Winpak Ltd — Interim / Quarterly Report 2021

Oct 21, 2021

NEWS RELEASE

Winpak Reports 2021 Third Quarter Results

Winnipeg, Manitoba, October 21, 2021 - Winpak Ltd. (WPK) today reports consolidated results in US dollars for the third quarter of 2021, which ended on September 26, 2021.

(thousands of US dollars, except per share amounts) Revenue Net income Income tax expense Net finance expense (income) Depreciation and amortization EBITDA (1) Net income attributable to equity holders of the Company Net income attributable to non-controlling interests Net income Basic and diluted earnings per share (cents)	Quarter Ended September 26 September 27 2021 2020 254,166 210,605 21,350 27,372 6,768 10,295 197 125 11,084 11,304 39,399 49,096 20,762 26,684 588 688 21,350 27,372 32 41	Year-To-Date Ended	Year-To-Date Ended
	September 26 2021 254,166 21,350 6,768 197 11,084 39,399 20,762 588 21,350 32	September 26 2021 722,941 76,031 24,419 615 33,743 134,808 73,777 2,254 76,031 114	September 27 2020
			640,402 80,838 29,497 (1,036) 33,309
			142,608 79,065 1,773
			80,838 122

Winpak Ltd. manufactures and distributes high-quality packaging materials and related packaging machines. The Company’s products are used primarily for the packaging of perishable foods, beverages and in healthcare applications.

For further information: L.A. Warelis, Vice President and CFO, (204) 831-2254; O.Y. Muggli, President and CEO, (204) 831-2214

1 EBITDA is not a recognized measure under International Financial Reporting Standards (IFRS). Management believes that in addition to net income, this measure provides useful supplemental information to investors including an indication of cash available for distribution prior to debt service, capital expenditures, payment of lease liabilities and income taxes. Investors should be cautioned, however, that this measure should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company’s performance. The Company’s method of calculating this measure may differ from other companies and, accordingly, the results may not be comparable.

(presented in US dollars)

Forward-looking statements: Certain statements made in the following report contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company’s intentions, plans, expectations and beliefs, and are not guarantees of future performance. Such forward-looking statements represent Winpak’s current views based on information as at the date of this report. They involve risks, uncertainties and assumptions and the Company’s actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Factors that could cause results to differ from those expected include, but are not limited to: the terms, availability and costs of acquiring raw materials and the ability to pass on price increases to customers; ability to negotiate contracts with new customers or renew existing customer contracts with less favorable terms; timely response to changes in customer product needs and market acceptance of our products; the potential loss of business or increased costs due to customer or vendor consolidation; competitive pressures, including new product development; industry capacity, and changes in competitors’ pricing; ability to maintain or increase productivity levels; ability to contain or reduce costs; foreign currency exchange rate fluctuations; changes in governmental regulations, including environmental, health and safety; changes in Canadian and foreign income tax rates, income tax laws and regulations. In addition, factors arising as a result of the Coronavirus (COVID-19) global pandemic that could cause results to differ from those expected include, but are not limited to: potential government actions, changes in consumer behaviors and demand, changes in customer requirements, disruptions of the Company’s suppliers and supply chain, availability of personnel and uncertainty about the extent and duration of the pandemic. Unless otherwise required by applicable securities law, Winpak disclaims any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance upon forward-looking statements.

Financial Performance

Net income attributable to equity holders of the Company for the third quarter of 2021 of $20.8 million or 32 cents in earnings per share (EPS) decreased by $5.9 million or 9 cents per share from the comparable 2020 quarter. Stronger sales volumes benefitted EPS by 4.0 cents. It is estimated that COVID-19 accounted for 1.0 cent of the increase. The sizeable contraction in gross profit margins lowered EPS by 11.5 cents. In addition, foreign exchange and higher operating expenses dampened EPS by 2.0 cents and 1.0 cent, respectively. Income taxes augmented EPS by 1.5 cents.

For the nine months ended September 26, 2021, net income attributable to equity holders of the Company declined by 6.7 percent to $73.8 million or $1.14 per share from the corresponding 2020 result of $79.1 million or $1.22 per share. The appreciable gains in sales volumes elevated EPS by 10.5 cents, of which 1.5 cents is estimated to be attributed to COVID-19. Conversely, the narrowing of gross profit margins reduced EPS by a notable 20.0 cents. The reduction in net finance income and rise in operating expenses each subtracted 1.5 cents from EPS. The level of net income attributable to non-controlling interests lowered EPS by a further 0.5 cents. Income taxes and foreign exchange had the opposite effect, raising EPS by 3.5 cents and 1.5 cents, respectively.

Operating Segments and Product Groups

The Company 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.

The flexible packaging segment includes the modified atmosphere packaging, specialty films and biaxially oriented nylon product groups. Modified atmosphere packaging extends the shelf life of perishable foods, while at the same time maintains or improves the quality of the product. The packaging is used for a wide range of markets and applications, including fresh and processed meats, poultry, cheese, medical device packaging, high performance pouch applications and high-barrier films for converting applications. Specialty films include a full line of barrier and non-barrier films which are ideal for converting applications such as printing, laminating and bag making, including shrink bags. Biaxially oriented nylon film is stretched by length and width to add stability for further conversion using printing, metalizing or laminating processes and is ideal for food packaging applications such as cheese, fluid and viscous liquids, and industrial applications such as book covers and balloons.

The rigid packaging and flexible lidding segment includes the rigid containers, lidding and specialized printed packaging product groups. Rigid containers include portion control and single-serve containers, as well as plastic sheet, custom and retort trays, which are used for applications such as food, pet food, beverage, dairy, industrial and healthcare. Lidding products are available in die-cut, daisy chain and rollstock formats and are used for applications such as food, dairy, beverage, industrial and healthcare. Specialized printed packaging provides packaging solutions to the pharmaceutical, healthcare, nutraceutical, cosmetic and personal care markets.

Packaging machinery includes a full line of horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid products and certain dry products.

Revenue

The impact of COVID-19 has fluctuated amongst Winpak’s product groups. Although still impeded by some public health orders that persist throughout North America, sales order levels have improved considerably with respect to customers that focus on the foodservice and restaurant industries. Furthermore, for customers that supply the retail food market, volumes remain heightened with the transition in consumer behavior whereby a greater proportion of meals are still being consumed within the home. Compared to 2020, it is estimated that COVID-19 enhanced third quarter sales volumes between 1.5 to 2.5 percent and raised year-to-date sales volumes between 1.0 to 2.0 percent.

Revenue in the third quarter of 2021 was $254.2 million, representing the highest quarterly result in the Company’s history and surpassed the prior year comparable level of $210.6 million by 20.7 percent. Volumes expanded by a sizeable 10.1 percent with all three operating segments contributing to the impressive result. Within the flexible packaging operating segment, quarterly volumes advanced by 12 percent.

In particular, modified atmosphere packaging volumes expanded due to the overall enhanced demand for retail meat and cheese products in combination with new frozen food packaging business. Specialty film and biaxially oriented nylon volumes were enhanced by the turnaround experienced by major customers in foodservice, non-food retail, and healthcare that had been severely impacted by COVID-19 during the third quarter of 2020. The rigid packaging and flexible lidding operating segment volumes experienced healthy growth of 8 percent in the quarter. Rigid container volumes increased significantly due to a combination of customers’ new product offerings and much higher condiment and snack food container shipments. Due to increases in retort pet food and snack food lidding, modest growth in the lidding product group volumes was realized. For the packaging machinery operating segment, strong volume growth of 16 percent was attained in comparison to the corresponding quarter of 2020. Selling price and mix changes had a large favorable effect on revenue of 9.8 percent as the substantial increase in raw material costs during the first half of 2021 resulted in higher selling prices to customers. Foreign exchange had a minor positive influence on revenue.

For the first three quarters of 2021, revenue progressed by $82.5 million or 12.9 percent from the $640.4 million recorded in the corresponding prior year period. Volumes ascended by 8.8 percent. The rigid packaging and flexible lidding operating segment achieved volume growth of 9 percent. The significant advancement in rigid container volumes stemmed from new customer pet food tray and dessert container product launches along with the surge in condiment container activity. Lidding product group volumes were virtually unchanged as elevated retort pet food and snack food shipments were substantially offset by lower condiment and specialty beverage lidding. Within the flexible packaging operating segment, volume gains amounted to 8 percent. Most notably, volumes within the modified atmosphere packaging group benefitted from heightened demand with respect to customers that participate in the retail meat and cheese markets. Additionally, biaxially oriented nylon volumes advanced by more than 10 percent as major customers in foodservice and non-food retail raised their order levels considerably. Packaging machinery volumes strengthened by 11 percent. Selling price and mix changes raised revenue by 3.2 percent while the effect of foreign exchange on revenue was insignificant.

Gross Profit Margins

Gross profit margins in the current quarter of 24.4 percent of revenue receded by 6.9 percentage points from the 2020 third quarter result of 31.3 percent of revenue. Substantially higher raw material costs, in tandem with moderate selling price increases, generated a decrease in EPS of 13.5 cents. The level of sales volume growth exceeded the related rise in fixed manufacturing overheads, raising EPS by 2.0 cents.

For the first nine months of 2021, gross profit margins were 27.3 percent of revenue, contracting by 3.7 percentage points from the 31.0 percent of revenue achieved during the 2020 year-to-date comparable period. Raw material cost increases significantly outpaced the related selling price adjustments, lowering gross profit margins by 5.2 percentage points. The prescribed contractual timing of passing along these raw material cost increases to customers on formal price indexing programs is typically three to four months later and accounted for a majority of this large imbalance. The expansion in sales volumes led to greater efficiencies pertaining to the utilization of productive capacity, producing an augmentation in gross profit margins of 1.5 percentage points.

The raw material purchase price index advanced by 12 percent compared to the second quarter of 2021 and by an unprecedented 54 percent for the first nine months of the year. The sizeable change in the index throughout 2021 was caused by the prolonged, elevated global demand for the Company’s main resins and the tightness in producer supply, which was particularly acute in the first quarter due to the winter storm that impacted the US Gulf Coast region, initiating unexpected producer outages. During the third quarter, polypropylene, polyethylene and nylon resins each realized increases ranging between 15 and 20 percent with foil costs rising by 6 percent.

Expenses and Other

Operating expenses in the third quarter of 2021, adjusted for foreign exchange, progressed at a greater rate relative to the expansion in sales volumes and accordingly, lowered EPS by 1.0 cent. Elevated freight and distribution costs were the main contributing factor. Foreign exchange subtracted an additional 2.0 cents from EPS. The unfavorable translation differences recorded on the revaluation of monetary assets and liabilities denominated in Canadian dollars in the current quarter were in contrast to the gains realized in the third quarter of 2020. The effective income tax rate was two percentage points lower in the current quarter, adding 1.5 cents to EPS.

On a year-to-date basis, operating expenses, exclusive of foreign exchange, advanced at a rate of 10.3 percent in relation to the 8.8 percent acceleration in sales volumes, thereby having a modest negative impact on EPS of 1.5 cents. Higher freight and distribution costs, along with personnel additions to Winpak’s salesforce to support the injection molding and Wiicare healthcare initiatives, drove the expansion in operating expenses. Foreign exchange added 1.5 cents to EPS on a relative basis largely due to the sizeable unfavorable translation differences recorded in the first three quarters of 2020. Lower net finance income subtracted 1.5 cents from EPS and was the result of the slight decline in the rate of interest earned on the Company’s cash and cash equivalents. Conversely, the drop in the effective tax rate boosted EPS by 3.5 cents. Lastly, a greater proportion of net income attributable to non-controlling interests dampened EPS by 0.5 cents.

Capital Resources, Cash Flow and Liquidity

The Company’s cash and cash equivalents balance ended the third quarter of 2021 at $352.3 million, a decrease of $161.0 million from the end of the second quarter. The payment of a special dividend of $159.4 million ($195.0 million Canadian) in the current quarter and the regular dividend payments of $1.6 million resulted in the pronounced decrease in cash. Winpak continued to generate strong cash flows from operating activities before changes in working capital of $40.2 million. Working capital consumed $23.3 million in cash. Inventory levels advanced by an incremental $12.7 million, stemming from the persistent rise in resin prices. Additionally, trade and other receivables grew by $7.4 million as a result of revenue reaching an all-time high in the current quarter. Cash outflows included: $11.3 million in plant and equipment additions, income tax payments of $5.2 million and other items amounting to $0.4 million.

For the first nine months of 2021, the cash and cash equivalents balance declined by $143.1 million, influenced by payment of the special and regular quarterly dividends to equity holders of the Company of $164.1 million. Cash flows generated from operating activities before changes in working capital were solid at $135.1 million. The net investment in working capital increased by $56.3 million. The expansions in inventories, trade and other receivables and trade payables and other liabilities were attributed to the sharp upswing in raw material costs as well as the appreciable rise in sales volumes. Cash was utilized for plant and equipment additions of $38.8 million, income tax payments of $16.7 million and other items totaling $2.3 million. The Company remains debt-free and is confident that sufficient financial resources are in place to meet all anticipated cash requirements for the foreseeable future.

Summary of Quarterly Results

Summary of Quarterly Results
Revenue Net income attributable to equity holders of the Company EPS	Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 2021 2021 2021 2020 2020 2020 2020 2019 Thousands of US dollars, except per share amounts (US cents)
	254,166 243,969 224,806 212,091 210,605 216,201 213,596 217,456 20,762 28,520 24,495 27,256 26,684 29,226 23,155 26,679 32 44 38 42 41 45 36 41

Looking Forward

During the third quarter, Winpak successfully operated all manufacturing facilities with minimal interruptions even though the Company faced a very demanding and challenging global supply chain environment. The Company had a nominal number of Coronavirus (COVID-19) cases within its operations during the most recent quarter and continues to address the ongoing impacts of the COVID-19 pandemic with our suppliers and customers. Presently, North America is dealing with a fourth wave from the pandemic and it appears this will persist for the balance of the year and carry over into 2022. As more individuals become fully vaccinated across North America, the effects from the pandemic should diminish and the economy could progressively return to pre-COVID-19 levels later next year.

As the third quarter evolved, the Company’s hospitality and foodservice product markets, which were adversely affected since the pandemic commenced, continued to rebound along with sustained brisk volumes from consumer retail products. These two positive trends, in combination with sizeable volume growth originating across all operating segments, will be prevalent for the balance of 2021. The flexible packaging segment will continue to generate appreciable volume growth from retail protein, cheese, frozen food and spouted pouch items and elevated customer orders from the biaxially oriented nylon film food service and non-food retail markets. Within the rigid container product group, pronounced volume gains will be achieved from customers’ new product launches in retort pet food and single-serve desserts, in parallel with substantial business activity from single-serve polypropylene condiments and snack food containers. The flexible lidding product group has secured incremental retort pet food and snack food lid volumes and will also see an uptick in business with die-cut lids for the dairy market. The specialized printed packaging product group will benefit from new business awards in pharmaceutical and nutritional powder products. The Wiicare global healthcare platform, launched in the spring of this year with Wipak, Winpak’s European sister company, continues to actively pursue new business and has been well received by prospective customers. The packaging machinery segment will continue to be very busy in the fourth quarter and has generated a buoyant order backlog for next year. This year has provided the packaging industry with unprecedented increases in raw material resin costs, along with notable inflationary cost increases throughout Winpak’s supply chain, which has driven up the Company’s cost structure. As a result, Winpak’s customer sales price/mix amounts rose by ten percent in the third quarter as selling price increases were passed on to both indexed and non-indexed customers. The sizeable upward trend in selling price/mix amounts will continue in the upcoming quarter and carry into 2022.

Raw material input costs for the Company’s primary resins remained highly elevated during the third quarter with continued price increases for resins and foil. Due to strong market demand and ongoing global logistical challenges, freight and distribution costs rose considerably during the quarter. The market expectation for resin costs to gradually recede during the year did not materialize and no raw material pricing relief was realized. The heightened resin, other materials and freight related costs are due to global supply/demand inequities that have persisted since early in the first quarter of this year. Winpak’s purchasing group has remained diligent and focused throughout this demanding period and was able to secure sufficient supply of the affected raw materials. Resin supply appears to have stabilized and is now anticipated to return to normality in the upcoming quarters barring any unexpected major events. Current market views are that the inflated resin and supply chain prices should start to slowly retract in the fourth quarter and decrease further during 2022. All the aforementioned elevated costs resulted in considerable negative pressure on Winpak’s gross profit margins in the third quarter. However, recovery of these gross margins will commence in the fourth quarter and continue into 2022. These higher costs will produce additional marked customer selling price increases due to the Company’s agreements with customers to pass-through these increased costs as 67 percent of Winpak’s revenues are indexed albeit with a 90 to 120-day time lag. In addition, selling price increases have been implemented with non-indexed customers which will assist in uplifting the gross margins.

Spending on capital totaled $11.3 million in the most recent quarter with total expenditures for 2021 forecasted to be in the proximity of $60 million. During the third quarter, the modified atmosphere packaging site in Winnipeg, Manitoba completed the installation of the new cast co-extrusion line which will provide the necessary capacity to onboard new business wins in the fourth quarter once the line is commercialized. The state-of-the-art biaxially oriented nylon line in Winnipeg, Manitoba is nearing completion with pre-production activities scheduled during the upcoming quarter. The rigid container site in Sauk Village, Illinois completed the building infrastructure and installation of the initial production equipment, providing the manufacturing capabilities for injection molded containers and in-mold labels. Production

will commence in the fourth quarter with sample injection molded containers being produced for customer evaluation. The Company will continue to commit the required cash resources to advance its material science acumen and manufacturing capabilities to produce new and evolving recycle-ready and environmentally friendly packaging to help our business partners achieve their sustainable packaging goals. During the third quarter, potential acquisition opportunities started to appear with more regularity in the market with several transactions being executed. Winpak will continue to evaluate these possible acquisition candidates that are well aligned with the Company’s underlying and strategic focus in providing complex and superior high-barrier packaging for food, medical and pharmaceutical applications that deliver long-term shareholder returns.

Winpak Ltd. Interim Condensed Consolidated Financial Statements Third Quarter Ended: September 26, 2021

These interim condensed consolidated financial statements have not been audited or reviewed by the Company’s independent external auditors, KPMG LLP. For a complete set of notes to the condensed consolidated financial statements, refer to www.sedar.com or the Company’s website, www.winpak.com.

Winpak Ltd. Condensed Consolidated Balance Sheets

(thousands of US dollars) (unaudited)

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September 26 December 27
2021 2020
Assets
Current assets:
Cash and cash equivalents 352,292 495,346
Trade and other receivables 162,373 135,406
Income taxes receivable 8,862 10,506
Inventories 173,334 135,629
Prepaid expenses 7,039 3,128
Derivative financial instruments 81 1,138
703,981 781,153
Non-current assets:
Property, plant and equipment 514,265 507,461
Intangible assets and goodwill 34,826 35,887
Employee benefit plan assets 6,978 8,114
556,069 551,462
Total assets 1,260,050 1,332,615
Equity and Liabilities
Current liabilities:
Trade payables and other liabilities 76,286 64,592
Contract liabilities 2,479 1,775
Provisions - 149
Income taxes payable 552 1,490
Derivative financial instruments 276 -
79,593 68,006
Non-current liabilities:
Employee benefit plan liabilities 14,886 13,484
Deferred income 14,860 14,359
Provisions and other long-term liabilities 13,300 13,770
Deferred tax liabilities 59,394 55,953
102,440 97,566
Total liabilities 182,033 165,572
Equity:
Share capital 29,195 29,195
Reserves (143) 834
Retained earnings 1,013,132 1,103,435
Total equity attributable to equity holders of the Company 1,042,184 1,133,464
Non-controlling interests 35,833 33,579
Total equity 1,078,017 1,167,043
Total equity and liabilities 1,260,050 1,332,615
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Winpak Ltd.

Condensed Consolidated Statements of Income

(thousands of US dollars, except per share amounts) (unaudited)

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Quarter Ended Year-To-Date Ended
September 26 September 27 September 26 September 27
2021 2020 2021 2020
Revenue 254,166 210,605 722,941 640,402
Cost of sales (192,138) (144,603) (525,388) (442,186)
Gross profit 62,028 66,002 197,553 198,216
Sales, marketing and distribution expenses (21,187) (16,786) (61,144) (50,894)
General and administrative expenses (7,863) (7,862) (24,018) (23,562)
Research and technical expenses (4,519) (4,270) (13,130) (12,182)
- - -
Pre-production expenses (178)
Other (expenses) income (144) 708 1,804 (2,101)
Income from operations 28,315 37,792 101,065 109,299
Finance income 237 388 726 2,791
Finance expense (434) (513) (1,341) (1,755)
Income before income taxes 28,118 37,667 100,450 110,335
Income tax expense (6,768) (10,295) (24,419) (29,497)
Net income for the period 21,350 27,372 76,031 80,838
Attributable to:
Equity holders of the Company 20,762 26,684 73,777 79,065
Non-controlling interests 588 688 2,254 1,773
21,350 27,372 76,031 80,838
Basic and diluted earnings per share - cents 32 41 114 122
Condensed Consolidated Statements of Comprehensive Income
(thousands of US dollars) (unaudited)
Quarter Ended Year-To-Date Ended
September 26 September 27 September 26 September 27
2021 2020 2021 2020
Net income for the period 21,350 27,372 76,031 80,838
Items that will not be reclassified to the statements of income:
Cash flow hedge losses recognized (867) - (867) -
(867) - (867) -
Items that are or may be reclassified subsequently to the statements of income:
Cash flow hedge (losses) gains recognized (933) 459 282 (1,164)
Cash flow hedge (gains) losses transferred to the statements of income (540) 143 (1,615) 534
Income tax effect 394 (160) 356 169
(1,079) 442 (977) (461)
Other comprehensive (loss) income for the period - net of income tax (1,946) 442 (1,844) (461)
Comprehensive income for the period 19,404 27,814 74,187 80,377
Attributable to:
Equity holders of the Company 18,816 27,126 71,933 78,604
Non-controlling interests 588 688 2,254 1,773
19,404 27,814 74,187 80,377
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Winpak Ltd.

Condensed Consolidated Statements of Changes in Equity

(thousands of US dollars) (unaudited)

Balance at December 30, 2019 Comprehensive (loss) income for the period Cash flow hedge losses, net of tax Cash flow hedge losses transferred to the statements of income, net of tax Other comprehensive loss Net income for the period Comprehensive (loss) income for the period Dividends Balance at September 27, 2020 Balance at December 28, 2020 Comprehensive (loss) income for the period Cash flow hedge gains (losses), net of tax Cash flow hedge gains transferred to the statements of income, net of tax Other comprehensive loss Net income for the period Comprehensive (loss) income for the period Dividends Balance at September 26, 2021	Non- Share Retained controlling capital Reserves earnings Total interests Total equity 29,195 380 1,005,202 1,034,777 30,985 1,065,762 Attributable to equity holders of the Company
	- (853) - (853) - (853) - 392 - 392 - 392
	- (461) - (461) - (461) - - 79,065 79,065 1,773 80,838
	- (461) 79,065 78,604 1,773 80,377
	- - (4,276) (4,276) - (4,276)
	29,195 (81) 1,079,991 1,109,105 32,758 1,141,863
	29,195 834 1,103,435 1,133,464 33,579 1,167,043
	- 206 (867) (661) - (661) - (1,183) - (1,183) - (1,183)
	- (977) (867) (1,844) - (1,844) - - 73,777 73,777 2,254 76,031
	- (977) 72,910 71,933 2,254 74,187
	- - (163,213) (163,213) - (163,213)
	29,195 (143) 1,013,132 1,042,184 35,833 1,078,017

Winpak Ltd.

Condensed Consolidated Statements of Cash Flows

(thousands of US dollars) (unaudited)

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Quarter Ended Year-To-Date Ended
September 26 September 27 September 26 September 27
2021 2020 2021 2020
Cash provided by (used in):
Operating activities:
Net income for the period 21,350 27,372 76,031 80,838
Items not involving cash:
Depreciation 11,390 11,278 34,006 33,222
Amortization - deferred income (718) (384) (1,509) (1,154)
Amortization - intangible assets 412 410 1,246 1,241
Employee defined benefit plan expenses 1,135 988 3,492 2,758
Net finance expense (income) 197 125 615 (1,036)
Income tax expense 6,768 10,295 24,419 29,497
Other (370) (769) (3,194) (1,551)
Cash flow from operating activities before the following 40,164 49,315 135,106 143,815
Change in working capital:
Trade and other receivables (7,362) 7,065 (26,967) 11,237
Inventories (12,662) 1,452 (37,705) 1,013
Prepaid expenses (995) (16) (3,911) (1,851)
Trade payables and other liabilities (879) (3,910) 11,571 (3,344)
Contract liabilities (1,405) 2,390 704 1,606
Employee defined benefit plan contributions (31) (82) (1,045) (1,490)
Income tax paid (5,174) (9,924) (16,713) (27,124)
Interest received 204 311 640 2,595
Interest paid (331) (372) (1,050) (1,292)
Net cash from operating activities 11,529 46,229 60,630 125,165
Investing activities:
Acquisition of property, plant and equipment - net (11,296) (14,282) (38,845) (31,533)
Acquisition of intangible assets - (38) (185) (126)
(11,296) (14,320) (39,030) (31,659)
Financing activities:
Payment of lease liabilities (205) (170) (599) (368)
Dividends paid (160,987) (1,426) (164,055) (4,311)
(161,192) (1,596) (164,654) (4,679)
Change in cash and cash equivalents (160,959) 30,313 (143,054) 88,827
Cash and cash equivalents, beginning of period 513,251 455,673 495,346 397,159
Cash and cash equivalents, end of period 352,292 485,986 352,292 485,986
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