Pro-Pac Packaging Q1 FY24 Activities Report

Pro-Pac Packaging Limited (ASX: $PPG) reported a cash outflow of $3.2 million from operating activities for the quarter ended 31 March 2024, with revenue decreasing to $68.7 million. The trading environment remains challenging, impacted by low consumer confidence and disruptions caused by the Middle East war affecting logistics and customer sentiment. The company is progressing with the establishment of a soft plastic film recycling plant, receiving $4.9 million in proceeds from a Government Grant and making $3.0 million in capital expenditure payments for the project.

Executive Commentary

Following a disappointing trading result for the quarter to 31 March 2024, the Company is now forecasting a negative EBITDA (pre-AASB 16) for the FY24 year.

Summary

Pro-Pac Packaging (ASX: $PPG) faced a challenging trading environment in Q1 FY24, with low consumer confidence impacting revenue and export sales. The company reported a cash outflow of $3.2 million from operating activities and $0.3 million from investing activities. Despite the difficulties, Pro-Pac Packaging is making progress with the establishment of a soft plastic film recycling plant, receiving $4.9 million in proceeds from a Government Grant and entering agreements with major equipment suppliers. The company's outlook for FY24 anticipates a negative EBITDA, reflecting the ongoing challenges in the trading environment. Pro-Pac Packaging remains committed to delivering bespoke packaging solutions for its clients in various sectors and continues to navigate the current market conditions.