Pro-Pac Packaging Limited (ASX: PPG) has announced a revenue decline of 2.4 per cent for its half-year results ending 31 December 2019.
According to the company, its revenue of $251 million follows a focus on the shifting business mix towards higher margin products in flexibles, but was outweighed by underperformance in industrial and softer revenues in rigid packaging.
The company reported a statutory profit after tax of $7.6 million (a $144.3 million loss from the previous corresponding period) due to the impact of one-off, non-recurring items.
Its EBITDA margin was at 7.2 per cent, which it said was due to focus on growth segments through recent acquisitions in flexibles, operational efficiencies, centralised procurement and embedded cost disciplines.
Pro-Pac Packaging CEO and managing director Tim Welsh said, “Over the past six months, we have focused on identifying primary packaging solutions that add value to our customers and improve the earnings mix of the Group. 1H20 results demonstrate the Group’s ability to extract efficiencies from within our operations to deliver a lower cost to serve model.
“The increase in EBITDA margin in 1H20 validates the focus on shifting our business mix and highlights the improvements in operational discipline and cost reduction. Combined with a significant focus on working capital initiatives, we have been able to materially reduce net debt and strengthen our balance sheet.
“Pro-Pac Packaging will continue to focus on driving growth through operational excellence and by leveraging our local manufacturing capacities. These actions will form the foundations for us to build the Group into a leading manufacturer and distributor of packaging products”.
Pro-Pac Packaging has also appointed Iona MacPherson to the role of chief financial officer.
MacPherson’s experience includes working in publicly-listed companies and joins the business after having spent three years as chief financial officer at Sigma Healthcare. In the 12 years prior to that, she held CFO and company secretary roles with UXC Limited, Boom Logistics Limited and Australian Air Express.
Pro-Pac Packaging CEO Tim Welsh said, “I am delighted to have secured the services of Iona to assist in guiding us through our next phase of growth. Iona will be an invaluable addition to our senior management team, bringing years of experience gained in publicly listed entities together with strong operational experience, and a focus on business process efficiency.”