Pro Pac Packaging : 17/02/17 Pro-Pac Packaging Limited ASX PPG

PRO-PAC PACKAGING LIMITED (ASX: PPG)

As a result of weaker than normal trading conditions in the Company's major market segments, sales for the six months to 31 December 2016 of $116.3m were down by 8.3% relative to the prior year. Weaker demand was particularly prevalent in the nutraceutical, red meat, beverage and retail markets where tough conditions prevailed.

Despite contribution margins as a percentage of sales being maintained and overheads being trimmed by circa

$0.6m (2%) relative to the prior comparative period, the loss of contribution dollars from the decline in volumes resulted in profit before tax decreasing to $5.0m.

The Company's balance sheet remains solid with a low gearing ratio (net interest bearing debt / net interest bearing debt plus shareholders' equity) of 13.3% and cash of $11.0m at 31 December. Cash flow from operating activities for the half year was $3.0m.

Basic earnings per share decreased from 1.97c to 1.47c.

OUTLOOK

We have recently seen some improvement in trading conditions in some of the Company's key customer sectors and this, combined with recent new business wins, product development and ongoing cost reduction initiatives, should result in higher earnings in the second half of FY17 relative to the comparative prior year period. This assumes no unexpected adverse events.

The Company has a healthy pipeline of new business opportunities and continues to evaluate a number of potential accretive acquisitions.

DIVIDEND

The Company has today declared a fully franked interim dividend of 1.0 cent per share. The record date for determining entitlement to the dividend will be 9 March 2017 and the dividend will be paid on 18 May 2017. The Company's Dividend Reinvestment Plan will not apply to this dividend.

Enquiries

For further information please contact Mr. Brandon Penn Acting CEO, Pro-Pac Packaging Limited on Tel [phone].

About PPG

Pro-Pac Packaging Limited is a diversified manufacturing and distribution company, providing innovative, flexible and rigid packaging solutions for a broad group of clients. PPG is headquartered in Sydney with a national footprint including operations in all mainland states. PPG's securities are listed and quoted on the ASX. For further information on PPG visit www.ppgaust.com.au

Appendix 4D Half Yearly Report

Results for announcement to the market

Pro-Pac Packaging Limited

ACN Half Year ended

('Reporting Period')

Previous Half Year ended ('Corresponding period')

112 971 874

31 December 2016

31 December 2015

Results

Down	8.3 %	to	$000's 116,286
Down	23.1 %	to	3,476
Down	23.1 %	to	3,476

Revenue from ordinary activities

Profit from ordinary activities after tax attributable to shareholders

Net profit attributable to shareholders

Dividends (distributions)

Amount per security	Franked amount per security
Interim dividend	1.00¢	1.00¢
Prior year interim dividend	1.25¢	1.25¢
Final dividend for year ended 30 June 2016 paid on 22 September 2016	1.50¢	1.50¢
Information on dividends: The Company will pay an interim dividend of 1.00 cent per share on 18 May 2017. The Company's Dividend Reinvestment Plan will not apply to this dividend.
Record Date for determining entitlements to the dividend Last date for receipt of election notices for participation in the Pro-Pac Packaging Limited Dividend Reinvestment Plan		9 March 2017
		N/A

Control gained over entities

No control was gained or lost over entities that would have had a material impact on the financial report for the period ended 31 December 2016.

The Group has no associates or joint venture entities.

The Group applies International Accounting Standards in compiling the financial report of its wholly-owned foreign entity PPG Services SDN BHD.

The financial statements included in the half year report are not subject to audit dispute or qualification. The information set out above and in the attached half year report is provided to ASX in accordance with a resolution of the Directors.

Commentary

Brief explanation of any of the figures reported above:

Please refer to the attached Half Year Report for a detailed review.

NTA Reporting Period Previous corresponding period

Net tangible asset backing per ordinary security 17.30 cents 16.25 cents

PRO-PAC PACKAGING LIMITED

ACN 112 971 874

HALF YEAR FINANCIAL REPORT

For the half-year ended 31 December 2016