Colorpak has reported a 6.8 per cent downturn in revenue in its half-yearly results, but profit remained stable once non-recurring items were excluded.
The results will be the last half yearlies as a public company with the company’s takeover by US packaging giant Graphic Packaging International set to take place in April.
Net profit after tax for the Australian packaging company dropped by 17.5 per cent in the half year, sliding to $1.356m. Net profit before tax of $1.85m was impacted by non-recurring costs of $1.05m. Colorpak says the underlying profit of $2.88m was $34,000 more than the same period last year.
Debt grew by five per cent to $32m as customers on contract took longer to pay. The company reported significant contract wins in its New Zeland business, much of it coming from disaffected customers of a rival company.
[Related: Colorpak's acquisition]
The company first floated its IPO in 2004 with great success, and then embarked on an acquisition trail including the purchase of Wadepack in 2005 and Carter Holt Harvey in 2011.
Colorpak sold 100 per cent of its shares to Graphic Packaging for an undisclosed sum, and shareholders are set to receive cash payments of 68 cents per share as a result of the deal.
The Commins family, which owns 32 per cent of Colorpak, and ran the business for a 30 year tenure and is said to have supported the board’s proposal for takeover. CEO Alex Commins will remain in his position once Graphic Packaging takes over.
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