Stora Enso’s design for eco-friendly pellet packaging was awarded with a prestigious Worldstar award. The renewable and recyclable packaging is designed for heavy use in transporting and warehousing of wood pellets for heating. The awarded packaging is a sustainable alternative to the standard plastic bag used in the pellet industry. In the packaging design work, special attention was paid to usability, recyclability and visual appearance. The 12 kg pellet box, which replaces a plastic bag, is easy to bring home from the store thanks to the carrying handle. The packaging is a collaboration between Finnish packaging designer Karoliina Pennanen and the Stora Enso Packaging Automation team.
Q1 2021 Highlights:
*Net Sales were $1,649 million versus $1,599 million in the prior year quarter.
*Net Organic Sales increased 2% in the quarter driven by sustainability-supported innovative packaging solutions.
*Net Income was $54 million versus a loss of $13 million in the prior year quarter.
*Earnings per Diluted Share were $0.19 versus a loss of $0.04 in the prior year quarter.
*Adjusted Earnings per Diluted Share were $0.23 versus $0.31 in the prior year quarter.
*Adjusted EBITDA was $240 million versus $295 million in the prior year quarter, negatively impacted by $29 million of Winter Storm Uri related costs and $34 million of commodity input cost inflation.
*Strengthened balance sheet and interest rate profile by issuing $800 million of 0.8% and 1.5% senior secured notes and through retirement of $425 million in higher interest rate debt with Farm Credit System term loan.
*Acquired $400 million of International Paper’s minority ownership interest in the partnership, reducing minority ownership stake to approximately 7%.
*Global liquidity was $1,444 million at quarter end.
*Announces intent to acquire Americraft Carton, Inc., a leading independent folding carton producer in North America, extending participation into new and existing end markets while continuing to increase paperboard integration rates.
Graphic Packaging Holding Company (NYSE: GPK), (the “Company”), a leading provider of sustainable packaging solutions to food, beverage, foodservice, and other consumer products companies, today reported Net Income for first quarter 2021 of $54 million, or $0.19 per share, based upon 277.2 million weighted average diluted shares. This compares to first quarter 2020 Net Loss of $13 million, or $0.04 per share, based upon 288.9 million weighted average diluted shares.
The first quarters of 2021 and 2020 were negatively impacted by a net $11 million and a net $104 million of special charges, respectively, including a net $90 million non-cash charge related to the settlement of a U.S. pension plan in first quarter 2020. The charges are detailed in the Reconciliation of Non-GAAP Financial Measures table attached. When adjusting for charges, Adjusted Net Income for the first quarter of 2021 was $65 million, or $0.23 per diluted share. This compares to first quarter 2020 Adjusted Net Income of $91 million or $0.31 per diluted share.
Michael Doss, the Company’s President and CEO said, “Consumer preferences for sustainable packaging are driving global demand for fiber-based packaging solutions. 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%. 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.”
Doss added, “Today, 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. 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.”
Americraft Carton, Inc. Acquisition
The Company intends to acquire Americraft Carton, Inc. for approximately $280 million. The proposed acquisition is expected to add approximately $200 million in sales, $30 million in Adjusted EBITDA and significant opportunities for paperboard integration upon completion. Synergies are expected to contribute an additional $10 million of Adjusted EBITDA within 24 months of closing. The transaction includes seven well-capitalized converting facilities and an outstanding team of dedicated employees.
Net Sales increased 3% to $1,649 million in the first quarter of 2020, compared to $1,599 million in the prior year period. The $50 million increase was driven by $33 million of improved volume/mix related to organic growth from conversions to fiber-based packaging solutions and acquisitions, partially offset by fewer selling days when compared to leap year in the prior year quarter, and $20 million of favorable foreign exchange. These benefits were partially offset by $3 million of pricing.
Attached is supplemental data highlighting Net Tons Sold for the first quarter of 2021 and for each quarter of 2020.
EBITDA for the first quarter of 2021 was $228 million, or $104 million higher than the first quarter of 2020. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA was $240 million in the first quarter of 2021 versus $295 million in the first quarter of 2020. When comparing against the prior year quarter, Adjusted EBITDA in the first quarter of 2021 was positively impacted by $21 million in net productivity and $5 million of favorable foreign exchange. Adjusted EBITDA was unfavorably impacted by $3 million of pricing, $2 million of volume/mix, $34 million of commodity input cost inflation, $13 million of other inflation and $29 million of costs associated with Winter Storm Uri.
more at source: https://investors.graphicpkg.com/news/news-details/2021/Graphic-Packaging-Holding-Company-Reports-First-Quarter-2021-Results-Announces-Intent-to-Acquire-Americraft-Carton-Inc/default.aspx