Imaflex’s gross profit slumps 33.3% in Q1 of FY23, CFO resigns

CANADA – Flexible packaging solution provider Imaflex has reported its gross profit for the first quarter (Q1) of fiscal year 2023 (FY23) dropped 33.3% to C$3.2m (US$2.3m) from C$4.8m (US$3.53m) in the same period in FY22.

The company’s revenues for the quarter ending 31 March 2023 were C$23.2m (US$17.05m), declining 25.2% from revenues of C$31.1m (US$22.86m) in Q1 FY22.

According to Imaflex, the decline was due to lower volumes and reduced selling prices resulting from the passthrough of a drop in resin costs.

This was partially offset by favorable year-over-year movements in foreign exchange and higher sales of metalized films and bags on rolls.

During the quarter, the company reported a net income of C$0.9m (US$0.66m), down by 55.7% from C$2.1m (US$1.54m) in the same period a year ago.

Its basic and diluted earnings per share were C$0.02 in Q1 FY23, dropping 50.0% from C$0.04 in FY22.

Imaflex saw its gross margin decline by 1.7 percentage points to 13.7% in Q1 FY23 from 15.4% in the corresponding period of the prior fiscal year.

The company also reported its earnings before interest, taxes, depreciation and amortization decreased 37.6% to C$2.2m (US$1.62m).

Imaflex president and CEO Joe Abbandonato said: “Although market conditions remained challenging, we remained on course and generated respectable results for the quarter.

“In turn, we continued to take important steps to secure future growth, completing the installation of the new multilayer extruder and metallizer at our Victoriaville facility.

“We are seeing growing customer interest in our products, and we are cautiously optimistic order flows will build as we move into the second half of 2023.”

CFO Mr. Giancarlo Santella resigns

Meanwhile, the Canadian company has also announced the departure of Chief Financial Officer (CFO), Mr. Giancarlo Santella to pursue other career opportunities in a new industry.

Mr. Santella will continue to serve as CFO until his departure, which is planned for June 9, 2023.

During his tenure, Imaflex achieved significant milestones, including strong growth and a solid financial foundation.

“On behalf of the Board of Directors and Imaflex team, I would like to thank Giancarlo for his valuable contributions, dedication and leadership,” said Abbandonato. “We wish him well in his future endeavors.”

Commenting on his imminent departure, Mr. Santella said: “It has been an exciting journey over the past twelve years with Imaflex and I am proud of what we have accomplished.

“I am grateful for the opportunities, support, and valuable experiences I have gained during my tenure. The business is in a position of strength and has great potential. As such, now is the right time for a new challenge.”

Imaflex has initiated a comprehensive search process for Mr. Santella’s successor. The Corporation remains committed to ensuring a smooth transition and finding a candidate who can build on the Corporation’s achievements and drive further growth.

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