Mar 31, 2021

Graphic Packaging Q1 2021 Earnings Report

Graphic Packaging's first quarter 2021 results were reported, highlighting increased net sales and net income, alongside strategic acquisitions and debt management.

Key Takeaways

Graphic Packaging Holding Company reported a 3% increase in net sales to $1,649 million and a net income of $54 million for Q1 2021, compared to a net loss in the prior year quarter. The company's performance was driven by organic sales growth and strategic initiatives, including the intent to acquire Americraft Carton, Inc.

Net sales increased to $1,649 million, up from $1,599 million in the prior year quarter.

Net income reached $54 million, a significant improvement from the $13 million loss in the same quarter last year.

The company announced its intention to acquire Americraft Carton, Inc., expanding its market presence.

Global liquidity remained strong at $1,444 million at the end of the quarter.

Total Revenue
$1.65B
Previous year: $1.6B
+3.1%
EPS
$0.23
Previous year: $0.31
-25.8%
Adjusted EBITDA
$240M
Net Leverage Ratio
3.69
Previous year: 3.18
+16.0%
Gross Profit
$249M
Previous year: $321M
-22.4%
Cash and Equivalents
$116M
Previous year: $110M
+5.3%
Total Assets
$7.75B
Previous year: $7.45B
+4.0%

Graphic Packaging

Graphic Packaging

Forward Guidance

The company anticipates a strong second half of 2021, driven by robust demand and pricing momentum.

Positive Outlook

  • Consumer preferences for sustainable packaging driving demand.
  • New innovative products are being introduced.
  • Meeting customer demands.
  • Vertically integrated platform allows supply continuity.
  • Underlying robust demand environment.

Challenges Ahead

  • Effects of the COVID-19 pandemic on the Company’s operations and business
  • Inflation of and volatility in raw material and energy costs
  • Continuing pressure for lower cost products
  • The Company’s ability to implement its business strategies, including productivity initiatives, cost reduction plans, and integration activities
  • The impact of regulatory and litigation matters, including the continued availability of the Company's net operating loss offset to taxable income