Winpak Reports 2024 Fourth Quarter Results

WINNIPEG, MB, Feb. 27, 2025 /CNW/ - Winpak Ltd. (WPK) today reports consolidated results in US dollars for the fourth quarter of 2024, which ended on December 29, 2024.

	Quarter Ended				Year Ended (1)
	December 29		December 31		December 29		December 31
	2024		2023		2024		2023
(thousands of US dollars, except per share amounts)
Revenue	285,143		275,637		1,130,895		1,141,407
Net income	36,966		35,016		151,069		147,593
Income tax expense	15,580		13,244		58,867		52,200
Net finance income	(5,164)		(6,543)		(22,980)		(19,094)
Depreciation and amortization	13,793		11,922		52,831		47,834
Impairment loss on goodwill	1,000		-		1,000		-
EBITDA (2)	62,175		53,639		240,787		228,533
Net income attributable to equity holders of the Company	36,622		34,846		149,455		148,130
Net income (loss) attributable to non-controlling interests	344		170		1,614		(537)
Net income	36,966		35,016		151,069		147,593
Basic and diluted earnings per share (cents)	58		54		235		228

Winpak Ltd. manufactures and distributes high-quality packaging materials and related packaging machines.  The Company's products are used primarily for the packaging of perishable foods, beverages and in healthcare applications.

¹ The 2024 fiscal year comprised 52 weeks and the 2023 fiscal year comprised 53 weeks.  Each quarter of 2024 and 2023 comprised 13 weeks with the exception of the first quarter of 2023, which comprised 14 weeks.

² EBITDA is not a recognized measure under IFRS Accounting Standards (IFRS).  Management believes that in addition to net income, this measure provides useful supplemental information to investors including an indication of cash available for distribution prior to debt service, capital expenditures, payment of lease liabilities and income taxes.  Investors should be cautioned, however, that this measure should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's performance.  The Company's method of calculating this measure may differ from other companies and, accordingly, the results may not be comparable.

 (presented in US dollars)

Forward-looking statements: Certain statements made in the following report contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company.  Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance.  Such forward-looking statements represent Winpak's current views based on information as at the date of this report.  They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements.  Factors that could cause results to differ from those expected include, but are not limited to: the terms, availability and costs of acquiring raw materials and the ability to pass on price increases to customers; ability to negotiate contracts with new customers or renew existing customer contracts with less favorable terms; timely response to changes in customer product needs and market acceptance of our products; the potential loss of business or increased costs due to customer or vendor consolidation; competitive pressures, including new product development; industry capacity, and changes in competitors' pricing; ability to maintain or increase productivity levels; ability to contain or reduce costs; foreign currency exchange rate fluctuations; changes in governmental regulations, including environmental, health and safety; changes in Canadian and foreign tariff rates; changes in Canadian and foreign income tax rates, income tax laws and regulations.  Unless otherwise required by applicable securities law, Winpak disclaims any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise.  The Company cautions investors not to place undue reliance upon forward-looking statements.

Financial Performance
Net income attributable to equity holders of the Company (Earnings) for the fourth quarter of 2024 of $36.6 million increased by 5.1 percent from the $34.8 million recorded in the corresponding quarter in 2023.  The improvement in gross profit was a key factor, elevating Earnings by $9.0 million.  Conversely, higher operating expenses led to a contraction in Earnings of $2.4 million.  In addition, foreign exchange lowered Earnings by $1.9 million.  Furthermore, income taxes subtracted $1.1 million from Earnings.  In combination, all other factors reduced Earnings by $1.8 million.

For the year ended December 29, 2024, Earnings advanced by 0.9 percent to $149.5 million from the comparable 2023 result of $148.1 million.  The sizeable expansion in gross profit enhanced Earnings by $20.7 million.  Operating expenses reduced Earnings by $10.8 million.  Additionally, foreign exchange and income taxes dampened Earnings by $4.3 million and $3.4 million, respectively.  In total, all remaining items lowered Earnings by $0.9 million.

The fiscal year of the Company ends on the last Sunday of the calendar year and is usually 52 weeks in duration.  However, the 2023 fiscal year consisted of 53 weeks, with the first quarter comprising 14 weeks, one more week than the current year.  The additional week included in the 2023 first quarter was essentially the last week of the 2022 calendar year which contained several statutory holidays.  Consequently, it is estimated that this additional week contributed 1.5 percent to 2023 sales volumes and net income results.

Operating Segments and Product Groups
The Company provides three distinct types of packaging technologies: a) flexible packaging, b) rigid packaging and flexible lidding and c) packaging machinery.  Each is deemed to be a separate operating segment.

The flexible packaging segment includes the modified atmosphere packaging, specialty films and biaxially oriented nylon product groups.  Modified atmosphere packaging extends the shelf life of perishable foods, while at the same time maintains or improves the quality of the product.  The packaging is used for a wide range of markets and applications, including fresh and processed meats, poultry, cheese, medical device packaging, high performance pouch applications and high-barrier films for converting applications.  Specialty films include a full line of barrier and non-barrier films which are ideal for converting applications such as printing, laminating and bag making, including shrink bags.  Biaxially oriented nylon film is stretched by length and width to add stability for further conversion using printing, metalizing or laminating processes and is ideal for food packaging applications such as cheese, fluid and viscous liquids, and industrial applications such as book covers and balloons.

The rigid packaging and flexible lidding segment includes the rigid containers, lidding and specialized printed packaging product groups.  Rigid containers include portion control and single-serve containers, as well as plastic sheet, custom and retort trays, which are used for applications such as food, pet food, beverage, dairy, industrial and healthcare.  Lidding products are available in die-cut, daisy chain and rollstock formats and are used for applications such as food, dairy, beverage, pet food, industrial and healthcare.  Specialized printed packaging provides packaging solutions to the pharmaceutical, healthcare, nutraceutical, cosmetic and personal care markets.

Packaging machinery includes a full line of horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid products and certain dry products.  

Revenue
Revenue in the fourth quarter of 2024 was $285.1 million, $9.5 million or 3.4 percent greater than the fourth quarter of 2023.  Somewhat below expectations, volume growth of 0.5 percent was realized when compared to the fourth quarter of 2023.  Certain commercial opportunites have been delayed until 2025.  The flexible packaging operating segment recorded an expansion in volumes of 5 percent.  Volume growth of 7 percent was attained by the modified atmosphere packaging product group, reflecting healthy gains in order levels for meat and cheese applications.  Within the rigid packaging and flexible lidding operating segment, volumes dropped by 3 percent.  The rigid container product group experienced a 14 percent decline in volumes stemming from lower specialty beverage and applesauce container shipments.  For the lidding product group, volumes improved by 9 percent as the prior year's comparative quarter was impacted by extended unplanned downtime on a major piece of equipment.  Packaging machinery volumes decreased by 9 percent as an unusually high number of machines were delivered to customers in the fourth quarter of 2023.  Heavily influenced by adjustments to estimated customer rebate entitlements, selling price and mix changes had a positive effect on revenue of $8.2 million.  

For 2024, revenue of $1,130.9 million decreased by 0.9 percent from the 2023 level of $1,141.4 million.  Volumes contracted by 0.2 percent.  After accounting for the additional week in the first quarter of 2023, volumes were 1.3 percent higher.  The subsequent comments on operating segment and product group volumes are presented on an adjusted basis.  Within the flexible packaging operating segment, volume gains amounted to 4 percent.  For the modified atmosphere packaging product group, modest volume growth of 4 percent reflected business gains pertaining to meat and cheese packaging, which was partially mitigated by the curtailment in demand for frozen food packaging.  Biaxially oriented nylon product group volumes advanced by 19 percent, a reflection of the recovery from the sharp downturn in demand during the first three quarters of 2023.  Specialty film volumes were virtually unchanged.  The rigid packaging and flexible lidding operating segment volumes narrowed by 1 percent.  Rigid container volumes decreased by 6 percent due to a significant drop in specialty beverage and applesauce container shipments.  For the lidding product group, volumes grew by 2 percent with advances recorded for retort pet food, condiment and cultured dairy lidding.  Solid volume growth of 7 percent for the specialized printed packaging product group was fuelled by nutraceutical business gains.  Packaging machinery volumes declined by 2 percent.  Due to the higher cost of capital, several packaging machinery customers delayed order placement. This was nearly offset by a surge in replacement part sales.  Selling price and mix changes had an unfavorable impact on revenue of 0.7 percent.  Foreign exchange had a minor negative effect on revenue.

Gross Profit Margins
Gross profit margins in the current quarter of 32.3 percent of revenue ascended by 3.5 percentage points from the 2023 fourth quarter result of 28.8 percent of revenue.  The magnitude of raw material cost savings, combined with adjustments made to customer rebates, enhanced Earnings by $10.8 million.  Other factors combined to reduce Earnings by $1.8 million.  The most notable were personnel and depreciation expenses.

For the current year, gross profit margins of 32.0 percent of revenue exceeded the 2023 level of 29.3 percent.  Raw material cost reductions significantly outpaced the corresponding selling price decreases, which included the pass-through of indexing adjustments.  This differential raised Earnings by $27.1 million.  In total, all remaining items lowered Earnings by $6.4 million.  The Company's cost structure was affected by higher personnel and depreciation expenses.  Due to inflationary pressures, wages increased at a rate well above the historical norm.  Conversely, heightened output levels improved the overall cost of production.

The raw material purchase price index dropped by 6 percent compared to the third quarter of 2024.  Over the past year, the index has risen by 2 percent.  During the fourth quarter, nylon resin and aluminum foil each realized decreases ranging between 9 and 13 percent. 

Expenses and Other
Operating expenses in the fourth quarter of 2024, exclusive of foreign exchange, progressed at a rate of 8.9 percent whereas sales volumes increased by 0.5 percent, resulting in a reduction in Earnings of $2.4 million.  The main contributing factors were personnel expenses and costs associated with implementing an upgraded enterprise resource planning (ERP) system, which commenced in late 2023.  Foreign exchange had a negative effect on Earnings of $1.9 million due to the unfavorable translation differences recorded on the revaluation of monetary assets and liabilities in comparison to the favorable translation differences recorded in the same quarter in 2023.  The rate at which income is taxed in the United States elevated the effective income tax rate by 2.3 percentage points, lowering Earnings by $1.1 million. 

For the 2024 fiscal year, operating expenses, adjusted for foreign exchange, advanced at a rate of 9.3 percent in comparison to the 0.2 percent reduction in sales volumes, thereby having an unfavorable impact on Earnings of $10.8 million.  Expenses pertaining to the ERP project were the main driver.  Furthermore, as a consequence of the inflationary environment, personnel and freight costs expanded.  Foreign exchange dampened Earnings by $4.3 million.  The negative translation differences recorded on the revaluation of monetary assets and liabilities denominated in Canadian dollars was in contrast to the positive translation differences recorded in 2023.  Due to the substantial increase in the average balance of cash invested in short-term deposits and money market accounts, net finance income boosted Earnings by $2.8 million.  The effective income tax rate was pushed higher in 2024 because of permanent differences associated with foreign exchange and the higher tax rate applied to income earned within the United States, contracting Earnings by $3.4 million.  Lastly, the level of net income attributable to non-controlling interests lessened Earnings by $2.2 million.

Capital Resources, Cash Flow and Liquidity
On February 29, 2024, the Toronto Stock Exchange (the "TSX") accepted a notice filed by Winpak of its intention to make a normal course issuer bid (the "NCIB") with respect to its outstanding common shares.  The notice provided that Winpak may, during the 12-month period commencing March 4, 2024 and ending no later than March 3, 2025, purchase through the facilities of the TSX and other alternative Canadian trading systems up to a maximum of 1,950,000 common shares in total, being 3.0 percent of the issued and outstanding shares of Winpak as of February 21, 2024, which was fulfilled on May 13, 2024.  On October 17, 2024, the TSX accepted a notice filed by Winpak to amend the NCIB to a maximum of 3,250,000 common shares.  The price which Winpak will pay for any common shares will be the market price at the time of acquisition.  Daily purchases under the NCIB will be generally limited to 11,644 common shares, other than block purchases.  All shares purchased will be canceled.  In connection with the NCIB, Winpak has entered into an automatic share purchase plan ("ASPP") with CIBC World Markets Inc. to facilitate the purchase of common shares under the NCIB, including at times when Winpak would ordinarily not be permitted to purchase its common shares due to regulatory restrictions or self-imposed blackout periods.  By the end of 2024, 2,854,126 common shares had been repurchased at a weighted average price of CDN $45.55 for aggregate consideration of CDN $129,992 (US $94,512).  Subsequent to the year ended December 29, 2024, the Company completed the NCIB program, repurchasing 395,874 common shares at a weighted average price of CDN $45.93 for aggregate consideration of CDN $18,182 (US $12,609). 

During the third quarter of 2024, the quarterly dividend was raised to 5 cents (Canadian dollars) per common share, a significant increase from the 3 cents (Canadian dollars) per common share that had been paid on a quarterly basis since 2007.  In addition, the Company paid a special dividend of $3.00 (Canadian dollars) per common share on January 10, 2025.  Sufficient cash resources are available to fund both capital expenditures for organic growth and potential acquisition opportunities.

The Company's cash and cash equivalents balance ended the current year at $497.3 million, a decrease of $18.7 million from the end of the third quarter.  Winpak continued to generate strong cash flows from operating activities before changes in working capital of $59.5 million.  The net investment in working capital increased by $17.3 million.  Inventory amounts climbed by $17.8 million mainly as a result of accumulating work-in-process and finished goods inventories within the United States prior to the potential enactment of tariffs on sales of goods from Canada into the United States.  Cash was used for common share repurchases of $31.6 million, property, plant and equipment additions of $22.1 million, income tax payments of $8.9 million and other items totaling $3.2 million.  Net finance income provided cash of $4.9 million.

For the year, the cash and cash equivalents balance declined by $44.6 million.  Cash flows generated from operating activities before changes in working capital were solid at $236.8 million.  Working capital consumed $23.1 million in cash. The $30.6 million increase in inventories was caused by the accumulation of manufactured inventories to satisfy the projected growth in customer demand and to partially mitigate the impact of tariffs that could be implemented by the United States in early 2025 on goods shipped from the Company's Canadian facilities.  Additionally, trade and other receivables escalated by $10.9 million, coinciding with the rise in revenue from the fourth quarter of 2023 to the fourth quarter of 2024.  Stemming from the timing of raw material inventory purchases, trade payables and other liabilities expanded by $15.9 million.  Property, plant and equipment additions were $123.3 million.  Expenditures relating to the multi-year expansion project at the Winnipeg, Manitoba modified atmosphere packaging facility influenced the higher than normal capital expenditure outlays.  Other uses of cash included: common share repurchases of $94.5 million, income tax payments of $53.0 million and other items amounting to $9.9 million.  Net finance income produced incremental cash of $22.4 million.

Summary of Quarterly Results
			Thousands of US dollars, except per share amounts (US cents)
	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
	2024		2024		2024		2024		2023		2023		2023		2023
Revenue	285,143		285,473		283,496		276,783		275,637		273,790		287,464		304,516
Net income attributable to equity holders
of the Company	36,622		38,486		38,825		35,522		34,846		33,991		40,006		39,287
EPS	58		61		61		55		54		52		62		60

Looking Forward
Building upon the solid volume growth achieved by core product groups in the second half of 2024, as well as commercializing opportunities within the current business pipeline, Winpak is optimistic about the 2025 fiscal year.  However, there is significant uncertainty regarding the nature, extent and duration of various protectionist trade measures that have been and may be enacted within North America and the consequential impact on economic growth, inflation, foreign exchange and interest rates in addition to the immediate impact on the Company's cost structure.  The Company has assessed and will continue to assess both the short-term and long-term countermeasures that can be undertaken to mitigate the potential negative impacts. 

Winpak is acutely focused on successfully onboarding opportunities with new customers in addition to new opportunities with existing customers.  Pet food, in-mold-label, dairy and healthcare markets are the primary targets.  The Company is projecting sales volume growth in the range of 5 to 7 percent for 2025.

For 2025, market expectations are for overall resin prices to be relatively stable.  The collective bargaining agreement covering the largest employee base will expire in mid-2025, adding a level of uncertainty to the Company's future cost structure.  Conversely the anticipated sales volume growth will favorably influence equipment utilization rates, lowering the overall cost of production on a per unit basis.  In addition, challenging capacity constraints that persisted for most of 2024 will significantly abate in 2025.  Manufacturing efficiencies will improve as a result.  Furthermore, the additional costs incurred relating to the outsourcing of converting operations will significantly decrease.  Overall, gross profit margins should be within the range of 31 to 32 percent.

Capital expenditures of approximately $110 to $130 million are forecast for 2025, the majority of which relates to the completion of the significant expansion of the Winnipeg, Manitoba modified atmosphere packaging facility.  Winpak is also evaluating prospective acquisition opportunities that align strategically with the Company's core strengths.  After successfully fulfilling the initial share buyback program, the Company is assessing its renewal in March 2025.

Winpak Ltd.
Interim Condensed Consolidated Financial Statements
Fourth Quarter Ended: December 29, 2024

These interim condensed consolidated financial statements have not been audited or reviewed by the Company's independent external auditors, KPMG LLP.  For a complete set of notes to the condensed consolidated financial statements, refer to www.sedar.com or the Company's website, www.winpak.com.

Winpak Ltd.
Condensed Consolidated Balance Sheets
(thousands of US dollars) (unaudited)
			December 29		December 31
			2024		2023
Assets
Current assets:
Cash and cash equivalents			497,261		541,870
Trade and other receivables			220,201		207,355
Income taxes receivable			8,749		4,565
Inventories			250,383		219,763
Prepaid expenses			6,710		8,942
Derivative financial instruments			-		1,542
			983,304		984,037
Non-current assets:
Property, plant and equipment			622,666		543,387
Intangible assets and goodwill			29,709		31,833
Employee benefit plan assets			11,405		12,209
			663,780		587,429
Total assets			1,647,084		1,571,466
Equity and Liabilities
Current liabilities:
Trade payables and other liabilities			252,134		89,359
Contract liabilities			1,747		1,478
Income taxes payable			6,879		3,109
Derivative financial instruments			4,175		-
			264,935		93,946
Non-current liabilities:
Employee benefit plan liabilities			4,774		6,362
Deferred income			19,721		18,062
Provisions and other long-term liabilities			16,781		12,685
Deferred tax liabilities			56,999		56,762
			98,275		93,871
Total liabilities			363,210		187,817
Equity:
Share capital			27,735		29,195
Reserves			(3,174)		1,361
Retained earnings			1,224,097		1,319,491
Total equity attributable to equity holders of the Company			1,248,658		1,350,047
Non-controlling interests			35,216		33,602
Total equity			1,283,874		1,383,649
Total equity and liabilities			1,647,084		1,571,466

Winpak Ltd.
Condensed Consolidated Statements of Income
(thousands of US dollars, except per share amounts) (unaudited)
			Quarter Ended				Year Ended
			December 29		December 31		December 29		December 31
			2024		2023		2024		2023
Revenue			285,143		275,637		1,130,895		1,141,407
Cost of sales			(193,126)		(196,245)		(769,269)		(807,255)
Gross profit			92,017		79,392		361,626		334,152
Sales, marketing and distribution expenses			(24,284)		(22,639)		(98,591)		(93,156)
General and administrative expenses			(12,098)		(10,428)		(48,864)		(41,186)
Research and technical expenses			(5,641)		(5,611)		(21,593)		(20,349)
Other (expenses) income			(2,612)		1,003		(5,622)		1,238
Income from operations			47,382		41,717		186,956		180,699
Finance income			6,111		7,268		27,572		24,418
Finance expense			(947)		(725)		(4,592)		(5,324)
Income before income taxes			52,546		48,260		209,936		199,793
Income tax expense			(15,580)		(13,244)		(58,867)		(52,200)
Net income for the period			36,966		35,016		151,069		147,593
Attributable to:
Equity holders of the Company			36,622		34,846		149,455		148,130
Non-controlling interests			344		170		1,614		(537)
			36,966		35,016		151,069		147,593
Basic and diluted earnings per share - cents			58		54		235		228
Condensed Consolidated Statements of Comprehensive Income
(thousands of US dollars) (unaudited)
			Quarter Ended				Year Ended
			December 29		December 31		December 29		December 31
			2024		2023		2024		2023
Net income for the period			36,966		35,016		151,069		147,593
Items that will not be reclassified to the statements of income:
Cash flow hedge (losses) gains recognized			(663)		779		(1,582)		912
Cash flow hedge losses (gains) transferred to property, plant and equipment			254		10		283		(49)
Employee benefit plan remeasurements			3,048		3,530		3,048		3,530
Income tax effect			(836)		(898)		(836)		(898)
			1,803		3,421		913		3,495
Items that are or may be reclassified subsequently to the statements of income:
Cash flow hedge (losses) gains recognized			(4,319)		724		(5,198)		815
Cash flow hedge losses transferred to the statements of income			286		237		780		1,192
Income tax effect			1,079		(257)		1,182		(537)
			(2,954)		704		(3,236)		1,470
Other comprehensive (loss) income for the period  - net of income tax			(1,151)		4,125		(2,323)		4,965
Comprehensive income for the period			35,815		39,141		148,746		152,558
Attributable to:
Equity holders of the Company			35,471		38,971		147,132		153,095
Non-controlling interests			344		170		1,614		(537)
			35,815		39,141		148,746		152,558

Winpak Ltd.
Condensed Consolidated Statements of Changes in Equity
(thousands of US dollars) (unaudited)
		Attributable to equity holders of the Company
						Non-
		Share		Retained		controlling
		capital	Reserves	earnings	Total	interests	Total equity
Balance at December 26, 2022		29,195	(972)	1,174,551	1,202,774	36,001	1,238,775
Comprehensive income (loss) for the year
Cash flow hedge gains, net of tax		-	1,509	-	1,509	-	1,509
Cash flow hedge losses transferred to the statements
of income, net of tax		-	873	-	873	-	873
Cash flow hedge gains transferred to property, plant and
equipment		-	(49)	-	(49)	-	(49)
Employee benefit plan remeasurements, net of tax		-	-	2,632	2,632	-	2,632
Other comprehensive income		-	2,333	2,632	4,965	-	4,965
Net income (loss) for the year		-	-	148,130	148,130	(537)	147,593
Comprehensive income (loss) for the year		-	2,333	150,762	153,095	(537)	152,558
Dividends		-	-	(5,822)	(5,822)	(1,862)	(7,684)
Balance at December 31, 2023		29,195	1,361	1,319,491	1,350,047	33,602	1,383,649
Balance at January 1, 2024		29,195	1,361	1,319,491	1,350,047	33,602	1,383,649
Comprehensive (loss) income for the year
Cash flow hedge losses, net of tax		-	(5,390)	-	(5,390)	-	(5,390)
Cash flow hedge losses transferred to the statements
of income, net of tax		-	572	-	572	-	572
Cash flow hedge losses transferred to property, plant and
equipment		-	283	-	283	-	283
Employee benefit plan remeasurements, net of tax		-	-	2,212	2,212	-	2,212
Other comprehensive (loss) income		-	(4,535)	2,212	(2,323)	-	(2,323)
Net income for the year		-	-	149,455	149,455	1,614	151,069
Comprehensive (loss) income for the year		-	(4,535)	151,667	147,132	1,614	148,746
Dividends		-	-	(138,395)	(138,395)	-	(138,395)
Repurchase of common shares		(1,460)	-	(108,666)	(110,126)	-	(110,126)
Balance at December 29, 2024		27,735	(3,174)	1,224,097	1,248,658	35,216	1,283,874

Winpak Ltd.
Condensed Consolidated Statements of Cash Flows
(thousands of US dollars) (unaudited)
	Quarter Ended				Year Ended
	December 29		December 31		December 29		December 31
	2024		2023		2024		2023
Cash provided by (used in):
Operating activities:
Net income for the period	36,966		35,016		151,069		147,593
Items not involving cash:
Depreciation	13,893		11,937		52,972		47,906
Amortization - deferred income	(451)		(408)		(1,727)		(1,708)
Amortization - intangible assets	351		393		1,586		1,636
Impairment loss on goodwill	1,000		-		1,000		-
Employee defined benefit plan expenses	709		512		2,821		2,958
Net finance income	(5,164)		(6,543)		(22,980)		(19,094)
Income tax expense	15,580		13,244		58,867		52,200
Other	(3,403)		(1,359)		(6,771)		(3,537)
Cash flow from operating activities before the following	59,481		52,792		236,837		227,954
Change in working capital:
Trade and other receivables	3,096		(17,979)		(10,901)		(3,315)
Inventories	(17,832)		21,987		(30,620)		68,355
Prepaid expenses	1,434		1,933		2,232		(3,340)
Trade payables and other liabilities	(4,700)		4,094		15,913		(13,909)
Contract liabilities	699		721		269		(1,143)
Employee defined benefit plan contributions	(18)		(7)		(1,210)		(2,315)
Income tax paid	(8,880)		(13,696)		(53,024)		(70,476)
Interest received	5,756		7,149		26,621		23,931
Interest paid	(836)		(394)		(4,201)		(4,903)
Net cash from operating activities	38,200		56,600		181,916		220,839
Investing activities:
Acquisition of property, plant and equipment - net	(22,098)		(24,164)		(123,312)		(68,670)
Acquisition of intangible assets	(424)		(4)		(462)		(360)
	(22,522)		(24,168)		(123,774)		(69,030)
Financing activities:
Payment of lease liabilities	(409)		(285)		(1,617)		(965)
Dividends paid	(2,333)		(1,436)		(6,622)		(5,785)
Dividend paid to non-controlling interests in subsidiary	-		(1,862)		-		(1,862)
Repurchase of common shares	(31,634)		-		(94,512)		-
	(34,376)		(3,583)		(102,751)		(8,612)
Change in cash and cash equivalents	(18,698)		28,849		(44,609)		143,197
Cash and cash equivalents, beginning of period	515,959		513,021		541,870		398,673
Cash and cash equivalents, end of period	497,261		541,870		497,261		541,870

SOURCE Winpak Ltd.

For further information: S.M. Taylor, Vice President and CFO, [phone]; O.Y. Muggli, President and CEO, [phone]