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Sep 30, 2023

Graphic Packaging Q3 2023 Earnings Report

Reported a decrease in net sales and net income, but an increase in adjusted EBITDA.

Key Takeaways

Graphic Packaging Holding Company reported a decrease in net sales and net income for the third quarter of 2023, but experienced an increase in adjusted EBITDA. The company continues to make progress on its Vision 2025 goals, including the CRB system transformation and the acquisition of Bell Incorporated.

Net sales decreased by 4% to $2,349 million compared to the prior year quarter.

Net income decreased by 12% to $170 million versus the prior year quarter.

Adjusted EBITDA increased by 9% to $482 million compared to the prior year quarter.

Earnings per diluted share decreased by 11% to $0.55 compared to the prior year quarter.

Total Revenue
$2.35B
Previous year: $2.45B
-4.2%
EPS
$0.74
Previous year: $0.67
+10.4%
Adjusted EBITDA
$482M
Net Leverage Ratio
3
Previous year: 3.7
-18.9%
Capital Expenditures
$207M
Gross Profit
$564M
Previous year: $511M
+10.4%
Cash and Equivalents
$146M
Previous year: $82M
+78.0%
Free Cash Flow
$204M
Total Assets
$10.9B
Previous year: $10.2B
+7.1%

Graphic Packaging

Graphic Packaging

Forward Guidance

The Company updated its 2023 guidance to reflect current expectations and the acquisition of Bell Incorporated.

Positive Outlook

  • Net Sales are expected to be $9.5 billion to $9.6 billion.
  • Adjusted EBITDA is expected to be $1.875 billion to $1.925 billion.
  • Adjusted Cash Flow is expected to be $600 million to $700 million.
  • Net Leverage Ratio at year-end is expected to be 2.6x to 2.7x Adjusted EBITDA.
  • Adjusted Earnings per Diluted Share (Excluding Amortization of Purchased Intangibles) is expected to be $2.85 to $3.00.