WestRock Co.

Overview Key strengths Key risks Leading market positions and differentiated product offerings in the corrugated and consumer packaging spaces. Exposed to operating cost volatility, including for raw materials (virgin fiber, old corrugated containers [OCC]), energy, labor, and freight), that could hamper its profitability. Good end-market diversity and broad product portfolio support consistent sales volumes and solid free cash flow generation. Limited geographic diversity outside the U.S. Diverse customer base with long-standing relationships under multi-year contracts. Acquisitive growth strategy has resulted in somewhat elevated debt levels in the past. The company reported a strong finish to 2022, including a 13% increase in its revenue (to $21.3 billion) and a slight rise in its S&P Global Ratings-adjusted EBITDA to $3.14 billion (from

...WestRock's strong performance in 2022 provides cushion against our expectation for a more tepid year in 2023. The company reported a strong finish to 2022, including a 13% increase in its revenue (to $21.3 billion) and a slight rise in its S&P Global Ratings- adjusted EBITDA to $3.14 billion (from $3.04 billion in 2021). Despite its strong performance, the demand for its products declined in its fiscal fourth quarter due to further inventory rebalancing, which we expect will continue into 2023, as well as the inflation, energy,...

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