Canadian packaging company Intertape Polymer has reported a 4.3% increase in its revenue to $210.2m for the second quarter of 2017, compared to $201m for the same period last year.
The company's gross profit fell from 25.7% to 22.5% from $51.8m to $47.3m for the second quarter of this year.
The company also experienced a fall in its net earnings attributable to shareholders by $3.5m to $10.2m.
Intertape stated that its net profits had fallen because of the fall in gross profits, while its selling, general and administrative expenses had partially increased because of the offset from manufacturing facility closures, restructuring and other related charges and income tax expenses.
Intertape’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) had also decreased to 13.75% to $28.5m.
Profits decreased mainly due to non-recurrence of South Carolina Flood Insurance Proceeds of $4.5m received in the second quarter, last year and it was adjusted in this year. Another $2.3m and $0.8m were also deducted as the advisory fees and other costs associated with the acquisition activities.
The impact of South Carolina Flood Insurance Proceeds of $4.5m was also seen on cash flows. On the other hand, free cash flows also decreased by $11.4m to a negative $0.8m, due to increase capital expenditure and decrease in cashflows from operating activities.
Intertape Polymer president and CEO Greg Yull said: "For the second quarter, Adjusted EBITDA was $28.5m or flat compared to last year when you exclude the $4.5m of South Carolina Flood Insurance Proceeds received in the same period in 2016 despite some headwinds in the current period.
"We are very happy with the results of our efforts in our M&A program in that we successfully completed the Capstone and Cantech transactions at the end of June and beginning of July for which we incurred approximately $2.3m in advisory fees and other costs in the second quarter.
“The main headwinds that caused our results to be slightly below our expectations are Powerband's performance that continues to suffer from external competitive and supply chain pressures, and lower than expected sales volumes stemming from the timing of commercialization of masking tape and stencil products produced in our Blythewood facility. The operational bright spot in the period is that we continue to execute strongly on our manufacturing cost reduction initiatives."
