Consumer packaging company Graphic Packaging has reported net income of $190m for the second quarter (Q2) of financial year 2024 (FY24), compared to $150m in the same quarter of the previous year.
The company's earnings per diluted share also rose to $0.62 from $0.49 in Q2 2023.
A net gain from special items contributed $22m to the results of Q2 2024, contrasting with a net charge of $37m from special items in the same period of 2023.
Despite the rise in net income, Graphic Packaging's net sales saw a decrease of 6% to $2.23bn in Q2 2024 from $2.39bn in the prior year.
This decline was attributed to the divestiture of the Augusta, US, bleached paperboard manufacturing facility, reduced open-market sales participation, and a net decline in sales from packaging operations, primarily due to price and mix changes.
The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was reported at $458m, which is $24m higher than in Q2 2023.
During the quarter ending 30 June 2024, Graphic Packaging reduced its total debt by $250m to $5.285bn and net debt by the same amount to $5.16bn, compared to the second quarter of the previous year.
Graphic Packaging president and CEO Michael Doss said: "Second quarter played out largely as expected, with continued strength in Foodservice and Beverage [segments] results, and strong execution driving solid adjusted EBITDA.
“Consumers are responding to higher prices by shifting their purchasing patterns, and our portfolio, designed to move with the consumer, is doing just that. Graphic Packaging's innovation leadership was on full display in the quarter with a big win for Paperseal Shape at one of the UK's largest food retailers."
For the year to date, Graphic Packaging's net income was listed at $355m, slightly below the $357m reported in the same period last year.
Net sales also declined to $4.49bn in the first half (H1) of FY24 from $4.83bn in H1 FY23.
In February this year, Graphic Packaging entered into an agreement with Clearwater Paper to divest its Augusta-based bleached paperboard manufacturing facility.
