Graphic Packaging Holding Company reported net income for the 1Q 2018 of $29.9 million, or $0.10 per share, based upon 311.3 million weighted average diluted shares. This compares to the 1Q 2017 net income of $37 million, or $0.12 per share, based on 314.1 million weighted average diluted shares, as the company said in the press release received by Lesprom Network.
Net sales increased 39% to $1,476.0 million in the 1Q 2018, compared to $1,061.5 million in the prior year period. The $414.5 million increase was driven by $359.5 million of revenue from the SBS mill and foodservice converting assets, $25.5 million of improved volume/mix related primarily to acquisitions, $24 million of favorable foreign exchange, and $5.5 million of higher pricing.
EBITDA for the 1Q 2018 was $187.6 million, or $35.3 million higher than the 1Q 2017. After adjusting both periods for business combinations and other special charges, Adjusted EBITDA increased 43% to $230.8 million in the 1Q 2018 from $160.9 million in the 1Q 2017. When comparing against the prior year quarter, Adjusted EBITDA in the 1Q 2018 was positively impacted by $59.2 million of Adjusted EBITDA from the SBS mill and foodservice converting assets, $16.7 million of improved net operating performance, $5.5 million of higher pricing, $5.5 million of favorable exchange rates, and $0.8 million of favorable volume/mix.
"We are very pleased with our performance in the 1Q following the new combination with the SBS mill and foodservice converting assets and are encouraged by the positive volume and productivity momentum in the business during the second quarter. 1Q Adjusted EBITDA of $231 million was in line with our expectations and results from the SBS mill and foodservice converting assets were solid," said President and CEO Michael Doss.
Graphic Packaging Holding Company is a leading provider of paper-based packaging solutions for a wide variety of products to food, beverage, foodservice, and other consumer products companies.
