DS Smith annnounces multi-million investment to expand our Cartogal packaging plant in Spain

*Net sales of $1.38 billion, down 1% as reported; flat at constant currency *Net earnings of $58 million, down 57% *Cash flow from operations (YTD) of $193 million

Packaging Corporation of America reported second quarter 2021 net income of $207 million, excluding special items. Second quarter net sales were $1.9 billion in 2021 and $1.5 billion in 2020. Commenting on reported results, Mark W. Kowlzan, Chairman and CEO, said, “Demand in our Packaging segment remained very strong. Our mills and plants continued to do an outstanding job of meeting our customers’ needs while managing through certain material and chemical availability issues, a tight labor market, various freight and logistics challenges, as well as the planned maintenance outages at four of our mills during the second quarter. The mills executed the planned outages extremely well and, with the help of the No. 3 machine at the Jackson Mill, provided our plants the necessary containerboard to achieve an all-time record for total box shipments. We were also able to build some much-needed inventory; however, our weeks-of-inventory supply was at a new low for this time of year ahead of an expected very busy second half. The sales groups in both the Packaging and Paper segments are doing a great job of implementing our previously announced price increases, and we continue to deliver on the numerous initiatives and capital projects to reduce costs and improve efficiencies across all of our mills and corrugated products plants. These efforts are extremely important as we continue to experience significant cost inflation across the Company as well as logistics challenges with both our inbound and outbound freight needs.”

Tetra Pak, in partnership with Elvir, a subsidiary of Savencia Fromage & Dairy - a world leading milk processor - has become the first carton packaging player in the food and beverage industry to launch a cap using certified recycled polymers. This move marks a key step in both companies’ progress towards circularity. By helping to find an economically sound use for plastic waste and responsibly sourcing raw materials, Tetra Pak and Elvir continue to minimise their dependency on virgin, fossil-based resources. Elle & Vire chose the HeliCap™ 23 cap solution to complement its cream products, which are distributed in Tetra Brik® Aseptic 1L Slim carton packages. This one-step resealable screwcap is manufactured at Tetra Pak’s Châteaubriant plant in Loire-Atlantique, France – a site that has been awarded the Roundtable on Sustainable Biomaterials (RSB) Advanced Products certification and boosted by a €100 million investment to accelerate the transition to the production of tethered caps. The HeliCap™ 23 cap offers consumers ease of opening and features a clearly visible tamper evidence ring, providing reassurance that the product hasn’t been opened before.