Graphic Packaging Holding Company's Q4 2023 net income was $196 million, or $0.64 per share, based upon 308.5 million weighted average diluted shares. This compares to Q42022 net income of $156 million, or $0.50 per share, based upon 309.4 million weighted average diluted shares.
Net sales decreased 6% to $2,249 million in the Q4 2023, compared to $2,386 million in the prior year period. The $137 million decrease was driven by $198 million of unfavorable volume/mix. This was partially offset by $40 million of positive pricing and $21 million of favorable foreign exchange impact.
EBITDA for the Q4 2023 was $444 million, $36 million higher than the Q4 2022. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA was $457 million in the Q4 2023 versus $413 million in the Q4 2022. When comparing against the prior year quarter, Adjusted EBITDA in the Q4 2023 was positively impacted by $40 million in pricing, $11 million in commodity input cost deflation, $90 million in favorable net performance, and $5 million of favorable foreign exchange impact. This was partially offset by $64 million in unfavorable volume/mix and $38 million in labor, benefits and other inflation.
FY 2023
For the full year 2023, net income was $723 million, or $2.34 per share, based upon 309.1 million weighted average diluted shares. This compares to 2022 net income of $522 million, or $1.69 per share, based upon 309.5 million weighted average diluted shares.
Net sales decreased slightly to $9,428 million for the full year 2023, compared to $9,440 million in the prior year. The $12 million decrease was driven by $580 million of unfavorable volume/mix, partially offset by $556 million of positive pricing and $12 million of favorable foreign exchange impact.
EBITDA for the full year 2023 was $1,795 million, $326 million higher than the full year 2022. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA was $1,876 million for the full year 2023 versus $1,600 million in the full year 2022. When comparing against the prior year, Adjusted EBITDA for 2023 was positively impacted by $556 million in pricing, and $75 million in favorable net performance. This was partially offset by $171 million in unfavorable volume/mix, $169 million in labor, benefits and other inflation, $6 million in commodity input inflation, and $9 million of foreign exchange impact.
Michael Doss, the Company's President and CEO said, "While 2023 was a year of transition for consumer packaging, it was one of outstanding execution for Graphic Packaging. We significantly expanded profitability, achieved strong earnings growth and delivered innovative sustainable packaging solutions that consumers prefer. Our disciplined approach and commitment to delivering results for customers was on full display during a year of well-chronicled inventory normalization for both retailers and consumer packaged goods companies. While we did experience 4% negative organic sales growth for the year, our innovation sales exceeded $200 million, and our overall performance was excellent. We are well positioned to return to positive organic sales growth in 2024, which has started to materialize in improved volumes quarter to date."
Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, designs and produces consumer packaging.
