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Be the first with the news that moves the market- Packaging manufacturer, Imaflex (TSXV:IFX) has maintained profits during 2019, and expects to again in 2020’s challenging environment
- Poor resin prices and the resulting competitive environment pushed company sales figures down 6 per cent on the previous year
- However, Imaflex reported a net profit of C$11 million for 2019, largely due to lower-than-expected costs in other areas
- The company has not experienced significant COVID-19 impacts, and hopes a new 2020 product launch will provide opportunity for growth
- Imaflex (IFX) is holding steady, with shares trading at $0.52 and a market cap of $26 million
Packaging manufacturer, Imaflex (TSXV:IFX) maintained profits during a difficult 2019, and expects to again in 2020’s challenging market.
The company has reported a net profit of C$11 million for 2019, in line with its 2018 figures.
However, Imaflex’s sales numbers dipped to $81.1 million, down 6 per cent on 2019. Imaflex attributes the dip to a competitive pricing environment, which lowered sales income overall, resulting from historically low resin prices.
As resin prices lower, Imaflex’s previously purchased resin becomes relatively more expensive, when compared to other suppliers now producing at a cheaper rate. This squeezes the company’s margin, resulting in the lower sales figures.
Despite these challenges, Imaflex’s profits remained largely the same due to lower costs in other areas, such as transport.
Looking forward, the company remains cautiously optimistic, despite the ongoing COVID-19 pandemic.
Imaflex’s three production facilities qualify as essential and therefore have not felt direct impacts from government-mandated suspensions. Furthermore, the company has not yet experienced supply issues, despite transport and travel restrictions across the globe.
Imaflex’s new agriculture film, Advaseal, is set for release in the near future. The company hopes this will provide a fresh near-term opportunity for growth, even in an overall difficult market.
Imaflex’s President and CEO, Joe Abbandonato, stated that the company is in a good position to improve over 2020.
“We operate in an ever-changing business environment, but we are well positioned to drive profitable growth. We are excited about our future potential.
“I look forward to providing updates on Advaseal and our overall business as we progress throughout the year,” he said.
Imaflex Inc (IFX) is holding steady, with shares trading for $0.52 at 9:35am EST.
