:2021-04-29 Source:recyclingtoday Category: Enterprise
Graphic Packaging Holding Co., an Atlanta-based provider of sustainable packaging solutions, has announced its sales and earnings were higher in the first quarter of this year compared with the same time frame in 2020.
According to the company, net sales were $1,649 million in the first quarter of the year versus $1,599 million in the first quarter of 2020. Graphic Packaging’s organic sales increased 2 percent in the quarter, which the company says was driven by “sustainability-supported innovative packaging solutions.” Net income was at $54 million in the recently completed compared with a loss of $13 million in the first quarter of 2020.
“Consumer preferences for sustainable packaging are driving global demand for fiber-based packaging solutions,” says Michael Doss, Graphic Packaging president and CEO. “We are meeting this demand by introducing new innovative products and supporting our customers as we answer the calls from today’s consumer. During the first quarter, we continued to deliver on our ambitious growth strategy, increasing net organic sales by 2 percent. Our team’s agility and resolve in executing on our commitments to customers coupled with the competitive advantages of our vertically integrated platform allow us to provide continuity of supply while managing a challenging supply chain environment. The underlying robust demand environment and resulting volume and pricing momentum we have coming out of the quarter are excellent and position us for a very strong second half of 2021. We are focused on capturing ongoing organic growth from the continued move to more circular and sustainable packaging alternatives and achieving our Vision 2025 for all stakeholders.”
"Consumer preferences for sustainable packaging are driving global demand for fiber-based packaging solutions." -- Michael Doss, president and CEO, Graphic Packaging.
In the first quarter, Graphic Packaging reports adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $240 million compared with $295 million in the prior-year quarter. The company says it was “negatively impacted by $29 million of Winter Storm Uri-related costs and $34 million of commodity input cost inflation” in the first quarter of the year.
During the company’s earnings call April 27, Graphic Packaging reported that cost increases were noticed in categories such as logistics, recycled fiber, resins and chemicals.
Within the quarter, Graphic Packaging also acquired $400 million of International Paper’s minority ownership interest in the company, reducing its minority ownership stake to 7 percent.
Carton producer acquisition
Graphic Packaging also has announced its plan to acquire Americraft Carton Inc., an independent folding carton producer in North America with headquarters in Prairie Village, Kansas. Graphic Packaging says the acquisition will expand its participation in new and existing end markets while continuing to increase paperboard integration rates. The company says it intends to acquire Americraft Carton for $280 million. According to Graphic Packaging, the proposed acquisition is expected to add about $200 million in sales and $30 million in adjusted EBITDA and opportunities for paperboard integration upon completion of the deal. The transaction includes seven converting facilities and Americraft’s employees.
“I am very pleased to announce our intent to acquire Americraft Carton, a company built on a long history of sustainability and exceptional customer service,” Doss adds. “Their business philosophy is aligned with how we lead our business. The combination extends our end markets and customer base, further strengthening our position as the leading, integrated paperboard packaging provider in North America.”
