Ring Container Technologies LLC

Overview Key strengths Key risks Strong market position in niche product categories, in particular the company maintains about 90% market share in 35lb high-density polyethylene (HDPE) edible oil containers. Limited end-market diversity and product breadth, with more than half of its sales generated from edible oil containers for foodservice and retail food customers. Long-term contracts, which include provisions for the pass-through of raw material price increases. High customer concentration, with its top-10 customers representing nearly 62% of sales. Above-average EBITDA margins, which the company sustained through the recent downturn in foodservice markets due to the COVID-19 pandemic. Relatively small scale and narrow geographic diversity. Ultra35 unit sales increased 14% in 2021, after declining close to 17% in 2020 due to

...Ultra35 unit volumes have returned close to the high-water mark experienced prior to the pandemic. Ultra35 unit sales increased 14% in 2021, after declining close to 17% in 2020 due to pandemic-related disruptions in foodservice markets. By the end of 2021, Ultra35 unit volume had returned to 95% of 2019 pre-pandemic volumes, which represent a high-water mark for unit sales. The strong recovery in 35lb edible oil softened slightly in the first half of 2022 due to food ingredient shortages and labor challenges at its key customers. However, consumer demand remains strong and the company has successfully renewed multiyear contracts with...

Full Report