IPL Plastics, formerly known as One51, reported net losses of $2.6m (€2.3m) for the second quarter of its 2018 financial year.

The loss is primarily a result of one-time costs associated with the company’s initial public offering (IPO) in late June.

10% increase

Excluding these once-off costs, adjusted net income was $8.7m (€7.6m). IPL reported adjusted earnings (EBITDA) of $22.8m (€20m) for the quarter, which represents a 10% increase on last year.

Sales for the quarter increased 35% to just over $178m (€157m), primarily driven by the €134m acquisition of Macro Plastics last year.

In its outlook for the remainder of 2018, IPL said that while customer demand remains strong, profit margins are being negatively impacted by rising prices for freight, logistics and resin which will continue into the second half of the year. The group added that it remains on the lookout for suitable acquisitions.

Shares in IPL, currently trading at C$12, have fallen almost 10% since the company floated back in June. IPL’s current share value equates to a price of €1.63 per share for original shareholders in One51.