Profits plunge at IPL Plastics as increased costs bite into margin
Profits fell more than 90pc at IPL Plastics last year, as rising input prices cancelled out the effect of rising revenues.
The company's net income was $1.8m (€1.6m) for 2018, compared to $22.7m the prior year.
Chief executive Alan Walsh said the results were "satisfactory given the sustained increases in resin, labour and freight throughout the year and the significant level of restructuring initiatives completed by management to transition to a fully listed public company in June 2018.
"With the progress we have made with our resin procurement strategies and the implementation of the business optimisation programme, we are focused on maximising the profitability of our existing product portfolio and market positions," Mr Walsh said.
"Our 2019 expectation is for an overall solid improvement in the Group's trading performance reflecting the benefits of the various initiatives we have taken and the underlying robustness of our business."
IPL said one division providing plastic containers to the agricultural and automotive industry was facing "temporary trading issues due to weather and seasonality which is impacting agricultural bin sales".
Separately, the company, formerly known as One 51, announced it was buying Dutch plastics manufacturer Loomans for $85.5m. IPL said the deal "diversifies the Group's geographic footprint, adding new capacity and capabilities to serve a broader customer base such as the cosmetic/personal care and beverage sectors".
Shares in the company were down slightly on the results, trading 0.32pc lower around lunchtime in Toronto.