Ranpak Holdings Corp (PACK) Reports Q3 2023 Financial Results: 6.4% Increase in Net Revenue
Net revenue for Q3 2023 increased by 6.4% YoY to $82.8 million
Net loss for Q3 2023 was $3.3 million, a significant decrease from the $8.7 million net loss in the same period last year
Packaging system placement increased by 2.5% YoY to approximately 142,000 machines
Adjusted EBITDA for Q3 2023 was $18.0 million, up 8.4% YoY
On October 31, 2023, Ranpak Holdings Corp (NYSE:PACK), a leading provider of environmentally sustainable, systems-based, product protection solutions for e-Commerce and industrial supply chains, released its third quarter 2023 financial results. Despite a challenging environment, the company reported a significant reduction in net loss and an increase in net revenue.
Financial Performance and Challenges
Ranpak Holdings Corp (NYSE:PACK) reported a net revenue of $82.8 million for Q3 2023, marking a 6.4% increase YoY. However, the company also reported a net loss of $3.3 million for the same period, which is a significant improvement compared to the net loss of $8.7 million reported in the prior period. Adjusted EBITDA for Q3 2023 was $18.0 million, up 8.4% YoY.
Despite these positive results, the company faced several challenges. According to Omar M. Asali, Chairman and Chief Executive of Ranpak, "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."
Financial Achievements and Outlook
Despite the challenges, Ranpak Holdings Corp (NYSE:PACK) reported several financial achievements. The company's packaging system placement increased by 2.5% YoY to approximately 142,000 machines. Additionally, the company's gross margin expanded by more than 650 bps YoY and 1000 bps above the fourth quarter of 2022 to 38.0%.
Looking ahead, Asali expressed optimism about the company's future, stating, "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."
Balance Sheet and Liquidity
Ranpak Holdings Corp (NYSE:PACK) ended Q3 2023 with a strong liquidity position, including a cash balance of $52.1 million and no borrowings on its $45 million Revolving Credit Facility. As of September 30, 2023, the Company had First Lien Term Loan facilities outstanding consisting of a $250.0 million USD-denominated term loan and 134.4 million euro-denominated term loan, resulting in an Adjusted EBITDA net leverage ratio of 5.6x based on results on a constant currency basis through the third quarter of 2023.
Summary of Financial Tables
The company's Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) showed a net loss of $3.3 million for Q3 2023, compared to a net loss of $8.7 million for the same period in 2022. The Unaudited Condensed Consolidated Balance Sheets showed a total asset of $1,119.2 million as of September 30, 2023, compared to $1,133.5 million as of December 31, 2022.
Overall, despite facing a challenging environment, Ranpak Holdings Corp (NYSE:PACK) has shown signs of improvement in its financial performance. With a significant reduction in net loss and an increase in net revenue, the company is optimistic about its future growth.
Explore the complete 8-K earnings release (here) from Ranpak Holdings Corp for further details.
This article first appeared on GuruFocus.
