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Jun 30, 2022
Ranpak Q2 2022 Earnings Report
Reported a decrease in net revenue but an increase on a constant currency basis, along with a net loss compared to the previous year.
Key Takeaways
Ranpak Holdings Corp. reported a decrease in net revenue by 3.6% year over year, but an increase of 4.0% on a constant currency basis. The company experienced a net loss of $11.3 million, compared to a net loss of $5.2 million in the previous year. Constant currency Adjusted EBITDA was $18.2 million, down 28.9% year over year. The Board of Directors authorized a common equity share repurchase plan of up to $50.0 million over three years.
Packaging system placements increased 10.4% year over year to approximately 136,500 machines.
Net revenue decreased 3.6% year over year but increased 4.0% on a constant currency basis.
Net loss was $11.3 million, compared to a net loss of $5.2 million in the previous year.
Constant currency Adjusted EBITDA was $18.2 million, a decrease of 28.9%.
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 revised its guidance for the remainder of the year to a constant currency net revenue decline in the area of 1% – 5% and constant currency AEBITDA decline of 28% – 36%, resulting in a range of $360 – $375 million in constant currency net revenue and $75 – $85 million for constant currency AEBITDA.
Positive Outlook
- E-Commerce tailwinds remain intact.
- Sustainability tailwinds remain intact.
- Automation tailwinds remain intact.
- Real progress in North America recently on the sustainability front with a number of states, including California, adopting an Extended Producer Responsibility law.
- Automation portfolio is best-in-class for the end of the line.
Challenges Ahead
- More significant volume declines for the remainder of the year versus previous forecast.
- More pressure on gross margins due to the weakness in Europe.
- Energy crisis in Europe.
- Elevated commodity price environment.
- Headwinds across the globe driven largely by inflationary pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income