Strong sales keep Colorpak on track

Specialist folding cartons business, Colorpak, keeps its head high with solid first-half results for 2008/09.

Colorpak achieved revenue of $40.2 million, a 2 per cent increase on the previous period, which was $39.5 million. Net profit after tax for the six months also increased from 43.2 million in the comparable period to $3.3 million, the highest six-monthly period in the company’s history.

Managing director, Alex Commins said the results were pleasing given that the industry is getting tougher with companies moving offshore and aggressive pricing.
 
The company’s Sydney operation has picked up 20 per cent growth over the past two years and the investment in equipment and plant during that time is now helping to drive the result – it’s been a long haul and to achieve good results doesn’t come overnight.

The Braeside facility in Melbourne is more mature by comparison and is running in a very efficient way. There is growth in the beverage market albeit with skinny margins, and the flexibles division in Sydney is now poised for growth.

“We have some solid pipeline opportunities in this area. Since taking over Castle Graphics, we’ve turned it around and are ready now to take the next step and bring on board new blue-chip clients,” Commins said.

It is unknown whether Colorpak will be able to maintain this growth over an extended period, but in a statement the company said it did not anticipate figures to plunge too deeply.

“Unless there is a significant deterioration in trading conditions, then the company would expect to achieve at least the same level of profitability as last year,” the statement said.

“In the current financial climate, the company’s desire is to maintain the strongest possible balance sheet … cash flow will be tailored towards reducing debt.”