The following is a summary of the Ranpak Holdings Corp. (PACK) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Ranpak Holdings Corp. reported a 4.4% increase in top line growth and significantly improved profitability in Q1 2024.

• Gross margins improved year-over-year by 400 basis points, with adjusted EBITDA margins improving by 500 basis points.

• North American sales grew by 2.6%, while sales in Europe and APAC regions increased by 5.4% compared to the prior year.

• Net revenue for the company was up 4.4% year-over-year on a constant currency basis.

• Gross profit increased by 16.7% on a constant currency basis, with adjusted EBITDA up 33.8% year-over-year to $20.2 million.

• A litigation matter related to patent infringement has been settled for a total of €20 million, positively affecting the company's liquidity.

Business Progress:

• The company is on track to achieve the targeted results for 2024 and is seeing growth in volume and an improvement in strategic account activity.

• Plans are underway to accelerate their plastic to paper shift, providing solid volume momentum for the rest of the year.

• The automation business is gaining traction, particularly with large accounts, and over 50% revenue growth is expected in this segment for the year.

• Ranpak's long-term objective is to grow revenue in the high single to low double-digit area, with gross and adjusted EBITDA margins targeted in the high 30s% to 40% and high 20s to low 30s% area respectively.

• With a focus on driving the top line and improving profitability, paper and automation are key areas of focus for the company in 2024 and 2025.

• The plan is to effectively fulfill customer demands by efficiently balancing the use of CapEx and meeting customer needs with possible modest increases from the last quarters.

More details: Ranpak Holdings IR

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