WestRock Company announced results for its fiscal 1Q ended December 31, 2021. 1Q net sales increased $551 million, or 12.5%, year-over-year. Paper segment sales increased $262 million, Corrugated Packaging segment sales increased $201 million, Consumer Packaging segment sales increased $76 million and Distribution segment sales increased $21 million.
Net income increased $30 million, or 19.9%, year-over-year primarily due to higher pricing and lower interest expense that was partially offset by net cost inflation, lower aggregate volumes, increased maintenance outages and other items.
Consolidated Adjusted EBITDA increased $11 million, or 1.6%, year-over-year as strength in the Paper segment more than offset decreases in the Corrugated Packaging, Distribution and Consumer Packaging segments. Additionally, non-allocated expenses declined by $4 million.
“I am pleased with our strong performance during the 1Q of fiscal 2022, in which our teams delivered record 1Q sales and double-digit EPS growth while navigating the continued and unpredictable macroeconomic landscape. We also delivered solid margin performance in the face of continued supply chain disruption, higher inflation and increased absenteeism associated with COVID-19,” said David B. Sewell, CEO.
Net cash provided by operating activities was $253 million in the 1Q of fiscal 2022 compared to $719 million in the prior year quarter primarily due to higher working capital usage compared to the prior year period. The working capital usage was higher year-over-year primarily due to actions taken in the prior year to preserve cash due to the high uncertainty during the COVID-19 pandemic.
WestRock Company is a global manufacturer of differentiated paper and packaging solutions.
