The results for the six months to 31 December 2010 showed that revenue at the packaging company was up $1 million (2.3%) from $42.9m to $43.9m.

But net profits were down 25% year-on-year, a $930,000 fall from $3.7m to $2.8m.

The dip in profit is due to the company’s acquisition of Carter Holt Harvey (CHH) folding carton operations, which includes four of five sites as well as 494 employees. CHH’s Smithfield site was sold to Amcor.

Colorpak predicts the acquisition, which is expected to be wrapped up by 1 March, will rocket its market share from 11.2% to 31% and put it on equal footing with Amcor.

Alex Commins, managing director of Colorpak, admitted that the next few months after the acquisition will be tough, but his company is well prepared.

“We will be going from a business turning over $80m to $210m across four extra sites,” he said.

“CHH has been a well-managed and well-run business and those people involved are going to become part of the Colorpak team.

“We can take the best bits of CHH and the best bits of Colorpak and make a very strong industry leader,” added Commins.

Amcor currently controls 25% of the cartons market, though its share is expected to rise to 31% after its acquisition of the Smithfield site passes ACCC approval.

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