This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. Dive Brief: ProAmpac acquired International Paper’s bag converting operations, the company announced Friday, without detailing financial terms. With this portfolio growth in kraft paper bags, ProAmpac aims to offer more customized solutions to grocery, convenience store and quick-service restaurant customers, including in handled shopping bags, self-opening ...

Core Insights - Mondi has partnered with Türkiye's Özler Tarım to develop a recyclable corrugated packaging solution aimed at enhancing the export of fresh fruits and vegetables [1][2] - The packaging features a double-wall corrugated fiber design that is stackable, facilitating efficient manufacturing, warehousing, and transportation [1][2] - The collaboration aligns with Özler Tarım's environmentally conscious export model, addressing challenges such as carton failures and food spoilage [2][3] Group 1 - The new packaging solution has resulted in a 15% increase in output capacity at Özler Tarım's Adana facility [3] - The packaging is designed to withstand moisture and the rigors of long-distance shipping, ensuring that fresh goods arrive undamaged [2][3] - Mondi emphasizes that packaging should serve as a strategic tool tailored to meet unique customer needs [3] Group 2 - Mondi introduced a paper-based solution, FunctionalBarrier Paper Ultimate, in August 2025, which offers protection against oxygen, water vapor, and grease [4] - The high barrier capabilities of this solution make it suitable for various products, including instant coffee, tea sachets, and cereal bars [4] - In early 2025, Mondi launched the PaperPlus Bag Advanced, a sustainable high-barrier paper bag designed for humidity-sensitive goods [5]

Market Overview - The global Packaging Materials Market was valued at approximately USD 950 billion in 2024 and is projected to reach USD 1,450 billion by 2032, with a CAGR of 5.5% from 2025 to 2032, driven by evolving consumer preferences and regulatory frameworks [2][3]. - The market is characterized by a significant upward trend towards sustainable solutions and advancements in functional packaging, reflecting its critical role in the global supply chain [3][10]. Technological Advancements - Artificial intelligence (AI) is enhancing efficiency in the packaging materials market by optimizing design, improving supply chain management, and predicting demand more accurately [5][6]. - Innovations such as advanced barrier films, smart packaging solutions, and the development of biodegradable and compostable materials are key trends driving growth [10][18]. Sustainability Trends - There is a strong push towards eco-friendly alternatives, with innovations in biodegradable, recyclable, and compostable materials being paramount [8][10]. - The market is influenced by increasing consumer awareness and regulatory pressures regarding environmental impact, leading to a focus on sustainable practices and circular economy models [10][20]. Regional Insights - North America is expected to maintain steady growth with a regional CAGR of approximately 5.0%, driven by innovation and e-commerce [27]. - The Asia Pacific region is the largest and fastest-growing market, with a projected CAGR of approximately 6.2%, fueled by rapid urbanization and increasing disposable incomes [27]. Key Players - Major players in the packaging materials market include Amcor Plc, Berry Global, Mondi Plc, and Tetra Pak, among others [11]. Future Outlook - The packaging materials market is projected to see substantial investment in R&D aimed at creating more environmentally benign materials, including advanced bio-plastics and improved recycled content solutions [15][29]. - The long-term trajectory will be shaped by sustainability and environmental regulations, alongside the growth of e-commerce, which demands constant evolution in packaging design [29][32].

Core Insights - DS Smith and BSH Nazarje have collaborated to create a sustainable packaging solution for Bosch hand mixers, replacing expanded polystyrene foam (EPS) with a corrugated cardboard alternative [1][2][4] Group 1: Packaging Solution - The new packaging solution, named DS Smith Universal Protection for Household Blenders, is designed to eliminate up to 340,000 pieces of EPS annually, as BSH Nazarje produces up to 170,000 blenders each requiring two EPS inserts [2] - The innovative corrugated cardboard insert, called 'Safe Shell', is capable of packaging and protecting three different hand mixer models [3] Group 2: Production Efficiency - The new packaging solution allows BSH Nazarje to achieve faster packing times and greater flexibility in the production process, facilitating customer orders with rapid assembly capabilities [4] - The design of the packaging is fully recyclable and integrates seamlessly with Bosch's existing packaging processes, ensuring durability during transportation [4] Group 3: Sustainability Goals - BSH Nazarje is part of a group with defined sustainability targets, including reducing CO₂ emissions and eliminating plastic from packaging solutions [5] - The collaboration with DS Smith reflects a commitment to combining efficiency and sustainability in packaging solutions, as emphasized by BSH Nazarje's Director of Shared Development Services [6] Group 4: Industry Commitment - DS Smith is dedicated to leading a transition to a circular economy, providing sustainable solutions across thirty-four countries [9] - The DS Smith Universal Protection for Household Blenders has been nominated for a Packaging Oscar in Slovenia in 2024, highlighting its innovative approach [8]

Core Insights - DS Smith has developed a new fibre-based transport box for Famifarm Oy to enhance the transportation of fresh herbs and salads, featuring a hatch design for efficient packing and unpacking [1][2] - The new packaging solution is designed to be four times faster in the unpacking process compared to previous solutions, ensuring optimal condition of products during transit [1][2] - The collaboration involved DS Smith's design and automation experts, aiming to improve the operations of retail stores and grocery outlets [2] Company and Product Details - Famifarm Oy, a Finnish producer of potted herbs and salads, has received positive feedback from retail chains regarding the new transport box, which saves time for employees [3][4] - The packaging solution is suitable for both large and small grocery operations, ensuring protection of herbs and salads throughout distribution [3] - DS Smith's commitment to sustainability and reliability has been highlighted by Famifarm Oy, emphasizing the importance of their partnership in product development [4]

Financial Performance - Adjusted EBITDA increased to $160.7 million compared to $157.0 million in Q3 FY24[15] - Adjusted EBITDA percentage improved to 14.2% from 13.5% in Q3 FY24[15] - Adjusted Class A Earnings Per Share increased to $1.03 from $0.92 in Q3 FY24[15] - Adjusted Free Cash Flow significantly increased to $170.7 million from $34.3 million in Q3 FY24[15] Portfolio Transformation - The company entered into a definitive agreement to divest the Containerboard business for $1.8 billion, expected to close effective August 31st, 2025[4] - The company also entered into a definitive agreement to divest the Land Management business for $462 million ($2,671/acre), anticipated October 1st[6,17] - Post-close, the anticipated proforma leverage ratio is less than 1.2x, targeting a range of 2.0 – 2.5x[6] Cost Optimization - The company achieved $20 million in run-rate savings as of Q3'25[6] - The company is committed to achieving $100 million in run-rate savings by 2027[6] - The company announced the closure of the Merced, CA steel and polymer plant as part of cost optimization efforts[6,17] Segment Performance - Customized Polymer Solutions net sales increased from $314.7 million to $339.8 million[18] - Durable Metal Solutions net sales decreased from $424.1 million to $399.8 million[18] - Sustainable Fiber Solutions net sales decreased from $325.6 million to $308.0 million[18] - Integrated Solutions net sales slightly increased from $86.2 million to $87.1 million[18] Guidance - The company provided 2025 Adjusted Free Cash Flow guidance of $305 - $315 million[22]

The results of operations data contained in this presentation are based on our preliminary, unaudited results of operations for the quarter ended June 30, 2025. Such preliminary data should not be viewed as a comprehensive statement of our financial results for the quarter ended June 30, 2025 CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS August 5, 2025 Disclaimers 2Q25 Earnings Presentation The forward-looking statements contained in this presentation are based on our current expectations and belie ...

Group 1 - U.S. equities showed mixed performance, with the S&P 500 and Nasdaq declining from record highs while the Dow Jones Industrial Average increased [1][5] - Tesla (TSLA) shares fell due to a renewed conflict between CEO Elon Musk and President Trump, who suggested an investigation into Tesla's subsidies [1][5] - Sweetgreen (SG) shares dropped following a downgrade and price target cut by TD Cowen, citing weakness in urban locations [2] - AeroVironment (AVAV) shares decreased after announcing a $1.35 billion stock and convertible notes offering to finance its $4.1 billion acquisition of BlueHalo [2] Group 2 - Shares of Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts International (MGM) surged after Macau casinos reported June gambling revenues exceeding expectations [3][5] - Packaging Corporation of America (PKG) shares rose after acquiring Greif's containerboard business for $1.8 billion [3] - Hasbro (HAS) shares increased following an upgrade from Goldman Sachs, which highlighted potential benefits from the "Magic: The Gathering" card game [3] Group 3 - Oil and gold futures experienced an increase, while the yield on the 10-year Treasury note advanced [4] - The U.S. dollar strengthened against the euro and pound but weakened against the yen [4] - Most major cryptocurrencies traded lower [4]

Financial Data and Key Metrics Changes - Consolidated net revenue increased by 8.8% on a constant currency basis for the quarter, driven by 12% volume growth, particularly in North America [7][15] - Adjusted EBITDA declined by 7.8% for the quarter, including a non-cash impact of the Amazon warrants, which contributed a 4.2% headwind to reported figures [10][18] - Overall profitability was negatively impacted by increased input costs and lower sales volume in Europe and Asia Pacific [11][12] Business Line Data and Key Metrics Changes - North America saw sales up by 33% and volumes up more than 40% compared to Q1 2024, driven by strong growth in enterprise accounts [7][15] - Europe and Asia Pacific combined revenue decreased by 6% on a constant currency basis, primarily due to lower PTS volumes in March [15] - Automation sales in EMEA were in line with expectations, with a forecast for meaningful growth in 2025 [15] Market Data and Key Metrics Changes - North America exhibited robust growth, while Europe experienced a deterioration in activity, particularly in March [9][33] - April showed stabilization in Europe, with volumes up compared to the prior year, but overall activity was still weaker than at the start of the year [10][34] - Japan was highlighted as a strong market within Asia Pacific, while Southeast Asia and Australia showed mixed performance [35][36] Company Strategy and Development Direction - The company is focused on driving volumes, winning market share, reducing structural costs, and maximizing cash flow [13][29] - There is an emphasis on deepening relationships with major e-commerce and retail players to support growth in North America [8] - The company is taking steps to mitigate tariff impacts by evaluating alternative suppliers and refurbishing existing machines [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather disruptions from global trade discussions due to its diverse geographic presence [6][29] - There is cautious optimism regarding potential growth in Europe, influenced by legislative changes and stimulus measures [34] - The company remains confident in achieving a 50% growth rate in automation despite potential delays due to macroeconomic factors [42][44] Other Important Information - The company invested over $10 million in additional paper inventory to mitigate lead time disruptions [19] - The impact of the Amazon warrants will continue to create non-cash decreases in reported revenue figures [22][23] - The company is implementing structural cost reductions of $8 million to improve its financial profile [18] Q&A Session Summary Question: Insights on EMEA and APAC performance in March and April - Management noted that Southern Europe performed better than Northern Europe, with some stabilization observed in April [33][34] Question: Expectations for automation project timelines - Management indicated that while some projects may slip between quarters, they remain confident in achieving significant growth in automation [40][42] Question: Outlook on gross margin improvements - Management expects gross margin to improve from Q1 to Q2, with further improvements anticipated in Q3 and Q4 as cost initiatives take effect [47][48] Question: Details on cost reduction actions - Management highlighted operational efficiencies, better planning, and structural cost reductions as key areas for improving margins [50][54]

Financial Performance - Net revenue increased by 6.9% on an actual basis and 8.8% on a constant currency basis, driven by higher volumes[14] - Adjusted EBITDA decreased by 9.9% on an actual basis and 7.8% on a constant currency basis, including a 420 bps headwind from Amazon warrant reduction in revenue ($0.8 million)[14] - Gross margin decreased by 4.0% year over year to 33.9%, impacted by increased contribution from North American void-fill and lower volumes in EMEA/APAC, as well as a 90 bp impact from non-cash Amazon warrant revenue reduction[14] - Net loss was $(10.9) million, compared to $(8.1) million in the prior year[28] Regional Performance - North America revenue increased by 33.5% versus prior year due to higher PPS sales driven by e-commerce activity among large enterprise accounts as well as in the distribution channel[14] - EMEA/APAC revenue decreased by 6.0% on a constant currency basis (9.0% on an actual basis) driven by a 1 pt decline in volume, 3 pts of price/mix (lower cushioning), and 2 pts Automation[14] Liquidity and Capitalization - The company finished 1Q25 with $65.5 million cash on hand[14] - Net Leverage Ratio was 4.3x as of March 31, 2025[27] Operational Factors - Volume growth was strong at 12.0%, but partially offset by price/mix (-2.4%) and a decrease from Amazon warrants (-0.9%)[14] - Actions have been taken in Q2 to improve price, defer discretionary spend, and reduce structural costs to improve margin profile and focus on cash generation[14]