
1,079,620
|
36,119
|
1,115,739
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income for the year
|
|
|
|
|
|
|
|
Cash flow hedge
losses, net of tax
|
|
-
|
(1,247)
|
-
|
(1,247)
|
-
|
(1,247)
|
Cash flow hedge losses
transferred to the statements
|
|
|
|
|
|
|
|
of
income, net of tax
|
|
-
|
799
|
-
|
799
|
-
|
799
|
Employee benefit plan
remeasurements, net of tax
|
|
-
|
-
|
1,206
|
1,206
|
-
|
1,206
|
Other
comprehensive (loss) income
|
|
-
|
(448)
|
1,206
|
758
|
-
|
758
|
Net
income (loss) for the year
|
|
-
|
-
|
128,343
|
128,343
|
(118)
|
128,225
|
Comprehensive (loss) income for the year
|
|
-
|
(448)
|
129,549
|
129,101
|
(118)
|
128,983
|
|
|
|
|
|
|
|
|
Dividends
|
|
-
|
-
|
(5,947)
|
(5,947)
|
-
|
(5,947)
|
|
|
|
|
|
|
|
|
Balance at December
25, 2022
|
|
29,195
|
(972)
|
1,174,551
|
1,202,774
|
36,001
|
1,238,775
|
|
|
|
|
|
|
|
|
Winpak
Ltd.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
(thousands of US
dollars) (unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year Ended
|
|
December 25
|
|
December 26
|
|
December 25
|
|
December 26
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
for the period
|
30,838
|
|
30,317
|
|
128,225
|
|
106,348
|
Items not
involving cash:
|
|
|
|
|
|
|
|
Depreciation
|
11,897
|
|
11,598
|
|
47,688
|
|
45,604
|
Amortization -
deferred income
|
(404)
|
|
(372)
|
|
(1,687)
|
|
(1,881)
|
Amortization -
intangible assets
|
425
|
|
414
|
|
1,698
|
|
1,660
|
Employee defined
benefit plan expenses
|
908
|
|
1,041
|
|
4,233
|
|
4,533
|
Net finance (income)
expense
|
(1,790)
|
|
210
|
|
(1,802)
|
|
825
|
Income tax
expense
|
11,240
|
|
10,846
|
|
45,861
|
|
35,265
|
Other
|
(686)
|
|
(3,154)
|
|
(3,046)
|
|
(6,352)
|
Cash flow from operating activities before the following
|
52,428
|
|
50,900
|
|
221,170
|
|
186,002
|
Change in
working capital:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
2,674
|
|
(15,009)
|
|
(26,180)
|
|
(41,976)
|
Inventories
|
(7,361)
|
|
(13,724)
|
|
(101,060)
|
|
(51,429)
|
Prepaid
expenses
|
1,830
|
|
337
|
|
1,100
|
|
(3,574)
|
Trade payables and
other liabilities
|
(7,854)
|
|
15,485
|
|
10,589
|
|
27,056
|
Contract
liabilities
|
2,461
|
|
1,024
|
|
(882)
|
|
1,728
|
|
|
|
|
|
|
|
|
Employee defined benefit plan contributions
|
(237)
|
|
(29)
|
|
(1,912)
|
|
(1,074)
|
Income tax paid
|
(8,589)
|
|
(2,356)
|
|
(26,794)
|
|
(19,069)
|
Interest received
|
3,410
|
|
151
|
|
5,848
|
|
791
|
Interest paid
|
(1,736)
|
|
(350)
|
|
(4,310)
|
|
(1,400)
|
Net cash from operating activities
|
37,026
|
|
36,429
|
|
77,569
|
|
97,055
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Acquisition of property, plant and equipment - net
|
(13,833)
|
|
(9,446)
|
|
(49,125)
|
|
(48,291)
|
Acquisition of intangible assets
|
(83)
|
|
(64)
|
|
(336)
|
|
(245)
|
|
(13,916)
|
|
(9,510)
|
|
(49,461)
|
|
(48,536)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Payment of
lease liabilities
|
(215)
|
|
(208)
|
|
(862)
|
|
(807)
|
Dividends
paid
|
(1,437)
|
|
(1,542)
|
|
(6,034)
|
|
(165,597)
|
|
(1,652)
|
|
(1,750)
|
|
(6,896)
|
|
(166,404)
|
|
|
|
|
|
|
|
|
Change in cash and
cash equivalents
|
21,458
|
|
25,169
|
|
21,212
|
|
(117,885)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
377,215
|
|
352,292
|
|
377,461
|
|
495,346
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
398,673
|
|
377,461
|
|
398,673
|
|
377,461
|
SOURCE Winpak Ltd.