Graphic Packaging Holding Company Posts Robust First Quarter 2019 Results

SEATTLE (Scrap Monster): Graphic Packaging Holding Company- a leading packaging solutions provider announced financial results for the first quarter of 2019. The Q1 earnings topped $0.19 per diluted share, as compared with $0.10 in the corresponding quarter in 2018. The net income surged higher from $29.9 million to $57.9 million over the previous year. The net sales too reported improvement from $1,477.4 million in the first quarter of 2018 to $1,505.9 million in Q1 ’19.

The $28.5 million jump in net sales was primarily driven by higher pricing and improved product volume/mix related to acquisitions. These benefits were partially offset by unfavorable foreign exchange. The 13% surge in adjusted EBITDA was mainly on account of higher pricing and improved net operating performance, which in turn was partially offset by rising wood costs, labor benefits, unfavorable foreign exchange and unfavorable volume/mix.

The company press release stated that the total debt increased by $221.0 million during the first quarter of 2019 to total $3,188.7 million. Also, the total net debt increased by $229.2 million to $3,126.4 million. The capital expenditures totaled $80 million, as compared with $92.1 million in the first quarter of 2018. The company reported available liquidity of $1,043.7 million as at March 31, 2019.

Commenting on the results, Michael Doss, President and CEO said that the management is very pleased with the company’s performance. The company hopes to generate improved profitability in 2019, he added.