Ranpak Q1 Report 2024
Omar Asali, Chairman and Chief Executive Officer, commented, “We are pleased to build off the momentum of the second half of 2023 by beginning 2024 with continued volume growth and profitability improvement as evidenced by strong growth in Gross Profit and Adjusted EBITDA on a constant currency basis. Sales for the quarter increased 5.0% year over year, or 4.4% on a constant currency basis, as volumes increased 5.3% and Automation grew 50%+. In addition to seeing volumes improve vs the prior year for the third quarter in a row, the continued favorable input cost environment drove gross margin expansion of 400 bps year over year to 37.9%, or 38.0% on a constant currency basis. Gross profit improvement of 17.5%, or 16.7% on a constant currency basis, along with controlled expenses drove an increase of Adjusted EBITDA by 33.8% year over year to $20.2 million on a constant currency basis. This growth in Adjusted EBITDA helped continue our path of deleveraging, achieving a 4.4x net debt to LTM Adjusted EBITDA ratio on a constant currency basis as of the end of the first quarter. We remain committed to generating cash in 2024 and moving towards our target of 3.0x or less leverage.”
Highlights
- Packaging System placement up 0.9% year over year to approximately 140,800 machines at March 31, 2024
- Net revenue for the first quarter increased 5.0% year over year to $85.3 million and increased 4.4% year over year on a constant currency basis to $88.5 million
- Net loss for the first quarter of $8.1 million compared to net loss of $12.4 million for the prior year period
- Constant Currency Adjusted EBITDA (“AEBITDA”) for the first quarter of $20.2 million up 33.8%, or $5.1 million, year over year
