Graphic Packaging Holding Company Reports 6.6% Decrease in Net Sales for Fiscal Year 2024

Graphic Packaging Holding Company (GPHC) reported a decrease in net sales for the fiscal year ending December 31, 2024, totaling $8.807 billion, down 6.6% from $9.428 billion in 2023. The decline was attributed to several factors, including the divestiture of the Augusta, Georgia bleached paperboard manufacturing facility, reduced open market paperboard volumes, and lower packaging volumes and pricing. The company also faced unfavorable foreign currency exchange impacts, which contributed to a $24 million decrease. However, the acquisition of Bell Incorporated in September 2023 provided a partial offset, contributing $118 million to sales.

Income from operations for 2024 was reported at $1.119 billion, a decrease of 5% from $1.174 billion in the previous year. This decline was primarily driven by the same factors affecting net sales, including the impact of the Augusta divestiture and challenges related to weather, power, and equipment maintenance. Despite these challenges, the company noted improvements from cost savings initiatives and productivity enhancements, which helped mitigate some of the negative impacts.

Strategically, GPHC has been active in acquisitions and divestitures. In addition to the sale of the Augusta facility for $711 million, the company acquired Tama Paperboard, LLC for approximately $100 million in January 2023, although this facility was subsequently closed. The acquisition of Bell Incorporated for $262 million added three packaging facilities to GPHC's operations. The company also announced plans to close multiple packaging facilities by early 2025, consolidating production into existing facilities to streamline operations.

Operationally, GPHC maintained a workforce of over 23,000 employees across more than 100 locations in over 20 countries. The company reported that approximately 68% of its employees are based in the Americas, with 59% represented by labor unions. The company’s focus on sustainability and innovation in packaging solutions has driven growth in certain segments, particularly in foodservice and beverage markets, despite lower sales in food, household, and health and beauty sectors.

Looking ahead, GPHC anticipates continued challenges from inflationary pressures on raw materials and energy costs, as well as shifts in consumer preferences. The company is committed to enhancing its operational efficiencies and expanding its market share through strategic acquisitions and product innovations. GPHC's management expressed confidence in its ability to navigate these challenges and achieve its long-term growth objectives, supported by a robust liquidity position and ongoing investments in sustainable packaging solutions.