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Jun 30, 2022
Graphic Packaging Q2 2022 Earnings Report
Reported second quarter 2022 results, showing progress toward enhanced and stronger Vision 2025 goals.
Key Takeaways
Graphic Packaging Holding Company reported a strong second quarter in 2022, with net sales increasing by 36% to $2,358 million compared to the prior year quarter. Net income was $66 million, or $0.21 per share, compared to $38 million, or $0.13 per share in the prior year quarter. Adjusted EBITDA increased to $396 million, driven by positive price-cost relationship, volume/mix, and net performance.
Net Sales were $2,358 million versus $1,737 million in the prior year quarter.
Net Organic Sales increased 3% in the quarter driven by global demand for sustainability-supported, innovative consumer packaging solutions.
Net Income was $66 million versus $38 million in the prior year quarter.
Adjusted Earnings per Diluted Share (excluding amortization of purchased intangibles) were $0.60 versus $0.29 in the prior year quarter.
Forward Guidance
The company is on track to deliver its recently enhanced and stronger Vision 2025 goals by meeting or exceeding 2022 milestones. The upwardly revised Adjusted EBITDA range, with $1.55 billion at the midpoint, reflects a substantial step up of approximately $500 million of incremental EBITDA when compared to 2021. The company continues to expect year-end leverage to be in the 3.0 to 3.5x range.
Positive Outlook
- Meeting demand for more sustainable packaging
- Driving organic growth globally
- Transition of customers to more recyclable and circular fiber-based packaging solutions
- Strategic investments position the company to expand in new market segments
- Executing multiple pricing and productivity initiatives focused on improving profit margins and capturing returns on strategic investments
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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