- CCL Industries Inc. Unlimited Class B Non-Voting Shares (CCL.B)
- Winpak Ltd. (WPK)
- Richards Packaging Income Fund (RPI.UN)
RPI reported EPS of $0.858 and revenues of $106.8M. Sales declined by ~2.9% for the quarter, as organic growth of 1.8% was fully offset by losses in food and beverage customers. Its Adjusted EBITDA decreased by $2.1M on lower volumes and a shift in product mix. Its distributable cash flow was $2.7M lower, led by a decline in Adjusted EBITDA. It pays a decent yield of 3.5%. Management noted that the decrease in cosmetic has begun to subside and is expected to stop next quarter, but its decrease in food and beverage are anticipated to continue. It generates good free cash flow, has a decent balance sheet, is trading at an attractive valuation, and we feel that for investors that can wait, this name has the potential to rebound if its operations begin to normalize. However, we hold a muted outlook in the medium term and feel that there are opportunities elsewhere. At this time we would prefer another name like CCL.b or WPK.