Q2 2024 Ranpak Holdings Corp Earnings Call Transcript
Key Points
- Ranpak Holdings Corp (PACK) reported mid-single-digit top-line growth with improved profitability driven by higher volumes for the fourth consecutive quarter.
- North America sales increased by 17% year-over-year, driven by strategic account activity and the plastic-to-paper shift.
- The company saw strong performance in Asia Pacific, particularly in Japan, contributing to overall growth.
- Ranpak Holdings Corp (PACK) maintained a strong liquidity position with a $65 million cash balance and no drawings on its revolving credit facility.
- The company is making significant progress in deleveraging, reducing its leverage ratio from 5.7 times in Q2 2023 to 4.2 times at the end of Q2 2024.
- Europe and Asia Pacific activity levels were less robust than North America, with volumes increasing only slightly and constant currency sales down about 1% year-over-year.
- The cushioning systems segment saw a decline of 0.3% year-over-year, impacted by lower activity levels in the industrial and manufacturing sectors.
- Gross margins were slightly lower due to a mix of lower cushioning and higher void fill, with a margin of 36.8% compared to 37% in the prior year.
- The company expects some input cost pressure in the second half of the year, which could impact margins.
- Energy pricing volatility in Europe remains a concern, particularly as the region approaches the fall and winter seasons.
Thank you for standing by. My name is John, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Ranpak Holdings second quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded.
Thank you. I would now like to turn the call over to Sarah Horvath, General Counsel. Please go ahead.
Thank you, and good morning, everyone. Before we begin, I'd like to remind you that we will discuss forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our Form 10-K and our other filings filed with the SEC.
Some of the statements and responses to your questions in this conference call may include forward-looking statements that are subject to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
