A challenging trading environment was cited by Pro-Pac as the reason its three month revenue to September slipped by $2.1m compared to the previous quarter, down to $77.8m.
The company said consumer spending patterns are slowing on squeezed household income, and a reduction in the levels of discretionary spending. However, Pro-Pac said the new Arnott's contract is now fully on-boarded, and will be reflected in the Q2 figures to December.
Flexibles accounted for 77.9 per cent of the business in the first quarter of the new financial year, with speciality packaging the remaining 22.1 per cent.
During the quarter Pro-Pac paid $532,000 to key management, and $2.78m to related party Visy, on ‘arms length terms’.
Pro-Pac currently has credit facilities of $39.1m, with $30m from ScottPac, a $5m ANZ bank overdraft, and a $4,1m ANZ letter of credit.
It used $15m worth of its credit, leaving it with $24.1m available. Its cashflow was a net positive of $2.9m for the quarter.