Canadian flexible packaging manufacturer Winpak has reported 2012 second quarter revenue of $159.6 million, a decrease of $1.7m, or 1% compared to the same period in 2011. For the first half of 2012, its revenue rose by $21.6m, or 7%, to $331.5m from $309.9m registered for the same period in the previous year.
During the quarter ended 1 July 2012, gross profit margins of the packaging manufacturer fell to 28.4% of revenue in the second quarter of 2012 that resulted in a fall of 2 cents in earnings per share (EPS).
During the quarter, Winpak’s net income stood at $16.16m.
Year-to-date, over $30m has been invested in capital projects and about $60m is planned for the second half of 2012, the firm said.
New production capacity costs, a challenging product mix and stiff price competition resulted in profit margin decline.