Graphic Packaging Reports 1Q 2024 Financial Results

Graphic Packaging Holding Company reported first quarter 2024 results.

Net sales decreased 7% to $2,259 million in the first quarter of 2024, compared to $2,438 million in the prior year period. The decline was driven by lower open market sales of paperboard (~4%), fewer shipping days (~2%), input cost pass through in Europe (~1%), and lower days-adjusted sales (~1%). 

Net acquisitions and divestitures had a $15 million favorable impact on sales in the quarter, while foreign exchange had a $3 million favorable impact. Sales growth in Foodservice and Beverage markets was offset by weakness in Food and Household markets.

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.

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.

“During the first quarter, our diverse consumer packaging portfolio performed broadly as expected,” said Michael Doss, the company’s president and CEO. “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 unveiled Vision 2030 in February, setting ambitious new goals that reflect our transformation to a global consumer packaging leader,” added Doss. “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.”

EBITDA for the first quarter of 2024 was $426 million, $43 million less than the first quarter of 2023.  After adjusting both periods for business combinations and other special charges, adjusted EBITDA was $443 million in the first quarter of 2024 versus $484 million in the first quarter of 2023. The $41 million decline was driven by lower production and open market sales of paperboard. Adjusted EBITDA margin was 19.6%, versus 19.9% in the year ago quarter.