WestRock Reports Strong Fourth Quarter Fiscal 2023 Results

David B. Sewell, chief executive officer, WestRock

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ATLANTA - WestRock Company (NYSE:WRK), a leading provider of sustainable paper and packaging solutions, today announced results for its fiscal fourth quarter and year ended September 30, 2023.

Fourth Quarter Highlights and other notable items:

  • Net sales of $5.0 billion
  • Net income of $110 million, Adjusted Net Income of $210 million; net income included $344 million ($239 million of which was non-cash) of restructuring and other costs, net and a $239 million gain on sale of the Company’s interior partitions converting operations and Chattanooga, Tennessee uncoated recycled paperboard mill
  • Earned $0.43 per diluted share (“EPS”) and $0.81 of Adjusted EPS
  • Consolidated Adjusted EBITDA of $736 million; Corrugated Packaging segment Adjusted EBITDA increased 13.0% compared to the fourth quarter of fiscal 2022
  • Results negatively impacted by $64 million due to economic downtime and a $40 million increase in non-cash pension costs, each compared to the fourth quarter of fiscal 2022; WestRock’s U.S. qualified and non-qualified pension plans remain overfunded
  • Announced 10% dividend increase in October 2023
  • Announced proposed business combination with Smurfit Kappa Group plc to create a global leader in sustainable packaging (the “Transaction”)

Full Year 2023 Highlights:

  • Net sales of $20.3 billion
  • Net loss of $1.6 billion, Adjusted Net Income of $778 million
    • Results reflected a $1.9 billion pre-tax, non-cash goodwill impairment and $859 million ($605 million of which was non-cash) of pre-tax restructuring and other costs, net
  • Consolidated Adjusted EBITDA of $3.0 billion
  • Loss per share of $6.44 and generated $3.02 of Adjusted EPS
  • Generated net cash provided by operating activities of $1.8 billion and Adjusted Free Cash Flow of $933 million
  • Exceeded cost savings expectations in fiscal 2023, and exited fiscal 2023 with greater than $450 million in run-rate savings
  • Invested $1.1 billion in capital expenditures and returned $281 million in capital to stockholders in dividend payments.
  • Simplified the Company’s portfolio to streamline its business and improve performance

“The WestRock team delivered another strong quarter, demonstrating the power and resilience of our diversified portfolio, innovative solutions and scale,” said David B. Sewell, chief executive officer. “I’m incredibly proud of our team’s commitment to serving our customers, while executing on and accelerating our transformation actions. Through our portfolio optimization actions, cost savings initiatives and strategic growth plans, we are positioning WestRock well to deliver shareholder value. As we turn to fiscal 2024, we remain committed to unlocking additional cost savings and driving profitable growth.”


Source: WestRock


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