TORONTO, May 5, 2022
/CNW/ - Richards Packaging Income Fund (TSX: RPI.UN) (the
"Fund") announced today results for the quarter ended
March 31,
2022.
"March fully recovered the 5% January and February losses driven
mainly by healthcare equipment sales and strong food and beverage
packaging sales. The mix shifted as cosmetics dropped 7%,
healthcare rose 3% and food and beverage increased 4%. Also,
inventory reductions have been curtailed as logistics problems
persist, additional inventory reserves were taken and higher
freight costs were recovered without any additional margin which
lowered the margin percent.
First quarter total revenue was flat with 7% organic growth
offsetting a $7 million unwind of the
coronavirus impact and the $1 million
currency translation loss with the dollar steady at US/Cdn. 79¢ on
$6 million lower Richards
US sales." commented Gerry
Glynn, Director and Trustee.
April revenue was down approximately 3%, due to the unwinding of
the revenue associated with the coronavirus.
The leverage at 1.0x is up 0.7x from the level at December 31, 2021 reflecting the $53 million draw on the revolving debt to fund
the payment of the Clarion contingent consideration and the special
dividend. The Fund paid monthly dividends of 11¢ per Unit,
which represented an annualized yield of 2.6% on the March 31st closing price of
$50.82 per Unit along with a special
dividend of 69¢ funded by its opening cash balance.
Details of the Fund's results are currently available on
Richards Packaging's website at www.richardspackaging.com and on
SEDAR at www.sedar.com.
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
approximately 18,000 regional food, beverage, cosmetics,
healthcare, and other enterprises.
SOURCE Richards Packaging Income Fund