Magnera Corporation Reports 35% Increase in Net Sales to $702 Million

Magnera Corporation, formerly known as Glatfelter Corporation, reported a significant increase in net sales for the quarter ending December 28, 2024, reaching $702 million, a 35% increase from $519 million in the same period last year. This growth was primarily driven by the recent acquisition of Glatfelter, which contributed $186 million in revenue, alongside a $11 million increase in selling prices. However, the company also faced challenges, including a $14 million negative impact from foreign currency fluctuations and a $12 million charge related to inventory fair value adjustments.

The company's operating loss widened to $22 million from a loss of $12 million in the prior year, attributed to increased business integration costs and losses from the acquired Glatfelter business. The Americas segment saw net sales rise to $420 million, up 21% from $348 million, while the Rest of World segment experienced a 65% increase in sales to $282 million, largely due to the acquisition. Despite these gains, both segments reported operating losses, with the Americas segment losing $7 million and the Rest of World segment losing $15 million.

In terms of strategic developments, the merger with Glatfelter was finalized on November 4, 2024, allowing Magnera to combine its sustainable solutions and product portfolio with Glatfelter's technologies and global scale. The company anticipates realizing annual synergies of approximately $55 million from this merger. The acquisition is expected to enhance Magnera's market position and expand its product offerings, aligning with its long-term growth strategy.

Operationally, the company reported a total employee headcount of 35.4 million shares outstanding, reflecting the new structure post-merger. The company is also focusing on geographic expansion, with significant sales growth in both the Americas and international markets. The company’s cash balance stood at $215 million at the end of the quarter, primarily located outside the U.S., and it plans to utilize this liquidity to meet its operational and capital needs.

Looking ahead, Magnera's management remains optimistic about long-term demand fundamentals across its divisions, despite facing short-term challenges such as inflation and currency devaluation. For fiscal 2025, the company projects a post-merger free cash flow of $75-95 million, including $85 million in capital spending. The company is committed to improving manufacturing productivity and adapting to customer volume changes, which it believes will support its growth trajectory in the coming years.