Graphic Packaging Q4 2020 Earnings Report
Key Takeaways
Graphic Packaging Holding Company reported a strong fourth quarter in 2020, with net sales increasing by 8.7% to $1,652.1 million. Net income attributable to Graphic Packaging Holding Company was $64.2 million, or $0.24 per share. The company's strategic investments and focus on sustainable packaging solutions are expected to drive continued growth in 2021.
Net sales increased by 8.7% to $1,652.1 million in Q4 2020.
Net income was $64.2 million, or $0.24 per share, compared to $33.0 million, or $0.11 per share in Q4 2019.
Adjusted EBITDA increased to $264.8 million from $258.8 million in Q4 2019.
The company plans to start up its new CRB machine in Kalamazoo, Michigan ahead of schedule in the fourth quarter of 2021.
Graphic Packaging
Graphic Packaging
Forward Guidance
The company expects to generate 100 to 200 basis points of sustainability supported net organic sales growth in 2021 and deliver net productivity improvements to drive continued EBITDA growth during the coming year.
Positive Outlook
- Strategic investments are positioning the company for continued growth.
- Fiber-based packaging solutions are winning in growing markets.
- Partnering with customers to elevate their brands.
- Supporting customer and company sustainability goals.
- Expect to generate 100 to 200 basis points of sustainability supported net organic sales growth in 2021.
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