Ranpak Holdings reports Q2 EPS 93c), consensus (9c)

Reports Q2 revenue $81.9M, consensus $83.5M. “We are pleased to continue to see improvement in our financial profile as our margins improve faster than anticipated,” said Omar Asali, chairman and CEO of Ranpak. “Sales for the quarter were down 5.6% year over year, or 7.0% on a constant currency basis, as consumers continue to allocate their spend towards experiences and services rather than goods, and the European economy remains impacted by the war and inflation. Overall though, while the volume environment remained challenging, the improvements in the input cost environment drove gross margin expansion of more than 400 bps year over year and 900 bps above the fourth quarter of 2022 to 36.9%, or 37.0% on a constant currency basis. Gross profit improvement of 6.7%, or 5.4% on a constant currency basis, and tight spending enabled us to increase Adjusted EBITDA by 4.4% year over year to $19.0 million on a constant currency basis. Generally speaking, the environment remains inconsistent, but we are pleased to see the continued sequential improvement of Gross Profit and Adjusted EBITDA on a constant currency basis compared to the fourth quarter of 2022 on similar levels of sales. The operating leverage that was so painful for us last year with rising input costs, is finally turning the other way.”