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Be the first with the news that moves the market- Packaging giant, Winpak (TSX:WPK) has seen COVID-19 reduce its Q1 2020 revenue to the tune of C$10 million
- The pandemic also hit its first quarter’s net income by C$6 million
- Per share earnings dropped 8 cents, from 44 cents in 2019 to 36 cents this year
- The company saw packaging orders change, as orders for food and beverage went up while retail orders went down
- Winpak (WPK) is down 7.5 per cent, and is trading for $45.49 per share, with a $2.9 billion market cap
Packaging giant, Winpak (TSXV:WPK) has reported a 4.5 per cent revenue dip of $10.4 million for Q1 2020, citing COVID-19.
The net income for the quarter dropped by $6 million to $23.5 million for the quarter. In comparison, the company’s first quarter in 2019 was a high of $29.1 million.
The packaging conglomerate owns and operates 12 packaging facilities in North America. The company has seen packaging orders change, as food and beverage orders have gone up while retail orders have dipped.
Orders from customers that service the restaurant and fast food industry have also dipped as a result of the pandemic.
Winpak splits its products into 3 main product lines; flexible packaging, rigid packaging, and packaging machinery.
Flexible packaging actually went up 3 per cent for the quarter, with the uptick in food and beverage packaging coming substantially up.
However, rigid packaging went down 12 per cent for the quarter. The company has put this down to “reduced participation in supplying the speciality beverage business.”
However, this was offset by a slight uptake in the lidding section of the business, which has gone to specialist beverage lidding for beverage companies.
As for packaging machinery, volumes went down over 40 per cent for the quarter. Winpak has put this down to two things; the abnormally large amount of machinery that was shipped in 2019’s first quarter (which the company believes is an outlier) and the effect COVID-19 has had on the wider economy.
The company has stated that it has a strong sales backlog, which it believes it can fulfil throughout the year.
Winpak (WPK) is down 7.5 per cent, and trading for $45.49 per share at 2:06pm EDT.
