Australian packaging industry leader Colorpak (ASX:CKL) has delivered a record half year underlying NPAT of $4.750m, up 25% on the same period last year, as the first full six months of the acquired Carter Holt Harvey's (CHH) folding carton significantly lifts revenue. Integration of CHH is on track with $6.980m in after-tax restructure and business combination costs reducing reported NPAT to a loss of $2.230m.

First six month highlights:

- Sales revenue of $104.100m up 139% on the corresponding period in FY11

- Underlying EBITDA up 32% to $10.534m on the corresponding period in FY11

- Interim dividend maintained at 1.50 cents per share, fully franked

Managing Director Alex Commins said the legacy business has performed solidly during the half year as the company continues to successfully integrate the CHH assets since taking ownership on 1 March 2011.

"We are very pleased with they way the integration is progressing. Costs incurred due to the integration program are on budget and employee commitment to the changes has been positive.

"In the half year we have consolidated the CHH operation sites by closing the Reservoir site, rebalanced the production load across the group's full operations and implemented new management information systems.

"During this time our legacy businesses have maintained momentum. Our new paper cup forming and lid division delivered incremental revenue and customer retention across the business remains high.

"Overall it has been a very pleasing and productive half year.

Outlook:

"Our focus for the second half of the year will remain heavily on the continued integration of the distressed CHH assets.

"The acquisition has increased the seasonality in Colorpak's earnings due to higher summer demand for packaging products. Our earnings are now more weighted towards the first half of the financial year.

"The Australia packaging industry remains highly competitive with pressure continuing to grow from regional producers in Asia. Building scale and efficiency into local operations and consolidation of less profitable manufacturers remains a priority for the industry.

"Despite these pressures Colorpak remains on target to deliver another solid result for the full year," Mr Commins said.