ASX-listed Pro-Pac Packaging had a good year over the 12 months to 30 June, with increases in profits and decreases in debt, according to the company’s financial results statement.
Pro-Pac's statutory net profit after tax (NPAT) was up by $158m on the previous year at $6.6m. The company’s EBITDA was up by 15.4 per cent at $32.4m, with its EBITDA margin up by 1 per cent at 6.8 per cent.
The company reduced its net debt by 44.4 per cent to $46.1m.
Pro-Pac CEO and managing director Tim Welsh said he was proud of how the company continued to focus on growth objectives and delivered a set of strong financial results despite the ongoing challenges of the Covid-19 pandemic.
“The net debt improvement was a significant achievement for the company and was accomplished through the combination of improvements in earnings and working capital,” Welsh said.
“The growth in EBITDA and improvement in margins validates the strategic focus of shifting our business mix and growth ambitions towards the higher margin flexibles business and highlights the improvements in our operational discipline and cost reduction, with further opportunities for operational and cost improvements being pursued.
Welsh said the closure of the company’s Chester Hill NSW facility and the consolidation of its production footprint would position the flexibles division well.
The closure of Pro-Pac's Chester Hill facility, announced in May, is to be completed in the present financial year. Production is to be relocated to existing facilities across Australia.
Looking forward to FY21, the company said macroeconomic conditions remain uncertain due to the ongoing impact of Covid-19, and therefore the company is to continue to drive and prioritise a culture of health, safety and wellbeing. It is also to continue enforcing “rigorous” protocols across all sites to reduce the risk of potential transmission of Covid-19.