Graphic Packaging International, a leading provider of packaging solutions to food, beverage and consumer product companies, reported 12.6% decrease of Adjusted EBITDA amid stable net sales in 2Q2017 y-o-y. According to the announcement, the company’s net sales accounted for USD 1,094.7 million, generating Adjusted EBITDA of USD 170.6 million in the period (15.6% margin).
Michael Doss, Graphic Packaging International’s President and CEO, commented:
“Our second quarter Adjusted EBITDA met our expectations at USD 171 million compared to USD 195 million in the prior year period. Net Tons Sold were up 1.7%, reflecting an acquisition and slightly positive core volumes. We successfully completed our bi-annual maintenance cold outage at the West Monroe, Louisiana mill. The quarter was negatively impacted by accelerating commodity input costs, primarily recycled fiber, and the planned downtime costs.
We are executing price increases to offset the unprecedented recycled fiber input cost inflation and expect margins to improve from our pricing actions during the second half of 2017 and in 2018. Our focus on meeting cash flow commitments, growing cash flow, and returning more of it to stockholders over time has not changed. We returned $43 million to stockholders in the second quarter of 2017 through dividends and share repurchases. We announced the Carton Craft acquisition in mid-June, and completed the transaction on July 10, 2017. We remain committed to a balanced capital allocation strategy, which includes reinvesting in our business to drive strong cash returns on cash invested, strategic acquisitions at compelling post-synergy multiples, and returning cash to stockholders through dividends and share repurchases.”
In 1Q2017 the company decreased Adjusted EBITDA margin to 15.2%
Earlier Graphic Packaging agreed to acquire assets of Carton Craft and Lithocraft in the US.
The company is one of the world’s leading printed carton suppliers, producing packaging product for both the food and beverage sectors. It is one of the largest manufacturers of folding cartons, unbleached paperboard, coated recycled board, microwave packaging and machinery.