Louis Merrick

Louis Merrick asked for clarification on the factors Graphic Packaging would consider when determining core versus non-core assets during its portfolio review. He also inquired if the company and its board had discussed revisiting the dividend policy for 2026.

Answer

Robbert Rietbroek, President and CEO, explained that the review focuses on future growth and value creation, emphasizing durable competitive advantage, synergies, and higher integration rates between paperboard manufacturing and converting factories. He cited North America and Europe food and beverage as clear core businesses, while smaller global businesses might be reviewed. He mentioned a comprehensive look at all operations, including zero-based budgeting and CapEx, to align assets with changing consumer dynamics. Chuck Lischer, SVP and Interim CFO, stated that the highest near-term capital allocation priority is debt paydown. While no dividend change has been committed for the current year, the company expects growing dividends and increased share repurchase activity as leverage declines.