Plastic-packaging manufacturer Winpak Ltd. has reported a double-digit increase in revenues and a modest gain in net earnings for the first quarter of 2014.
The Winnipeg-based company, which operates eight production plants in Canada and the United States, said today that revenues for the quarter climbed by 10.7 per cent to $188.1 million from $169.9 million in the first three months of 2013.
But mainly due to reduced gross profit margins, net earnings only grew by 1.1 per cent to $16.2 million from $16.0 million. Earning per share remained unchanged at 25 cents.
The company said most of its product groups enjoyed stronger sales during the quarter. However, a number of factors put the squeeze on profit margins, including higher raw-material costs, competitive pressures on selling prices, and a less favourable product mix.
Winpak produces plastic packaging materials — things like rigid containers, lids, biaxially-oriented nylon film and modified atmosphere packaging — and related packaging machines. It’s products are used primarily for the packaging of perishable foods, beverages and in health-care applications.