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Packagers post positive first-half sales

Wednesday, 21 February 2018
By Print21

A Pact Group warehouse.

ASX-listed packaging companies Pact Group and Pro-Pac recorded healthy increases in sales revenues in the first half of the financial year.

Pact Group posted an 11.1 per cent increase in sales revenue in the December half to $808 million, from $727 million in the prior corresponding period.

In a statement to the ASX, the company said a 12 per cent fall in net profit after tax to $44.1 million was attributed to higher-than-forecast figures paid to the former owners of manufacturer Pascoe’s, which Pact acquired in February 2017 for $41 million.

Solid underlying growth was delivered in Australia, with strong demand in the contract manufacturing, materials handling and sustainability sectors. This was partly offset by lower volumes in international markets. Rigid packaging volumes were generally stable with improved volumes in the health and wellness sector offset by lower demand in the dairy, food and beverage sector due in part to a major customer plant closure.

“We have transformed our product and service portfolio into sectors offering attractive growth opportunities,” said Pact MD and CEO, Malcolm Bundey. “This included investment in over $200 million in transformational growth initiatives last year which saw us grow our contract manufacturing and materials handling platforms.”

Pro-Pac Packaging.

Pro-Pac Packaging Group recorded a 35 percent increase in sales revenue to $158 million, after its $178 million acquisition of Integrated Packaging (IPG) in November 2017. The company posted a loss after tax of $3.2 million, which included $9.9 million in acquisition and relocation costs.

Pro-Pac CEO Grant Harrod said: “The merger with IPG has strengthened our focus in the high growth flexible packaging sector, providing Pro-Pac with a unique opportunity as both manufacturer and distributor. The business can now provide clients with a total packaging solution by combing IPG’s extensive local manufacturing capability and production innovation skills with Pro-Pac’s global source capability as a major packaging distribution business.”

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