10.31.24
Glatfelter announced its financial results for the third quarter ended September 30, 2024. This disclosure marks the company’s final earnings release prior to completing its merger with the majority of Berry Global's Health, Hygiene and Specialties segment to include its Global Nonwovens and Films business (“HHNF”) to create Magnera, a global leader in the specialty materials industry. As previously disclosed, the transaction has met all closing conditions, including the support of Glatfelter shareholders, and is expected to close on November 4, 2024.
In the third quarter of 2024, Glatfelter generated net sales of $332 million, up from $329.9 million in the third quarter of 2023. Airlaid Materials’ third quarter net sales decreased $8.7 million to $138 million in the year-over-year comparison mainly driven by lower selling prices from cost pass-through arrangements as raw materials input costs declined compared to last year. Shipments were 2.5% lower mainly driven by declines in the hygiene categories primarily due to pricing actions taken in 2023 to retain margins. Currency translation was favorable by $0.6 million.
Composite Fibers’ net sales were $4 million lower, to $114 million, in the third quarter of 2024, compared to the year-ago quarter. Shipments were higher 3% largely driven by the composite laminates, food and beverage and metallized categories but were partially offset by lower wallcover shipments as a result of additional sanctions impacting sales to our Eastern European customers. Currency translation was favorable by $0.7 million.
Spunlace's net sales were $6.7 million higher, to $80 million, in the third quarter of 2024 compared to the year-ago quarter, mainly driven by higher Sontara sales that have higher average selling prices compared to the hygiene and wipes categories. Currency translation was slightly favorable by $0.2 million.
Commenting on Glatfelter’s third quarter performance, Thomas Fahnemann, president and CEO of Glatfelter, says, “Despite ongoing external pressures, Glatfelter’s solid third quarter results demonstrated continued resilience and progress in its core business segments. While we faced new headwinds in Composite Fibers during the third quarter from additional sanctions in wallcover, the underlying operational performance of the segment continued to improve. In Airlaid, we were able to leverage stronger order patterns in feminine hygiene and tabletop categories that supported the recovery of our European business from earlier in 2024, thereby driving sequential improvements in EBITDA of $2.9 million. In Spunlace, we delivered $4.8 million EBITDA despite impact from Hurricane Helene at our Asheville facility. Fortunately, all employees remained safe during this unprecedented natural disaster."
Fahnemann adds, “As we close the legacy Glatfelter chapter and prepare for a new future under Magnera, I want to recognize the efforts of our employees. Together we have overcome significant challenges and succeeded in turning around this business. We are now well positioned for continued growth and innovation with a platform to leverage Glatfelter’s heritage and expertise to contribute to the success of Magnera. It’s been a pleasure and a privilege to serve as CEO during this critical time and I want to thank all Glatfelter stakeholders for their trust and support.”
In the third quarter of 2024, Glatfelter generated net sales of $332 million, up from $329.9 million in the third quarter of 2023. Airlaid Materials’ third quarter net sales decreased $8.7 million to $138 million in the year-over-year comparison mainly driven by lower selling prices from cost pass-through arrangements as raw materials input costs declined compared to last year. Shipments were 2.5% lower mainly driven by declines in the hygiene categories primarily due to pricing actions taken in 2023 to retain margins. Currency translation was favorable by $0.6 million.
Composite Fibers’ net sales were $4 million lower, to $114 million, in the third quarter of 2024, compared to the year-ago quarter. Shipments were higher 3% largely driven by the composite laminates, food and beverage and metallized categories but were partially offset by lower wallcover shipments as a result of additional sanctions impacting sales to our Eastern European customers. Currency translation was favorable by $0.7 million.
Spunlace's net sales were $6.7 million higher, to $80 million, in the third quarter of 2024 compared to the year-ago quarter, mainly driven by higher Sontara sales that have higher average selling prices compared to the hygiene and wipes categories. Currency translation was slightly favorable by $0.2 million.
Commenting on Glatfelter’s third quarter performance, Thomas Fahnemann, president and CEO of Glatfelter, says, “Despite ongoing external pressures, Glatfelter’s solid third quarter results demonstrated continued resilience and progress in its core business segments. While we faced new headwinds in Composite Fibers during the third quarter from additional sanctions in wallcover, the underlying operational performance of the segment continued to improve. In Airlaid, we were able to leverage stronger order patterns in feminine hygiene and tabletop categories that supported the recovery of our European business from earlier in 2024, thereby driving sequential improvements in EBITDA of $2.9 million. In Spunlace, we delivered $4.8 million EBITDA despite impact from Hurricane Helene at our Asheville facility. Fortunately, all employees remained safe during this unprecedented natural disaster."
Fahnemann adds, “As we close the legacy Glatfelter chapter and prepare for a new future under Magnera, I want to recognize the efforts of our employees. Together we have overcome significant challenges and succeeded in turning around this business. We are now well positioned for continued growth and innovation with a platform to leverage Glatfelter’s heritage and expertise to contribute to the success of Magnera. It’s been a pleasure and a privilege to serve as CEO during this critical time and I want to thank all Glatfelter stakeholders for their trust and support.”
