11.10.23
WestRock Company announced results for its fiscal fourth quarter and year ended Sept. 30, 2023.
Fourth Quarter Highlights and other notable items:
• Net sales of $5.0 billion
• Net income of $110 million, adjusted net income of $210 million; net income included $344 million ($239 million of which was non-cash) of restructuring and other costs, net and a $239 million gain on sale of the company’s interior partitions converting operations and Chattanooga, TN uncoated recycled paperboard mill
• Consolidated adjusted EBITDA of $736 million; Corrugated Packaging segment adjusted EBITDA increased 13.0% compared to the fourth quarter of fiscal 2022
• Announced proposed business combination with Smurfit Kappa Group plc to create a global leader in sustainable packaging
Full Year 2023 Highlights:
• Net sales of $20.3 billion
• Net loss of $1.6 billion, adjusted net income of $778 million; results reflected a $1.9 billion pre-tax, non-cash goodwill impairment and $859 million ($605 million of which was non-cash) of pre-tax restructuring and other costs, net
• Consolidated adjusted EBITDA of $3.0 billion
• Generated net cash provided by operating activities of $1.8 billion and adjusted free cash flow of $933 million
“The WestRock team delivered another strong quarter, demonstrating the power and resilience of our diversified portfolio, innovative solutions and scale,” said David B. Sewell, chief executive officer. “I’m incredibly proud of our team’s commitment to serving our customers, while executing on and accelerating our transformation actions. Through our portfolio optimization actions, cost savings initiatives and strategic growth plans, we are positioning WestRock well to deliver shareholder value.”
The decline in net sales compared to the fourth quarter of fiscal 2022 was driven primarily by a $417 million, or 29.2%, decrease in Global Paper segment sales, which was partially offset by a $138 million, or 5.8%, increase in Corrugated Packaging segment sales.
Net cash provided by operating activities was $584 million in the fourth quarter of fiscal 2023 compared to $540 million in the prior year quarter.
Fourth Quarter Highlights and other notable items:
• Net sales of $5.0 billion
• Net income of $110 million, adjusted net income of $210 million; net income included $344 million ($239 million of which was non-cash) of restructuring and other costs, net and a $239 million gain on sale of the company’s interior partitions converting operations and Chattanooga, TN uncoated recycled paperboard mill
• Consolidated adjusted EBITDA of $736 million; Corrugated Packaging segment adjusted EBITDA increased 13.0% compared to the fourth quarter of fiscal 2022
• Announced proposed business combination with Smurfit Kappa Group plc to create a global leader in sustainable packaging
Full Year 2023 Highlights:
• Net sales of $20.3 billion
• Net loss of $1.6 billion, adjusted net income of $778 million; results reflected a $1.9 billion pre-tax, non-cash goodwill impairment and $859 million ($605 million of which was non-cash) of pre-tax restructuring and other costs, net
• Consolidated adjusted EBITDA of $3.0 billion
• Generated net cash provided by operating activities of $1.8 billion and adjusted free cash flow of $933 million
“The WestRock team delivered another strong quarter, demonstrating the power and resilience of our diversified portfolio, innovative solutions and scale,” said David B. Sewell, chief executive officer. “I’m incredibly proud of our team’s commitment to serving our customers, while executing on and accelerating our transformation actions. Through our portfolio optimization actions, cost savings initiatives and strategic growth plans, we are positioning WestRock well to deliver shareholder value.”
The decline in net sales compared to the fourth quarter of fiscal 2022 was driven primarily by a $417 million, or 29.2%, decrease in Global Paper segment sales, which was partially offset by a $138 million, or 5.8%, increase in Corrugated Packaging segment sales.
Net cash provided by operating activities was $584 million in the fourth quarter of fiscal 2023 compared to $540 million in the prior year quarter.