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WestRock Reports Record Net Sales in Fiscal Fourth Quarter 2021

David B. Sewell "The WestRock team delivered strong results in fiscal 2021, with record net sales and strong cash flows for the full fiscal year." – David B. Sewell, CEO of WestRock.

Nov. 9, 2021 - WestRock Company today announced results for its fiscal fourth quarter and year ended September 30, 2021.

Notable items in the fourth quarter include:

  • Record net sales of $5.1 billion increased 14% compared to $4.5 billion in the prior year quarter
  • Net income of $324 million compared to a net loss of $1,156 million in the prior year quarter, which included a $1,314 million goodwill impairment net of tax
  • Adjusted Segment EBITDA of $878 million increased 22% compared to $721 million in the prior year quarter
  • Earned $1.20 per diluted share and $1.23 of Adjusted Earnings Per Diluted Share compared to a loss of $4.45 and adjusted earnings of $0.73, respectively, in the prior year quarter

"The WestRock team delivered strong results in fiscal 2021, with record net sales and strong cash flows for the full fiscal year," said David B. Sewell, chief executive officer. "We executed on our capital allocation priorities, and I'm pleased to announce that we reached our target net leverage ratio in the quarter. In addition, we recently announced another increase to our dividend, which will result in a 25% increase since February. Looking forward, we believe we remain well positioned to successfully partner with our customers to meet their growing needs for sustainable, fiber-based packaging solutions."

Operating Highlights for the Three Months Ended September 30, 2021 compared to September 30, 2020:

Net sales increased $619 million compared to the prior year quarter. Corrugated Packaging segment net sales increased $500 million and Consumer Packaging segment net sales increased $156 million. Segment income increased $153 million compared to the prior year quarter, with Corrugated Packaging segment income increasing $93 million and Consumer Packaging segment income increasing $60 million.

SEGMENT RESULTS

Operating Highlights for the Three Months Ended September 30, 2021 compared to September 30, 2020:

Corrugated Packaging Segment

Segment net sales increased $500 million, primarily due to higher selling price/mix, higher volumes and favorable impact of foreign currency. The Corrugated Packaging segment delivered a Segment EBITDA margin of 17.8% and a North American Adjusted Segment EBITDA margin of 19.0%.

Segment income increased $93 million, primarily due to the margin impact of higher selling price/mix and higher volumes that were partially offset by net cost inflation and other items.

Consumer Packaging Segment

Segment net sales increased $156 million, primarily due to higher selling price/mix, higher volumes and favorable impact of foreign currency. The Consumer Packaging segment delivered Segment EBITDA and Adjusted Segment EBITDA margins of 15.9%.

Segment income increased $60 million, primarily due to the margin impact from higher selling price/mix, productivity improvements, lower economic downtime compared to the prior year period and higher volumes that were partially offset by net cost inflation and other items.

WestRock's complete fiscal fourth quarter 2021 report is available on the company's website: www.westrock.com.

WestRock (NYSE:WRK) partners with its customers to provide differentiated paper and packaging solutions that help them win in the marketplace. WestRock's team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia. To learn more, visit: www.westrock.com.

SOURCE: WestRock Company

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