07.27.22
Graphic Packaging Holding Company reported net income for second quarter 2022 of $66 million, or $0.21 per share, based upon 309.9 million weighted average diluted shares. This compares to second quarter 2021 net income of $38 million, or $0.13 per share, based upon 295.8 million weighted average diluted shares.
Net sales increased 36% to $2,358 million in the second quarter of 2022, compared to $1,737 million in the prior year period. The $621 million increase was driven by $278 million of pricing and $379 million of improved volume/mix related to organic growth from conversions to fiber-based packaging solutions and acquisitions.
EBITDA for the second quarter of 2022 was $294 million, compared to $214 million in the prior year period. After adjusting both periods for business combinations and other special charges, adjusted EBITDA was $396 million in the second quarter of 2022 versus $248 million in the second quarter of 2021. When comparing against the prior year quarter, adjusted EBITDA in the second quarter of 2022 was positively impacted by $278 million of price, $81 million of volume/mix and $16 million in net productivity.
“Our growing pipeline of innovative, fiber-based consumer packaging solutions is meeting demand for more sustainable packaging and driving organic growth globally in our business,” Michael Doss, the company's president and CEO, said. "This continued in the second quarter, with net organic sales up 3%, matching our first quarter growth rate and exceeding our targeted range. This growth is indicative of the ongoing transition of our customers to more recyclable and circular fiber-based packaging solutions."
“The operating leverage we have driven in our financial model remains on full display this year,” Doss added. "We are on track to deliver our recently enhanced and stronger Vision 2025 goals by meeting or exceeding 2022 milestones. We continue to execute multiple pricing and productivity initiatives focused on improving profit margins and capturing returns on strategic investments. Our upwardly revised adjusted EBITDA range, with $1.55 billion at the midpoint, reflects a substantial step up of approximately $500 million of incremental EBITDA when compared to 2021. As committed, we are utilizing cash flow to reduce debt and continue to expect year-end leverage to be in the 3.0 to 3.5x range."
Net sales increased 36% to $2,358 million in the second quarter of 2022, compared to $1,737 million in the prior year period. The $621 million increase was driven by $278 million of pricing and $379 million of improved volume/mix related to organic growth from conversions to fiber-based packaging solutions and acquisitions.
EBITDA for the second quarter of 2022 was $294 million, compared to $214 million in the prior year period. After adjusting both periods for business combinations and other special charges, adjusted EBITDA was $396 million in the second quarter of 2022 versus $248 million in the second quarter of 2021. When comparing against the prior year quarter, adjusted EBITDA in the second quarter of 2022 was positively impacted by $278 million of price, $81 million of volume/mix and $16 million in net productivity.
“Our growing pipeline of innovative, fiber-based consumer packaging solutions is meeting demand for more sustainable packaging and driving organic growth globally in our business,” Michael Doss, the company's president and CEO, said. "This continued in the second quarter, with net organic sales up 3%, matching our first quarter growth rate and exceeding our targeted range. This growth is indicative of the ongoing transition of our customers to more recyclable and circular fiber-based packaging solutions."
“The operating leverage we have driven in our financial model remains on full display this year,” Doss added. "We are on track to deliver our recently enhanced and stronger Vision 2025 goals by meeting or exceeding 2022 milestones. We continue to execute multiple pricing and productivity initiatives focused on improving profit margins and capturing returns on strategic investments. Our upwardly revised adjusted EBITDA range, with $1.55 billion at the midpoint, reflects a substantial step up of approximately $500 million of incremental EBITDA when compared to 2021. As committed, we are utilizing cash flow to reduce debt and continue to expect year-end leverage to be in the 3.0 to 3.5x range."