Graphic Packaging Holding Company Reports Third Quarter 2024 Financial Results
Graphic Packaging Holding Company (NYSE: GPK) reported Q3 2024 financial results with Net Sales of $2,216 million, down 6% from $2,349 million in 2023. Net Income was $165 million ($0.55 per share) compared to $170 million ($0.55 per share) in Q3 2023. Adjusted EBITDA decreased to $433 million from $482 million, with margin declining to 19.5% from 20.5%. The company saw return to positive packaging volume growth and achieved Innovation Sales Growth of $54 million. The company updated its 2024 guidance with Adjusted EBITDA projected at $1.68-1.73 billion and Adjusted EPS at $2.49-2.61.
Graphic Packaging Holding Company (NYSE: GPK) ha riportato i risultati finanziari del terzo trimestre 2024, con vendite nette di 2.216 milioni di dollari, in diminuzione del 6% rispetto ai 2.349 milioni di dollari del 2023. Il reddito netto è stato di 165 milioni di dollari (0,55 dollari per azione) rispetto ai 170 milioni di dollari (0,55 dollari per azione) del Q3 2023. L'EBITDA rettificato è sceso a 433 milioni di dollari dai 482 milioni di dollari, con un margine che è calato al 19,5% rispetto al 20,5%. L'azienda ha registrato un ritorno alla crescita del volume di imballaggio positivo e ha ottenuto una crescita delle vendite innovative di 54 milioni di dollari. L'azienda ha aggiornato le previsioni per il 2024, con un EBITDA rettificato previsto tra 1,68 e 1,73 miliardi di dollari e un utile per azione rettificato tra 2,49 e 2,61 dollari.
Graphic Packaging Holding Company (NYSE: GPK) reportó los resultados financieros del tercer trimestre de 2024, con ventas netas de 2.216 millones de dólares, una disminución del 6% en comparación con los 2.349 millones de dólares de 2023. El ingreso neto fue de 165 millones de dólares (0,55 dólares por acción) en comparación con 170 millones de dólares (0,55 dólares por acción) en el tercer trimestre de 2023. El EBITDA ajustado disminuyó a 433 millones de dólares desde 482 millones de dólares, con un margen disminuyendo al 19,5% desde el 20,5%. La empresa vio un regreso al crecimiento positivo del volumen de envases y logró un crecimiento en ventas de innovación de 54 millones de dólares. La empresa actualizó su pronóstico para 2024, con un EBITDA ajustado proyectado entre 1,68 y 1,73 mil millones de dólares y ganancias por acción ajustadas entre 2,49 y 2,61 dólares.
그래픽 포장 홀딩 컴퍼니 (NYSE: GPK)는 2024년 3분기 재무 결과를 발표하며 순매출 22억 2,160만 달러를 기록했으며, 이는 2023년 23억 4,900만 달러에서 6% 감소한 수치입니다. 순이익은 1억 6,500만 달러(주당 0.55 달러)로, 2023년 3분기의 1억 7,000만 달러(주당 0.55 달러)와 비교됩니다. 조정 EBITDA는 4억 3,300만 달러에서 4억 8,200만 달러로 감소하였으며, 마진은 20.5%에서 19.5%로 하락했습니다. 회사는 패키징 양의 긍정적인 성장으로 돌아섰고, 혁신적인 판매 성장으로 5,400만 달러를 기록했습니다. 이 회사는 2024년 가이던스를 업데이트하여 조정 EBITDA를 16억 8,000만~17억 3,000만 달러로, 조정 주당 순이익을 2.49~2.61달러로 예상했습니다.
Graphic Packaging Holding Company (NYSE: GPK) a annoncé les résultats financiers du troisième trimestre 2024, avec des ventes nettes de 2,216 milliards de dollars, en baisse de 6% par rapport à 2,349 milliards de dollars en 2023. Le revenu net s'élevait à 165 millions de dollars (0,55 dollar par action) contre 170 millions de dollars (0,55 dollar par action) au troisième trimestre 2023. L'EBITDA ajusté a diminué à 433 millions de dollars contre 482 millions de dollars, avec une marge chutant à 19,5% contre 20,5%. L'entreprise a retourné à une croissance positive du volume d'emballage et a réalisé une croissance des ventes d'innovation de 54 millions de dollars. L'entreprise a mis à jour ses prévisions pour 2024, avec un EBITDA ajusté projeté entre 1,68 et 1,73 milliard de dollars et un BPA ajusté entre 2,49 et 2,61 dollars.
Graphic Packaging Holding Company (NYSE: GPK) hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht, mit Nettoverkaufserlösen von 2.216 Millionen Dollar, was einem Rückgang von 6% im Vergleich zu 2.349 Millionen Dollar im Jahr 2023 entspricht. Der Nettogewinn betrug 165 Millionen Dollar (0,55 Dollar pro Aktie) im Vergleich zu 170 Millionen Dollar (0,55 Dollar pro Aktie) im 3. Quartal 2023. Das bereinigte EBITDA fiel auf 433 Millionen Dollar von 482 Millionen Dollar, wobei die Marge von 20,5% auf 19,5% sank. Das Unternehmen verzeichnete ein positives Wachstum des Verpackungsvolumens und erreichte ein Wachstum bei Innovationsverkäufen von 54 Millionen Dollar. Das Unternehmen aktualisierte seine Prognose für 2024 und rechnet mit einem bereinigten EBITDA von 1,68-1,73 Milliarden Dollar und einem bereinigten Gewinn pro Aktie von 2,49-2,61 Dollar.
- Return to positive packaging volume growth
- Innovation Sales Growth of $54 million
- Strong Adjusted EBITDA margin at 19.5%
- Debt reduction of $178 million compared to prior year
- Net Sales declined 6% to $2,216 million
- Net Income decreased to $165 million from $170 million
- Adjusted EBITDA fell to $433 million from $482 million
- Adjusted EPS decreased to $0.64 from $0.74
- Net Leverage increased to 3.1x from 3.0x
Insights
Third Quarter 2024 Highlights
- Return to positive packaging volume growth
- Innovation Sales Growth of
$54 million - Virtual Power Purchase Agreement advances commitment to reduce greenhouse gas emissions in
Europe
Third Quarter 2024 Financial Results
- Net Sales
, versus$2,216 million in 2023$2,349 million - Net Income
, versus$165 million in 2023$170 million - Adjusted EBITDA
, versus$433 million in 2023$482 million - Adjusted EBITDA Margin
19.5% , versus20.5% in 2023 - Earnings per Diluted Share
, versus$0.55 in 2023$0.55 - Adjusted Earnings per Diluted Share
, versus$0.64 in 2023$0.74 - Net Leverage 3.1x, versus 3.0x in third quarter 2023
Net Income was
Michael Doss, the Company's President and CEO said, "In the third quarter, we saw our packaging volumes turn positive, after
Despite volume challenges brought on first by customer and retailer destocking and later by the pressure consumers are feeling from price inflation, we are delivering margin strength and consistency in line with the best global consumer packaging companies. That speaks to the value of the portfolio we have created, the success of our sustainable packaging innovations, and our team's commitment to outstanding execution. As volumes continue to improve and our
Operating Results
Net Sales
Net Sales decreased
EBITDA
EBITDA for the third quarter of 2024 was
Other Results and Commentary
Total Debt decreased
Capital expenditures in the quarter were
The Company returned approximately
2024 Annual Guidance and 2025 Commentary
The Company updated 2024 financial guidance:
- Full-year Adjusted EBITDA:
to$1.68 billion $1.73 billion - Adjusted Earnings per Diluted Share:
to$2.49 $2.61
The Company is currently targeting 2025 financial results in line with the Vision 2030 base financial model:
- Low single-digit Sales growth
- Mid single-digit Adjusted EBITDA growth
- High single-digit Adjusted EPS growth
Innovation Sales Growth, Net Performance, and Non-GAAP Reconciliations
We define Innovation Sales Growth as incremental sales of a product that delivers a significant change in materials used, package functionality, or design to a new or existing customer. We define Net Performance as the impact of cost and productivity initiatives, production efficiencies and/or disruptions, and other operating impacts. A tabular reconciliation of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted EPS, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, Net Debt and Net Leverage is attached to this release.
Earnings Call
The Company will host a conference call at 10:00 a.m. ET today (October 29, 2024) to discuss the results of third quarter 2024. The conference call will be webcast and can be accessed from the Investors website at https://investors.graphicpkg.com. Participants may also listen via telephone by using the following dial-in numbers:
Toll-Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 525323
Forward Looking Statements
Any statements of the Company's expectations in this press release, including but not limited to volume and cash generation increases, 2024 Adjusted EBITDA and Adjusted Earning per Diluted Share guidance, and 2025 commentary on sales, Adjusted EBITDA and Adjusted EPS growth, constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. These risks and uncertainties include, but are not limited to, 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, as well as the Company's debt level, currency movements and other risks of conducting business internationally and the impact of regulatory and litigation matters, including the continued availability of the Company's
About Graphic Packaging Holding Company
Graphic Packaging Holding Company (NYSE: GPK), headquartered in
GRAPHIC PACKAGING HOLDING COMPANY | ||||||
Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | |||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | ||
Net Sales | $ 2,216 | $ 2,349 | $ 6,712 | $ 7,179 | ||
Cost of Sales | 1,714 | 1,799 | 5,203 | 5,563 | ||
Selling, General and Administrative | 191 | 220 | 603 | 622 | ||
Other Expense, Net | 17 | 15 | 49 | 48 | ||
Business Combinations, Exit Activities and Other Special Items, Net | 16 | 28 | (23) | 62 | ||
Income from Operations | 278 | 287 | 880 | 884 | ||
Nonoperating Pension and Postretirement Benefit Expense | (1) | (1) | (2) | (2) | ||
Interest Expense, Net | (58) | (62) | (177) | (180) | ||
Income before Income Taxes | 219 | 224 | 701 | 702 | ||
Income Tax Expense | (55) | (54) | (182) | (175) | ||
Income before Equity Income of Unconsolidated Entity | 164 | 170 | 519 | 527 | ||
Equity Income of Unconsolidated Entity | 1 | — | 1 | — | ||
Net Income | $ 165 | $ 170 | $ 520 | $ 527 | ||
Net Income Per Share - Basic | $ 0.55 | $ 0.55 | $ 1.71 | $ 1.71 | ||
Net Income Per Share - Diluted | $ 0.55 | $ 0.55 | $ 1.70 | $ 1.70 | ||
Weighted Average Number of Shares Outstanding - Basic | 301.3 | 308.3 | 304.9 | 308.4 | ||
Weighted Average Number of Shares Outstanding - Diluted | 302.6 | 309.2 | 306.1 | 309.3 |
GRAPHIC PACKAGING HOLDING COMPANY | ||
In millions, except share and per share amounts | September 30, | December 31, |
ASSETS | ||
Current Assets: | ||
Cash and Cash Equivalents | $ 126 | $ 162 |
Receivables, Net | 971 | 835 |
Inventories, Net | 1,748 | 1,754 |
Assets Held for Sale | 11 | — |
Other Current Assets | 134 | 94 |
Total Current Assets | 2,990 | 2,845 |
Property, Plant and Equipment, Net | 5,028 | 4,992 |
Goodwill | 2,034 | 2,103 |
Intangible Assets, Net | 714 | 820 |
Other Assets | 465 | 415 |
Total Assets | $ 11,231 | $ 11,175 |
LIABILITIES | ||
Current Liabilities: | ||
Short-Term Debt and Current Portion of Long-Term Debt | $ 31 | $ 764 |
Accounts Payable | 937 | 1,094 |
Other Accrued Liabilities | 761 | 731 |
Total Current Liabilities | 1,729 | 2,589 |
Long-Term Debt | 5,372 | 4,609 |
Deferred Income Tax Liabilities | 626 | 731 |
Other Noncurrent Liabilities | 493 | 464 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, par value | — | — |
Common Stock, par value | 3 | 3 |
Capital in Excess of Par Value | 2,042 | 2,062 |
Retained Earnings | 1,302 | 1,029 |
Accumulated Other Comprehensive Loss | (338) | (313) |
Total Graphic Packaging Holding Company Shareholders' Equity | 3,009 | 2,781 |
Noncontrolling Interest | 2 | 1 |
Total Equity | 3,011 | 2,782 |
Total Liabilities and Shareholders' Equity | $ 11,231 | $ 11,175 |
GRAPHIC PACKAGING HOLDING COMPANY | ||
Nine Months Ended | ||
September 30, | ||
In millions | 2024 | 2023 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 520 | $ 527 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: | ||
Depreciation and Amortization | 420 | 465 |
Deferred Income Taxes | (108) | 18 |
Amount of Postretirement Expense Less Than Funding | (4) | (6) |
Gain on Disposal of Business | (75) | — |
Asset Impairment Charges | — | 23 |
Other, Net | 42 | 61 |
Changes in Operating Assets and Liabilities | (444) | (386) |
Net Cash Provided by Operating Activities | 351 | 702 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital Spending | (869) | (575) |
Packaging Machinery Spending | (24) | (17) |
Acquisition of Businesses, Net of Cash Acquired | — | (361) |
Proceeds from the Sale of Business | 711 | — |
Beneficial Interest on Sold Receivables | 157 | 110 |
Beneficial Interest Obtained in Exchange for Proceeds | (74) | (27) |
Other, Net | (3) | (5) |
Net Cash (Used In) Investing Activities | (102) | (875) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of Common Stock | (200) | (37) |
Proceeds from Issuance of Debt | 756 | — |
Retirement of Long-Term Debt | (700) | — |
Payments on Debt | (19) | (18) |
Borrowings under Revolving Credit Facilities | 3,822 | 3,631 |
Payments on Revolving Credit Facilities | (3,815) | (3,266) |
Repurchase of Common Stock related to Share-Based Payments | (24) | (22) |
Debt Issuance Costs | (15) | — |
Dividends Paid | (91) | (92) |
Other, Net | 6 | (8) |
Net Cash (Used In) Provided By Financing Activities | (280) | 188 |
Decrease in Cash and Cash Equivalents, including Cash classified within Assets Held for Sale | (31) | 15 |
Less Cash reclassified to Assets Held for Sale | — | 11 |
Effect of Exchange Rate Changes on Cash | (5) | (8) |
Net Decrease in Cash and Cash Equivalents | (36) | (4) |
Cash and Cash Equivalents at Beginning of Period | 162 | 150 |
Cash and Cash Equivalents at End of Period | $ 126 | $ 146 |
GRAPHIC PACKAGING HOLDING COMPANY
Reconciliation of Non-GAAP Financial Measures
The tables below set forth the calculation of the Company's earnings before interest expense, income tax expense, depreciation and amortization, including pension amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, Net Leverage Ratio, and Total Net Debt. Adjusted EBITDA and Adjusted Net Income exclude gains or charges associated with: the Company's business combinations, facility shutdowns, and other special items. The Company's management believes that the presentation of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio provides useful information to investors because these measures are regularly used by management in assessing the Company's performance. EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio are financial measures not calculated in accordance with generally accepted accounting principles in
EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Net Cash Provided by Operating Activities, Adjusted Cash Flow, and Net Leverage Ratio may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as we do.
Three Months Ended | Nine Months Ended | ||||
September 30, | September 30, | ||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | |
Net Income | $ 165 | $ 170 | $ 520 | $ 527 | |
Add (Subtract): | |||||
Income Tax Expense | 55 | 54 | 182 | 175 | |
Equity Income of Unconsolidated Entity | (1) | — | (1) | — | |
Interest Expense, Net | 58 | 62 | 177 | 180 | |
Depreciation and Amortization | 140 | 162 | 423 | 469 | |
EBITDA | 417 | 448 | 1,301 | 1,351 | |
Charges (Gains) Associated with Business Combinations, Exit Activities and | 16 | 34 | (23) | 68 | |
Adjusted EBITDA | $ 433 | $ 482 | $ 1,278 | $ 1,419 | |
Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales) | 19.5 % | 20.5 % | 19.0 % | 19.8 % | |
Net Income | $ 165 | $ 170 | $ 520 | $ 527 | |
Charges (Gains) Associated with Business Combinations, Exit Activities and | 16 | 34 | (23) | 68 | |
Accelerated Depreciation Related to Exit Activities | 2 | 21 | 17 | 53 | |
Amortization Related to Purchased Intangible Assets | 21 | 22 | 61 | 65 | |
Tax Impact of Business Combinations, Exit Activities and Other Special | (10) | (18) | 5 | (44) | |
Adjusted Net Income | $ 194 | $ 229 | $ 580 | $ 669 | |
Adjusted Earnings Per Share - Basic | $ 0.64 | $ 0.74 | $ 1.90 | $ 2.17 | |
Adjusted Earnings Per Share - Diluted | $ 0.64 | $ 0.74 | $ 1.89 | $ 2.16 |
(a) For the three and nine months ended September 30, 2023, |
GRAPHIC PACKAGING HOLDING COMPANY | |||||
Twelve Months Ended | |||||
September 30, | September 30, | December 31, | |||
In millions | 2024 | 2023 | 2023 | ||
Net Income | $ 716 | $ 683 | $ 723 | ||
Add (Subtract): | |||||
Income Tax Expense | 217 | 235 | 210 | ||
Equity Income of Unconsolidated Entity | (2) | — | (1) | ||
Interest Expense, Net | 236 | 234 | 239 | ||
Depreciation and Amortization | 578 | 607 | 624 | ||
EBITDA | $ 1,745 | $ 1,759 | $ 1,795 | ||
(Gains) Charges Associated with Business Combinations, Exit Activities | (10) | 73 | 81 | ||
Adjusted EBITDA | $ 1,735 | $ 1,832 | $ 1,876 | ||
September 30, | September 30, | December 31, | |||
Calculation of Net Debt: | 2024 | 2023 | 2023 | ||
Short-Term Debt and Current Portion of Long-Term Debt | $ 31 | $ 762 | $ 764 | ||
Long-Term Debt (a) | 5,399 | 4,846 | 4,632 | ||
Less: | |||||
Cash and Cash Equivalents | (126) | (146) | (162) | ||
Net Debt | $ 5,304 | $ 5,462 | $ 5,234 | ||
Net Leverage Ratio (Net Debt/Adjusted EBITDA) | 3.1 | 3.0 | 2.8 |
(a) Excludes unamortized deferred debt issue costs. |
Nine Months Ended | |||
September 30, | |||
In millions | 2024 | 2023 | |
Net Cash Provided by Operating Activities | $ 351 | $ 702 | |
Net Cash Receipts from Receivables Sold included in Investing Activities | 83 | 83 | |
Cash Payments Associated with Business Combinations, Exit Activities and Other Special Items, | 171 | 16 | |
Adjusted Net Cash Provided by Operating Activities | $ 605 | $ 801 | |
Capital Spending | (893) | (592) | |
Adjusted Cash Flow | $ (288) | $ 209 |
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SOURCE Graphic Packaging Holding Company
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