Ranpak reports strong growth and profitability in Q2, optimistic about future revenue and EBITDA

From Investing.com: 2024-08-04 18:00:31

Ranpak Holdings Corp. reported a strong second quarter of 2024, with mid-single-digit top-line growth and improved profitability. North American sales increased by 17%, driven by strategic accounts. The company anticipates input cost increases in the second half of the year but aims to maintain its margin profile. Strategic focus on account management and automation is expected to drive future growth and profitability.

Looking ahead, Ranpak is optimistic about revenue growth and EBITDA for the year. Efforts are focused on volume growth, profitability, and cash generation. The company aims to double its business size in the Asia Pacific region in the coming years, with the Malaysia plant set to go live in August. Strategic accounts in North America are expected to boost annual EBITDA by $5-10 million.

Despite slower activity in Europe and Asia Pacific, Ranpak remains bullish on its business, with a 20% volume increase in North America in Q2. The company sees automation and the shift from plastic to paper packaging as key drivers of future growth. Automation bookings have increased by 100% in the past quarter, highlighting strong demand in this area.

The earnings call revealed Ranpak’s strong performance in North America and ambitious outlook in automation. The company’s focus on strategic initiatives, including the shift to paper packaging, is expected to drive profitability. With a solid financial trajectory, Ranpak’s stock has shown strong performance in recent months, reflecting investor confidence in its future prospects and market positioning.



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