Ranpak Holdings reports Q3 EPS (4c), consensus (7c)

Reports Q3 revenue $82.8M, consensus $84.25M. Constant currency AEBITDA of $18M for the three months ended September 30, 2023 is up 8.4% “We are pleased to report continued improvement in our operating and financial profile as volumes increased year over year and we continue to see gross margin expansion,” said Omar M. Asali, Chairman and Chief Executive of Ranpak. “Sales for the quarter increased 6.4% year over year, or 1.9% on a constant currency basis, as volumes increased 5% but were partially offset by price giveback in certain regions. Overall the environment remains challenging as consumer spend is more heavily allocated to experiences rather than discretionary goods and the impact of inflationary and interest rate pressures continue to impact consumer and corporate spend. In addition to seeing volumes improve for the first time since 2021, the continued favorable input cost environment drove gross margin expansion of more than 650 bps year over year and 1000 bps above the fourth quarter of 2022 to 38.0%, or 38.2% on a constant currency basis. Gross profit improvement of 29.1%, or 23.4% on a constant currency basis, drove an increase of Adjusted EBITDA by 8.4% year over year to $18M on a constant currency basis.” “Although the environment remains inconsistent, we are pleased to see the continued year over year improvement of Gross Profit and Adjusted EBITDA on a constant currency basis and expect to build on that in the fourth quarter as we enter our seasonal peak. Although there is a great deal of uncertainty in the world right now, I believe we have turned the corner in the business and are on the path to realizing the benefits of the investments and efforts we have made over the past few years. I believe we are exiting 2023 with good momentum in the pipeline for PPS and Automation and that we will build on the progress we have made this year. In addition to driving topline and returning to growth, our top priorities as an organization are deleveraging and maximizing the return on our existing investments.”