USA – Leading fiber-based packaging provider Graphic Packaging International has reported net income growth of 93% to US$207 million for the first quarter (Q1) of fiscal year 2023 (FY23).
During the quarter ending 31 March 2023, the company’s net sales were US$2.43 billion, up 9% from US$2.24 billion a year ago, and its net organic sales increased 1%.
Graphic Packaging recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of US$469 million in Q1 FY23, while its adjusted EBITDA grew 38% to US$484 million.
Its earnings per diluted share (EPS) were US$0.67, an increase of 91% from Q1 FY22’s figure of US$0.35, and its adjusted EPS rose by 60% to US$0.77.
Graphic Packaging president and CEO Michael Doss said: “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.
“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.”
Doss added: “During the quarter [Q1] our newest coated recycled paperboard machine in Kalamazoo [Michigan] 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.”
The company’s total debt (Long-Term, Short-Term and Current Portion) increased US$265 million during the first quarter of 2023 to $5.55 billion compared to the fourth quarter of 2022.
Total Net Debt (Total Debt, net of Cash and Cash Equivalents) increased US$302 million during the first quarter of 2023 to US$5.44 billion compared to the fourth quarter of 2022.
The Company returned US$59 million in total capital to stockholders, including US$31 million in dividend payments and US$28 million via share repurchases, in the first quarter of 2023.
The Company’s first quarter 2023 Net Leverage Ratio was 3.1x Adjusted EBITDA compared to 3.2x at the end of 2022.
For the full year 2023, Graphic Packaging expects its net sales to be around US$10 billion and adjusted EBITDA to be in the range of US$1.8 billion to US$2.0 billion.
Doss reiterated: “Confidence in the stability of our business, coupled with our team’s unwavering focus on innovation and delivering quality and service to customers, is providing a path to an improved outlook for the full year.
“As such, we are raising our 2023 Adjusted EBITDA guidance and remain on track to achieve our enhanced Vision 2025 financial goals.”
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