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Sep 30, 2021

Ranpak Q3 2021 Earnings Report

Ranpak's third quarter results were reported, showing strong revenue growth and increased packaging system placements.

Key Takeaways

Ranpak Holdings Corp. reported a strong third quarter in 2021, with net revenue increasing by 26.4% year-over-year to $97.1 million. The company experienced a net loss of $1.4 million, an improvement compared to the $6.1 million net loss in the same quarter of the previous year. Adjusted EBITDA increased by 20.3% to $28.5 million.

Packaging system placements increased by 14.2% year-over-year, reaching approximately 129,200 machines.

Net revenue increased by 26.4%, or 25.6% on a constant currency basis.

Net loss decreased to $1.4 million from $6.1 million in the prior year.

Adjusted EBITDA increased by 20.3% to $28.5 million.

Total Revenue
$97.1M
Previous year: $76.8M
+26.4%
EPS
-$0.02
Previous year: -$0.08
-75.0%
Adjusted EBITDA
$28.5M
Previous year: $23.7M
+20.3%
Gross Profit
$38M
Previous year: $30.2M
+25.8%
Cash and Equivalents
$110M
Previous year: $31.3M
+252.7%
Free Cash Flow
-$4.4M
Previous year: $8.7M
-150.6%
Total Assets
$1.22B
Previous year: $1.12B
+9.1%

Ranpak

Ranpak

Ranpak Revenue by Segment

Ranpak Revenue by Geographic Location

Forward Guidance

The company expects to finish with a record year, driven by strategic investments in people, systems, automation, and material science, positioning them well for 2022 and beyond.

Positive Outlook

  • Strong revenue growth in North America and Europe/APAC.
  • Benefit from strong industrial activity and consumption trends.
  • Companies integrating sustainability into their packaging decisions.
  • Robust growth in profitability as Adjusted EBITDA increased.
  • Strong balance sheet provides flexibility and value creation activities.

Challenges Ahead

  • Challenging comparison due to exceptional profitability in Q4 2020.
  • Potential inability to secure a sufficient supply of paper.
  • Impact of kraft paper prices on results of operations.
  • Reliance on third-party suppliers.
  • COVID-19 pandemic and associated response.

Revenue & Expenses

Visualization of income flow from segment revenue to net income