Graphic Packaging Holding Company reported net income for 1Q 2021 of $54 million, or $0.19 per share, based upon 277.2 million weighted average diluted shares. This compares to 1Q 2020 net loss of $13 million, or $0.04 per share, based upon 288.9 million weighted average diluted shares.
The first quarters of 2021 and 2020 were negatively impacted by a net $11 million and a net $104 million of special charges, respectively, including a net $90 million non-cash charge related to the settlement of a U.S. pension plan in 1Q 2020. When adjusting for charges, adjusted net income for the 1Q 2021 was $65 million, or $0.23 per diluted share. This compares to 1Q 2020 adjusted net income of $91 million or $0.31 per diluted share.
Net sales increased 3% to $1,649 million in the 1Q 2021, compared to $1,599 million in the prior year period. The $50 million increase was driven by $33 million of improved volume/mix related to organic growth from conversions to fiber-based packaging solutions and acquisitions, partially offset by fewer selling days when compared to leap year in the prior year quarter, and $20 million of favorable foreign exchange. These benefits were partially offset by $3 million of pricing.
EBITDA for the 1Q 2021 was $228 million, or $104 million higher than the 1Q 2020.
Michael Doss, the Company's President and CEO said, "Consumer preferences for sustainable packaging are driving global demand for fiber-based packaging solutions. We are meeting this demand by introducing new innovative products and supporting our customers as we answer the calls from today's consumer. During the first quarter we continued to deliver on our ambitious growth strategy, increasing net organic sales by 2%. We are focused on capturing ongoing organic growth from the continued move to more circular and sustainable packaging alternatives and achieving our Vision 2025 for all stakeholders."
Graphic Packaging Holding Company is a leading provider of sustainable fiber-based packaging solutions.
