Winpak Ltd. of Winnipeg, Manitoba released its fourth quarter results, which included an earnings performance that the company describes as the highest of any quarter in its 40-year history. Winpak manufactures and distributes high-quality packaging materials and related packaging machines, which are primarily for the packaging of perishable foods, beverages and in healthcare applications.
Net income attributable to equity holders of the company for the fourth quarter of 2016 amounted to $28.6 million or 44 cents in earnings per share (EPS), surpassing the 2015 corresponding result of $27.6 million or 43 cents per share by 3.4 percent. As mentioned, the represents the highest earnings performance of any quarter in the Company's 40-year history.
For the year ended December 25, 2016, net income attributable to equity holders of the Company of $104.3 million or $1.61 per share eclipsed the prior year record net income of $99.2 million or $1.53 per share by a respectable 5.1 percent.
Revenue in the fourth quarter of 2016 of $215.6 million also set new heights, according to the company, and exceeded the 2015 final quarter level of $205.7 million by 4.8 percent. Volumes continued where they left off at the end of the first three quarters, explains Winpak, advancing by 6.9 percent in the fourth quarter, when compared to the same period in 2015.
On a percentage basis, biaxially oriented nylon volumes led the way, explains the company, accelerating by over 30 percent followed by packaging machinery and parts sales which rebounded from a slower third quarter of the year. Winpak continued to explain specialty film shipments also recovered from their decline in the previous quarter by moving forward in low double-digit percentage terms as bottlenecks within the operation continued to be addressed. Modified atmosphere packaging volumes ascended in the high single-digit percentage range as ongoing progress was made at securing additional business at major US protein customers.
After a particularly strong third quarter, explains Winpak, rigid container and lidding volumes advanced by low single-digit percentage increases over the 2015 final quarter. Custom container shipments, including specialty beverage, along with condiment packaging and trays for home meal replacements bolstered volume growth. Lidding for yogurt applications provided further gains.
For 2016, revenue reached an all-time high for the company at $822.5 million, up by 3.2 percent from the $797.2 million recorded in the previous year. Volumes grew by a notable 6.8 percent, explains Winpak, with all major product groups progressing.
For the current year, gross profit margins attained a level of 32.7 percent of revenue versus the 32.3 percent reached in 2015. While volumes advanced by 6.8 percent in 2016, gross profit only grew by 4.5 percent from $257.8 million in 2015 to $269.3 million in the present year.
Following a strong finish to 2016, the company explains it remains optimistic as it enters 2017 in terms of volume and earnings advancement. Winpak continues its strategic focus on organic growth with opportunities in the sales pipeline progressing on the road to new revenue for the corporation. In particular, the company is targeting additional business from North America's major food processors.
Winpak Releases Strong Year-end Results
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