Winpak Reports 2018 Third Quarter Results

WINNIPEG, Oct. 25, 2018 /CNW/ - Winpak Ltd. (WPK) today reports consolidated results in US dollars for the third quarter of 2018, which ended on September 30, 2018.

	Quarter Ended (1)				Year-To-Date Ended (1)
	September 30		October 1		September 30		October 1
	2018		2017 *		2018		2017 *
(thousands of US dollars, except per share amounts)
Revenue	220,647		218,348		667,503		664,451
Net income	28,651		26,379		84,336		82,249
Income tax expense	9,967		11,277		29,893		36,498
Net finance (income) expense	(613)		281		(692)		884
Depreciation and amortization	10,099		9,469		29,874		27,716
EBITDA (2)	48,104		47,406		143,411		147,347
Net income attributable to equity holders of the Company	27,835		25,368		82,238		79,665
Net income attributable to non-controlling interests	816		1,011		2,098		2,584
Net income	28,651		26,379		84,336		82,249
Basic and diluted earnings per share (cents)	43		39		127		123

Winpak Ltd. manufactures and distributes high-quality packaging materials and related packaging machines.  The Company's products are used primarily for the packaging of perishable foods, beverages and in healthcare applications.

^1	The 2018 fiscal year comprises 52 weeks and the 2017 fiscal year comprised 53 weeks.  Each quarter of 2018 and 2017 comprises 13 weeks with the exception of the first quarter of 2017, which comprised 14 weeks.
^2	EBITDA is not a recognized measure under International Financial Reporting Standards (IFRS).  Management believes that in addition to net income, this measure provides useful supplemental information to investors including an indication of cash available for distribution prior to debt service, capital expenditures and income taxes.  Investors should be cautioned, however, that this measure should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's performance.  The Company's method of calculating this measure may differ from other companies and, accordingly, the results may not be comparable.
*	The Company has initially applied IFRS 15 "Revenue From Contracts With Customers" and IFRS 9 "Financial Instruments" at January 1, 2018.  Under the transition methods chosen by the Company, comparative information has not been restated.

 (presented in US dollars)

Forward-looking statements: Certain statements made in the following report contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company.  Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance.  Such forward-looking statements represent Winpak's current views based on information as at the date of this report.  They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements.  Factors that could cause results to differ from those expected include, but are not limited to: the terms, availability and costs of acquiring raw materials and the ability to pass on price increases to customers; ability to negotiate contracts with new customers or renew existing customer contracts with less favorable terms; timely response to changes in customer product needs and market acceptance of our products; the potential loss of business or increased costs due to customer or vendor consolidation; competitive pressures, including new product development; industry capacity, and changes in competitors' pricing; ability to maintain or increase productivity levels; contain or reduce costs; foreign currency exchange rate fluctuations; changes in governmental regulations, including environmental, health and safety; changes in Canadian and foreign income tax rates, income tax laws and regulations.  Unless otherwise required by applicable securities law, Winpak disclaims any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise.  The Company cautions investors not to place undue reliance upon forward-looking statements.

Financial Performance
Net income attributable to equity holders of the Company for the third quarter of 2018 of $27.8 million or 43 cents in earnings per share (EPS) surpassed the comparable 2017 quarter by $2.5 million or 4 cents per share, an advancement of 9.7 percent.  The improvement in gross profit margins contributed 1.0 cent to EPS.  Additionally, following the enactment of US tax reform in December 2017, the Company's effective income tax rate decreased significantly, enhancing EPS by 2.5 cents.  Net finance income augmented EPS by 1.0 cent.  Foreign exchange had the opposite effect largely due to the impact of foreign exchange forward contracts, decreasing EPS by 0.5 cents.

For the nine months ended September 30, 2018, net income attributable to equity holders of the Company ascended to $82.2 million or $1.27 per share, exceeding the 2017 corresponding result of $79.7 million or $1.23 per share by 3.2 percent.  Lower US income taxes in 2018 was the main factor, advancing EPS by 8.0 cents while lower operating expenses and a smaller proportion of net income attributable to non-controlling interests each added a further 1.0 cent.  The increase in net finance income elevated EPS by 1.5 cents.  These positive factors were largely offset by the negative impact of foreign exchange, contraction in gross profit margins and lower sales volumes, which reduced EPS by 3.5 cents, 2.5 cents and 1.5 cents respectively.

The fiscal year of the Company ends on the last Sunday of the calendar year and is usually 52 weeks in duration.  However, the 2017 fiscal year consisted of 53 weeks, with the first quarter comprising 14 weeks, one more week than the current year.  The additional week included in the 2017 first quarter was essentially the last week of the 2016 calendar year which contained several statutory holidays.  Consequently, it is estimated that this additional week contributed 2.0 percent to both 2017 year-to-date sales volumes and net income results.

Operating Segments and Product Groups
The Company provides three distinct types of packaging technologies: a) rigid packaging and flexible lidding, b) flexible packaging and c) packaging machinery.  Each of the three are deemed to be a separate operating segment.

The rigid packaging and flexible lidding segment includes the rigid containers and lidding product groups.  Rigid containers includes portion control and single-serve containers, as well as plastic sheet and custom and retort trays, which are used for applications such as food, pet food, beverage, dairy, industrial, and healthcare.  Lidding products are available in die-cut, daisy chain and rollstock formats and are used for applications such as food, dairy, beverage, industrial and healthcare.

The flexible packaging segment includes the modified atmosphere packaging, specialty films and biaxially oriented nylon product groups.  Modified atmosphere packaging extends the shelf life of perishable foods, while at the same time maintains or improves the quality of the product.  The packaging is used for a wide range of markets and applications, including fresh and processed meats, poultry, cheese, medical device packaging, high performance pouch applications and high-barrier films for converting applications.  Specialty films includes a full line of barrier and non-barrier films which are ideal for converting applications such as printing, laminating, and bag making, including shrink bags.  Biaxially oriented nylon film is stretched by length and width to add stability for further conversion using printing, metalizing or laminating processes and are ideal for food packaging applications such as cheese, fluid and viscous liquids, and industrial applications such as book covers and balloons.

Packaging machinery includes a full line of horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid products and certain dry products.

Revenue
Revenue in the third quarter of 2018 of $220.6 million exceeded the prior year level of $218.3 million by 1.1 percent.  Volumes, in total, were down marginally from the prior year comparable quarter by 0.7 percent.  Volumes within the rigid containers and flexible lidding operating segment receded by 3 percent in the quarter.  The lidding product group benefitted from gains in yogurt and dessert die-cut lidding as well as rollstock applications.  A slight reduction in volumes took place for the rigid containers product group as the loss of sheet business and the unfavorable timing of specialty beverage shipments was only somewhat offset by solid condiment container volumes.   The flexible packaging operating segment experienced volume growth of 1 percent in the quarter.  Within the modified atmosphere packaging product group, modest volume growth reflected new processed meat and healthcare packaging business.  The packaging machinery operating segment had a strong quarter, exceeding the 2017 third quarter by 10 percent.  Selling price and mix changes favorably influenced third quarter revenue by 2.1 percent as indexed selling prices followed the increase in raw material costs that have taken place over the past year.  The weaker average value of the Canadian dollar in comparison to its US counterpart had a minor 0.3 percent negative effect on revenue versus the comparable prior year quarter.

For the first nine months of 2018, revenue increased by 0.5 percent to $667.5 million from $664.5 in the corresponding prior year period.  After taking the additional week of revenues in the first quarter of 2017 into account, volumes were essentially unchanged.  The rigid containers and flexible lidding operating segment realized a slight drop in volumes.  For the lidding product group, specialty beverage lidding and rollstock were the catalysts behind the positive performance.  On the contrary, the reduction in sheet, specialty beverage and dessert container shipments led to a contraction in volumes for the rigid container product group.  The flexible packaging operating segment achieved a small advancement in volumes and was negatively impacted by customer order patterns and demand levels.  Volumes within the modified atmosphere packaging product group were virtually unchanged in comparison to the robust growth recorded in the first three quarters of 2017.  For the packaging machinery operating segment, growth surpassed 15 percent.  Compared to 2017, selling price and mix changes had a positive effect on revenue of 1.4 percent.  Foreign exchange had an insignificant impact on revenue in relation to the corresponding prior year period.

Gross Profit Margins
Gross profit margins in the current quarter of 30.3 percent of revenue were equivalent with the result recorded in the same quarter of 2017.  The result was impressive given the competitive selling price pressures prevailing in key product markets.  The indexing selling price mechanisms, in place at customer accounts representing approximately 70 percent of the Company's revenues, continued to have a favorable impact on margins as the related adjustments outpaced the corresponding rise in raw material costs compared to those incurred a year earlier.  In addition, the Company benefitted from continued improvements in reducing production waste. 

For the first three quarters of 2018, gross profit margins of 30.3 percent of revenue dropped by 0.9 percentage points from the 2017 year-to-date level of 31.2 percent.  This caused a decrease in EPS of 2.5 cents.  After implementing selling price adjustments for customers on price-indexing programs in both the second and third quarters of 2018, the impact of the higher raw material costs was limited.  This was complemented by the significant progress that has been made in curtailing the expenses relating to production waste and inventory obsolescence.  The muted growth in sale volumes has led to under-utilized capacity, causing a reduction in gross profit margins.

During the third quarter of 2018, the weighted indexed purchased cost of Winpak's eight primary raw materials experienced a slight increase compared to the second quarter of 2018, rising by 1.1 percent.  Similarly, over the past twelve months, the index has increased by 3.3 percent.

Expenses and Other
Operating expenses, exclusive of foreign exchange, in the third quarter of 2018 decreased at a similar overall rate relative to the decline in sales volumes, thereby having a negligible impact on EPS.  The maturation of foreign exchange forward contracts at less favorable rates compared to the third quarter of 2017 was only partially offset by the positive impact of the weaker Canadian dollar in the current quarter.  Consequently, foreign exchange lowered EPS by 0.5 cents.  Effective January 1, 2018, the US federal statutory income tax rate decreased from 35.0 percent to 21.0 percent, accounting for the lower overall effective income tax rate, which contributed 2.5 cents to EPS.  The cash invested in money market accounts and short-term deposits was at more advantageous interest rates in 2018.  As a result, net finance income supplemented EPS by 1.0 cent.

On a year-to-date basis, operating expenses, adjusted for foreign exchange, declined at a rate of 2.3 percent, exceeding the contraction in sales volumes, resulting in incremental EPS of 1.0 cent.  The substantial reduction in share-based compensation expenses was somewhat offset by higher freight and research and technical expenses.  The much lower US federal statutory income tax rate propelled EPS higher by 8.0 cents.  Adding to these positive effects, net finance income and a smaller proportion of net income attributable to non-controlling interests provided 1.5 cents and 1.0 cent to EPS respectively.  On the other hand, foreign exchange had an unfavorable impact of 3.5 cents on EPS due to a combination of losses on conversion of the Company's net Canadian dollar expenses into US funds at a higher average rate as well as the maturation of foreign exchange forward contracts at less beneficial rates than the prior period.

Summary of Quarterly Results
			Thousands of US dollars, except per share amounts (US cents)
	Q3		Q2		Q1		Q4		Q3		Q2		Q1		Q4
	2018		2018		2018		2017*		2017		2017		2017		2016
Revenue	220,647		225,191		221,665		222,323		218,348		217,752		228,351		215,550
Net income attributable to equity holders
of the Company	27,835		28,042		26,361		39,633		25,368		25,745		28,552		28,578
EPS	43		43		41		61		39		40		44		44

The Company has initially applied IFRS 15 "Revenue From Contracts With Customers" and IFRS 9 "Financial Instruments" at January 1, 2018. Under the transition methods chosen by the Company, comparative information has not been restated.

*Includes the one-time income tax recovery of 17 cents per share due to the revaluation of deferred tax asset and liability balances within the US operations as a result of US tax reform enacted in December 2017.

Capital Resources, Cash Flow and Liquidity
The Company's cash and cash equivalents balance ended the third quarter of 2018 at $323.5 million, a modest increase of $3.7 million from the end of the previous quarter.  Winpak continued to generate robust cash flows from operating activities before changes in working capital of $47.5 million.  Working capital consumed $16.0 million.  Trade payables and other liabilities declined by $6.8 million due to payments made to customers with respect to variable consideration arrangements.  In addition, trade and other receivables grew by $6.7 million due to the timing of receipts and certain customer payment terms that were extended earlier in 2018.  Furthermore, inventories advanced by $4.8 million, reflecting the timing of raw material purchases.  Cash was utilized for property, plant and equipment additions of $22.2 million, income tax payments of $4.7 million, dividends of $1.5 million and other items totaling $0.1 million while net finance income generated $0.7 million.

For the first nine months of 2018, the cash and cash equivalents balance rose by $31.6 million from the start of the year.  Cash flows generated from operating activities before changes in working capital were exceptional at $143.9 million.  The net investment in working capital amounted to $25.0 million.  The timing of selling extended term accounts receivable without recourse to finance institutions in exchange for cash elevated trade and other receivables by $15.4 million.  The tariffs implemented by the US government on aluminum products earlier in 2018 caused demand for aluminum to outpace supply with the Company's aluminum foil suppliers.  To address the situation, alternate sources of supply were sourced and the level of inventory kept on hand was increased.  This item, along with the typical seasonal build-up of finished goods inventories and the overall increase in raw material costs since the start of the year, caused inventories to advance by $14.1 million.  Other uses of cash included property, plant and equipment additions of $55.2 million, income tax payments of $26.3 million, dividend payments of $4.5 million and other items amounting to $2.2 million.  Net finance income provided cash of $0.9 million.   

Looking Forward
Business Outlook
The third quarter of 2018 provided mixed results regarding sales volume growth amongst the Company's product groups with overall volumes remaining relatively flat.  Positive selling price and mix changes were realized in the current quarter with the continued recovery of resin price increases, incurred in the last 12 months, as approximately 70 percent of the Company's revenues are indexed to the price of raw materials, albeit with an approximate 90 to 120-day time lag.  Winpak is focused on expanding sales volumes in the final quarter of 2018 and heading into 2019, offering more sophisticated and/or new products.  The packaging industry remains competitive from a selling price perspective, applying downward pressure on gross profit margins.  The Company continued to generate positive results in reducing production waste and achieving productivity gains in both the quarter and first nine months of 2018.  In the third quarter, raw material costs for the Company's widely used resins remained relatively stable with minor offsetting amounts on certain resins.  Current market forecasts are predicting some variability, on select resins, in the upcoming six-month time period.

Capital expenditures of approximately $85 million are forecasted for 2018.  Extrusion capacity was added, late in the second quarter, at the modified atmosphere packaging operations in Winnipeg, Manitoba.  New extrusion capacity is planned to be operational in the first six months of 2019 at the rigid container facility in Sauk Village, Illinois.  The Mexican plant, acquired earlier in 2018, will accommodate increased production capacity and new capabilities in printing technology for flexible packaging products and is expected to be fully operational in the second quarter of 2019.  In addition, the building expansion and new biaxially oriented polyamide (BOPA) line capacity in Winnipeg, Manitoba is progressing with a planned commercial start-up in the second half of 2020.  The Company continues to generate consistent cash flows from operations to support its organic growth opportunities and production capabilities with new state-of-the-art technologies to expand its product offerings while continuing to assess and evaluate strategic acquisition opportunities that align with Winpak's core competencies both from a suitable fit and purchase price perspective.

The recently announced trilateral trade agreement (pending final government approvals) between the United States, Mexico and Canada (USMCA) provides for plastic packaging materials to continue to move across the respective borders of the three countries free of duties.

Winpak Ltd.
Interim Condensed Consolidated Financial Statements
Third Quarter Ended: September 30, 2018

These interim condensed consolidated financial statements have not been audited or reviewed by the Company's independent external auditors, KPMG LLP.  For a complete set of notes to the condensed consolidated financial statements, refer to www.sedar.com or the Company's website, www.winpak.com.

Winpak Ltd.
Condensed Consolidated Balance Sheets
(thousands of US dollars) (unaudited)
				September 30		December 31
				2018		2017*
Assets
Current assets:
	Cash and cash equivalents			323,529		291,959
	Trade and other receivables			132,381		116,955
	Income taxes receivable			2,587		1,994
	Inventories			130,820		116,720
	Prepaid expenses			3,074		2,320
	Derivative financial instruments			281		863
				592,672		530,811
Non-current assets:
	Property, plant and equipment			448,195		422,989
	Intangible assets			14,208		14,444
	Employee benefit plan assets			7,345		6,935
	Deferred tax assets			734		818
				470,482		445,186
Total assets				1,063,154		975,997
Equity and Liabilities
Current liabilities:
	Trade payables and other liabilities			65,973		63,670
	Contract liabilities			2,902		-
	Income taxes payable			2,155		1,555
	Derivative financial instruments			293		98
				71,323		65,323
Non-current liabilities:
	Employee benefit plan liabilities			12,156		10,522
	Deferred income			15,020		15,272
	Provisions			760		760
	Deferred tax liabilities			41,199		40,656
				69,135		67,210
Total liabilities				140,458		132,533
Equity:
	Share capital			29,195		29,195
	Reserves			(3)		596
	Retained earnings			866,369		788,636
Total equity attributable to equity holders of the Company				895,561		818,427
Non-controlling interests				27,135		25,037
Total equity				922,696		843,464
Total equity and liabilities				1,063,154		975,997
*The Company has initially applied IFRS 15 "Revenue From Contracts With Customers" and IFRS 9 "Financial Instruments" at January 1, 2018.
Under the transition methods chosen by the Company, comparative information has not been restated.

Winpak Ltd.
Condensed Consolidated Statements of Income
(thousands of US dollars, except per share amounts) (unaudited)
				Quarter Ended				Year-To-Date Ended
				September 30		October 1		September 30		October 1
				2018		2017*		2018		2017*
Revenue				220,647		218,348		667,503		664,451
Cost of sales				(153,828)		(152,168)		(465,401)		(457,119)
Gross profit				66,819		66,180		202,102		207,332
Sales, marketing and distribution expenses				(16,795)		(16,876)		(52,112)		(51,063)
General and administrative expenses				(7,793)		(8,183)		(23,468)		(26,241)
Research and technical expenses				(4,223)		(4,007)		(12,325)		(11,694)
Pre-production expenses				-		(244)		(115)		(369)
Other (expenses) income				(3)		1,067		(545)		1,666
Income from operations				38,005		37,937		113,537		119,631
Finance income				1,524		585		3,539		1,314
Finance expense				(911)		(866)		(2,847)		(2,198)
Income before income taxes				38,618		37,656		114,229		118,747
Income tax expense				(9,967)		(11,277)		(29,893)		(36,498)
Net income for the period				28,651		26,379		84,336		82,249
Attributable to:
	Equity holders of the Company			27,835		25,368		82,238		79,665
	Non-controlling interests			816		1,011		2,098		2,584
				28,651		26,379		84,336		82,249
Basic and diluted earnings per share - cents				43		39		127		123
Condensed Consolidated Statements of Comprehensive Income
(thousands of US dollars) (unaudited)
				Quarter Ended				Year-To-Date Ended
				September 30		October 1		September 30		October 1
				2018		2017*		2018		2017*
Net income for the period				28,651		26,379		84,336		82,249
Items that will not be reclassified to the statements of income:
Cash flow hedge (losses) gains recognized				(34)		-		67		-
Cash flow hedge losses (gains) transferred to property, plant and equipment				55		-		(180)		-
Income tax effect				-		-		-		-
				21		-		(113)		-
Items that are or may be reclassified subsequently to the statements of income:
Cash flow hedge gains (losses) recognized				594		768		(726)		2,205
Cash flow hedge losses (gains) transferred to the statements of income				299		(657)		62		(1,066)
Income tax effect				(239)		(30)		178		(305)
				654		81		(486)		834
Other comprehensive income (loss) for the period  - net of income tax				675		81		(599)		834
Comprehensive income for the period				29,326		26,460		83,737		83,083
Attributable to:
	Equity holders of the Company			28,510		25,449		81,639		80,499
	Non-controlling interests			816		1,011		2,098		2,584
				29,326		26,460		83,737		83,083
*The Company has initially applied IFRS 15 "Revenue From Contracts With Customers" and IFRS 9 "Financial Instruments" at January 1, 2018.
Under the transition methods chosen by the Company, comparative information has not been restated.

Winpak Ltd.
Condensed Consolidated Statements of Changes in Equity
(thousands of US dollars) (unaudited)
					Attributable to equity holders of the Company
									Non-
					Share		Retained		controlling
					capital	Reserves	earnings	Total	interests	Total equity
Balance at December 26, 2016*					29,195	(29)	676,478	705,644	21,625	727,269
	Comprehensive income for the period
		Cash flow hedge gains, net of tax			-	1,615	-	1,615	-	1,615
		Cash flow hedge gains transferred to the statements
			of income, net of tax		-	(781)	-	(781)	-	(781)
	Other comprehensive income				-	834	-	834	-	834
	Net income for the period				-	-	79,665	79,665	2,584	82,249
	Comprehensive income for the period				-	834	79,665	80,499	2,584	83,083
	Dividends				-	-	(4,531)	(4,531)	-	(4,531)
Balance at October 1, 2017*					29,195	805	751,612	781,612	24,209	805,821
Balance at January 1, 2018					29,195	596	788,636	818,427	25,037	843,464
	Comprehensive (loss) income for the period
		Cash flow hedge losses, net of tax			-	(464)	-	(464)	-	(464)
		Cash flow hedge losses transferred to the statements
			of income, net of tax		-	45	-	45	-	45
		Cash flow hedge gains transferred to property, plant and
			equipment		-	(180)	-	(180)	-	(180)
	Other comprehensive loss				-	(599)	-	(599)	-	(599)
	Net income for the period				-	-	82,238	82,238	2,098	84,336
	Comprehensive (loss) income for the period				-	(599)	82,238	81,639	2,098	83,737
	Dividends				-	-	(4,505)	(4,505)	-	(4,505)
Balance at September 30, 2018					29,195	(3)	866,369	895,561	27,135	922,696
*The Company has initially applied IFRS 15 "Revenue From Contracts With Customers" and IFRS 9 "Financial Instruments" at January 1, 2018.
Under the transition methods chosen by the Company, comparative information has not been restated.

Winpak Ltd.
Condensed Consolidated Statements of Cash Flows
(thousands of US dollars) (unaudited)
					Quarter Ended					Year-To-Date Ended
						September 30		October 1		September 30		October 1
						2018		2017*		2018		2017*
Cash provided by (used in):
Operating activities:
	Net income for the period					28,651		26,379		84,336		82,249
	Items not involving cash:
		Depreciation				10,389		9,730		30,667		28,487
		Amortization - deferred income				(403)		(419)		(1,185)		(1,249)
		Amortization - intangible assets				113		158		392		478
		Employee defined benefit plan expenses				974		830		2,844		2,673
		Net finance (income) expense				(613)		281		(692)		884
		Income tax expense				9,967		11,277		29,893		36,498
		Other				(1,549)		(720)		(2,336)		(3,505)
			Cash flow from operating activities before the following			47,529		47,516		143,919		146,515
	Change in working capital:
		Trade and other receivables				(6,654)		(2,945)		(15,426)		5,811
		Inventories				(4,815)		3,387		(14,100)		(10,025)
		Prepaid expenses				469		610		(754)		(989)
		Trade payables and other liabilities				(6,784)		(12,693)		2,344		(3,819)
		Contract liabilities				1,811		-		2,902		-
	Employee defined benefit plan contributions					(114)		(100)		(1,945)		(1,204)
	Income tax paid					(4,673)		(9,618)		(26,307)		(38,077)
	Interest received					1,491		586		3,452		1,259
	Interest paid					(811)		(794)		(2,593)		(1,943)
			Net cash from operating activities			27,449		25,949		91,492		97,528
Investing activities:
	Acquisition of property, plant and equipment - net					(22,208)		(11,584)		(55,222)		(40,612)
	Acquisition of intangible assets					(38)		(31)		(153)		(418)
						(22,246)		(11,615)		(55,375)		(41,030)
Financing activities:
	Dividends paid					(1,484)		(1,503)		(4,547)		(4,410)
Change in cash and cash equivalents						3,719		12,831		31,570		52,088
Cash and cash equivalents, beginning of period						319,810		250,482		291,959		211,225
Cash and cash equivalents, end of period						323,529		263,313		323,529		263,313
*The Company has initially applied IFRS 15 "Revenue From Contracts With Customers" and IFRS 9 "Financial Instruments" at January 1, 2018.
Under the transition methods chosen by the Company, comparative information has not been restated.

SOURCE Winpak Ltd.

L.A. Warelis, Vice President and CFO, [phone]; O.Y. Muggli, President and CEO, [phone]