The Canadian listed plastic packaging and container company IPL Plastics reported profits (EBITDA) up 25% to CAD$28.5m (€19.2m) driven by lower resin costs, operational improvements and efficiencies and acquisitions.

The first month’s profits (EBITDA) increased 14.9% to CAD$45.8m (€30.9m). Margins increased from 12.8% in the second quarter last year to 16.9% this year. Sales for the quarter fell 5.4% to CAD$168.6m (€113.8m) driven by the impact of a strengthening US dollar and “a reduction in sales volumes”.

The group recorded a net income (profit) of CAD$8.5m (€5.7m) compared to a loss of CAD$2.6m(€1.8m) in the same quarter last year. This saw the company return to profit for the first six months of the year, making a net profit of $9.5m (€6.4m) compared to a loss of CAD$1.2m (€0.8m) in 2018. The improved performance was driven primarily by an improved operating performance and reduced one-off costs in the quarter last year, which related to the initial public offering and refinancing transaction costs.

Commenting on the results, CEO of IPL Plastics Alan Walsh said: “We made excellent progress in rebuilding margins during the second quarter, allowing us to deliver very strong earnings growth across the Group.” He said that the group expects full-year adjusted earnings to be at least in line with 2018.

During the period, IPL secured its largest sales contract ever in its consumer packaging Solutions division in the US. Shares in IPL Plastics which are traded on the Canadian stock exchange, are down 24% over the last 12 months and closed at CAD$9 (€6) on Tuesday.