Graphic packaging copes with inflation, adjusts costs – Product commentary

By Dave Sébastien

Graphic Packaging Holding Co. stated its web gross sales elevated for the second quarter, whereas its revenue declined as the corporate recorded particular fees. He stated he was going through inflation in uncooked materials enter prices and had taken pricing motion.

On conversions to fiber-based packaging:

“Sturdy demand continued in our markets within the second quarter as client preferences drive conversions to our fiber-based packaging options. , whereas the meals, beverage and client markets continued to point out wholesome progress of 4%, ”stated President and CEO Michael Doss.

On the costs and prices of inputs:

“We promptly carried out pricing measures to offset the rise in uncooked materials enter prices that impacted our outcomes through the quarter,” stated Doss.

On enter price inflation:

“Adjusted EBITDA was $ 248 million versus $ 260 million within the prior yr quarter; positively impacted by $ 15 million in quantity / combine associated to web natural gross sales progress and $ 36 million from favorable web efficiency, offset by $ 67 million in uncooked materials price inflation, “the corporate stated.

“Our groups labored tirelessly to fulfill buyer demand, and we rapidly carried out pricing measures to offset the rising prices of uncooked materials inputs, which impacted our outcomes for the quarter.” , stated Doss.

Write to Dave Sebastian at [email protected]

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