Graphic Packaging International, a leading provider of packaging solutions to food, beverage and consumer product companies, reported 16.8% decrease of Adjusted EBITDA amid 2.7% increase of net sales in 1Q2017 y-o-y. According to the announcement, the company’s net sales accounted for USD 1,061.5 million, generating Adjusted EBITDA of USD 160.9 million in the period (15.2% margin).
Michael Doss, Graphic Packaging International’s President and CEO, commented:
“Our first quarter Adjusted EBITDA was lower as expected at USD 161 million compared to USD 193 million in the prior year period. Net sales were up 2.7%, reflecting recent acquisitions and stable core volumes, consistent with the trends we experienced in 2016. Operating efficiencies improved during the quarter and we successfully upgraded two headboxes on the number six paper machine at our West Monroe, Louisiana mill. The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs associated with the upgrade of the two headboxes.
We are executing price increases to offset the unprecedented recycled fiber input cost inflation we are experiencing and expect margins to improve from our pricing actions during the second half of 2017, and in 2018. Our focus on meeting cash flow commitments, growing cash flow, and returning more of it to stockholders over time has not changed. We returned $64 million to stockholders in the first quarter of 2017 through dividends and share repurchases. We remain committed to a balanced capital allocation strategy, which includes reinvesting in our business to drive strong cash returns on cash invested, strategic acquisitions at compelling post-synergy multiples, and returning cash to stockholders through dividends and share repurchases.”
In 4Q2016 Graphic Packaging International reported net income of USD 34.9 million. Check other wood business-related companies 1Q2017 schedules for financial and operating results.
Earlier Graphic Packaging International appointed Joseph P. Yost as Senior Vice President and President, Americas.
The company is one of the world’s leading printed carton suppliers, producing packaging product for both the food and beverage sectors. It is one of the largest manufacturers of folding cartons, unbleached paperboard, coated recycled board, microwave packaging and machinery.