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May 9, 2022

Ranpak reports 5.9% drop in revenue for first quarter of FY22

The company still expects its net revenue for the full year to grow by 13% to 18%.

US-based sustainable packaging provider Ranpak has reported net revenue of $82.5m for the first quarter (Q1) of the fiscal year 2022 (FY22).

This figure represents a 5.9% decrease from $87.7m in the same period of the previous year.

Ranpak said its net revenue had been negatively affected by decreases in cushioning, void-fill and wrapping, but was slightly offset by an increase in other sales.

In North America, the company’s revenue for the three months to 31 March was $30.9m, up by $2.8m or 10.0% from the same period of FY21.

In Europe and Asia, the company saw its revenue decline from $59.6m to $51.6m year-on-year during the quarter.

Ranpak’s net loss for the first quarter of FY22 grew by $20.4m to $14.1m against a net income of $6.3m in Q1 2021.

The firm’s net loss was $14.2m in the quarter on a constant currency basis, compared with a net income of $6.1m a year earlier.

Ranpak chairman and CEO Omar Asali said: “From a financial and operational perspective, the year began slowly as we had pre-established downtime in January and then experienced inefficiencies as we got up the learning curve in the new system.

“We found our footing as the quarter progressed and exited at a dramatically improved operating cadence and with momentum that had our monthly results in March above the prior year.

“Our top-line recovered nicely as we exited Q1, and we implemented pricing actions in North America and in Europe that had been delayed due to our enterprise resource planning (ERP) transition to offset a portion of the significant input cost inflation we experienced at the end of the year and into Q1.”

For FY22, Ranpak continues to expect its full-year net revenue to increase by between 13 and 18%.

In December last year, the company acquired Dutch sustainable cool pack manufacturer Recycold Cool Solutions for an undisclosed sum.

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