Edward Bricker

Edward Bricker asked about the directional margin profile for Magnera's innovative products, distinguishing between proprietary and more commoditized offerings, and whether these innovations might cannibalize existing products. He also inquired about the company's $100 million debt reduction goal for the year, specifically if it represents gross debt reduction and the targeted instruments (term loan or bonds).

Answer

CEO Curt Begle explained that innovation aims to protect existing business and introduce new features. He expects innovative products to yield higher than average margins, ranging from mid-teens to over 20%, depending on uniqueness, materials, and customer collaboration, well above the company's 11% average. CFO Jim Till confirmed that the company takes advantage of buying back both bonds and term loans in the open market, prioritizing the best yield and return at any given time for debt reduction.