Ranpak Holdings Corp. (PACK) Bundle
A Brief History of Ranpak Holdings Corp.
Ranpak Holdings Corp. (NYSE: PACK) is a leading provider of sustainable packaging solutions, focusing primarily on paper-based products. The company has undergone significant developments throughout its history, particularly in the last few years leading up to 2024.
Company Overview
Founded in 1972, Ranpak specializes in paper-based packaging systems that help reduce the environmental impact of packaging waste. The company is headquartered in Concord Township, Ohio, and operates globally with a focus on North America and Europe.
Recent Financial Performance
As of September 30, 2024, Ranpak reported net revenue of $263.9 million for the nine months ending on that date, showing an increase of $18.0 million or 7.3% compared to $245.9 million for the same period in 2023. This growth was primarily driven by increases in void-fill and other net revenue, partially offset by decreases in cushioning and wrapping sales.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $92.2 million | $82.8 million | $9.4 million | 11.4% |
| Cost of Goods Sold | $57.8 million | $51.3 million | $6.5 million | 12.7% |
| Gross Profit | $34.4 million | $31.5 million | $2.9 million | 9.2% |
| Net Loss | $(8.1) million | $(3.3) million | $(4.8) million | 145.5% |
Geographic Revenue Breakdown
For the third quarter of 2024, the revenue distribution by region was as follows:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| North America | $40.3 million | $34.9 million | $5.4 million | 15.5% |
| Europe/Asia | $51.9 million | $47.9 million | $4.0 million | 8.4% |
Cost Structure and Expenses
Ranpak's cost of goods sold (COGS) for the nine months ended September 30, 2024, totaled $165.5 million, an increase of $8.8 million or 5.6% compared to $156.7 million in the same period in 2023. The COGS as a percentage of net sales decreased to 62.7% from 63.7%, primarily due to lower material costs.
| Expense Type | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| SG&A Expenses | $28.8 million | $20.9 million | $7.9 million | 37.8% |
| Depreciation and Amortization | $8.2 million | $8.1 million | $0.1 million | 1.2% |
Net Loss Analysis
Ranpak's net loss for the nine months ended September 30, 2024, was $10.7 million, a decrease of $7.1 million from a net loss of $17.8 million in the same period of 2023. This improvement was attributed to increased operational efficiencies and higher revenue generation.
Cash Flow and Capital Structure
Net cash provided by operating activities was $34.9 million for the nine months ended September 30, 2024, compared to $23.0 million for the same period in 2023. The increase in cash flow was largely due to reduced net loss and improved working capital management.
Market Position and Future Outlook
Ranpak continues to hold a competitive position in the sustainable packaging market, driven by its focus on environmentally friendly products. As e-commerce growth persists, the demand for paper-based packaging solutions is expected to rise, providing a favorable outlook for the company.
Conclusion
Ranpak's strategic initiatives and market positioning are expected to foster growth and enhance shareholder value in the coming years.
A Who Owns Ranpak Holdings Corp. (PACK)
Ownership Structure
As of September 30, 2024, Ranpak Holdings Corp. (PACK) has two classes of common stock: Class A and Class C. The ownership distribution is as follows:
| Share Class | Shares Outstanding | Percentage of Total Shares |
|---|---|---|
| Class A | 80,309,764 | 97.2% |
| Class C | 2,921,099 | 2.8% |
| Total | 83,230,863 | 100% |
Major Shareholders
The major shareholders of Ranpak Holdings Corp. include:
| Shareholder | Type | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| One Madison Group LLC | Institutional | Approximately 56,000,000 | 67.3% |
| BlackRock, Inc. | Institutional | Approximately 4,500,000 | 5.4% |
| Vanguard Group, Inc. | Institutional | Approximately 3,800,000 | 4.6% |
| Other Institutional Investors | Various | Approximately 10,000,000 | 12.0% |
| Total Institutional Ownership | 74,300,000 | 89.3% |
Insider Ownership
Insider ownership details are as follows:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Rafael O. V. Moncada | CEO | 500,000 | 0.6% |
| Other Executives | Various | 1,000,000 | 1.2% |
| Total Insider Ownership | 1,500,000 | 1.8% |
Stock Performance and Market Trends
As of September 30, 2024, Ranpak Holdings Corp. reported a net loss of $8.1 million for the quarter, with a revenue of $92.2 million, compared to $82.8 million for the same quarter in 2023. The company has faced challenges with rising costs and competitive pressures within the market.
The company's stock performance as of September 30, 2024, was as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $6.80 |
| Market Capitalization | $566.2 million |
| 52-Week High | $12.00 |
| 52-Week Low | $5.50 |
| P/E Ratio | N/A (Loss) |
Ranpak has been actively pursuing strategic initiatives to enhance its market position, including potential partnerships and investments in technology innovation to improve operational efficiencies.
Ranpak Holdings Corp. (PACK) Mission Statement
Ranpak Holdings Corp. focuses on providing environmentally sustainable, systems-based product protection and end-of-line automation solutions tailored for e-commerce and industrial supply chains. The company emphasizes a commitment to high-quality protective packaging solutions while prioritizing environmental sustainability since its inception in 1972.
Core Values
- Sustainability: Commitment to eco-friendly practices and materials.
- Innovation: Continuous improvement in product offerings and operational processes.
- Customer Focus: Ensuring customer satisfaction through tailored solutions and support.
- Integrity: Upholding ethical standards in all business practices.
Market Position
As of September 30, 2024, Ranpak generated net revenue of $263.9 million, compared to $245.9 million for the same period in 2023, representing a growth of 7.8%.
Financial Overview
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $92.2 million | $82.8 million | 5.7% |
| Gross Profit | $34.4 million | $31.5 million | 9.2% |
| Net Loss | $(8.1) million | $(3.3) million | 145.5% |
| Basic and Diluted Loss per Share | $(0.10) | $(0.04) | 150% |
Installed Base of Systems
As of September 30, 2024, Ranpak reported an installed base of approximately 143.6 thousand Protective Packaging Solutions (PPS) systems, which include:
| Product Line | Units Installed (Thousands) |
|---|---|
| Cushioning Machines | 34.9 |
| Void-Fill Machines | 85.8 |
| Wrapping Machines | 22.9 |
Revenue Breakdown
The revenue sources for the three months ended September 30, 2024, were distributed as follows:
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Paper Revenue | $71.3 million | $64.8 million |
| Machine Lease Revenue | $13.6 million | $13.2 million |
| Other Revenue | $7.3 million | $4.8 million |
Geographic Revenue Distribution
Ranpak's net revenue by geographic location for the three months ended September 30, 2024, is detailed below:
| Region | Q3 2024 | Q3 2023 |
|---|---|---|
| North America | $40.3 million | $34.9 million |
| Europe/Asia | $51.9 million | $47.9 million |
Long-term Debt
Ranpak's long-term debt as of September 30, 2024, consisted of:
| Debt Type | Amount (in millions) |
|---|---|
| First Lien Dollar Term Facility | $250.0 |
| First Lien Euro Term Facility | $148.9 |
| Revolving Facility | $0.0 |
Ranpak continues to focus on strategic investments and partnerships that align with its mission of sustainability and innovation in packaging solutions.
How Ranpak Holdings Corp. (PACK) Works
Business Overview
Ranpak Holdings Corp. operates as a leading provider of environmentally sustainable, systems-based, product protection and end-of-line automation solutions for e-commerce and industrial supply chains. The company offers paper-based Protective Packaging Solutions (PPS) systems and paper consumables, primarily serving distributors and select end-users.
As of September 30, 2024, Ranpak has an installed base of approximately 143.6 thousand PPS systems across various product lines, including cushioning, void-fill, and wrapping machines.
Financial Performance
For the third quarter of 2024, Ranpak reported a net revenue of $92.2 million, representing an increase of 11.4% year-over-year from $82.8 million in Q3 2023. This growth was driven by increases in void-fill, wrapping, and other sales, partially offset by a decrease in cushioning revenue.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenue | $92.2 million | $82.8 million | $9.4 million | 11.4% |
| Cost of Goods Sold | $57.8 million | $51.3 million | $6.5 million | 12.7% |
| Gross Profit | $34.4 million | $31.5 million | $2.9 million | 9.2% |
| Net Loss | $(8.1) million | $(3.3) million | $(4.8) million | 145.5% |
Revenue Breakdown
Net revenue for the nine months ended September 30, 2024, totaled $263.9 million, up from $245.9 million in the same period of 2023. The following details highlight the revenue breakdown by product line:
| Product Line | 2024 Revenue | 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Cushioning | $104.8 million | $109.9 million | $(5.1) million | (4.6%) |
| Void-Fill | $114.7 million | $95.5 million | $19.2 million | 20.1% |
| Wrapping | $25.5 million | $25.8 million | $(0.3) million | (1.2%) |
| Other Sales | $18.9 million | $14.7 million | $4.2 million | 28.6% |
Cost Structure
The cost of goods sold (COGS) for the third quarter of 2024 was $57.8 million, accounting for 62.7% of net sales, compared to 62.0% in Q3 2023. This increase was primarily due to higher labor and freight costs, despite lower material costs.
Operating Expenses
Selling, General and Administrative Expenses (SG&A) increased to $28.8 million in Q3 2024, a 37.8% increase from $20.9 million in Q3 2023. This rise was attributed to an increase in stock-based compensation expenses and higher employee compensation costs.
Debt and Financing
As of September 30, 2024, Ranpak's long-term debt stood at $400.5 million, with a first lien credit facility maturing in June 2026. The interest rate for the First Lien Dollar Term Facility was 9.05%, and for the First Lien Euro Term Facility, it was 7.36%.
| Debt Type | Amount | Interest Rate | Maturity |
|---|---|---|---|
| First Lien Dollar Term Facility | $250.0 million | 9.05% | June 2026 |
| First Lien Euro Term Facility | $148.9 million | 7.36% | June 2026 |
| Revolving Facility | $0 | N/A | June 2025 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Ranpak reported a net cash provided by operating activities of $34.9 million, compared to $23.0 million for the same period in 2023.
Key Performance Indicators
Ranpak tracks key performance indicators such as:
- Installed Base of PPS Systems: 143.6 thousand as of September 30, 2024
- Volume of Sales of Paper Consumables: Approximately 9.6% increase year-over-year
- Sales of Automated Box Sizing Equipment: 1.7% increase year-over-year
Geographic Revenue Distribution
In Q3 2024, revenue distribution by geographic location was as follows:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| North America | $40.3 million | $34.9 million | $5.4 million | 15.5% |
| Europe/Asia | $51.9 million | $47.9 million | $4.0 million | 8.4% |
Strategic Investments
Ranpak has made strategic investments in companies such as Pickle Robot Co. and Creapaper GmbH, amounting to $13.8 million and $4.9 million, respectively, as of September 30, 2024.
How Ranpak Holdings Corp. (PACK) Makes Money
Business Model Overview
Ranpak Holdings Corp. operates as a leading provider of environmentally sustainable, systems-based product protection and end-of-line automation solutions for e-commerce and industrial supply chains. The company generates revenue through the sale of packaging systems, paper consumables, and automation solutions.
Revenue Streams
- Paper Revenue
- Machine Lease Revenue
- Other Revenue
Financial Performance
As of September 30, 2024, Ranpak reported a net revenue of $263.9 million, an increase from $245.9 million in the same period of 2023, reflecting a growth of 7.3%.
| Revenue Category | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Paper Revenue | $205.0 million | $192.4 million | $12.6 million | 6.6% |
| Machine Lease Revenue | $40.0 million | $38.7 million | $1.3 million | 3.4% |
| Other Revenue | $18.9 million | $14.8 million | $4.1 million | 27.7% |
Geographic Revenue Distribution
Ranpak's revenue is diversified across different regions, with significant contributions from North America and Europe/Asia. For the third quarter of 2024, the company reported:
| Geographic Region | 2024 Revenue | 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| North America | $109.9 million | $98.2 million | $11.7 million | 11.9% |
| Europe/Asia | $154.0 million | $147.7 million | $6.3 million | 4.3% |
Cost Structure
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $165.5 million, representing an increase of 5.6% from $156.7 million in 2023. The COGS as a percentage of net sales improved slightly to 62.7% from 63.7% in the previous year.
Operating Expenses
Selling, General and Administrative expenses (SG&A) increased to $84.0 million, up from $64.4 million in 2023, driven primarily by a rise in stock-based compensation expenses.
| Expense Category | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| SG&A | $84.0 million | $64.4 million | $19.6 million | 30.4% |
| Depreciation and Amortization | $24.9 million | $24.2 million | $0.7 million | 2.9% |
Net Income and Losses
For the nine months ended September 30, 2024, Ranpak reported a net loss of $10.7 million, compared to a loss of $17.8 million in the same period of 2023, indicating an improvement in profitability.
Key Performance Indicators
Ranpak tracks the installed base of its Protective Packaging Solutions (PPS) systems as a key performance indicator. As of September 30, 2024, the installed base included:
| PPS System Type | Installed Base (in thousands) | Change (2024 vs. 2023) | %|
|---|---|---|---|
| Cushioning Machines | 34.9 | 0.1 | 0.3% |
| Void-Fill Machines | 85.8 | 1.1 | 1.3% |
| Wrapping Machines | 22.9 | 0.4 | 1.8% |
| Total PPS Systems | 143.6 | 1.6 | 1.1% |
Market Trends and Strategies
Ranpak is positioned to capitalize on the growing trend towards sustainable packaging solutions, particularly in the e-commerce sector. The company is focused on enhancing its automation capabilities and expanding its product offerings to meet increasing customer demand.
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Article updated on 8 Nov 2024
Resources:
- Ranpak Holdings Corp. (PACK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ranpak Holdings Corp. (PACK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ranpak Holdings Corp. (PACK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.