Graphic Packaging Holding Company reported Q3 2024 results. Net sales decreased 6% or $133 million to $2,216 million in the Q3 2024, compared to $2,349 million in the prior year period. The decline was driven by a $109 million impact from the divestiture of the Augusta, Georgia, bleached paperboard manufacturing facility and reduced open market sales participation, and a $35 million net decline in sales from packaging operations, where price declines were partially offset by volume growth.
EBITDA for the Q3 2024 was $417 million, $31 million lower than the Q3 2023. After adjusting both periods for business combinations and other special items, Adjusted EBITDA was $433 million in the Q3 2024 versus $482 million in the Q3 2023.
Net Income was $165 million, or $0.55 per share, based upon 302.6 million weighted average diluted shares. This compares to Q3 2023 net income of $170 million, or $0.55 per share, based upon 309.2 million weighted average diluted shares. The Q3 2024 was impacted by a net charge from special items and amortization of purchased intangibles of $29 million and the Q3 2023 was impacted by a net charge from special items and amortization of purchased intangibles of $59 million.
When adjusting for special items and amortization of purchased intangibles, Adjusted net income for the Q3 2024 was $194 million, or $0.64 per diluted share. This compares to Q3 2023 Adjusted Net Income of $229 million, or $0.74 per diluted share.
Michael Doss, the Company's President and CEO said: "In the Q3, we saw our packaging volumes turn positive, after Europe's return to growth in the Q2. Q3 also saw the launch of new paperboard cup and container innovations for major Foodservice customers and the first-ever round Boardio paperboard canister for a leading collagen-protein brand. Our innovations are delivering real value for our customers and for consumers.
Despite volume challenges brought on first by customer and retailer destocking and later by the pressure consumers are feeling from price inflation, we are delivering margin strength and consistency in line with the best global consumer packaging companies. That speaks to the value of the portfolio we have created, the success of our sustainable packaging innovations, and our team's commitment to outstanding execution. As volumes continue to improve and our Waco investment moves toward completion, cash generation will rise significantly, and we will deploy that cash to create substantial additional value for shareholders."
Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials.
