Graphic Packaging Holding Company (GPK) has reported 38.99 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $34.90 million, or $0.11 a share in the quarter, compared with $57.20 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $44.70 million, or $0.14 a share compared with $63 million or $0.19 a share, a year ago.

Revenue during the quarter grew 3.15 percent to $1,057.20 million from $1,024.90 million in the previous year period. Gross margin for the quarter contracted 168 basis points over the previous year period to 17.79 percent. Total expenses were 92.61 percent of quarterly revenues, up from 90.09 percent for the same period last year. That has resulted in a contraction of 253 basis points in operating margin to 7.39 percent.

Operating income for the quarter was $78.10 million, compared with $101.60 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $175.10 million compared with $180.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 107 basis points in the quarter to 16.56 percent from 17.63 percent in the last year period.

"While our fourth quarter Adjusted EBITDA was down modestly versus the prior year period due to accelerating commodity input costs and foreign exchange headwinds, we were encouraged by a return of core volume during the quarter and strong operating performance. Volume in our core business improved in the fourth quarter compared to the third quarter, and our mill and converting facilities operated well." said President and chief executive officer Michael Doss.

The company has spent $632.50 million cash to meet investing activities during the year as against cash outgo of $399.80 million in the last year. It has incurred net capital expenditure of $262.60 million on net basis during the year, up 22.88 percent or $48.90 million from year ago.

The company has spent $3.10 million cash to carry out financing activities during the year as against cash outgo of $210.90 million in the last year period.

Cash and cash equivalents stood at $59.10 million as on Dec. 31, 2016, up 7.65 percent or $4.20 million from $54.90 million on Dec. 31, 2015.

Working capital remains almost stable
Working capital of Graphic Packaging Holding Company remained almost stable for the quarter at $335.10 million, when compared with the previous year period. Current ratio was at 1.43 as on Dec. 31, 2016, down from 1.46 on Dec. 31, 2015.

Debt moves up
Graphic Packaging Holding Company has witnessed an increase in total debt over the last one year. It stood at $2,151.90 million as on Dec. 31, 2016, up 14.74 percent or $276.40 million from $1,875.50 million on Dec. 31, 2015. Total debt was 46.75 percent of total assets as on Dec. 31, 2016, compared with 44.07 percent on Dec. 31, 2015. Debt to equity ratio was at 2.04 as on Dec. 31, 2016, up from 1.70 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.63 for the quarter from 6.12 for the same period last year.