Pro-Pac Packaging (ASX:PPG) cuts FY22 guidance

Pro-Pac Packaging (ASX:PPG) has downgraded its FY22 guidance due to ongoing headwinds, and now expects underlying profit after tax to be around $5 million.

The manufacturing company said raw material supply has continued to be constrained as a result of global sea freight restrictions and unreliability arising from bottlenecks in Asia and Europe.

It also noted higher costs due to persistent resin inflation, foreign exchange and sea freight, while production capacity suffers from labour shortages and Covid-19.

Shares in Pro-Pac Packaging (ASX:PPG) are trading 9.7 per cent lower at $1.21