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Dec 31, 2019
Ranpak Q4 2019 Earnings Report
Reported a 2.2% increase in net sales and a 15.8% increase in Adjusted EBITDA.
Key Takeaways
Ranpak Holdings Corp reported a 2.2% increase in net sales to $77.7 million for the fourth quarter of 2019, driven by growth in cushioning and wrapping solutions. Adjusted EBITDA increased by 15.8% to $28.8 million, with a margin expansion of 320 bps compared to the same period in 2018.
Net sales increased by 2.2% to $77.7 million, driven by cushioning and wrapping growth.
Adjusted EBITDA increased by 15.8% to $28.8 million, with a margin exceeding 36%.
The company experienced greater operating leverage due to higher sales volumes and improved execution.
Investments were made in innovation, human capital, and improving the digital footprint.
Forward Guidance
Ranpak expects 2020 to be a year of strong operating and financial performance, with net sales growth in the area of 6 – 10% and Adj EBITDA growth of 4% - 10%.
Positive Outlook
- Significant opportunity to drive growth within the core business
- Continued investment where attractive returns and opportunities exist
- Strategic expansion of portfolio
- Solid revenue growth expected
- Adjusted EBITDA growth expected
Challenges Ahead
- Uncertainty of the timing of the impact of some investments
- Guidance reflects a range due to uncertainty
- Weakness in the Euro versus the prior period
- Void-fill headwinds in North America
- Automation revenue recognition using percentage of completion method may impact results
Historical Earnings Impact
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Avg. Return Before/After Earnings
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