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Smurfit WestRock plc(SW) - 2024 Q2 - Quarterly Results
SWSmurfit WestRock plc(SW)2024-07-30 20:31

Financial Performance - Net Sales for Q2 2024 were approximately 3.0billion,adecreaseof3.0 billion, a decrease of 107 million (3%) compared to Q2 2023[1][6] - Net Income for Q2 2024 was 132million,adecreaseof132 million, a decrease of 135 million compared to Q2 2023[1][7] - Adjusted EBITDA for Q2 2024 was 480millionwithamarginof16.2480 million with a margin of 16.2%, compared to 556 million and 18.1% in Q2 2023[1][8] - Net sales for Q2 2024 were 2.969billion,adecreaseof3.52.969 billion, a decrease of 3.5% compared to 3.076 billion in Q2 2023[20] - Gross profit for Q2 2024 was 693million,down12.1693 million, down 12.1% from 788 million in Q2 2023[20] - Net income attributable to common stockholders for Q2 2024 was 132million,a50.6132 million, a 50.6% decrease from 267 million in Q2 2023[20] - Consolidated net income for the six months ended June 30, 2024, was 323million,comparedto323 million, compared to 548 million in the same period in 2023[26] - Adjusted EBITDA for the six months ended June 30, 2024, was 955million,comparedto955 million, compared to 1.157 billion in the same period in 2023[33] - Adjusted EBITDA margin for the six months ended June 30, 2024, was 16.2%, down from 18.3% in the same period in 2023[33] - Net income margin for the six months ended June 30, 2024, was 5.5%, compared to 8.7% in the same period in 2023[33] - Net income for the twelve months ended June 30, 2024, was 601million,comparedto601 million, compared to 826 million for the twelve months ended December 31, 2023[34] - Adjusted EBITDA for the twelve months ended June 30, 2024, was 1,926million,downfrom1,926 million, down from 2,128 million for the twelve months ended December 31, 2023[34] Segment Performance - Corrugated volume growth was 3.1% in Q2 2024, with 3.5% growth in Europe and 1.5% in the Americas year-on-year[4] - Europe segment net sales for Q2 2024 were 2.207billion,a6.12.207 billion, a 6.1% decline from 2.350 billion in Q2 2023[22] - The Americas segment net sales for Q2 2024 increased 5.0% to 762millionfrom762 million from 726 million in Q2 2023[22] - Europe segment Adjusted EBITDA margin for Q2 2024 was 16.1%, down from 18.4% in Q2 2023[22] - The Americas segment Adjusted EBITDA margin for Q2 2024 was 19.2%, slightly lower than 19.3% in Q2 2023[22] Cash Flow and Liquidity - Net cash provided by operating activities increased by 33million(1133 million (11%) to 340 million in Q2 2024 compared to Q2 2023[13] - Adjusted Free Cash Flow for Q2 2024 was 186million,comparedto186 million, compared to 83 million in Q2 2023[14] - Net cash provided by operating activities for the six months ended June 30, 2024, was 382million,downfrom382 million, down from 570 million in the same period in 2023[26] - Free Cash Flow for the three months ended June 30, 2024, was 163million,upfrom163 million, up from 83 million for the same period in 2023[36] - Adjusted Free Cash Flow for the three months ended June 30, 2024, was 186million,comparedto186 million, compared to 83 million for the same period in 2023[36] - Net cash provided by operating activities for the three months ended June 30, 2024, was 340million,comparedto340 million, compared to 307 million for the same period in 2023[36] Debt and Leverage - Total borrowings amounted to 6,432millionatJune30,2024,comparedto6,432 million at June 30, 2024, compared to 3,747 million at December 31, 2023[15] - Net debt was 3,107millionattheendofJune2024,resultinginanetleverageratioof1.6xcomparedto1.3xattheendofDecember2023[15]−AdditionstodebtforthesixmonthsendedJune30,2024,were3,107 million at the end of June 2024, resulting in a net leverage ratio of 1.6x compared to 1.3x at the end of December 2023[15] - Additions to debt for the six months ended June 30, 2024, were 2.812 billion, significantly higher than 69millioninthesameperiodin2023[26]−NetDebtasofJune30,2024,was69 million in the same period in 2023[26] - Net Debt as of June 30, 2024, was 3,107 million, up from 2,747millionasofDecember31,2023[37]−NetLeverageRatioasofJune30,2024,was1.6x,comparedto1.3xasofDecember31,2023[37]CapitalExpendituresandInvestments−CapitalexpendituresforthesixmonthsendedJune30,2024,were2,747 million as of December 31, 2023[37] - Net Leverage Ratio as of June 30, 2024, was 1.6x, compared to 1.3x as of December 31, 2023[37] Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, were 385 million, compared to 459millioninthesameperiodin2023[26]−CapitalexpendituresforthethreemonthsendedJune30,2024,were459 million in the same period in 2023[26] - Capital expenditures for the three months ended June 30, 2024, were 177 million, down from 224 million for the same period in 2023[36] Transaction and Corporate Updates - Smurfit Westrock completed its transaction with WestRock on July 5, 2024, and listed on the NYSE on July 8, 2024[5] - Smurfit Westrock's credit rating is BBB/BBB/Baa2 from S&P, Fitch, and Moody's respectively[1] - Transaction-related expenses associated with the Combination for the twelve months ended June 30, 2024, were 161 million, up from 78millionforthetwelvemonthsendedDecember31,2023[34]BalanceSheetandAssets−Cashandcashequivalentsincreasedto78 million for the twelve months ended December 31, 2023[34] Balance Sheet and Assets - Cash and cash equivalents increased to 3.325 billion as of June 30, 2024, up from 1.000billionatDecember31,2023[24]−Totalassetsgrewto1.000 billion at December 31, 2023[24] - Total assets grew to 16.232 billion as of June 30, 2024, compared to 14.051billionatDecember31,2023[24]−Totalliabilitiesincreasedto14.051 billion at December 31, 2023[24] - Total liabilities increased to 10.291 billion as of June 30, 2024, from 7.877billionatDecember31,2023[24]−Cash,cashequivalents,andrestrictedcashattheendofJune30,2024,were7.877 billion at December 31, 2023[24] - Cash, cash equivalents, and restricted cash at the end of June 30, 2024, were 3.325 billion, up from 668millionattheendofJune30,2023[26]ExpensesandOtherFinancialMetrics−Cashpaidforincometaxes,netofrefunds,forthesixmonthsendedJune30,2024,was668 million at the end of June 30, 2023[26] Expenses and Other Financial Metrics - Cash paid for income taxes, net of refunds, for the six months ended June 30, 2024, was 79 million, compared to 187millioninthesameperiodin2023[26]−Share−basedcompensationexpenseforthesixmonthsendedJune30,2024,was187 million in the same period in 2023[26] - Share-based compensation expense for the six months ended June 30, 2024, was 31 million, compared to 36millioninthesameperiodin2023[26]−Pensionexpense(excludingcurrentservicecost)forthetwelvemonthsendedJune30,2024,was36 million in the same period in 2023[26] - Pension expense (excluding current service cost) for the twelve months ended June 30, 2024, was 68 million, compared to $49 million for the twelve months ended December 31, 2023[34]