05.03.24
WestRock Company announced results for its fiscal second quarter ended March 31, 2024.
Net sales were $4.73 billion compared to $5.28 billion in 2023. The decline in net sales compared to the second quarter of fiscal 2023 was driven primarily by a $229 million, or 8.7%, decrease in Corrugated Packaging segment sales, a $152 million, or 13%, decrease in Global Paper segment sales and a $152 million, or 12%, decrease in Consumer Packaging segment sales.
The decrease in net sales was primarily due to lower selling price/mix largely driven by published price declines and softer volumes. Current year results were also impacted by the prior year mill and interior partition divestitures.
Consolidated adjusted EBITDA decreased $170 million, or 21.6% to $618 million, compared to the second quarter of fiscal 2023, primarily due to lower adjusted EBITDA across each of its segments.
“I’m proud of our team’s continued focus and execution, as we delivered strong results and made significant progress on our cost savings initiatives,” said David B. Sewell, CEO. “We have already exceeded the midpoint of our targeted cost savings for fiscal 2024, and we expect further savings through the remainder of the year and beyond. Our efforts are better positioning us to compete in the market and making us a more efficient company. Together with our scale and innovative, sustainable packaging solutions, WestRock is well positioned to capture share and drive long-term earnings growth.”
Net cash provided by operating activities was $37 million in the second quarter of fiscal 2024 compared to $284 million in the prior year quarter. The decrease was primarily due to increased working capital usage in the second quarter of fiscal 2024.
Total debt was $9 billion at March 31, 2024, and adjusted net debt was $8.4 billion.
Due to the proposed business combination with Smurfit Kappa Group plc to create a global leader in sustainable packaging, WestRock will not host a conference call to discuss its financial results for the fiscal second quarter ended March 31, 2024.
Preparations for the transaction, including regulatory submissions, are currently underway, and WestRock continues to expect the transaction to close in early July 2024.
Net sales were $4.73 billion compared to $5.28 billion in 2023. The decline in net sales compared to the second quarter of fiscal 2023 was driven primarily by a $229 million, or 8.7%, decrease in Corrugated Packaging segment sales, a $152 million, or 13%, decrease in Global Paper segment sales and a $152 million, or 12%, decrease in Consumer Packaging segment sales.
The decrease in net sales was primarily due to lower selling price/mix largely driven by published price declines and softer volumes. Current year results were also impacted by the prior year mill and interior partition divestitures.
Consolidated adjusted EBITDA decreased $170 million, or 21.6% to $618 million, compared to the second quarter of fiscal 2023, primarily due to lower adjusted EBITDA across each of its segments.
“I’m proud of our team’s continued focus and execution, as we delivered strong results and made significant progress on our cost savings initiatives,” said David B. Sewell, CEO. “We have already exceeded the midpoint of our targeted cost savings for fiscal 2024, and we expect further savings through the remainder of the year and beyond. Our efforts are better positioning us to compete in the market and making us a more efficient company. Together with our scale and innovative, sustainable packaging solutions, WestRock is well positioned to capture share and drive long-term earnings growth.”
Net cash provided by operating activities was $37 million in the second quarter of fiscal 2024 compared to $284 million in the prior year quarter. The decrease was primarily due to increased working capital usage in the second quarter of fiscal 2024.
Total debt was $9 billion at March 31, 2024, and adjusted net debt was $8.4 billion.
Due to the proposed business combination with Smurfit Kappa Group plc to create a global leader in sustainable packaging, WestRock will not host a conference call to discuss its financial results for the fiscal second quarter ended March 31, 2024.
Preparations for the transaction, including regulatory submissions, are currently underway, and WestRock continues to expect the transaction to close in early July 2024.