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Redeye expected to see some impact from the market turbulence in the Q1 numbers, but the magnitude was greater than we anticipated. Sales grew by an astounding 13%, thanks to price increases which in turn are driven by higher raw material costs. Gross margins took a hit as input prices continued to increase. On a positive note, Light Packaging showed robust growth. We will make some adjustments to our near-term forecasts, as the margin squeeze will take some time to mitigate.
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