Ranpak Holdings Corp. Reports Second Quarter 2021 Financial Results

Omar Asali, Chairman and Chief Executive Officer, commented, “Ranpak delivered an outstanding second quarter, with very strong net revenue and profitability growth. Net revenue for the quarter increased 29.1% year over year on a constant currency basis to $87.5 million, driven by broad-based strength across the globe with both North America and Europe/APAC meaningfully contributing to the top-line outperformance.

We experienced robust demand for all protective packaging products fueled by continued elevated e-Commerce activity, improving industrial activity, and a growing focus on sustainability contributing to new business wins globally. This strong top-line growth was surpassed by our growth in profitability as Adjusted EBITDA increased 34.7% on a constant currency basis to $25.6 million. Activity levels in a variety of end markets are driving growth, with strong momentum in the business as organizations worldwide seek to make their supply chains more efficient and more environmentally friendly.”

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“Presentation of Combined and Pro Forma Measures and Reconciliation of U.S. GAAP to Non-GAAP Measures”

“On a year-to-date basis, net revenue is up 30.1% in constant currency. Given the increased demand for our products and underlying strength in the end markets, we expect to continue to deliver strong growth in 2021 surpassing our expectations from the start of the year and expect to finish with a record year at Ranpak, despite having second half comparisons that are more challenging given our robust 2020 performance. Our team is adeptly maneuvering through this dynamic market and working extremely hard to serve our customers. I am extremely proud of the phenomenal effort.”

“As we look further ahead, Ranpak is uniquely positioned to benefit from several key trends that have been accelerated by COVID-19: e-Commerce taking share from brick and mortar, increased Automation adoption, and an increased awareness by the consumer on the amount of plastic and foam in supply chains. We are seizing this opportunity by investing in innovation, capacity, and resources to help the team execute to achieve our substantial growth ambitions.”

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Second Quarter 2021 Highlights

• Packaging systems placement increased 12.9% year over year, to approximately 123,600 machines as of June 30, 2021
• Net revenue increased 36.2% and 29.1% adjusting for constant currency
• Net loss of $5.2 million compared to net loss of $8.5 million
• AEBITDA¹ of $25.6 million for the three months ended June 30, 2021 is up 34.7%

Net revenue for the three months ended June 30, 2021 was $90.0 million compared to net revenue of $66.1 million in the three months ended June 30, 2020, an increase of $23.9 million or 36.2% year over year. Net revenue was positively impacted by increases in cushioning, void-fill, wrapping, and other sales.

Cushioning increased $12.5 million, or 48.4%, to $38.3 million from $25.8 million; void-fill increased $6.7 million, or 23.3%, to $35.5 million from $28.8 million; wrapping increased $4.2 million, or 53.2%, to $12.1 million from $7.9 million; and other sales increased $0.5 million, or 13.9%, to $4.1 million from $3.6 million, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020. Other net revenue includes automated box sizing equipment and non-paper revenue from packaging systems installed in the field. Constant currency net revenue was $87.5 million for the three months ended June 30, 2021, a $19.7 million, or 29.1%, increase from constant currency net revenue of $67.8 million for the three months ended June 30, 2020. The increase in net revenue was a result of an increase in the volume of our paper consumable products of approximately 32.0 percentage points (“pp”), partially offset by a 3.0 pp decrease in the price of our paper consumable products.

Net revenue in North America for the three months ended June 30, 2021 totaled $35.7 million. Net revenue in North America was $28.2 million in the three months ended June 30, 2020. Net revenue in North America increased $7.5 million, or 26.6% attributable to an increase in cushioning, void-fill, wrapping, and other sales.

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Net revenue in Europe/Asia for the three months ended June 30, 2021 totaled $54.3 million. Net revenue in Europe/Asia was $37.9 million in the three months ended June 30, 2020. Net revenue in Europe/Asia increased $16.4 million or 43.3% driven primarily by increases in cushioning, void-fill and wrapping product categories, partially offset by a decline in automation revenue. Constant currency net revenue in Europe/Asia was $51.8 million for the three months ended June 30, 2021, a $12.2 million, or 30.8%, increase from constant currency net revenue of $39.6 million for the three months ended June 30, 2020.

Net loss for the three months ended June 30, 2021 decreased $3.3 million to $5.2 million from a net loss of $8.5 million in the three months ended June 30, 2020. Constant currency net loss was $5.1 million in the three months ended June 30, 2021 compared to constant currency net loss of $8.6 million for the three months ended June 30, 2020.

Year-to-Date 2021 Highlights

• Net revenue increased 37.2% and 30.1% adjusting for constant currency
• Net income of $1.1 million compared to net loss of $12.1 million
• AEBITDA of $53.6 million for the six months ended June 30, 2021 is up 44.5%