Packaging firm Winpak misses Q2 revenue estimates on muted demand
Overview
Winpak Q2 2025 revenue falls 3.8% yr/yr, missing analyst expectations
Net income for Q2 declines 22.2% due to reduced gross profit margins
Company repurchased 235,649 shares under normal course issuer bid
Outlook
Winpak expects 2025 H2 gross profit margins of 30% to 32%
Company forecasts 2025 capital expenditures of $100 mln to $110 mln
Winpak anticipates stable resin and foil prices for 2025
Company sees sales volume growth from new dairy and pet food business
Result Drivers
MUTED DEMAND - Revenue decline attributed to muted customer demand in certain product categories
GROSS PROFIT DECLINE - Lower gross profit margins due to competitive pressures and increased production costs
VOLUME DECREASE - Rigid packaging and flexible lidding segments experienced significant volume declines
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $272.80 mln | $294.40 mln (3 Analysts) |
Q2 Net Income |
| $29.94 mln |
|
Q2 Basic EPS |
| $0.49 |
|
Q2 EBITDA |
| $51.09 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-paper containers & packaging peer group is "buy"
Wall Street's median 12-month price target for Winpak Ltd is C$52.00, about 13.9% above its July 23 closing price of C$44.75
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nCNW2NJ5pa
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