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Mar 31, 2022
Ranpak Q1 2022 Earnings Report
Ranpak's Q1 2022 financial results were reported, showing a decrease in net revenue and a net loss compared to the previous year, impacted by the ERP system transition and global challenges.
Key Takeaways
Ranpak Holdings Corp. reported a 5.9% year-over-year decrease in net revenue to $82.5 million for Q1 2022, with a net loss of $14.1 million compared to a net income of $6.3 million in the same quarter of the previous year. The results were impacted by the transition to a new ERP system and global economic factors. The company is implementing pricing actions to offset input cost inflation and expects improved performance in the remainder of the year.
Packaging System placement increased by 11.4% year-over-year, reaching approximately 134,500 machines.
Net revenue decreased by 5.9% year-over-year, or 1.3% on a constant currency basis.
The company reported a net loss of $14.1 million, a significant decrease compared to the net income of $6.3 million in the prior year.
Constant currency Adjusted EBITDA was $19.1 million, down 31.8% year-over-year.
Ranpak
Ranpak
Ranpak Revenue by Segment
Revenue by Segment
Cushioning Revenue
CapyFin.comVoid-Fill Revenue
CapyFin.comWrapping Revenue
CapyFin.comOther Net Revenue
CapyFin.com Forward Guidance
Ranpak updated its full year 2022 guidance, maintaining net revenue growth forecast in the area of 13% to 18% on a constant currency basis, while lowering Adjusted EBITDA growth estimates to -2.5% to 6%.
Positive Outlook
- Demand for products across the globe remains solid.
- The majority of operating issues experienced following ERP go-live have been resolved.
- The company is in the process of right sizing its price - cost structure.
- The company will soon begin to experience the benefits of the new systems.
- Key tailwinds of Sustainability and Automation continue to pick up steam.
Challenges Ahead
- The company experienced headwinds in Q1.
- There is uncertainty driven by Europe.
- There are potential impacts of inflationary pressures across the globe.
- Adjusted EBITDA growth estimates were lowered to -2.5% to 6%.
- Volumes being negatively impacted by the SAP transition and trucker reliability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income