Consumer SpendingPricing pressure in the industry is a testament to the consequences of a ‘lower-for-longer’ volume backdrop—noting that consumer spending challenges are likely to persist over the near term.
EarningsShares will likely be pressured on the weak earnings report, noting that net debt:EBITDA is still elevated at the expected ~4x by YE24.
Operational ChallengesVolumes were weaker than forecast, reflective of consumer spending challenges across multiple channels, with operational issues at the Pine Bluff mill also weighing on 2Q24.