The Company presented information during Investor Day that highlighted: •WestRock has the scale, differentiated strategy and the capabilities to generate attractive long-term returns for investors. •The Company expects to increase adjusted EBITDA margins in its corrugated packaging and consumer packaging segments and generate significant cash flow over the next several years, and to deploy its capital to high-return internal projects and acquisitions, and return increasing capital to stockholders. •WestRock has the opportunity to expand its margins and deploy its capital to grow adjusted EBITDA from $2.3 billion in fiscal year 2017, to more than $4 billion in fiscal year 2022. WestRock reiterated its fiscal 2018 guidance for revenue of at least $16.3 billion, adjusted segment EBITDA of more than $2.8 billion and adjusted operating cash flow of at least $2.3 billion. Click Read More below for additional information.
Mativ Holdings, Inc. (“Mativ” or the “Company”) (NYSE: MATV) reported earnings results for the three month and six month periods ending June 30, 2022. On July 6, 2022, SWM International, Inc. (“SWM”) and Neenah, Inc. (“Neenah”) completed a merger of equals (“the merger”) in which each SWM share was converted into one share of Mativ common stock and each share of Neenah was converted into 1.358 shares of Mativ common stock.
Mativ Second Quarter 2022 Highlights (reflects legacy SWM results)
•Sales increased 13% to $426.4 million; organic sales growth of 11% with strong demand and pricing actions across the business driving top-line gains and offsetting cost increases
•GAAP EPS of $0.36, up from $0.06; Adjusted EPS of $0.86, down 4%; Adjusted EBITDA up 1% year-over-year and up 5% sequentially
Neenah Second Quarter 2022 Highlights (not included in Mativ results)
•Net sales increased 14% to $306.8 million; organic sales growth was 17%, driven by release liners, water filtration, and industrials and broad strength across the paper and packaging portfolio
•GAAP operating income was $17.0 million; Adjusted EBITDA increased 14% to $36.2 million; price increases more than offset higher input costs
Julie Schertell, Chief Executive Officer, commented, “With the completion of our merger in early July to form Mativ and the close of a strong second quarter for the legacy SWM and Neenah businesses, we are poised to carry our momentum into the rest of 2022 as a unified and more scaled global leader in specialty materials. We are better and stronger together, and I fully believe the strategic and financial merits of this merger will be realized through delivering increased value to our customers, accelerating growth, and executing on synergies.”
“The primary 2022 EBITDA growth catalysts remain solidly intact, with robust sales continuing in the second quarter and significant price/cost improvements flowing through both legacy companies’ financials. Year-to-date results have tracked to plan, and we expect positive trends to continue with additional price increases implemented to mitigate continued inflationary pressures. We project total second-half 2022 EBITDA for Mativ of $210 to $230 million, consistent with the previous annual guidance for both legacy companies and inclusive of some very early-stage SG&A synergies. We are very confident that our cost synergy plan will result in at least $65 million of savings, with a year-end 2022 exit run-rate of approximately $20 million. Integration is off to a fast start, our teams are collaborating, and we are laser-focused on a smooth operational transition while also tackling high-value projects to accelerate margin expansion.”
details at: https://ir.mativ.com/investors/news/news-details/2022/Mativ-Announces-Second-Quarter-2022-Results-Provides-Second-Half-2022-EBITDA-Outlook-and-Sets-Quarterly-Cash-Dividend/default.aspx