Wildpack gives production and corporate update
Wildpack has announced an update on their production initiatives and a corporate update for May.
“Organic growth remains our primary focus. The macro backdrop of the escalating cost of capital, supply chain challenges and the impact of seasonality require discipline,” commented Mitch Barnard, chief executive officer.
“I am proud of The Pack’s ability to adapt, and embrace three core initiatives, to earn more from our customers, to improve per can economics and to reduce overall costs.” He added.
May can throughput was 15.9 million. As previously announced during Wildpack’s first quarter earnings call, the previous can throughput guidance of 300 million does not reflect the current strategy and the guidance for 2022 is US$40-55 million in revenue.
Monthly throughput results, which include cans and can equivalents, met management’s expectations as Wildpack continue toward financial profitability and positive cash flow. Its printing operations continue to improve, increasing production by 19%.
Wildpack’s highest margin revenue source, can filling, improved month-over-month throughput by 32%. Their total orders were 121 in May, an improvement of 29% month-over-month with 12 new customer conversions to order.
In the first quarter, Wildpack had a plant utilisation of 15.8%, in May this improved to 21.5% a positive increase of 36% and trending toward their operational goals. Production line yields have remained above 90% for the duration of the month despite the increase in utilisation.
Wildpack announced that it engaged in a digital media marketing campaign with Ryan Hemsley, Shadd Dales & Departures Capital (the “digital marketing providers”).
Under the terms of the campaign, the digital marketing providers hosted management on video calls and provided a combination of content development, web development, media buying and distribution to Wildpack at a total cost of C$13,314, with cash on hand, over a one-month period, commencing and concluding October 2021.