TORONTO, March 7,
2024 /CNW/ - Richards Packaging Income Fund
(TSX: RPI.UN) (the "Fund") announced today results for the
fourth quarter and the year ended December
31, 2023 and a special
dividend.
"The most significant improvement in 2023 results was a
$33 million reduction in working
capital which was used to pay down debt which is now at a leverage
ratio of 0.2x. Proactive actions were taken to align working
capital with more challenging volume. Our strategy to address
inventory aging yielded $14 million
of this reduction with days on hand dropping from 128 to 98 and
believe that further improvements can be made in 2024.
The 2023 year results reflect revenue contraction of 5% driven
by the food & beverage markets partially offset by higher
healthcare which now represents 50% of our product mix. Net
income was down $6 million, or
$0.17 per Unit.
Fourth quarter revenue performance grew 1% on higher healthcare
capital sales with no impact from currency translation with the
dollar at U.S./Cdn. 74¢. Net income increased $1 million mainly due to the $2 million in contingent consideration not
repeating.
Richards faces a challenging future as the oversupply in the
food & beverage market that depressed our sales continues with
January and February down 4%." commented Gerry Glynn, Director and Trustee.
The Fund also announces today a special cash distribution of
Cdn$0.36 per unit for the unitholders
and exchangeable shareholders of record at the close of business on
March 18, 2024, payable on
March 26, 2024. Unitholders who
are non-residents of Canada may be
required to pay all withholding taxes payable in respect of any
distributions of income by the Fund, whether such distributions are
in the form of cash or additional units.
Details of the Fund's results are currently available on
Richards Packaging's website at www.richardspackaging.com and on
SEDAR+ at www.sedarplus.ca.
About Richards Packaging Income
Fund
The Fund owns Richards Packaging Inc. ("Richards Packaging")
which since 1912 has served a wide customer base throughout
North America comprised of over
17,000 regional food, beverage, cosmetics, healthcare, and other
enterprises.
SOURCE Richards Packaging Inc.