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Pro-Pac Packaging – First Look

Pro-Pac Packaging (ASX:PPG) make packaging for a very wide variety of products. From what I can see they are specialists in plastic packaging, from plastic bags / packets, to plastic wrap and rigid containers. They are a growing company that look like they have plenty more room for growth, however there are a couple of things I don’t like. Firstly they don’t seem on trend with a plastic free world, secondly they don’t seem great at updating their website (someone on Google Maps suggested that the office location is wrong, and the link from the ASX is incorrect and didn’t load). While this isn’t a big issue in itself, my concern is that they might just be specialists in plastic, may have dinosaur management and therefore ripe for disruption. This concern may not be significant – my gut feeling is that they’re probably a great company, but I really need to look at the financials to make a sensible opinion.

When I started looking through the financials of Pro-Pac, I realized that to be able to do a proper valuation on this company, I need to learn about the AASB 16 accounting rules, consequently I’m putting my Pro-Pac analysis on hold until such a date that I am capable of performing an analysis on Pro-Pac Packaging (which will probably be never).

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