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Graphic Packaging Reports 1Q 2021 Results

Net organic sales increased 2% in the quarter, driven by sustainability-supported innovative packaging solutions.

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By: DAVID SAVASTANO

Contributing Editor, Coatings World and Ink World, Coatings World and Ink World Magazine

Graphic Packaging Holding Company (GPK) reported positive results in the first quarter of 2021, with a net income of $54 million, or $0.19 per share, compared to first quarter 2020 net loss of $13 million, or $0.04 per share. Net sales and EBITDA were also higher.

 

Net sales were also up, rising 3% to $1,649 million in the first quarter of 2020, driven by $33 million of improved volume/mix related to organic growth from conversions to fiber-based packaging solutions and acquisitions. EBITDA for the first quarter of 2021 was $228 million, or $104 million higher than the first quarter of 2020.

 

Michael Doss, the company’s president and CEO, observed that consumer preferences for sustainable packaging are driving global demand for fiber-based packaging solutions.

 

“We are meeting this demand by introducing new innovative products and supporting our customers as we answer the calls from today’s consumers,” Doss said. “During the first quarter we continued to deliver on our ambitious growth strategy, increasing net organic sales by 2%. The underlying robust demand environment and resulting volume and pricing momentum we have coming out of the quarter are excellent and position us for a very strong second half of 2021.”

 

Graphic Packaging intends to acquire Americraft Carton, Inc. for approximately $280 million. The proposed acquisition is expected to add approximately $200 million in sales, $30 million in Adjusted EBITDA and significant opportunities for paperboard integration upon completion.

 

“I am very pleased to announce our intent to acquire Americraft Carton, a company built on a long history of sustainability and exceptional customer service,” said Doss.

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