WINNIPEG, MANITOBA--(Marketwire - Oct. 20, 2011) - Winpak Ltd. (WPK) (TSX:WPK) today reports consolidated results in US dollars for the third quarter of 2011, which ended on September 25, 2011.

	Three Months Ended				Nine Months Ended
	September 25		September 26		September 25		September 26
	2011		2010		2011		2010
(thousands of US dollars, except per share amounts)
Revenue	170,670		146,055		480,547		424,511
Net income	14,635		13,458		46,228		43,569
Income tax expense	7,912		5,687		21,434		18,533
Net finance (income) expense	(100	)	(27	)	(257	)	33
Depreciation and amortization	6,745		6,526		20,037		18,893
EBITDA (1)	29,192		25,644		87,442		81,028
Net income attributable to equity holders of the Company	14,408		13,132		45,297		42,502
Net income attributable to non-controlling interests	227		326		931		1,067
Net income	14,635		13,458		46,228		43,569
Basic and fully diluted earnings per share (cents)	22		20		70		65

Basis of Presentation

The 2011 amounts have been determined in accordance with International Financial Reporting Standards (IFRS) and accordingly, the comparative amounts have been restated to conform with IFRS, unless otherwise stated.

Winpak Ltd. manufactures and distributes high-quality packaging materials and related packaging machines. The Company's products are used primarily for the packaging of perishable foods, beverages and in health care applications.

¹ EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income, this measure provides useful supplemental information to investors including an indication of cash available for distribution prior to debt service, capital expenditures and income taxes. Investors should be cautioned, however, that this measure should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's performance. The Company's method of calculating this measure may differ from other companies, and accordingly, the results may not be comparable.

Forward-looking statements: Certain statements made in the following report contain forward-looking statements including, but not limited to, statements concerning possible or assumed future results of operations of the Company. Forward-looking statements represent the Company's intentions, plans, expectations and beliefs, and are not guarantees of future performance. Such forward-looking statements represent Winpak's current views based on information as at the date of this report. They involve risks, uncertainties and assumptions and the Company's actual results could differ, which in some cases may be material, from those anticipated in these forward-looking statements. Unless otherwise required by applicable securities law, we disclaim any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance upon forward-looking statements.

The following report and analysis for the three and nine months ended September 25, 2011 reflects the Company's adoption of International Financial Reporting Standards (IFRS) as of December 27, 2010, the start of the 2011 fiscal year. Comparative periods for fiscal 2010 have been restated in accordance with IFRS, including the December 28, 2009 transition date balance sheet, however, periods prior to fiscal 2010 have not been restated and are reported in accordance with Canadian GAAP.

Financial Performance

Net income attributable to common shareholders for the third quarter of 2011 was $14.4 million or 22 cents in earnings per share compared to $13.1 million or 20 cents per share in the corresponding quarter of 2010, an increase of 9.7 percent. Volume growth contributed 2.0 cents in earnings per share as did enhancements in gross profit due to product mix changes and greater manufacturing efficiencies. Curtailment in operating expense growth added a further 1.5 cents in earnings per share. Offsetting these positive developments were a higher effective income tax rate and the negative impact of foreign exchange which decreased earnings per share by 1.0 cent and 2.5 cents respectively.

For the nine months ended September 25, 2011, net income attributable to common shareholders progressed to $45.3 million or 70 cents in earnings per share, up 6.6 percent from the $42.5 million or 65 cents per share recorded in the comparable prior year period. Increased volumes yielded 4.5 cents in earnings per share while gross profit improvement added a further 4.0 cents per share. Limited operating expense growth, in relation to volume expansion, provided nearly 1.0 cent in earnings per share while the impact of the stronger Canadian dollar had a negative impact on earnings per share of approximately 4.5 cents for the first nine months of 2011 versus 2010.

Revenue

Revenue for the third quarter of 2011 rose by $24.6 million to $170.7 million, an improvement of 16.9 percent over the comparable quarter in 2010. Volumes overall grew by 9.5 percent, but as was the case in the second quarter, demand remained uneven across product lines. Shipments were especially robust in rigid packaging, where volumes rose by over 30 percent due to demand in condiment and specialty beverage products. Although representing less than 3 percent of total revenues, packaging machinery sales were also strong after a slow start in the first half of the year. Lidding sales volumes, which partially move in tandem with rigid packaging revenues, also advanced by just over 5 percent in the quarter. Modified atmosphere packaging volumes were essentially flat with the third quarter of 2010, as some customers reduced inventory levels in response to the lackluster performance of the US economy. Even further exposed to the slowdown in US economic activity were the more commodity product lines of biaxially oriented nylon and specialty films, where sales quantities declined by low to mid-single digit percentages. Higher overall selling prices, in response to raw material cost increases and changes in product mix, contributed 6.3 percent to third quarter revenue. The stronger Canadian dollar, versus the third quarter of 2010, further improved revenue by 1.1 percent.

For the first three quarters of 2011, revenue expanded to $480.5 million, an increase of $56.0 million or 13.2 percent in relation to the corresponding period in 2010. More than half of the progression in revenue was due to volume growth of 7.3 percent, as all product groups advanced with the exception of biaxially oriented nylon which declined marginally. The volume enrichment was spearheaded by single-serve rigid container shipments, exceeding the corresponding prior year period by more than 20 percent. Packaging machinery shipment growth followed closely behind in percentage terms. The remaining product lines of modified atmosphere packaging, lidding and specialty films all rose by low single-digit percentages in terms of quantities. Selling price gains paralleled higher raw material costs and together with sales mix changes, furthered year-to-date revenue by 4.9 percent. The conversion of Canadian dollar sales into US funds at a higher average exchange rate in 2011 versus 2010 supplemented revenue by an additional 1.0 percent.

Gross profit margins

Gross profit margins declined to 27.6 percent of revenue in the third quarter of 2011 from 28.3 percent of revenue recorded in the same quarter of 2010. However, in dollar terms, gross profit advanced by 14.2 percent to $47.2 million in the current quarter from $41.3 million in the third quarter of 2010, exceeding the increase in sales volume of 9.5 percent and contributing 2.0 cents to earnings per share. Product mix changes and improved manufacturing performance, primarily through efficiency gains and scrap reduction, more than offset the negative impact of raw material cost escalations on gross profit. The Company was moderately successful in applying selling price increases to match raw material cost advances for non-indexed accounts although competitive pressures did result in some margin erosion at certain customers. The remaining approximate 65 percent of revenues are indexed whereby selling prices are adjusted by agreement as raw material costs change, albeit with a time lag of about three months on average.

For the first three quarters of 2011, gross profit margins of 28.6 percent were 0.8 percentage points less than the result achieved in the corresponding period in 2010 but the percentage growth in dollar terms exceeded the relative increase in volumes. As with the results for the third quarter, product mix improvements and enhanced manufacturing performance helped to overcome the impact of rising raw material costs on margins and resulted in an addition of 4.0 cents to earnings per share.

For reference, the following presents the weighted indexed purchased cost of Winpak's eight primary raw materials in the reported quarter and each of the preceding eight quarters, where base year 2001 = 100. The index was rebalanced as of December 27, 2010 to reflect the mix of the eight primary raw materials purchased in 2010.

Quarter and Year	3/09	4/09	1/10	2/10	3/10	4/10	1/11	2/11	3/11
Purchase Price Index	131.2	138.6	150.5	159.1	150.7	154.7	168.0	184.5	182.9

The purchase price index in the third quarter of 2011 leveled off, declining by less than 1 percent from the previous quarter. However, it still remains 21.4 percent higher than a year earlier and is only 4.1 percent lower than its highest level ever recorded by the Company, just three years prior. It has continued to be a challenge to prevent margin erosion in this high cost environment.

Expenses and Other

While sales volumes in the third quarter expanded by 9.5 percent versus the corresponding period in 2010, the Company was able to leverage its expenditure on operating expenses by limiting their increase to 4.4 percent, excluding the impact of foreign exchange. The net result was an increase of 1.5 cents in earnings per share, with a portion due to lower share-based incentive costs. The overall impact of foreign exchange on net income for the third quarter of 2011, in relation to the same period in 2010, was a reduction of 2.5 cents in earnings per share. This was due to a combination of a foreign exchange loss on Canadian net monetary assets, a higher average exchange rate applied to net Canadian dollar expenses in the third quarter of 2011, and a foreign exchange gain in the third quarter of 2010 on Canadian dollar tax balances resulting in a reduction of income tax expense in that period. In addition, a higher effective income tax rate in the current quarter versus the corresponding prior year quarter lowered earnings per share by 1.0 cent due to a larger proportion of net income being earned in higher tax jurisdictions.

On a year-to-date basis, foreign exchange had a negative impact of 4.5 cents in earnings per share compared to the same period in 2010. The impact was spread relatively equally between the translation of net Canadian dollar costs into US funds at a higher exchange rate in 2011 than 2010, foreign exchange losses on Canadian net monetary assets in 2011, and foreign exchange gains recorded by the Canadian legal entities on filing their 2010 income tax returns in Canadian dollars. In 2011, the Company has received approval to file its Canadian tax returns in US dollars, thereby eliminating this latter foreign exchange fluctuation in 2011 and later years. Limiting the escalation in operating expenses to less than the increase in sales volumes helped deliver a further 1.0 cent in earnings per share. The reduction in corporate income tax rates at the federal level in Canada at the beginning of 2011 mainly offset the negative impact on earnings caused by a greater proportion of income earned in higher tax jurisdictions in the current year.

Capital Resources, Cash Flow and Liquidity

The Company's cash and cash equivalents balance ended the third quarter at $107.5 million, an increase of $9.8 million in the three-month period. Winpak continued to generate consistent cash flow from operating activities before changes in working capital of $30.0 million in the quarter, improving upon the comparable period in 2010 by $3.9 million. Cash was utilized to supplement working capital by $1.4 million, property, plant and equipment additions of $11.9 million, income tax payments of $4.4 million, dividends of $2.0 million, and employee benefit plan payments of $0.5 million.

For the first nine months of 2011, the Company added $17.1 million to its cash position. Cash flow from operating activities before changes in working capital of $88.8 million, improved by $6.7 million over the comparable period in 2010. Increases in working capital utilized $16.7 million in cash, with higher raw material costs and heightened sales volumes contributing to a rise in inventory of $12.0 million. Cash was also used for property, plant and equipment additions of $27.8 million, income tax payments of $16.5 million, dividends of $5.9 million, employee benefit plan payments of $3.0 million, and distributions to the non-controlling interests in a subsidiary of $1.8 million. The Company remains debt-free and has unutilized operating lines of $38 million, with the ability to increase borrowing capacity further should the need arise.

Summary of Quarterly Results

	Thousands of US dollars, except per share amounts (US cents)
	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
	2011	2011	2011	2010	2010	2010	2010	2009*
Revenue	170,670	161,340	148,537	154,930	146,055	145,568	132,888	135,464
Net income attributable to equity holders	14,408	16,195	14,694	12,794	13,132	14,130	15,240	11,445
EPS	22	25	23	20	20	22	23	18

*Amounts are as previously reported under Canadian GAAP.

Looking Forward

Volume growth for the first three quarters of 2011, although in aggregate better than the industry average, was uneven across product lines. It is expected that this trend will continue for the balance of the year with some slow improvement possible in existing customer demand in those product lines where growth has been less vigorous. With the Company's investments in the latest technology, the Company will continue to add new customers and products to its established customer base and build upon an already solid foundation. Raw material costs leveled off in the third quarter and are expected to remain fairly stable in the fourth quarter barring any unforeseen circumstances. As a result, gross profit margins for the balance of the year should remain within one or two percentage points of current levels and above the long-term average for the Company. Capital expenditures are estimated to end the year at over $60 million. This will be the largest internal capital investment undertaken by Winpak in a single year and is part of the Company's ambitious program which by the end of 2015 is targeted to grow annual revenue organically to a level approaching $1 billion. The capital spending forecasted for 2011 is lower than originally planned at the start of the year due to some minor delays in the timing of various projects. All of the Company's investments remain focused on the Company's core businesses in food and health care packaging and Winpak will also continue to evaluate external acquisition opportunities in these markets.

Winpak Ltd.

Interim Consolidated Financial Statements

Third Quarter Ended: September 25, 2011

These interim consolidated financial statements have not been audited or reviewed by the Company's independent external auditors, PricewaterhouseCoopers LLP. For a complete set of notes to the consolidated financial statements, refer to www.sedar.com or the Company's website, www.winpak.com.

Winpak Ltd.
Consolidated Balance Sheets
(thousands of US dollars) (unaudited)
		September 25		December 26		December 28
		2011		2010		2009
Assets
Current assets:
	Cash and cash equivalents	107,542		90,488		61,164
	Trade and other receivables	83,946		77,118		69,172
	Income taxes receivable	1,290		1,953		1,255
	Inventories	88,077		76,075		69,812
	Prepaid expenses	3,808		2,284		2,211
	Derivative financial instruments	-		629		1,182
		284,663		248,547		204,796
Non-current assets:
	Property, plant and equipment	243,230		234,797		220,196
	Intangible assets	15,410		16,666		18,505
	Employee benefit plan assets	4,283		3,330		1,110
	Deferred tax assets	4,028		4,174		3,408
	Other receivables	160		141		799
		267,111		259,108		244,018
Total assets		551,774		507,655		448,814
Equity and Liabilities
Current liabilities:
	Trade payables and other liabilities	55,367		52,560		44,965
	Provisions	491		368		-
	Income taxes payable	4,890		1,554		5,051
	Derivative financial instruments	570		-		-
		61,318		54,482		50,016
Non-current liabilities:
	Employee benefit plan liabilities	6,968		6,719		7,181
	Deferred income	10,489		11,221		11,363
	Provisions	8,522		7,614		870
	Deferred tax liabilities	19,471		20,322		19,622
		45,450		45,876		39,036
Total liabilities		106,768		100,358		89,052
Equity:
	Share capital	29,195		29,195		29,195
	Reserves	(409	)	441		810
	Retained earnings	400,569		361,128		313,038
Total equity attributable to equity holders of the Company		429,355		390,764		343,043
Non-controlling interests		15,651		16,533		16,719
Total equity		445,006		407,297		359,762
Total equity and liabilities		551,774		507,655		448,814

Winpak Ltd.
Consolidated Statements of Income
(thousands of US dollars, except per share amounts) (unaudited)
		Three Months Ended				Nine Months Ended
		September 25		September 26		September 25		September 26
		2011		2010		2011		2010
Revenue		170,670		146,055		480,547		424,511
Cost of sales		(123,503	)	(104,743	)	(343,016	)	(299,727	)
Gross profit		47,167		41,312		137,531		124,784
Other income (expenses)		(1,632	)	157		(924	)	1,287
Sales, marketing and distribution expenses		(13,574	)	(12,509	)	(39,731	)	(36,784	)
General and administrative expenses		(6,130	)	(6,292	)	(19,631	)	(17,367	)
Research and technical expenses		(3,346	)	(3,380	)	(9,600	)	(9,548	)
Pre-production costs		(38	)	(170	)	(240	)	(237	)
Income from operations		22,447		19,118		67,405		62,135
Finance income		1,054		895		3,111		2,680
Finance expense		(954	)	(868	)	(2,854	)	(2,713	)
Income before income taxes		22,547		19,145		67,662		62,102
Income tax expense		(7,912	)	(5,687	)	(21,434	)	(18,533	)
Net income for the period		14,635		13,458		46,228		43,569
Attributable to:
	Equity holders of the Company	14,408		13,132		45,297		42,502
	Non-controlling interests	227		326		931		1,067
		14,635		13,458		46,228		43,569
	Basic and fully diluted earnings per share - cents	22		20		70		65
Consolidated Statements of Comprehensive Income
(thousands of US dollars) (unaudited)
		Three Months Ended				Nine Months Ended
		September 25		September 26		September 25		September 26
		2011		2010		2011		2010
Net income for the period		14,635		13,458		46,228		43,569
Cash flow hedge (losses) gains recognized		(424	)	306		(42	)	647
Cash flow hedge gains transferred to the statement of income		(456	)	(108	)	(1,158	)	(1,336	)
Income tax relating to applicable components of other comprehensive income		249		(60	)	350		224
Other comprehensive income (loss) for the period - net of income tax		(631	)	138		(850	)	(465	)
Comprehensive income for the period		14,004		13,596		45,378		43,104
Attributable to:
	Equity holders of the Company	13,777		13,270		44,447		42,037
	Non-controlling interests	227		326		931		1,067
		14,004		13,596		45,378		43,104

Winpak Ltd.
Consolidated Statements of Changes in Equity
(thousands of US dollars) (unaudited)
			Attributable to equity holders of the Company
			Share capital	Hedging reserve		Retained earnings		Total		Non-controlling interests		Total equity
Balance at December 28, 2009			29,195	810		313,038		343,043		16,719		359,762
	Comprehensive income (loss) for the period
		Changes in fair value of cash flow hedges, net of tax	-	471		-		471		-		471
		Amounts recognized in the statement of income during the period, net of tax	-	(936	)	-		(936	)	-		(936	)
	Other comprehensive loss		-	(465	)	-		(465	)	-		(465	)
	Net income for the period		-	-		42,502		42,502		1,067		43,569
	Comprehensive income (loss) for the period		-	(465	)	42,502		42,037		1,067		43,104
	Preferred share redemption		-	-		-		-		(1,960	)	(1,960	)
	Dividends		-	-		(5,682	)	(5,682	)	-		(5,682	)
Balance at September 26, 2010			29,195	345		349,858		379,398		15,826		395,224
Balance at December 27, 2010			29,195	441		361,128		390,764		16,533		407,297
	Comprehensive income (loss) for the period
		Changes in fair value of cash flow hedges, net of tax	-	(19	)	-		(19	)	-		(19	)
		Amounts recognized in the statement of income during the period, net of tax	-	(831	)	-		(831	)	-		(831	)
	Other comprehensive loss		-	(850	)	-		(850	)	-		(850	)
	Net income for the period		-	-		45,297		45,297		931		46,228
	Comprehensive income (loss) for the period		-	(850	)	45,297		44,447		931		45,378
	Preferred share redemption		-	-		-		-		(980	)	(980	)
	Dividends		-	-		(5,856	)	(5,856	)	(833	)	(6,689	)
Balance at September 25, 2011			29,195	(409	)	400,569		429,355		15,651		445,006

Winpak Ltd.
Consolidated Statements of Cash Flows
(thousands of US dollars) (unaudited)
				Three Months Ended				Nine Months Ended
				September 25		September 26		September 25		September 26
				2011		2010		2011		2010
Cash provided by (used in):
Operating activities:
	Net income for the period			14,635		13,458		46,228		43,569
	Items not involving cash:
		Depreciation		6,234		6,007		18,502		17,309
		Amortization - intangible assets		511		519		1,535		1,584
		Employee benefit plan costs		718		598		2,433		2,043
		Net finance (income) expense		(100	)	(27	)	(257	)	33
		Income tax expense		7,912		5,687		21,434		18,533
		Other		135		(66	)	(1,080	)	(991	)
			Cash flow from operating activities before the following	30,045		26,176		88,795		82,080
	Change in working capital:
		Trade and other receivables		(3,866	)	(2,595	)	(6,847	)	(4,869	)
		Inventories		4,185		(1,850	)	(12,002	)	(10,858	)
		Prepaid expenses		(160	)	307		(1,524	)	(772	)
		Trade payables and other liabilities		(2,435	)	2,678		2,855		6,552
		Provisions		850		-		850		-
	Employee benefit plan payments			(483	)	(909	)	(2,995	)	(3,532	)
			Cash flow from operations	28,136		23,807		69,132		68,601
		Income tax paid		(4,422	)	(5,308	)	(16,455	)	(19,551	)
		Interest received		86		32		205		78
		Interest paid		(8	)	(4	)	(17	)	(10	)
			Net cash from operating activities	23,792		18,527		52,865		49,118
Investing activities:
	Acquisition of property, plant and equipment			(11,920	)	(7,142	)	(27,817	)	(26,994	)
	Acquisition of intangible assets			(55	)	(89	)	(286	)	(209	)
				(11,975	)	(7,231	)	(28,103	)	(27,203	)
Financing activities:
	Dividends paid			(1,976	)	(1,882	)	(5,895	)	(5,638	)
	Change in non-controlling interests in subsidiary			-		(1,960	)	(1,813	)	(1,960	)
				(1,976	)	(3,842	)	(7,708	)	(7,598	)
Change in cash and cash equivalents				9,841		7,454		17,054		14,317
Cash and cash equivalents, beginning of period				97,701		68,027		90,488		61,164
Cash and cash equivalents, end of period				107,542		75,481		107,542		75,481

FOR FURTHER INFORMATION PLEASE CONTACT:

K.P. Kuchma
Winpak Ltd.
Vice President and CFO
(204) 831-2254

OR

B.J. Berry
Winpak Ltd.
President and CEO
(204) 831-2216