Imaflex registers 28.6% growth in revenues for third quarter
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here
X

Imaflex registers 28.6% growth in revenues for third quarter

25 Nov 2021 (Last Updated November 25th, 2021 09:18)

The company said that new Covid-19 variants and supply or distribution issues could impact its performance.

Canadian flexible packaging provider Imaflex has reported that its third-quarter (Q3) revenues increased by 28.6% to C$29.5m ($23.3m) from the same period of last year.

During the three months to 30 September, the company’s net income rose by 124.4% to C$2.8m from C$1.2m a year earlier.

Its earnings per share (EPS) for the quarter were C$0.05, up from C$0.02 in Q3 2020.

Imaflex’s gross profit remained at C$4.4m in the quarter, unchanged from last year.

In the first three quarters of this year, the company registered C$81.8m in revenue, a 26.3% increase from a year earlier.

Its net income for this period grew by 44% to C$6.7m from last year, while its gross profit rose by 12% to C$13.5m.

Imaflex president and CEO Joe Abbandonato said: “We had another solid quarter driven by our diversified set of offerings and increased scale.

“Earnings per share for 2021 year-to-date are already at par with full-year 2020 and although market forces remain challenging, we are well poised to close the year with a respectable finish.”

Imaflex said that it had not experienced any material impact on its business, financial situation or results due to Covid-19.

Despite this, the company expects several factors, including the emergence of new viral variants and supply distribution issues, to affect its performance.

Abbandonato added: “Demand for our products continues to be steady, particularly our higher margin offerings.

“As well as this, we continue to benefit from our growing scale, enhanced by our multi-year capital investments.

“This said, we operate in a competitive pricing environment, and although resin input costs appear to be stabilising, any new supply constraints could put additional pressure on resin pricing and availability.

“Fortunately, we are normally able to adjust product pricing in accordance with raw material costs. In addition, our diversified set of offerings and broad customer base helps mitigate business risks.”