Australia's Pro-Pac Packaging slumps on flagging supply constraints, labour costs

Pro-Pac Packaging

18/11/2021 02:50

** Shares of packaging products maker Pro-Pac Packaging
 PPG.AX  slide as much as 5.1% to A$0.185, their lowest since
Aug. 25
    ** Co says site closures due to team members testing
positive for COVID-19 and storm-related closures across Victoria
have caused productions backlogs in the first half of the year
 urn:newsml:reuters.com:*:nGLF9vxPV9
    ** Says increasing resin supply constraints have prompted it
to introduced a freight surcharge and price increases across
businesses
    ** Adds commissioning issues with the relocation of assets
and labour costs have created a temporary cost burden on co
    ** PPG, however, says it expects 1H22 underlying profit
before tax to be broadly consistent with its 2H21 result
    ** Shares on track for worst day since Nov. 1
    ** Volumes are almost twice the 30-day average of 299,115
shares
    ** As of last close, stock down 2.5% this year

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))