WestRock Reports Fiscal 2023 First Quarter Results
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WestRock Company announced results for its fiscal first quarter ended December 31, 2022.
First Quarter Highlights and other notable items:
• Net sales of $4.9 billion comparable year-over-year
• Net income of $45 million, Adjusted Net Income of $141 million
• Consolidated Adjusted EBITDA of $652 million, Corrugated Packaging and Consumer Packaging segments delivered strong performance and Adjusted EBITDA increased 7.0% and 8.3% year-over-year, respectively
• Results in the current year impacted by $119 million due to economic downtime and weather disruptions; additionally, non-cash pension costs increased $40 million year-over-year and the unfavorable impact of foreign currency was $17 million year-over-year
• Earned $0.18 per diluted share ("EPS") and $0.55 of Adjusted EPS
• Acquired the remaining 67.7% interest in Gondi, S.A. de C.V. ("Grupo Gondi") for $970 million, plus the assumption of debt
• Divested two uncoated recycled paperboard mills ("URB") for $50 million, subject to a working capital adjustment, and recorded an $11 million pre-tax gain on sale
"I'm pleased to report that WestRock grew packaging revenue and margins in the first quarter, even in this challenging environment," said David B. Sewell, chief executive officer. "We also finalized the acquisition of Grupo Gondi, which expands our global footprint and enables us to take a leading position in the packaging marketplace in Mexico.
"During the quarter, elevated inflation and softening macroeconomic conditions negatively impacted our Global Paper business. While we expect these market conditions to continue in the near-term, we remain committed to executing on our strategy and delivering on our productivity efforts. WestRock's broad portfolio of products provides us with flexibility to manage through changing market conditions to maximize our performance."
