Graphic Packaging Holding Company Reports Fourth Quarter and Full Year 2021 Results

2021 Highlights:
*Net Sales were $7,156 million versus $6,560 million in the prior year.
*Net Organic Sales increased approximately 2% in the fourth quarter and full year versus the prior year periods.
*Net Income was $204 million versus $167 million in the prior year.
*Executing approximately $850 million in recognized pricing actions in 2021 and 2022 to address commodity input cost inflation.
*Returned $242 million to stakeholders through dividends, distributions and partnership redemptions.
*Global liquidity was $1,288 million at year end.
*Commissioning the world’s lowest-cost and highest-quality coated recycled paperboard production capabilities at the Kalamazoo, Michigan campus.
*Completed AR Packaging and Americraft acquisitions, significantly expanding geographies, markets and the product portfolio.

Graphic Packaging Holding Company (NYSE:GPK), (the “Company” or “Graphic Packaging”), a leading provider of sustainable packaging solutions to food, beverage, foodservice, and other consumer products companies, today reported Net Income for fourth quarter 2021 of $39 million, or $0.13 per share, based on 309 million weighted average diluted shares. This compares to fourth quarter 2020 Net Income of $64 million, or $0.24 per share, based on 270 million weighted average diluted shares.

Fourth quarter 2021 Net Income was impacted by a net $57 million of special charges, that are detailed in the attached Reconciliation of Non-GAAP Financial Measures table. When adjusting for these charges, Adjusted Net Income for the fourth quarter of 2021 was $96 million, or $0.31 per diluted share. This compares to fourth quarter 2020 Adjusted Net Income of $76 million, or $0.28 per diluted share.

For the full year 2021, Net Income was $204 million, or $0.68 per share, based on 298 million weighted average diluted shares. This compares to 2020 Net Income of $167 million, or $0.60 per share, based on 280 million weighted average diluted shares.

Michael Doss, the Company’s President and CEO said, “We met the high-end of our organic sales growth goal in 2021 generating 2% year over year growth, after generating 4% organic sales growth in 2020. We are capturing new business supported by consumer preference for sustainable, fiber-based packaging solutions. Innovation and more circular consumer packaging solutions are consistently driving organic sales growth. We are winning in existing markets while expanding our participation into new markets. The AR Packaging acquisition, completed in the fourth quarter, has further strengthened our innovative offerings for consumers and positions us for growth in new geographies, markets and products. The successful startup of our transformational K2 coated recycled board machine and execution of our coated recycled board platform optimization project will further solidify our cost and quality leadership in the industry.”

Doss continued, “Our execution of strategic initiatives, including significant price execution, is expected to result in 2022 Adjusted EBITDA in a range of $1.4 to $1.6 billion, a 42% year over year growth rate at the midpoint. The resulting robust cash flow we expect to generate will allow us to return to our desired leverage range of 2.5 to 3.0 times in 2023.” He concluded, “We are increasing Vision 2025 goals today. Our focus, leadership and growth in fiber-based consumer packaging along with our proven track record of capital allocation delivering value to stakeholders, provides confidence in a stronger outlook for our business.”
details at: https://investors.graphicpkg.com/news/news-details/2022/Graphic-Packaging-Holding-Company-Reports-Fourth-Quarter-and-Full-Year-2021-Results-Net-Organic-Sales-Growth-Execution-of-Strategic-MA-and-High-Return-Investments-Driving-Progress-Toward-an-Enhanced-and-Stronger-Vision-2025/default.aspx

Related Posts

Graphic Packaging to Create a $6 Billion Integrated Paper-Based Packaging Company by Combining with International Paper’s North America Consumer Packaging Business

Highlights: Graphic Packaging will create a leading integrated paper-based packaging company with approximately $6 billion of revenue and $1 billion of EBITDA post-synergies. Expands existing and builds new platforms for integrated growth in SBS foodservice markets and folding carton converting. International Paper Company's North America Consumer Packaging business valued at $1.8 billion. Targeting $75 million in synergies by the end of year three. Valuation of 8.6x Adjusted EBITDA and 6.3x Adjusted EBITDA post-synergies based on $210 million of Adjusted 2017 Estimated EBITDA. Transaction structured as a new partnership comprised of Graphic Packaging's existing businesses and International Paper Company's North America Consumer Packaging business. Graphic Packaging Holding Company will own 79.5 percent of the partnership and will be the sole operator. International Paper will own 20.5 percent of the partnership. Click Read More below for additional information.

Building a sound packaging strategy can help protect businesses against the ever-rising costs of parcel shipping rates

During the summer, most of the leading shippers announced their annual peak season surcharges and retailers were already braced for expected increases. However, it was recently discussed in an earnings call that FedEx and UPS are additionally increasing their general delivery rates by an average 6.9 percent. New rates will go into effect December 27 for UPS, and on January 3, 2023, for FedEx. Further, USPS also announced a general rate increase which will go into effect on January 22, 2023. Heading into the new year, these news reports might give some operations teams pause; however, it is important to remember that the right packaging strategy is one of the best ways to mitigate the overall impact an increase in shipping charges may have on the bottom line. Most brands can find savings when auditing their existing packaging procedures, especially when working with a provider that is constantly innovating to create value for customers. Are you using the most effective packaging material? Could you free up space or use less material?

Better with Less – Design Challenge: winning design introduces an ingenious alternative to bubble wrap

The winner of the international packaging design competition Better with Less – Design Challenge has been chosen. Exceptionally high-quality entries were submitted, and the winning design ‘Stretching Inner Part’ by Iiro Numminen, was considered by the judges to be extremely appealing, versatile, scalable and easy to implement. The Better with Less – Design Challenge, organised by Metsä Board, aimed to find new environmentally-friendly and functional packaging solutions for some of the world’s most frequently used and fastest growing types of consumer packages. Launched in November 2017, the competition inspired designers around the world – altogether 302 design concepts were entered from 38 different countries. The international competition jury included renowned packaging design experts from various fields – related to packaging, design, brand strategy and innovation. Click Read More below for additional information.
Back To Top
×Close search
Search