Ranpak Holdings reports Q4 net loss $7.3M vs $2.5M last year

Reports Q4 revenue $79.4M, consensus $90.48M."Net revenue for the quarter decreased 22.2% year over year on a constant currency basis to $85.1 million. The decline was primarily driven by lower volumes in North America and Europe/APAC due to lower e-Commerce and industrial activity resulting from macro uncertainty and customers’ focus on reducing inventory into year end. Our top-line pressure and input cost headwinds combined to create downward pressure on our profitability as gross margins declined to 28.1% from 35.6% in the prior year, and Adjusted EBITDA declined 63.9% on a constant currency basis to $12.9 million. For the year net revenue declined 8.8% on a constant currency basis to $344.1 million and Adjusted EBITDA declined 43.3% to $66.8 million on a constant currency basis, resulting in a margin of 19.4%." "2022 was an exceptionally difficult year for Ranpak, particularly as we endured many headwinds that impacted us at a time when we were making key investments to position us well for the future. We are extremely disappointed in the performance for the year and are committed to getting our results back in-line with the historical high quality financial profile of this business. While the economic environment remains volatile, we have reasons to believe 2023 will be a better year for Ranpak. Based on our conversations with customers and our 2023 results to date, the de-stocking that plagued us throughout 2022 in Europe/APAC appears to be largely behind us. After an extended period of blistering increases, we believe that our largest input cost, Kraft paper, peaked in price at the end of the year and is now turning into a potential tailwind for us in 2023. A historically warm winter and ample LNG supplies resulted in European natural gas prices retreating more than 80% since the summer, leading to improved confidence in the region and contributing to a lower cost operating environment compared to 2022. These are important forces that have turned more in our favor and I am confident that we will be well positioned to take advantage of the more favorable environment in order to recapture Ranpak’s historical growth and profitability."