TORONTO, May 2, 2025 /CNW/ – Richards Packaging Income Fund RPI (the “Fund”) announced today results for the quarter ended March 31, 2025.
“The first quarter of 2025 was nothing if not eventful. With global macroeconomic volatility affecting both business and consumer sentiment, we at Richards are navigating with vigilance, flexibility, and an eye for opportunity. First quarter total revenue increased $2.8M from last year, breaking the recent trend of declines, while exceptional items and increases in lease and administrative costs resulted in a $3.6M decrease in Net Income.
The packaging business transformation that was a focus of 2024 is now beginning to bear fruit. Food & Beverage packaging revenues grew 5% and Cosmetic packaging revenues grew 3% vs Q1’24. With a new pricing strategy and an ecommerce channel launch on the horizon this year, we look forward to the continued performance of this group.
Healthcare capital remains under pressure as the general market softening cycle in private clinics that began in 2024 is exacerbated by risk-off sentiment driven by the global macro environment. We also continue to realize negative comps relating to the loss of the Parata business, which is expected to conclude in Q3. This is somewhat offset by consumables where we are proud of our efforts to manage mix and pricing for an improved gross margin profile. Healthcare revenues declined 2.7%.
We welcomed HL Production and National Dental Innovations into the fold at the end of February, both tuck-in acquisitions to the Clarion platform. HL Production comes with global control of the WorldPRP® brand, which has been successful in Canada and we see growth opportunities alongside our Luvo® brand worldwide. National Dental gives us a foray into the dentistry market, which comprises nearly 30,000 dentists operating out of 16,000 clinics in Canada and has potential to become a significant vertical in coming years.” commented John Glynn, Director and Trustee.
The Fund paid monthly dividends of 11¢ per Unit, which represented an annualized yield of 4.9% on the March 31st closing price of $26.83 per Unit.
Details of the Fund’s results are currently available on Richards Packaging’s website at www.richardspackaging.com and on SEDAR+ at www.sedarplus.ca
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 over 18,000 regional food, beverage, cosmetics, healthcare, and other enterprises.
SOURCE Richards Packaging Inc.
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