Mr. Enzio Di Gennaro reports

RICHARDS PACKAGING INCOME FUND ANNOUNCES 2023 RESULTS AND SPECIAL DIVIDEND

Richards Packaging Income Fund has released results for the fourth quarter and the year ended Dec. 31, 2023, and has declared a special dividend.

"The most significant improvement in 2023 results was a $33-million reduction in working capital which was used to pay down debt which is now at a leverage ratio of 0.2 times. Pro-active actions were taken to align working capital with more challenging volume. Our strategy to address inventory aging yielded $14-million of this reduction with days on hand dropping from 128 to 98 and believe that further improvements can be made in 2024.

"The 2023 year results reflect revenue contraction of 5 per cent driven by the food and beverage markets partially offset by higher health care which now represents 50 per cent of our product mix. Net income was down $6-million, or 17 cents per unit.

"Fourth quarter revenue performance grew 1 per cent on higher health care capital sales with no impact from currency translation with the dollar at U.S./Canadian 74 cents. Net income increased $1-million mainly due to the $2-million in contingent consideration not repeating.

"Richards faces a challenging future as the oversupply in the food and beverage market that depressed our sales continues with January and February down 4 per cent," commented Gerry Glynn, director and trustee.

The fund also announces today a special cash distribution of 36 cents per unit for the unitholders and exchangeable shareholders of record at the close of business on March 18, 2024, payable on March 26, 2024. Unitholders who are non-residents of Canada may be required to pay all withholding taxes payable in respect of any distributions of income by the fund, whether such distributions are in the form of cash or additional units.

Details of the fund's results are currently available on Richards Packaging's website and on SEDAR+.

About Richards Packaging Income Fund Inc.

The fund owns Richards Packaging Inc. which since 1912 has served a wide customer base throughout North America comprising over 17,000 regional food, beverage, cosmetics, health care and other enterprises.