Graphic Packaging Holding Company Reports Third Quarter 2021 Results

Q3 2021 Highlights
*Net Sales were $1,782 million versus $1,698 million in the prior year quarter.
*Net organic sales declined 1% during the quarter as supply chain and labor market constraints delayed sales; remain on track to achieve approximately 200 basis points of full year organic sales growth.
*Net Income was $73 million versus $64 million in the prior year quarter.
*Earnings per Diluted Share were $0.24 versus $0.23 in the prior year quarter.
*Adjusted Earnings per Diluted Share were $0.34 versus $0.26 in the prior year quarter.
*Adjusted EBITDA was $284 million versus $250 million in the prior year quarter; positively impacted by $53 million in price and $79 million in favorable net performance, offset by $88 million of commodity input cost inflation.
*Executing approximately $650 million in pricing actions to address commodity input cost inflation.
*Global liquidity was $1.8 billion at quarter end.
*Published ESG report in August showcasing our long-standing commitment to sustainability and transparency in the reporting of progress on a comprehensive set of goals supportive of Vision 2025.
*AR Packaging acquisition expected to close November 1st.
*Coated recycled paperboard production on new K2 machine in Kalamazoo, Michigan on track for start-up in the fourth quarter.

Graphic Packaging Holding Company (NYSE: GPK), (the “Company”), a leading provider of sustainable fiber-based consumer packaging solutions to food, beverage, foodservice, and other consumer products companies, today reported Net Income for third quarter 2021 of $73 million, or $0.24 per share, based upon 309 million weighted average diluted shares. This compares to third quarter 2020 Net Income of $64 million, or $0.23 per share, based upon 278 million weighted average diluted shares.

The third quarters of 2021 and 2020 were negatively impacted by a net $32 million and a net $8 million of special charges, respectively. The charges are detailed in the Reconciliation of Non-GAAP Financial Measures table attached. When adjusting for charges, Adjusted Net Income for the third quarter of 2021 was $105 million, or $0.34 per diluted share. This compares to third quarter 2020 Adjusted Net Income of $72 million, or $0.26 per diluted share.

Michael Doss, the Company’s President and CEO said, “Demand for sustainable and circular packaging solutions is accelerating globally and we are proud to be the fiber-based consumer packaging provider driving ongoing innovation and meeting the call for more sustainable packaging alternatives. We experienced strong demand trends once again during the third quarter and backlogs remain elevated. Supply chain and labor market constraints impacted our ability to meet customer demand in the quarter, and as a result, we experienced approximately $25 million in delayed sales. Our teams worked tirelessly to minimize the impacts of the challenging supply environment and I am pleased with our overall performance. The Foodservice business continued to recover, with sales improving 11% year over year, while Food, Beverage and Consumer grew 3%. Commodity input cost inflation accelerated during the quarter and, as such, we have been executing multiple price actions to offset the inflation we have encountered this year.”

Doss added, “We have received all of the necessary regulatory approvals for our previously announced AR Packaging acquisition, which we expect will close on November 1st. At the same time, our transformational CRB optimization project is on track, with coated recycled paperboard production to begin on our new K2 machine in Kalamazoo, Michigan in the 4th quarter. Completion of these two large, transformational investments extends our industry leadership through increased global reach and market expansion, advanced innovation capabilities and a strengthened competitive position across all three paperboard substrates. Growth and returns from the successful execution of these investments coupled with continued strong demand for fiber-based packaging, provide us confidence in next year’s projected Adjusted EBITDA of at least $1.4 billion and the resulting cash flow growth which will allow us to quickly deleverage following the successful close of the AR Packaging transaction.”
details at: https://investors.graphicpkg.com/news/news-details/2021/Graphic-Packaging-Holding-Company-Reports-Third-Quarter-2021-Results-Reiterates-Confidence-in-Substantial-Adjusted-EBITDA-and-Cash-Flow-Growth-in-2022/default.aspx

Related Posts

Packaging Corporation of America Reports Third Quarter 2020 Results

Packaging Corporation of America reported third quarter 2020 net income of $139 million, or $1.46 per share, and net income of $149 million, or $1.57 per share, excluding special items. Third quarter net sales were $1.69 billion in 2020 and $1.75 billion in 2019. Excluding special items, the ($.35) per share decrease in third quarter 2020 earnings compared to the third quarter of 2019 was driven primarily by lower prices and mix in our Packaging segment ($.36) and Paper segment ($.07), lower volumes in our Paper segment ($.33), higher scheduled maintenance outage costs ($.04), and higher freight expense ($.02). These items were partially offset by higher volumes in our Packaging segment $.22, lower operating costs $.20, and lower converting $.04 and other costs $.01.

Smurfit Kappa Group Statement re Russian Operations

Smurfit Kappa Group plc announces that it has decided to exit the Russian market. The Group has already suspended support for its Russian operations including any imports and exports and any short or long term funding. This exit will be effected in an orderly manner, during which we will continue to pay our employees and fulfil our legal obligations. Our Russian business represents less than 1% of forecasted sales Smurfit Kappa stands in solidarity with the people of Ukraine and everyone impacted by the totally unjustified attack on Ukraine and its people. The Group is providing, and will continue to provide, substantial humanitarian support for the Ukrainian people. We are also assisting the families of SKG employees and contractors from Ukraine as well as providing products and services to support the relief effort together with financial assistance to a number of aid agencies. We have also partnered with the Red Cross to provide funding to support their vital work.

Greif Announces Sale of Delta Petroleum Company

Greif, Inc. announced it has sold Delta Petroleum Company, Inc. (“Delta”), a North American filling and logistics services business, to PSC Group LLC, a North American leader in product handling, site logistics, railcar repair, and sustainability services for the petrochemical, refining, and marine industries. "We are happy to have worked with the PSC Group in a transaction that brings value to both parties," said Ole Rosgaard, President and Chief Executive Officer of Greif. "While Delta is a solid business that exemplifies our Legendary Customer Service mindset, it no longer aligns with our core growth strategy of expansion into resin-based industrial products serving higher-growth and less cyclical end markets. The transaction value reflects the quality of both the business and our people, and the funds from this sale will be used to accelerate our strategic vision.”
Back To Top
×Close search
Search