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Magnera Reports Third Quarter Results
CHARLOTTE N.C. (News release) -- Third Quarter Highlights
Curt Begle, Magnera's CEO, commented: "We delivered a record third quarter led by organic volume growth, combined with the savings benefits of synergy initiatives and Project Core. In addition, our commercial team executed the disciplined actions required to effectively manage the significant spike in inflationary costs of certain raw materials. As we continue to navigate a dynamic macro-economic environment, we remain focused on executing our strategic objectives and delivering dependable financial results. Consistent with that commitment, we are reaffirming our full-year free cash flow outlook, while holding to the lower end of our adjusted EBITDA guidance range." Key Financials
(1) Adjusted non-GAAP results exclude items not considered to be ongoing operations. In addition, comparable change % normalizes the impacts of foreign currency and the merger with Glatfelter. Further details related to non-GAAP measures and reconciliations can be found under "Reconciliation of Non-GAAP Financial Measures and Estimates" section or in reconciliation tables in this release. Dollars in millions Consolidated Overview The net sales increase included a favorable foreign currency change of $21 million and a 1% organic volume improvement, partially offset by an $8 million decrease in selling prices primarily due to negative product mix net of the pass-through of higher raw material costs. The volume increase was mainly attributed to strength in our consumer solutions product categories globally and recovery in North America from winter storm disruptions experienced in the second quarter. The adjusted EBITDA was up 9% primarily as a result of favorable price cost spread of $11 million. Americas The net sales increase included a favorable foreign currency change of $10 million and a 1% organic volume improvement, partially offset by a $13 million decrease in selling prices primarily due to negative product mix net of the pass-through of higher raw material costs. The adjusted EBITDA improvement resulted mostly from a favorable price cost spread of $11 million due to the realized benefits from Project CORE and merger synergies that were partially offset by higher selling, general and administrative costs. Rest of World
The net sales increase included a favorable foreign currency change of $11 million and a $5 million increase in selling prices due to the pass-through of higher raw material costs. The adjusted EBITDA declined $2 million as benefits from Project CORE and synergy realization were offset by higher inflation in the region, timing of material pass throughs and higher selling, general and administrative costs.
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