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Mar 31, 2023

Graphic Packaging Q1 2023 Earnings Report

Reported strong financial results and raised full year Adjusted EBITDA guidance midpoint to $1.9 billion.

Key Takeaways

Graphic Packaging Holding Company reported a strong first quarter in 2023, with net sales increasing by 9% to $2,438 million and net income increasing by 93% to $207 million. Adjusted EBITDA increased by 38% to $484 million, and the company raised its full-year 2023 Adjusted EBITDA guidance to $1.9 billion at the midpoint.

Net Sales increased 9% versus the prior year quarter to $2,438 million.

Net Income increased 93% versus the prior year quarter to $207 million.

Adjusted EBITDA increased 38% versus the prior year quarter to $484 million.

Full-year 2023 Adjusted EBITDA guidance increased by $100 million to $1.9 billion at the midpoint of the guidance range.

Total Revenue
$2.44B
Previous year: $2.25B
+8.6%
EPS
$0.77
Previous year: $0.48
+60.4%
Adjusted EBITDA
$484M
Previous year: $350M
+38.3%
Net Leverage Ratio
3.1
Previous year: 5.02
-38.2%
Gross Profit
$573M
Previous year: $387M
+48.1%
Cash and Equivalents
$113M
Previous year: $111M
+1.8%
Total Assets
$10.6B
Previous year: $10.5B
+0.5%

Graphic Packaging

Graphic Packaging

Forward Guidance

The Company is raising its Adjusted EBITDA guidance by $100 million, to $1.9 billion at the midpoint of the range, and updating other guidance metrics as a result.

Positive Outlook

  • Net Sales are expected to be approximately $10 billion.
  • Adjusted EBITDA is expected to be between $1.8 and $2.0 billion.
  • Adjusted Cash Flow is expected to be between $600 and $800 million.
  • Net Leverage Ratio at year-end is expected to be at or below 2.5x Adjusted EBITDA.
  • Adjusted Earnings per Diluted Share (Excluding Amortization of Purchased Intangibles) is expected to be between $2.70 and $3.10.