First Quarter 2024 Highlights
- Vision 2030 introduced at Investor Day in February
- Agreement to sell Augusta, Georgia paperboard manufacturing facility to Clearwater Paper
- Sales growth from innovation of $37 million, in line with expectations
First Quarter 2024 Financial Results versus First Quarter 2023
- Net Sales $2,259 million, versus $2,438 million in 2023
- Net Income $165 million, versus $207 million in 2023
- Adjusted EBITDA $443 million, versus $484 million in 2023
- Adjusted EBITDA Margin 19.6%, versus 19.9% in 2023
- Earnings per Diluted Share $0.53, versus $0.67 in 2023
- Adjusted Earnings per Diluted Share $0.66, versus $0.77 in 2023
- Net leverage 3.0x, versus 3.1x in 2023
ATLANTA, April 30, 2024 - Graphic Packaging Holding Company (NYSE: GPK), (the "Company"), a leader in sustainable consumer packaging, today reported first quarter 2024 results.
Net Income was $165 million, or $0.53 per share, based upon 309.1 million weighted average diluted shares. This compares to first quarter 2023 Net Income of $207 million, or $0.67 per share, based upon 309.7 million weighted average diluted shares. The first quarters of 2024 and 2023 were impacted by a net $22 million and $14 million of special charges, respectively. When adjusting for special charges and amortization of purchased intangibles, Adjusted Net Income for the first quarter of 2024 was $203 million, or $0.66 per diluted share. This compares to first quarter 2023 Adjusted Net Income of $237 million, or $0.77 per diluted share.
Michael Doss, the Company's President and CEO said, "During the first quarter, our diverse consumer packaging portfolio performed broadly as expected. Sales improved sequentially compared to the fourth quarter of 2023, and we generated a solid 19.6% Adjusted EBITDA margin while choosing to significantly reduce bleached paperboard production to match supply with demand. We expect volumes to improve further in the second quarter, and, excluding the impact of the Augusta bleached paperboard sale, expect to generate positive sales growth in 2024, as we partner with customers to deliver the more circular, more functional, and more convenient packaging that consumers prefer.
"We unveiled Vision 2030 in February, setting ambitious new goals that reflect our transformation to a global consumer packaging leader. The addressable market opportunity we see across five global innovation platforms increased to $15 billion and we remain on track to achieve 2% sales growth from innovation in 2024. We are investing in our exceptional team and advancing plans to achieve the emissions reduction goals approved by the Science Based Targets Initiative. Construction at the Waco, Texas recycled paperboard manufacturing facility is on schedule and hitting all milestones. Capital spending will peak in 2024. We expect cash flow to increase in 2025 and in subsequent years, and our opportunities for value-creating capital deployment are clear and compelling" continued Mr. Doss.
Source: Graphic Packaging
