02.03.24
WestRock Company announced results for its fiscal first quarter ended December 31, 2023.
First quarter highlights and other notable items:
• Net sales of $4.6 billion; Corrugated Packaging segment sales increased 3.5% compared to the prior year quarter
• Global Paper containerboard shipments increased 21.9% compared to the prior year quarter
• Net loss of $22 million, adjusted net income of $51 million; net loss included $66 million of restructuring and other costs, net
• Loss of $0.09 per diluted share (EPS) and earned $0.20 of Adjusted EPS
• Consolidated adjusted EBITDA of $571 million
• Consumer Packaging adjusted EBITDA margin increased 60 bps to 15.7%
• Achieved more than $200 million in cost savings; expect to significantly exceed previously announced fiscal 2024 target of $300 to $400 million
“During the quarter, we grew external containerboard shipments, while we felt the impact of lower paperboard market demand,” said WestRock CEO David B. Sewell. “We continue to expect significantly improved demand in the second half of our fiscal year.
“We are continuing to deliver on, and we expect to significantly exceed, our cost savings targets. Our transformation initiatives have strengthened our portfolio, are increasing vertical integration and created significant operational efficiencies. With our broad portfolio of packaging solutions and self-help initiatives, we are well positioned to capitalize on the opportunities ahead.”
The decline in net sales compared to the first quarter of fiscal 2023 was driven primarily by a $205 million, or 18.3%, decrease in Global Paper segment sales and a $156 million, or 12.8%, decrease in Consumer Packaging sales.
Consolidated adjusted EBITDA decreased $81 million, or 12.5%, compared to the first quarter of fiscal 2023, primarily due to lower Global Paper and Consumer Packaging segment adjusted EBITDA, as well as higher corporate non-allocated expenses.
Net cash provided by operating activities was $275 million in the first quarter of fiscal 2024 compared to $266 million in the prior year quarter. Total debt was $8.7 billion on Dec. 31, 2023, and adjusted net debt was $8.1 billion.
First quarter highlights and other notable items:
• Net sales of $4.6 billion; Corrugated Packaging segment sales increased 3.5% compared to the prior year quarter
• Global Paper containerboard shipments increased 21.9% compared to the prior year quarter
• Net loss of $22 million, adjusted net income of $51 million; net loss included $66 million of restructuring and other costs, net
• Loss of $0.09 per diluted share (EPS) and earned $0.20 of Adjusted EPS
• Consolidated adjusted EBITDA of $571 million
• Consumer Packaging adjusted EBITDA margin increased 60 bps to 15.7%
• Achieved more than $200 million in cost savings; expect to significantly exceed previously announced fiscal 2024 target of $300 to $400 million
“During the quarter, we grew external containerboard shipments, while we felt the impact of lower paperboard market demand,” said WestRock CEO David B. Sewell. “We continue to expect significantly improved demand in the second half of our fiscal year.
“We are continuing to deliver on, and we expect to significantly exceed, our cost savings targets. Our transformation initiatives have strengthened our portfolio, are increasing vertical integration and created significant operational efficiencies. With our broad portfolio of packaging solutions and self-help initiatives, we are well positioned to capitalize on the opportunities ahead.”
The decline in net sales compared to the first quarter of fiscal 2023 was driven primarily by a $205 million, or 18.3%, decrease in Global Paper segment sales and a $156 million, or 12.8%, decrease in Consumer Packaging sales.
Consolidated adjusted EBITDA decreased $81 million, or 12.5%, compared to the first quarter of fiscal 2023, primarily due to lower Global Paper and Consumer Packaging segment adjusted EBITDA, as well as higher corporate non-allocated expenses.
Net cash provided by operating activities was $275 million in the first quarter of fiscal 2024 compared to $266 million in the prior year quarter. Total debt was $8.7 billion on Dec. 31, 2023, and adjusted net debt was $8.1 billion.