Winpak Clocks 23% Revenue Growth In Q1 - Winpak (OTC:WIPKF)

Winpak Ltd. WPK WIPKF reported first-quarter revenue growth of 22.8% year-over-year to $275.98 million.
Selling price and mix changes had a favorable effect on revenue of $51.4 million as the substantial increase in raw material and other costs throughout 2021 resulted in higher selling prices to customers.
Gross margin expanded by 25 bps to 29.5%. Operating income improved 33.9% Y/Y to $45.91 million, and the margin expanded by 140 bps to 16.6%.
EPS improved to $0.52 from $0.38 in 1Q21.
EBITDA improved by 26.9%Y/Y to $57.82 million, and margin expanded by 70 bps to 21%.
Winpak generated cash from operating activities of $23.49 million for the quarter, compared to $11.75 million a year ago. The company held cash and equivalents of $387.1 million.
Although sales volume growth slowed during Q1, the company anticipates solid volume growth for the year's final three quarters, partly due to improved labor availability and the enhanced capability to supply lidding customers with the heightened aluminum foil purchases made during Q1.
Winpak noted inflation continues to impact the company's overall cost structure significantly.
Winpak forecasts capital expenditures for FY22 of $60 million - $70 million.
Price Action: WPK shares are trading lower by 0.97% at C$39.69 on TSX, and WIPKF is lower by 1.71% at $31.06 on the last check Tuesday.