Canada’s Winpak Ltd. (WPK) today reported consolidated results in U.S. dollars for the first quarter of 2025, which ended on March 30, 2025.

Revenue in the first quarter of 2025 was $284.8 million, which is $8.0 million (2.9 percent) above the first quarter of 2024.  Volume growth of 2.5 percent was realized compared to the initial quarter of 2024.

Winpak provides three distinct types of packaging technologies: a) flexible packaging; b) rigid packaging and flexible lidding; and c) packaging machinery. Each is deemed to be a separate operating segment.

Flexible Packaging

Within the flexible packaging operating segment, volume expansion of 5 percent was achieved.  Volume growth of 7 percent was attained by the modified atmosphere packaging product group, reflecting healthy gains with meat applications. Biaxially oriented nylon product group volumes retreated by 8 percent as suboptimal machine operating performance negatively impacted available capacity.  

Rigid Packaging and Flexible Lidding

The rigid packaging and flexible lidding operating segment posted volume losses of 1 percent.  For the lidding product group, volumes fell by 6 percent because of lower applesauce and specialty beverage activity. Rigid container volumes improved by 3 percent due to higher snack food container shipments.  Building on the success achieved with pharmaceutical accounts in 2024, the specialized printed packaging product group's volumes surpassed the prior year by 6 percent.  

Packaging Machinery

Packaging machinery volumes increased by 19 percent as an unusually low number of machines were delivered to customers in the first quarter of 2024. Selling price and mix changes had a modest positive effect on revenue of 1.1 percent. Foreign exchange had a minor negative influence on revenue.

Outlook

“The first quarter provided solid earnings and sales volume growth. Despite the challenges and uncertainties relating to the current trade environment, Winpak has the potential to set a new all-time high for net income attributable to equity holders for the full year 2025,” the company said in a statement. “Revisions to the currently enacted tariffs could have a significant impact on the Company's growth aspirations and manufacturing costs.” 

Winpak notes that, with the exception of foil-based products, the company's entire product portfolio is presently exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA). Similarly, nearly all raw materials sourced within North America are exempt from tariffs. 

“Notwithstanding, several suppliers have recently levied price increases, citing the impact of tariffs on their overall supply chain,” Winpak says. “During the first quarter, the Company implemented various counter measures to minimize the impact of tariffs in both the short and long-term. In addition, the Company is constructing a strategic roadmap to enhance its resilience to a more protectionist trade environment. This includes enhancing manufacturing capabilities within each of the United States, Canada and Mexico.”  

Winpak adds: “Capitalizing on new business opportunities will be the key to growing the business in 2025. After successfully commercializing new extrusion capacity within the modified atmosphere packaging facility in the fourth quarter of 2024, sales to the dairy market should grow appreciably. In addition, the onboarding of new pet food and healthcare business will enhance volumes. Winpak expects sales volume growth for the remainder of 2025 to be in the range of 4 to 6 percent.”