Graphic Packaging Holding Co., an Atlanta-based packaging producer, said it is on track to meet its long-term growth and profitability goals based on results from its published quarterly earnings report. April 26.
Net income for the first quarter of 2022 was $107 million, or 35 cents per share, based on 309.7 million weighted average diluted shares, compared to its first quarter 2021 net income of $54 million. dollars, or 19 cents per share, based on 277.2 million weighted average diluted shares. shares.
“During the first quarter, we achieved significant milestones on the path to achieving our enhanced Vision 2025 goals,” Chairman and Chief Executive Officer Michael Doss said on an earnings conference call. “While executing another strong quarter with organic net sales growth of 3%, we continued to integrate our recently expanded European platform and began operating the new K2 CRB machine in Kalamazoo, Michigan.
“In addition, we have successfully implemented pricing measures to offset an unprecedented inflationary environment. Importantly, the successful execution of our transformational CRB optimization project will generate benefits for the business, our employees and our customers for decades to come, as we produce the highest quality CRB at the lower cost in North America. Our business is expanding into new market segments and geographies and we are performing at a high level as a global team.
Operating results
Net sales. Graphic packagingNet sales increased 36% to $2,245 million in the first quarter of 2022 from $1,649 million in the first quarter of 2021. to fiber-based packaging solutions and acquisitions, partially offset by $11 million dollars from unfavorable exchange rates.
EBITDA. For the first quarter of 2022, Graphic Packaging’s earnings before interest, taxes, depreciation and amortization (EBITDA) was $335 million, an increase of $107 million from the first quarter of 2021. Adjusted EBITDA was $350 million. in the first quarter of 2022, compared to $240 million in the first quarter of 2021 after adjusting for the two periods of business combinations and other special charges. Q1 2022 Adjusted EBITDA was positively impacted by $222 million in pricing, $68 million in volume/mix, $14 million in net productivity and $1 million in favorable exchange rates compared to Q1 2021 This was partially offset by $176 million in raw material cost inflation and $19 million in other inflation.
Other results
Graphic Packaging’s total debt, including long-term, current and current portion, was $5,967 million from the first quarter of 2021, an increase of $136 million. Total net debt also increased by $197 million in the first quarter of 2022 to a total of $5,856 million from 2021. The company returned $23 million of capital to shareholders in the first quarter of 2022 in the form of dividends. .
The company says capital expenditures for the first quarter of 2022 were $223 million, compared to $146 million in 2021, primarily due to project completion expenses with investment in the K2 machine and platform. form CRB in Kalamazoo.
Doss said, “As we continue to build our capabilities and develop innovative offerings for our customers, we are also optimizing our global production network, improving efficiency and providing top-notch customer service. Progress towards our Vision 2025 will be fully visible this year, as many of the critical initiatives we have implemented over the past three years are positively impacting our financial results.
He added, “We remain fully committed to achieving solid growth and profitability, as reflected in our 2022 financial guidance, and we are on track to meet the long-term goals set out with our enhanced Vision 2025.
Graphic packaging “Vision 2025” sustainability goals goals for 2025 include: reduce greenhouse gas emissions by 15%, reduce water consumption by 15%, reduce energy consumption by 15%, make its products 100% recyclable and reduce the use of 40% LDPE.