Graphic Packaging Holding Company Reports Fourth Quarter and Full Year 2020 Results

2020 Highlights:
*Vision 2025 goals on track following execution of strategic investments, development of new, sustainable fiber-based packaging solutions and the successful pivot to net organic sales growth.
*Showcased corporate responsibility and long-standing commitment to sustainability in environmental, social and governance (ESG) report highlighting progress in sustainability across all facets of operations.
*Net Sales were $6,560 million versus $6,160 million in the prior year.
*Net Organic Sales increased 5% in the fourth quarter and 4% for the full year 2020 versus the prior year periods.
*Net Income was $167 million versus $207 million in the prior year.
*Earnings per Diluted Share were $0.60 versus $0.70 in the prior year.
*Global liquidity was $1,717 million at year end.
*Returned $918 million to stakeholders through dividends, distributions, partnership redemptions and share repurchases.

Graphic Packaging Holding Company (NYSE: GPK), (the “Company” or “Graphic Packaging”), a leading provider of sustainable packaging solutions to food, beverage, foodservice, and other consumer products companies, today reported Net Income for fourth quarter 2020 of $64.2 million, or $0.24 per share, based on 270.3 million weighted average diluted shares. This compares to fourth quarter 2019 Net Income of $33.0 million, or $0.11 per share, based on 291.7 million weighted average diluted shares.

Fourth quarter 2020 Net Income was impacted by a net $12.3 million of special charges, that are detailed in the attached Reconciliation of Non-GAAP Financial Measures table. When adjusting for these charges, Adjusted Net Income for the fourth quarter of 2020 was $76.5 million, or $0.28 per diluted share. This compares to fourth quarter 2019 Adjusted Net Income of $67.0 million, or $0.23 per diluted share.

For the full year 2020, Net Income was $167.3 million, or $0.60 per share, based on 279.6 million weighted average diluted shares. This compares to 2019 Net Income of $206.8 million, or $0.70 per share, based on 294.8 million weighted average diluted shares.

Full year 2020 Net Income was impacted by a net $144.7 million of special charges that are detailed in the attached Reconciliation of Non-GAAP Financial Measures table. When adjusting for these items, Adjusted Net Income for full year 2020 was $312.0 million, or $1.12 per diluted share. This compares to Adjusted Net Income for the full year of 2019 of $255.7 million, or $0.87 per diluted share.

Michael Doss, the Company’s President and CEO said, “Net organic sales growth of 4% in 2020 confirms our fiber-based packaging solutions are winning in the growing markets where we are focused. Our strong 2020 results and the momentum we have entering 2021 are consistent with our Vision 2025 goals. We are partnering with customers to elevate their brands in the marketplace, while supporting both customer and our own sustainability goals. The strategic investments we are making position us for continued growth and cost leadership in the industry and will allow us to further accelerate our product innovation capabilities. We expect to generate 100 to 200 basis points of sustainability supported net organic sales growth in 2021 and deliver net productivity improvements to drive continued EBITDA growth during the coming year.”

Doss continued, “We are also announcing today that we plan to start up our new CRB machine in Kalamazoo, Michigan ahead of schedule in the fourth quarter of 2021. Separately, we will be making a strategic $100 million investment at our Texarkana, Texas SBS mill to add CUK production capability to an existing machine to meet growing demand for our paperboard packaging solutions.” He added, “I am grateful for the dedication of our employees who continue to go above and beyond to fulfill our responsibility as an essential supplier to the vital food, beverage, consumer and foodservice markets. We are delivering on our promise to continue learning and improving from the events in 2020, and we are answering the call from today’s consumer for safe, hygienic and more sustainable packaging solutions.”
details at: https://investors.graphicpkg.com/news/news-details/2021/Graphic-Packaging-Holding-Company-Reports-Fourth-Quarter-and-Full-Year-2020-Results-A-Notable-Year-of-Innovation-New-Product-Development-and-4-Net-Organic-Sales-Growth/default.aspx

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