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