07.29.21
Graphic Packaging Holding Company reported its second quarter 2021 results.
Net sales increased 8% to $1,737 million in the second quarter of 2021, compared to $1,611 million in the prior year period. The $126 million increase was driven by $76 million of improved volume/mix related to organic growth from conversions to fiber-based packaging solutions, $14 million of pricing and $36 million of favorable foreign exchange. Net organic sales increased 5% in the quarter driven by demand for sustainability-supported, innovative consumer packaging solutions.
EBITDA for the second quarter of 2021 was $214 million. After adjusting both periods for business combinations and other special charges, adjusted EBITDA was $248 million in the second quarter of 2021 versus $260 million in the second quarter of 2020.
The company reported net income for second quarter 2021 of $38 million, or $0.13 per share, based upon 295.8 million weighted average diluted shares. This compares to second quarter 2020 net income of $52 million, or $0.19 per share, based upon 280.5 million weighted average diluted shares.
“Strong demand continued across our markets in the second quarter as consumer preferences are driving conversions to our fiber-based packaging solutions,” said Michael Doss, the company's president and CEO. “Increased consumer mobility and consumption outside of the home resulted in higher sales in our Foodservice markets up 22% year over year, while Food, Beverage and Consumer markets continued to show healthy growth of 4%.
“Our teams worked tirelessly to meet customer demand, and we swiftly implemented pricing actions to offset rising commodity input costs which impacted our results in the quarter,” added Doss. “We expect to generate significantly higher Adjusted EBITDA in the second half of 2021 driven by price-cost recovery from the successful execution of approximately $400 million of implemented and recognized pricing actions, and continued momentum from organic sales growth and strong productivity.”
Net sales increased 8% to $1,737 million in the second quarter of 2021, compared to $1,611 million in the prior year period. The $126 million increase was driven by $76 million of improved volume/mix related to organic growth from conversions to fiber-based packaging solutions, $14 million of pricing and $36 million of favorable foreign exchange. Net organic sales increased 5% in the quarter driven by demand for sustainability-supported, innovative consumer packaging solutions.
EBITDA for the second quarter of 2021 was $214 million. After adjusting both periods for business combinations and other special charges, adjusted EBITDA was $248 million in the second quarter of 2021 versus $260 million in the second quarter of 2020.
The company reported net income for second quarter 2021 of $38 million, or $0.13 per share, based upon 295.8 million weighted average diluted shares. This compares to second quarter 2020 net income of $52 million, or $0.19 per share, based upon 280.5 million weighted average diluted shares.
“Strong demand continued across our markets in the second quarter as consumer preferences are driving conversions to our fiber-based packaging solutions,” said Michael Doss, the company's president and CEO. “Increased consumer mobility and consumption outside of the home resulted in higher sales in our Foodservice markets up 22% year over year, while Food, Beverage and Consumer markets continued to show healthy growth of 4%.
“Our teams worked tirelessly to meet customer demand, and we swiftly implemented pricing actions to offset rising commodity input costs which impacted our results in the quarter,” added Doss. “We expect to generate significantly higher Adjusted EBITDA in the second half of 2021 driven by price-cost recovery from the successful execution of approximately $400 million of implemented and recognized pricing actions, and continued momentum from organic sales growth and strong productivity.”
