NYSE$GPK

Graphic Packaging Holding Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Delivered organic sales growth, margin expansion and significant increase in EBITDA year over year.

Graphic Packaging Holding Company reported strong first-quarter results for 2022, with net sales increasing by 36% to $2,245 million compared to the prior year period. Net income was $107 million, and adjusted EBITDA reached $350 million.

  • Net Sales were $2,245 million versus $1,649 million in the prior year quarter.
  • Net Organic Sales increased 3% versus the prior year quarter.
  • Net Income was $107 million versus $54 million in the prior year quarter.
  • Adjusted EBITDA was $350 million versus $240 million in the prior year quarter.

Headline financials

Total Revenue

$2.25B

Previous: $1.65B+36.1%
EPS (adj)

$0.48

Previous: $0.23+108.7%
Adjusted EBITDA

$350M

Previous: $240M+45.8%
Net Leverage Ratio

5.02

Previous: 3.69+36.0%
Capital Expenditures

-$2M

Previous: -$9M+77.8%
Free Cash Flow

$105M

Previous: $45M+133.3%
Net Income

$107M

Previous: $54M+98.1%
Operating Income

$193M

Previous: $108M+78.7%
Gross Profit

$387M

Previous: $249M+55.4%
Cash & Equivalents

$111M

Previous: $116M-4.3%
Total Assets

$10.5B

Previous: $7.75B+36.1%

Revenue & EPS history

Graphic Packaging · Revenue · Quarterly

$2.25B

Q1 2022+36.1%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The Company remains fully committed to achieving strong growth and profitability as reflected in our financial guidance for 2022 and are on track to accomplish the long-term goals established with our enhanced Vision 2025.

Tailwinds

  • Executing another solid quarter with 3% net organic sales growth
  • Continued to integrate recently expanded European platform
  • Began operating the new K2 CRB machine in Kalamazoo, Michigan
  • Successfully implemented pricing actions to offset an unprecedented inflationary environment
  • Successful execution of our transformational CRB optimization project will drive benefits

Headwinds

  • effects of the Covid-19 pandemic on the Company’s operations and demand for its products
  • inflation of and volatility in raw material and energy costs
  • continuing pressure for lower cost products
  • the Company’s ability to implement its business strategies, including productivity initiatives, cost reduction plans, and integration activities
  • the Company’s debt level, currency movements and other risks of conducting business internationally and the impact of regulatory and litigation matters, including the continued availability of the Company's U.S. federal income tax attributes to offset U.S. federal income taxes and the timing related to the Company’s future U.S. federal income tax payments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.7%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.3%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+12.8%

Q3 2011

Best reaction

-15.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%+11.1%+11.2%
Q4 2025-8.1%-10.3%-24.8%
Q3 2025+9.0%+4.9%+0.9%
Q1 2025-15.6%-12.8%-12.2%
Q4 2024-2.5%-2.9%-1.9%
Q3 2024-6.9%-6.8%-1.1%
Q2 2024+7.5%+3.2%+5.1%
Q1 2024-6.4%-2.7%-1.4%
Q4 2023+6.3%+7.0%+13.6%
Q3 2023+3.1%+5.8%+8.6%
Q2 2023-3.7%-4.4%-8.1%
Q1 2023+1.9%+4.3%-1.9%
Q4 2022-2.2%-0.6%+4.1%
Q3 2022+8.9%+7.1%+5.0%
Q2 2022+3.3%+2.9%+8.3%
Q1 2022-0.3%+3.4%+1.8%
Q4 2021+7.0%+6.9%+6.0%
Q3 2021-1.9%-1.5%+3.9%
Q2 2021+8.1%+9.6%+15.3%
Q1 2021+0.6%+1.1%-3.7%
Q4 2020+1.8%+2.8%+3.0%
Q3 2020-4.7%-2.4%+9.4%
Q2 2020+0.8%+1.2%-1.9%
Q1 2020-1.5%-1.6%+2.4%
Q4 2019-2.1%-4.8%-17.6%
Q3 2019+5.1%+4.9%+7.7%
Q2 2019+6.7%+6.5%-5.8%
Q1 2019+5.5%+7.2%-2.2%
Q4 2018-1.3%+0.8%-0.1%
Q3 2018-14.4%-11.1%-4.5%
Q2 2018-4.0%-3.6%-4.6%
Q1 2018-7.2%-9.5%-5.2%
Q4 2017-1.9%-4.7%-0.5%
Q3 2017+7.3%+8.9%+4.4%
Q2 2017-4.7%-4.5%-5.6%
Q1 2017+0.0%+0.0%-0.5%
Q4 2016+3.8%+2.9%+1.3%
Q3 2016-9.5%-9.2%-5.8%
Q2 2016+5.3%+4.0%+10.5%
Q1 2016-0.4%
Q4 2015+6.6%
Q3 2015+6.0%
Q2 2015-1.0%
Q1 2015+3.5%
Q4 2014+1.3%
Q3 2014-3.0%
Q2 2014+6.3%
Q1 2014+4.3%
Q4 2013+4.7%
Q3 2013-2.1%
Q2 2013-4.0%
Q1 2013-1.7%
Q4 2012+2.1%
Q3 2012+5.3%
Q2 2012+10.3%
Q1 2011-2.4%
Q1 2012-2.4%
Q4 2009+2.9%
Q4 2011+2.9%
Q3 2010+12.8%
Q3 2011+12.8%
Q4 2010+0.0%
Q2 2010+0.0%
Q2 2011+0.0%
Q1 2010-8.7%

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