Dec 31, 2019

Graphic Packaging Q4 2019 Earnings Report

Graphic Packaging reported Q4 2019 results.

Key Takeaways

Graphic Packaging Holding Company reported Net Income for fourth quarter 2019 of $33.0 million, or $0.11 per share. Net Sales increased 0.7% to $1,519.8 million in the fourth quarter of 2019, compared to $1,509.3 million in the prior year period.

Net Sales were $1,519.8 million versus $1,509.3 million in the prior year period.

Net Income was $33.0 million compared to fourth quarter 2018 Net Income of $47.5 million.

Adjusted Net Income for the fourth quarter of 2019 was $67.0 million, or $0.23 per diluted share compared to fourth quarter 2018 Adjusted Net Income of $69.4 million, or $0.23 per diluted share.

Adjusted EBITDA increased $10.7 million to $258.8 million in the fourth quarter of 2019 from $248.1 million in the fourth quarter of 2018.

Total Revenue
$1.52B
Previous year: $1.51B
+0.8%
EPS
$0.23
Previous year: $0.23
+0.0%
Adjusted EBITDA
$259M
Previous year: $248M
+4.3%
Net Leverage Ratio
2.64
Net Interest Expense
$34.2M
Previous year: $33.6M
+1.8%
Gross Profit
$272M
Previous year: $231M
+17.8%
Cash and Equivalents
$153M
Previous year: $70.5M
+116.9%
Total Assets
$7.29B
Previous year: $7.06B
+3.3%

Graphic Packaging

Graphic Packaging

Forward Guidance

Graphic Packaging expects to generate 100 to 200 basis points of sustainability supported net organic volume growth in 2020, driven by conversion of new and existing customers to our paperboard packaging solutions. Graphic Packaging is well-positioned to achieve another year of improved profitability and growth.

Positive Outlook

  • Expect to generate 100 to 200 basis points of sustainability supported net organic volume growth in 2020
  • Driven by conversion of new and existing customers to our paperboard packaging solutions
  • Well-positioned to achieve another year of improved profitability
  • Strong cash flow generation
  • Healthy balance sheet

Challenges Ahead

  • Inflation of raw material and energy costs
  • Volatility in raw material and energy costs
  • Continuing pressure for lower cost products
  • Company’s ability to implement its business strategies, including productivity initiatives, cost reduction plans, and integration activities
  • Company’s debt level