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RW Packaging shows six-month growth

By Katrina Megget, 28-Aug-2007

Related topics: Packaging, Packaging machinery & supplies, Processing (automation, control, separation)

Canadian packaging company RW Packaging's six-monthly sales in pharmaceuticals have offset the company's poor sales performance of household and seasonal products.

The company, which blends and packages liquid and powder private brand consumer products, announced an 11.2 per cent increase in sales of the company's Over-the-Counter (OTC) pharmaceuticals and natural health products for the six months ending June 30, 2007.

The increase was the main reason for the 4.5 per cent increase in overall comparative sales in the company's recently released six-monthly financial results.

The company posted a six-month revenue of $5.9m, which was up from $5.6m on the previous year's period.

The increase in pharmaceuticals more than offset a decrease in sales of household and seasonal products, according to the firm.

Sales of the company's new Protecten medicated skin cream, which was launched in January this year, and selling price adjustments also contributed to the double-digit growth in OTC products.

This year's second quarter revenue ($2.7m) was down on that of the same period last year ($2.9m).

The company said the decrease for the quarter was due to a reduction in US sales resulting from a shift in order patterns from one of the company's US customers.

Gross profit for the six months ended June 30, 2007 was $1.4m compared to $1.1m at the same time last year.

Meanwhile, EBITA for the six months had increased 67.8 per cent to $518,917.

The company is expecting continued growth in sales and earnings for the rest of 2007.