07:15 AM EDT, 04/23/2024 (MT Newswires) -- Consumer packaging company Winpak ( WIPKF ) , which keeps its books in US$, overnight Monday recorded quarterly revenue of $277 million, missing the $290 million forecast by Capital IQ and 9.1% lower than the $304.5 million posted the year before.

Net income attributable to shareholders was $35.5 million, or $0.55 per share, missing the $0.57 forecast. The comparable figures for Q1 2023 were $39.3 million, and $0.60, respectively.

In its outlook, Winpak ( WIPKF ) said the first quarter provided "solid" earnings performance while sales volumes "stabilized" after declining in each of the three previous quarters. For the full year, Winpak ( WIPKF ) added it is "poised to set a new all-time high for net income attributable to equity holders."

Winpak ( WIPKF ) said: "The improved outlook for the North American economy, paired with a modest rebound in consumer demand, should have a positive impact on sales volumes for the remainder of 2024. Making inroads with new customers and new products is a key focus. The outlook for these catalysts of growth is positive, especially with new production equipment being commercialized within the modified atmosphere packaging and rigid container facilities later this year. Winpak ( WIPKF ) expects sales volume growth for the remainder of 2024 to be in the range of 3-5%.

"In aggregate, raw material costs rose by 7% over the past six months. The pass-through of these increases to customers with formal price indexing arrangements will be implemented, on average, after a time lag of four months. For the balance of 2024, market expectations are that overall resin prices will be relatively stable with some materials projected to increase moderately. The current rate of inflation remains well above recent norms and key components of the company's cost structure continue to be impacted, especially personnel expenses. This is compounded by challenges in attracting and retaining personnel which puts further pressure on compensation levels. Within certain product markets, customer expectations for lower selling prices has intensified. Based on the preceding factors, gross profit margins for the rest of 2024 should be one to two percentage points lower than the level achieved in the first quarter of the year.

"Capital expenditures for 2024 are forecast to be between $110 and $120 million. The extensive expansion of the Winnipeg, Manitoba modified atmosphere packaging facility is well underway and will make up approximately half of the current year's spending. At another manufacturing site, the company is optimistic that by the second half of 2024 it will be in a position to undertake a sizeable building expansion and acquire additional extrusion capacity. Concurrently, Winpak ( WIPKF ) will assess prospective acquisition opportunities that align strategically with the company's core strengths in sophisticated high-barrier packaging for food, medical and pharmaceutical applications that provide long-term shareholder value. Based on the current share price, the company's NCIB program will be fulfilled by the end of 2024. Winpak ( WIPKF ) will continue to evaluate the mechanisms and extent to which capital can be returned to shareholders."