WestRock Reports Strong Fourth Quarter Fiscal 2023 Results

Fourth Quarter Highlights and other notable items:
*Net sales of $5.0 billion
*Net income of $110 million, Adjusted Net Income of $210 million; net income included $344 million ($239 million of which was non-cash) of restructuring and other costs, net and a $239 million gain on sale of the Company’s interior partitions converting operations and Chattanooga, Tennessee uncoated recycled paperboard mill
*Earned $0.43 per diluted share (“EPS”) and $0.81 of Adjusted EPS
*Consolidated Adjusted EBITDA of $736 million; Corrugated Packaging segment Adjusted EBITDA increased 13.0% compared to the fourth quarter of fiscal 2022
*Results negatively impacted by $64 million due to economic downtime and a $40 million increase in non-cash pension costs, each compared to the fourth quarter of fiscal 2022; WestRock’s U.S. qualified and non-qualified pension plans remain overfunded
*Announced 10% dividend increase in October 2023
*Announced proposed business combination with Smurfit Kappa Group plc to create a global leader in sustainable packaging (the “Transaction”)

Full Year 2023 Highlights:
*Net sales of $20.3 billion
*Net loss of $1.6 billion, Adjusted Net Income of $778 million
*Results reflected a $1.9 billion pre-tax, non-cash goodwill impairment and $859 million ($605 million of which was non-cash) of pre-tax restructuring and other costs, net
*Consolidated Adjusted EBITDA of $3.0 billion
*Loss per share of $6.44 and generated $3.02 of Adjusted EPS
*Generated net cash provided by operating activities of $1.8 billion and Adjusted Free Cash Flow of $933 million
*Exceeded cost savings expectations in fiscal 2023, and exited fiscal 2023 with greater than $450 million in run-rate savings
*Invested $1.1 billion in capital expenditures and returned $281 million in capital to stockholders in dividend payments.
*Simplified the Company’s portfolio to streamline its business and improve performance

“The WestRock team delivered another strong quarter, demonstrating the power and resilience of our diversified portfolio, innovative solutions and scale,” said David B. Sewell, chief executive officer. “I’m incredibly proud of our team’s commitment to serving our customers, while executing on and accelerating our transformation actions. Through our portfolio optimization actions, cost savings initiatives and strategic growth plans, we are positioning WestRock well to deliver shareholder value. As we turn to fiscal 2024, we remain committed to unlocking additional cost savings and driving profitable growth.”
details at: https://ir.westrock.com/press-releases/press-release-details/2023/WestRock-Reports-Strong-Fourth-Quarter-Fiscal-2023-Results/default.aspx

Related Posts

Amcor opens China’s largest flexible packaging plant, strengthening its position in Asia Pacific

Amcor announced the opening of its new state-of-the-art manufacturing plant in Huizhou, China. With an investment of almost $100 million, the 590,000-square-foot plant is the largest flexible packaging plant by production capacity in China, further strengthening Amcor’s ability to meet growing customer demand throughout Asia Pacific. The new facility is expected to employ more than 550 people, who will produce flexible packaging solutions for food and personal-care products. The plant comes equipped with the first automated packaging production line in China. This, along with high-speed printing presses, laminators, and bag-making machines, can deliver double-digit reductions in manufacturing cycle times.

Constantia Flexibles announces acquisition of Aluflexpack

Constantia Flexibles has signed an agreement to acquire approximately 57% of the shares of the packaging producer Aluflexpack. In parallel, Constantia Flexibles will launch an all-cash public tender offer for all publicly held registered shares of Aluflexpack. The offer is subject to certain terms and conditions, including the outcome of the regulatory process. The material terms and conditions of the offer are described in the pre-announcement of the offer which has been published today and is available at afp-tender-offer.com. The company is a leading player in the European packaging industry, specializing in foil and film packaging for the Consumer and Pharma markets. Operating out of 14 locations across Europe with over 1,500 employees, the company will perfectly complement Constantia Flexibles’ packaging solutions portfolio. This acquisition is a sizable step in Constantia Flexibles’ foil packaging presence across market segments. Aluflexpack has delivered a very strong historical financial performance and continues to do so. It is highly complementary to Constantia Flexibles’ geographical footprint, e.g., in Turkey and Poland as well as expanding to countries of Southeast Europe. The acquisition gives access to an extended technology portfolio.

The Paper Lid Company and Metsä Board introduce 100% recyclable paperboard lid for takeaway beverage cups

A long-term collaboration between Finnish startup The Paper Lid Company and Metsä Board, part of Metsä Group, has led to the development of a 100% recyclable paperboard lid for use with takeaway cups. The lid, which is made from fully recyclable dispersion barrier board, is suitable for use with both hot and cold beverages. It uses a novel technology developed by The Paper Lid Company that makes it possible to form the paperboard into the desired shape. The result is a one-piece lid that clicks firmly in place and offers performance that is comparable to that of a traditional plastic lid. “Reducing the volume of plastic waste is a critically important issue, and together with our partners we are continuously developing and testing new innovative solutions that have circular-economy thinking at their core,” says Ilkka Harju, Packaging Services Director EMEA and APAC at Metsä Board. “The paperboard lid is a great example of precisely such a solution.”
Back To Top
×Close search
Search