Graphic Packaging Holding Company Reports Fourth Quarter and Full Year 2020 Results

2020 Highlights:
*Vision 2025 goals on track following execution of strategic investments, development of new, sustainable fiber-based packaging solutions and the successful pivot to net organic sales growth.
*Showcased corporate responsibility and long-standing commitment to sustainability in environmental, social and governance (ESG) report highlighting progress in sustainability across all facets of operations.
*Net Sales were $6,560 million versus $6,160 million in the prior year.
*Net Organic Sales increased 5% in the fourth quarter and 4% for the full year 2020 versus the prior year periods.
*Net Income was $167 million versus $207 million in the prior year.
*Earnings per Diluted Share were $0.60 versus $0.70 in the prior year.
*Global liquidity was $1,717 million at year end.
*Returned $918 million to stakeholders through dividends, distributions, partnership redemptions and share repurchases.

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 2020 of $64.2 million, or $0.24 per share, based on 270.3 million weighted average diluted shares. This compares to fourth quarter 2019 Net Income of $33.0 million, or $0.11 per share, based on 291.7 million weighted average diluted shares.

Fourth quarter 2020 Net Income was impacted by a net $12.3 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 2020 was $76.5 million, or $0.28 per diluted share. This compares to fourth quarter 2019 Adjusted Net Income of $67.0 million, or $0.23 per diluted share.

For the full year 2020, Net Income was $167.3 million, or $0.60 per share, based on 279.6 million weighted average diluted shares. This compares to 2019 Net Income of $206.8 million, or $0.70 per share, based on 294.8 million weighted average diluted shares.

Full year 2020 Net Income was impacted by a net $144.7 million of special charges that are detailed in the attached Reconciliation of Non-GAAP Financial Measures table. When adjusting for these items, Adjusted Net Income for full year 2020 was $312.0 million, or $1.12 per diluted share. This compares to Adjusted Net Income for the full year of 2019 of $255.7 million, or $0.87 per diluted share.

Michael Doss, the Company’s President and CEO said, “Net organic sales growth of 4% in 2020 confirms our fiber-based packaging solutions are winning in the growing markets where we are focused. Our strong 2020 results and the momentum we have entering 2021 are consistent with our Vision 2025 goals. We are partnering with customers to elevate their brands in the marketplace, while supporting both customer and our own sustainability goals. The strategic investments we are making position us for continued growth and cost leadership in the industry and will allow us to further accelerate our product innovation capabilities. We expect to generate 100 to 200 basis points of sustainability supported net organic sales growth in 2021 and deliver net productivity improvements to drive continued EBITDA growth during the coming year.”

Doss continued, “We are also announcing today that we plan to start up our new CRB machine in Kalamazoo, Michigan ahead of schedule in the fourth quarter of 2021. Separately, we will be making a strategic $100 million investment at our Texarkana, Texas SBS mill to add CUK production capability to an existing machine to meet growing demand for our paperboard packaging solutions.” He added, “I am grateful for the dedication of our employees who continue to go above and beyond to fulfill our responsibility as an essential supplier to the vital food, beverage, consumer and foodservice markets. We are delivering on our promise to continue learning and improving from the events in 2020, and we are answering the call from today’s consumer for safe, hygienic and more sustainable packaging solutions.”
details at: https://investors.graphicpkg.com/news/news-details/2021/Graphic-Packaging-Holding-Company-Reports-Fourth-Quarter-and-Full-Year-2020-Results-A-Notable-Year-of-Innovation-New-Product-Development-and-4-Net-Organic-Sales-Growth/default.aspx

Related Posts

Huhtamaki to consolidate its production footprint in United Arab Emirates

Huhtamaki has decided to consolidate its three Flexible Packaging manufacturing sites in the United Arab Emirates, keeping one factory in Jebel Ali and expanding the one in Ras Al Khaimah. The transition will gradually take place during the second half of 2024. The aim of the consolidation is to optimize the manufacturing footprint, improve the competitiveness and strengthen the foundation for future growth in the region. The announced change is part of Huhtamaki’s program to accelerate strategy implementation published in November 2023 and expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately EUR 100 million over the next three years.  Planned consolidation does not represent a material share of the sales or profits of Huhtamaki. During the second quarter of 2024, Huhtamaki will book consolidation-related costs in total of approximately EUR 4 million. The costs will be booked as items affecting comparability. 

Sonoco-Alcore to Increase Paperboard Prices in Europe

Sonoco-Alcore S.a.r.l. today announced it will again raise prices by a further €50 per tonne (£40 / tonne) on all recycled paperboard grades sold in the Company's European regions. The price change is effective with shipments on or after 17th July 2017. "Demand for raw materials has continued to rise throughout the year as a result of China's "National Sword" initiative, new capacity within the paper packaging sector, and the European economy currently being stronger than we have seen in recent years. The resultant continued increase in raw material costs are again unsustainable and we now have no choice but to pass these increases through into the market," said Phil Woolley, Director - Paper Europe.

Sealed Air Announces Price Increases for Its North American Product Care Products

Sealed Air Corporation announced that it is implementing a price increase on products in its North American Product Care business. The increases will be effective April 1, 2018. The price adjustments are necessary because of increases in raw materials, freight, and other input costs. A seven (7) percent price increase will be applied to the following products: Bubble Wrap® IB Film, Bubble Wrap® Brand Air Cellular Products, Cell-Aire® Packaging Foam and Laminate Products, Fill-Air® Inflatables Film, FloWrap™ Film, Jiffy® TuffGard® Mailers, Jiffy® ShurTuff ® Mailers, NewAir I.B.® Film, PriorityWrap® Bubble, Shrink Film Products and Materials, Specialty Foams Products and Materials, TempShield™ Reflective Foil Air Cellular Material, and Wonderfil™ Film. A five (5) percent price increase will be applied to the following products: Consumable Paper for all Sealed Air Paper Systems, PriorityWrap® Rigid Board, Custom Wrap™ Converted Paper, Kushion Kraft® Converted Paper, Jiffylite® Kraft Bubble Mailers, Jiffy® Utility Mailers, Jiffy® Padded Envelopes, Jiffy Rigi Bag® Mailers, Korrvu® Suspension & Retention, Macerated Pads, and Rapid Fill® Automated Bags. The business also previously announced increases in the prices of Instapak® products, which are effective March 15, 2018: lnstapak® chemical formulation prices will increase 15 cents per pound, lnstapak® packaging film prices will increase 6 percent and lnstapak Simple® "A" and "B" Component prices will increase 2 percent.
Back To Top
×Close search
Search