Ranpak Holdings Corp · Q1 2023 earnings

Briefing

Ranpak reported first quarter 2023 financial results, with net revenue decreasing slightly but improving on a constant currency basis, and packaging system placements increasing year over year.

Ranpak Holdings Corp reported a decrease in net revenue by 1.6% year over year to $81.2 million, but an increase of 1.1% on a constant currency basis to $84.8 million. The company experienced a net loss of $12.4 million, an improvement from the $14.1 million loss in the first quarter of the previous year. Adjusted EBITDA on a constant currency basis was $15.1 million, down 20.9% year over year. Packaging system placements increased by 3.8% to approximately 139,600 machines.

• Packaging system placements increased 3.8% year over year, reaching approximately 139,600 machines.
• Net revenue decreased 1.6% year over year to $81.2 million but increased 1.1% on a constant currency basis to $84.8 million.
• Net loss decreased to $12.4 million, compared to a net loss of $14.1 million in the prior year.
• Constant currency Adjusted EBITDA was $15.1 million, a decrease of 20.9% year over year.

Headline financials

Revenue & EPS history

The year started off largely in-line with expectations but the company is turning more cautious as consumer confidence has moved lower and industrial activity has slowed in response to the higher rate environment and reduction in credit availability due to banking stress. On a positive note, the input cost environment is more favorable than anticipated when the company started the year, providing some offset to potential top-line pressure in the near term. At the same time the company is pulling back on planned spend until the environment provides more clarity.