IPL Plastics Inc

Significant margin improvement the highlight in Q2

  • Sectors : Paper & Packaging
  • Companies : IPL Plastics Inc

Ratings and price correct at time of issue.

  • IPL Plastics Inc

    Closing Price: 680c

  • RATING 17/07/18



IPL Plastics reported a good (+25%) year-on-year improvement in Q2 adjusted EBITDA, boosted by self-help measures and an initial contribution from Loomans. The stand-out feature in Q2 was the much better than expected increase in the adjusted EBITDA margin, which rose 410 basis points to 16.9% compared to Q2 2018. The securing of the largest sales contract ever by the Consumer Packaging Solutions division in the US also hints at the group’s medium-term opportunity and potential. The stock is trading at a discount to its peers, but as the group establishes a track record it has the potential to bridge this gap.

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Aug 14 2019, 08:15 IST/BST