GPI announces increase in net profit
Atlanta-based Graphic Packaging Holding Co., which operates Graphic Packaging International (GPI), reported net income of $ 73 million for the third quarter of this year, up from $ 64 million in the same quarter last year.
The third quarter of 2021 was negatively affected by a net special charge of $ 32 million, according to the company, preventing a potential net profit of $ 105 million for the third quarter of 2021. GPI also cites “$ 88 million of inflation of raw material input costs âas a factor limiting its profits.
âThe demand for sustainable, circular packaging solutions is accelerating globally and we are proud to be the consumer fiber-based packaging supplier that drives continuous innovation and answers the call for more sustainable packaging alternatives, âsays Michael Doss, President and CEO of the company.
âThe foodservice industry continued to recover, with sales improving 11% year-over-year, while food, beverage and consumer goods grew 3%,â Doss said. “Inflation in commodity costs accelerated during the quarter and as such we implemented several price actions to offset the inflation we encountered this year.”
The company consumes more than one million tonnes per year of old corrugated cardboard containers (OCC) and other grades of waste paper, looking for a side product that has grown in value throughout the ‘year.
Looking ahead, Doss comments: âWe have received all necessary regulatory approvals for our previously announced AR Packaging acquisition, which is expected to close on November 1. track, with production of recycled coated cardboard starting on our new K2 machine in Kalamazoo, Mich., in Q4.
He continues, âMaking these two important transformational investments expands our industry leadership through increased global reach and market expansion, advanced innovation capabilities and a stronger competitive position on all three paperboard substrates. The growth and returns from the successful execution of these investments, coupled with the continued strong demand for fiber-based packaging, gives us confidence in the expected adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the company. next year of at least $ 1.4 billion and the resulting cash flow. growth that will allow us to get out of debt quickly after the successful closing of the AR Packaging transaction.
GPI is in the process of acquiring Swedish company AR Packaging Group AB, which it describes as Europe’s second-largest producer of fiber-based consumer packaging.