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Dec 31, 2022

Graphic Packaging Q4 2022 Earnings Report

Reported strong Q4 and full year results, strengthening leadership in fiber-based consumer packaging with a new coated recycled paperboard mill investment.

Key Takeaways

Graphic Packaging Holding Company reported a strong fourth quarter and full year 2022, with net income for the fourth quarter of $156 million, or $0.50 per share. Net sales increased by 20% to $2,386 million compared to the prior year period. The company is investing in a new coated recycled paperboard mill to support growing demand.

Net Sales increased 20% to $2,386 million in the fourth quarter of 2022.

Net Income for fourth quarter 2022 was $156 million, or $0.50 per share.

Adjusted EBITDA increased to $413 million in the fourth quarter of 2022 from $285 million in the fourth quarter of 2021.

The company is investing in a new coated recycled paperboard (CRB) mill to support growing demand.

Total Revenue
$2.39B
Previous year: $1.99B
+20.0%
EPS
$0.59
Previous year: $0.31
+90.3%
Gross Profit
$491M
Previous year: $287M
+71.1%
Cash and Equivalents
$150M
Previous year: $172M
-12.8%
Total Assets
$10.3B
Previous year: $10.5B
-1.2%

Graphic Packaging

Graphic Packaging

Forward Guidance

The Company expects to grow Sales, Adjusted EBITDA, and Adjusted EPS in 2023 and further reduce net leverage to approximately 2.5x by year-end, while continuing to invest in our capabilities to drive growth.

Positive Outlook

  • Expected growth in Sales in 2023
  • Expected growth in Adjusted EBITDA in 2023
  • Expected growth in Adjusted EPS in 2023
  • Further reduction of net leverage to approximately 2.5x by year-end
  • Continued investment in capabilities to drive growth

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
  • The Company's ability to implement its business strategies, including productivity initiatives, cost reduction plans, and integration activities
  • The impact of regulatory and litigation matters