Graphic Packaging has registered a net income of $170m in the third quarter (Q3) of 2023, a decline of 12% from $193m in the prior year’s Q3.

Basic and diluted net income per share for the reported quarter, which ended on 30 September 2023, was $0.55.

According to Graphic, its Q3 results for 2023 were affected by a net negative $42m of special charges while its Q3 2022 results were impacted by a net positive $3m of special charges.

The packaging company’s net sales totalled $2.34bn in Q3 2023, a decrease of 4% from $2.45bn recorded during the same quarter last year.

This represents a decline of approximately $102m, which the company said was mainly due to $223m of unfavourable volume/mix, partly offset by $92m of positive pricing combined with $29m of foreign exchange impact.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q3 2023 increased to $448m from $432m in Q3 2022.

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Adjusted EBITDA was also up by 9% to $482m in Q3 2023 from $441m in the previous year’s Q3.

Total debt, including long-term, short-term, and current portion, increased by $73m to $5.60bn in Q3 2023.

Graphic president and CEO Michael Doss said: “Despite the continuing modest impact to packaging volume caused by inventory normalisation and some fluctuations in consumer purchasing behaviour, we delivered adjusted EBITDA growth and margin expansion in the quarter.

“We exercised a disciplined approach to production and actively managed our supply to the current demand environment.

“During the quarter, we reduced paperboard production by 150,000 tons. Importantly, we remain on track to achieve $1.9bn in adjusted EBITDA, the midpoint of guidance for 2023, an increase of $300m from 2022. In addition, leverage exiting the year is expected to return to the lower end of our targeted range.”

The company updated its full-year 2023 guidance in its press release, with net sales now expected to range between $9.5bn and $9.6bn and adjusted EBITDA to range from $1.87bn to $1.92bn.

Last month, Graphic announced its decision to permanently decommission its K3 coated recycled paperboard machine in Kalamazoo, Michigan, US.