Sappi invests in barrier technology to strengthen its Packaging and Speciality Papers offering

Berry Global Group, Inc. and Glatfelter Corporation announced that the proposed merger of Berry's Health, Hygiene and Specialties Global Nonwovens and Films business with Glatfelter progressed further with the creation of the Magnera brand, a global leader in the specialty materials industry. The launch of this new identity marks the next chapter in the transaction journey, emphasizing a commitment to innovation and leadership in the specialty materials industry. Magnera will leverage a broad platform of 46 global manufacturing facilities, offering its customers innovative solutions more quickly from closer locations and minimizing environmental impact. Curt Begle, President of Berry’s Health Hygiene & Specialties Division, who will lead Magnera as CEO, said, “Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we will develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions will solve end-users’ problems, every day.” With a focus on innovation, operational excellence, and strategic market penetration, Magnera will have the broadest global product offering in high-growth markets for both polymer and fiber-based product applications.

• Revenue decreased 9.4% to $267.8 million primarily due to a decrease in volume/mix and lower selling prices. The decrease in volume/mix was primarily due to the net impact of COVID-19 on demand. • Gross margin decreased to 21.1% from 21.9% primarily due to the unfavorable impact of unabsorbed overhead costs related to production slowdowns in the second quarter of 2020 to manage inventory levels at facilities that experienced COVID-19 related declines in demand, partially offset by a net decrease in all other plant-related operating costs driven by cost savings initiatives. • Net earnings attributable to the Company shareholders ("IPG Net Earnings") increased $8.3 million to $14.8 million ($0.25 basic and diluted earnings per share) primarily due to (i) a gain resulting from a fair value adjustment to the Company's contingent consideration related to the Nortech Acquisition(2) , (ii) a decrease in selling, general and administrative expenses ("SG&A") mainly driven by decreases in travel expenses and variable compensation both related to the impacts of COVID-19, and (iii) a decrease in income tax expense mainly driven by the non-recurrence of the Proposed Tax Assessment(3) recorded in the second quarter of 2019. These favourable impacts were partially offset by a decrease in gross profit.

The consolidated sales of the Group rose to EUR 1,060.4 million and were thus EUR 419.1 million above the comparative figure for the previous year (Q1 2021: EUR 641.3 million). This growth is mainly due to acquisitions and the passing on of cost increases through higher prices. At EUR 111.1 million, the operating result was EUR 49.9 million higher than in the previous year (Q1 2021: EUR 61.2 million). The significant increase in the MM Board & Paper division contrasted with a stable development at MM Packaging. The Group's operating margin thus increased to 10.5% (Q1 2021: 9.6%).