American packaging company Graphic Packaging has registered a net income of $150m in the second quarter (Q2) of 2023, representing a 127% increase from the $66m achieved in Q2 2022.
The company’s basic and diluted net income per share in Q2 2023 was $0.49 versus $0.21 during the same quarter last year.
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For the reported quarter, which ended on 30 June 2023, the company posted a 1% rise in its net sales to $2.39bn from $2.35bn in 2022.
This increase in sales can mainly be attributed to $188m of positive pricing, which was partly offset by an unfavourable volume/mix of $154m.
Graphic’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at $434m while the same was $294m in the prior year’s period.
The adjusted EBITDA totalled $453m, up by 14% from $396m in 2022.
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By GlobalDataGraphic’s president and CEO Michael Doss said: “We grew sales, adjusted EBITDA and adjusted EBITDA margins year-over-year in the Q2 while actively managing supply to meet demand in response to short-term inventory destocking by retailers and our customers.
“Importantly, our global team continued to advance key initiatives to drive sustained future organic growth and higher profitability through commercial execution, quality improvement and cost reduction.”
Graphic also confirmed it has signed a definitive agreement to acquire US-based packaging provider Bell.
The completion of this deal is now subject to certain regulatory approvals and customary closing conditions.
It is scheduled to be completed by the fourth quarter of this year.
Once complete, this transaction is projected to provide an additional $200m in sales and $30m in adjusted EBITDA to the company.
The impending acquisition also includes three ‘well-capitalised’ packaging plants in the Midwest region of the US.
Doss added: “Finally, we are reiterating full-year 2023 guidance. Our expectations for growth and cash generation enable the continued allocation of capital into initiatives that strengthen the business and support growth, while providing a path to return leverage to the low end of our historical targeted range.”
In its full-year 2023 guidance, which excludes Bell’s pending acquisition, the company is estimating its net sales to be approximately $10bn.
