Mar 31, 2022

Graphic Packaging Q1 2022 Earnings Report

Delivered organic sales growth, margin expansion and significant increase in EBITDA year over year.

Key Takeaways

Graphic Packaging Holding Company reported strong first-quarter results for 2022, with net sales increasing by 36% to $2,245 million compared to the prior year period. Net income was $107 million, and adjusted EBITDA reached $350 million.

Net Sales were $2,245 million versus $1,649 million in the prior year quarter.

Net Organic Sales increased 3% versus the prior year quarter.

Net Income was $107 million versus $54 million in the prior year quarter.

Adjusted EBITDA was $350 million versus $240 million in the prior year quarter.

Total Revenue
$2.25B
Previous year: $1.65B
+36.1%
EPS
$0.48
Previous year: $0.23
+108.7%
Adjusted EBITDA
$350M
Previous year: $240M
+45.8%
Net Leverage Ratio
5.02
Previous year: 3.69
+36.0%
Gross Profit
$387M
Previous year: $249M
+55.4%
Cash and Equivalents
$111M
Previous year: $116M
-4.3%
Total Assets
$10.5B
Previous year: $7.75B
+36.1%

Graphic Packaging

Graphic Packaging

Forward Guidance

The Company remains fully committed to achieving strong growth and profitability as reflected in our financial guidance for 2022 and are on track to accomplish the long-term goals established with our enhanced Vision 2025.

Positive Outlook

  • Executing another solid quarter with 3% net organic sales growth
  • Continued to integrate recently expanded European platform
  • Began operating the new K2 CRB machine in Kalamazoo, Michigan
  • Successfully implemented pricing actions to offset an unprecedented inflationary environment
  • Successful execution of our transformational CRB optimization project will drive benefits

Challenges Ahead

  • effects of the Covid-19 pandemic on the Company’s operations and demand for its products
  • 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 Company’s debt level, currency movements and other risks of conducting business internationally and the impact of regulatory and litigation matters, including the continued availability of the Company's U.S. federal income tax attributes to offset U.S. federal income taxes and the timing related to the Company’s future U.S. federal income tax payments.