Graphic Packaging Reports Strong 1Q 2023 Financial Results

Graphic Packaging Holding Company reported results for the first quarter of 2023.

Net sales increased 9% to $2,438 million in the first quarter of 2023, compared to $2,245 million in the prior year period. The $193 million increase was driven by $236 million of positive pricing, partially offset by $4 million of unfavorable volume/mix and $39 million of foreign exchange impact.

EBITDA for the first quarter of 2023 was $469 million, $134 million higher than the first quarter of 2022. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA was $484 million in the first quarter of 2023 versus $350 million in the first quarter of 2022. When comparing against the prior year quarter, adjusted EBITDA in the first quarter of 2023 was positively impacted by $236 million in pricing and $10 million in net performance.

Net income for first quarter 2023 was $207 million, or $0.67 per share, based upon 309.7 million weighted average diluted shares. This compares to first quarter 2022 net income of $107 million, or $0.35 per share, based upon 309.7 million weighted average diluted shares.

“During the first quarter, our global team continued to advance our proven strategy of running a different race to deliver strong results for our customers and our shareholders,” said Michael Doss, the company’s president and CEO. “We drove continued net organic sales growth and positioned the business to further capitalize on the growing consumer preference for renewable and recyclable, fiber-based packaging.

“Significant investments in our business continue to result in quality and production cost advantages,” added Doss. “During the quarter our newest coated recycled paperboard machine in Kalamazoo exceeded quality, yield and financial expectations. We also began construction on the recently announced state-of-the-art mill in Waco, Texas to further advance our leadership in fiber-based consumer packaging.”

“Brands and manufacturers recognize the consumer preference for more sustainable packaging and are making investments to meet that demand. We are pleased to announce that Chick-fil-A is launching our new, highly insulated, double-wall fiber-based cups as a potential long-term solution for their beverage program,” concluded Doss.