Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide an update on the impact of the Augusta facility sale on EBITDA for the year?
A: Stephen R. Scherger, Executive VP & CFO, explained that most of the earnings from the bleached paperboard facilities occurred in the first half of the previous year, with significant market-related downtime in the second half. For this year, the impact is mostly in Q1 and Q2, with a much more modest effect expected in the second half.
Q: How are the announced price hikes on CUK and CRB progressing, given they haven't been reflected in Pulp and Paper Week?
A: Michael P. Doss, President, CEO & Director, noted that the company is actively implementing the announced price increases and has had success. He emphasized the company's strategy of moving with end-use consumers and passing along input cost inflation over time.
Q: With the shift from premium to value items in the foodservice market, how is this affecting your business?
A: Michael P. Doss mentioned that despite the broader market trend, Graphic Packaging has not seen a significant impact on their business, indicating continued strength in their foodservice sales.
Q: Can you discuss the expected EBITDA contribution from the Waco facility and its ramp-up?
A: Stephen R. Scherger clarified that the Waco facility is expected to contribute an incremental $160 million in EBITDA over the first two years of operation, with further improvements anticipated through ongoing productivity initiatives.
Q: How is the company handling the balance between volume growth and inflation impacts for the remainder of the year?
A: Stephen R. Scherger and Michael P. Doss discussed managing inflation through productivity and cost control within their operations, expecting volume growth to accelerate in the second half of the year based on customer feedback and market dynamics.
Q: What is the strategy behind transitioning away from third-party pricing indices in customer contracts?
A: Michael P. Doss explained that the company is moving away from third-party indices to improve transparency and accuracy in pricing discussions with customers, focusing on the value delivered through their packaging solutions rather than just the price mechanisms.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
