10.26.22
Graphic Packaging Holding Company reported its 3Q 2022 results. Net sales increased 38% to $2,451 million in the third quarter of 2022, compared to $1,782 million in the prior year period. The $669 million increase was driven by $334 million of pricing and $380 million of improved volume/mix, partially offset by $45 million of unfavorable foreign exchange.
EBITDA for the third quarter of 2022 was $432 million, compared to $246 million in the prior year period. After adjusting both periods for special charges, Adjusted EBITDA was $441 million in the third quarter of 2022 versus $284 million in the third quarter of 2021.
Nnet income for third quarter 2022 of $193 million, or $0.62 per share, based upon 310 million weighted average diluted shares. This compares to third quarter 2021 net Income of $73 million, or $0.24 per share, based upon 309 million weighted average diluted shares.
The third quarters of 2022 and 2021 were impacted by a net negative $14 million and $44 million of special charges, respectively, including adjustments for amortization related to purchased intangible assets, and the third quarter of 2022 was impacted by a tax benefit of $9 million related to unrealized foreign exchange expense on intercompany loans.
When adjusting for charges, adjusted net Income for the third quarter of 2022 was $207 million, or $0.67 per diluted share. This compares to third quarter 2021 adjusted net Income of $117 million, or $0.38 per diluted share.
“Strong organic sales growth of 5% accelerated during the third quarter fueled by our innovation pipeline and demand for more sustainable, fiber-based packaging solutions,” said Michael Doss, the company's president and CEO. "We are excited to be partnering with new and existing customers globally as they package more consumer goods in recyclable, fiber-based solutions
“During the quarter, Foodservice sales improved 29% year over year, while Food, Beverage and Consumer sales grew 20% before acquisitions,” Doss added. “Backlogs across all substrates remain strong at eight plus weeks, reflecting a healthy demand environment."
Total debt (long-term, short-term and current portion) decreased $304 million during the third quarter of 2022 to $5,527 million compared to the second quarter of 2022. The company's third quarter 2022 net leverage ratio was 3.70 times adjusted EBITDA compared to 4.36 times at the end of second quarter 2022.
EBITDA for the third quarter of 2022 was $432 million, compared to $246 million in the prior year period. After adjusting both periods for special charges, Adjusted EBITDA was $441 million in the third quarter of 2022 versus $284 million in the third quarter of 2021.
Nnet income for third quarter 2022 of $193 million, or $0.62 per share, based upon 310 million weighted average diluted shares. This compares to third quarter 2021 net Income of $73 million, or $0.24 per share, based upon 309 million weighted average diluted shares.
The third quarters of 2022 and 2021 were impacted by a net negative $14 million and $44 million of special charges, respectively, including adjustments for amortization related to purchased intangible assets, and the third quarter of 2022 was impacted by a tax benefit of $9 million related to unrealized foreign exchange expense on intercompany loans.
When adjusting for charges, adjusted net Income for the third quarter of 2022 was $207 million, or $0.67 per diluted share. This compares to third quarter 2021 adjusted net Income of $117 million, or $0.38 per diluted share.
“Strong organic sales growth of 5% accelerated during the third quarter fueled by our innovation pipeline and demand for more sustainable, fiber-based packaging solutions,” said Michael Doss, the company's president and CEO. "We are excited to be partnering with new and existing customers globally as they package more consumer goods in recyclable, fiber-based solutions
“During the quarter, Foodservice sales improved 29% year over year, while Food, Beverage and Consumer sales grew 20% before acquisitions,” Doss added. “Backlogs across all substrates remain strong at eight plus weeks, reflecting a healthy demand environment."
Total debt (long-term, short-term and current portion) decreased $304 million during the third quarter of 2022 to $5,527 million compared to the second quarter of 2022. The company's third quarter 2022 net leverage ratio was 3.70 times adjusted EBITDA compared to 4.36 times at the end of second quarter 2022.