#Sustainability #United States #Atlanta #Graphic Packaging #Vision 2030

Graphic Packaging Holding Company Reports Q4 and Full-Year 2024 Results

Graphic Packaging Holding Company, a renowned leader in sustainable consumer packaging, has released its financial results for the fourth quarter and the entirety of 2024. The company has achieved notable milestones, including the launch of its Vision 2030 initiative aimed at enhancing sustainability practices across its operations.

Key Highlights of 2024

• - Adjusted EBITDA Margin: The company delivered a robust adjusted EBITDA margin of 19.1%, demonstrating strong profitability in a challenging environment.
• - Positive Packaging Volume Growth: After a difficult initial half of the year, Graphic Packaging has seen a return to positive packaging volume growth in the latter half of 2024.
• - Innovative Growth: With an impressive $205 million in Innovation Sales Growth, the company continues to focus on developing cutting-edge, sustainable packaging options.
• - Commitment to Renewable Energy: The execution of a Virtual Power Purchase Agreement has significantly contributed to increasing renewable energy utilization in Europe, reinforcing the company's commitment to sustainability.
• - Capital Distribution: In a display of confidence, the company repurchased 2% of its common shares outstanding, returning approximately $322 million to shareholders in the form of dividends and share repurchases.

Financial Overview

Graphic Packaging reported its full-year results with a total net sales figure of $8,807 million, marking a decrease from $9,428 million in 2023. The net income for the year was reported at $658 million ($2.16 per share), down from $723 million ($2.34 per share) year-over-year.

The company's adjusted EBITDA stood at $1,682 million, reflecting a decline from the previous year's $1,876 million. This reduction is attributed primarily to the challenges posed by market conditions, including a notable impact from the divestiture of the Augusta, GA, bleached paperboard manufacturing facility and general price and volume decreases in bleached paperboard sales. The adjusted earnings per diluted share were also lower, coming in at $2.49, compared to $2.91 in 2023.

Quarterly Performance

In the fourth quarter alone, Graphic Packaging noted a net income of $138 million ($0.46 per share) from revenues amounting to $2,095 million, a decrease from the previous year's quarter where the income was $196 million ($0.64 per share) based on revenues of $2,249 million. Both quarters experienced a similar charge from special items and amortization costs, indicating a persistent challenge within specific operational aspects.

Strategic Outlook for 2025

Graphic Packaging's President and CEO, Michael Doss, emphasized the strength of the company's business model in generating consistent profitability. Looking ahead to 2025, the company plans to leverage its competitive advantage in recycled paperboard throughout North America and expand its innovation capabilities into new markets.

Anticipating capital expenditures to be around $700 million, the company is nearing the completion of significant asset investments that will bolster operational efficiency. The total net debt was recorded at $5,052 million, which reflects a downward trend from previous quarters. Doss announced a 10% increase in quarterly dividends, now set at $0.11 per common share, effective in the first quarter of 2025, marking a commitment to returning value to shareholders.

In conclusion, while 2024 posed various challenges, Graphic Packaging Holding Company showcased resilience and strategic adaptability. With ongoing investments in sustainability and innovation, the company is well-positioned to enhance its market position and address evolving consumer needs moving forward.