Graphic Packaging Holding Company's net income was $190 million, or $0.62 per share, based upon 306.9 million weighted average diluted shares. This compares to Q2 2023 net income of $150 million, or $0.49 per share, based upon 309.1 million weighted average diluted shares. The Q2 2024 was impacted by a net gain from special items of $22 million and the Q2 2023 was impacted by a net charge from special items of $37 million. When adjusting for special items and amortization of purchased intangibles, Adjusted net income for the Q2 2024 was $183 million, or $0.60 per diluted share. This compares to Q2 2023 Adjusted net income of $203 million, or $0.66 per diluted share.
Michael Doss, the Company's President and CEO said, "Q2 played out largely as expected, with continued strength in Foodservice and Beverage results, and strong execution driving solid Adjusted EBITDA. Consumers are responding to higher prices by shifting their purchasing patterns, and our portfolio, designed to move with the consumer, is doing just that. Graphic Packaging's innovation leadership was on full display in the quarter with a big win for Paperseal Shape at one of the UK's largest food retailers. We are delivering the sustainable packaging solutions consumers prefer and are on track to reach $200 million in Innovation Sales Growth during 2024."
Net sales decreased 6% or $155 million to $2,237 million in the Q2 2024, compared to $2,392 million in the prior year period. The decline was driven by the divestiture of the Augusta, GA bleached paperboard manufacturing facility and reduced open market sales participation of $83 million and a net decline in sales from packaging operations of $73 million, primarily price and mix. Other acquisitions and divestitures (excluding Augusta) had a $16 million favorable impact on sales in the quarter, while foreign exchange had a $15 million unfavorable impact.
EBITDA for the Q2 2024 was $458 million, $24 million higher than the Q2 2023. After adjusting both periods for business combinations and other special items, Adjusted EBITDA was $402 million in the Q2 2024 versus $453 million in the Q2 2023. The $51 million decline in Adjusted EBITDA was driven primarily by the divestiture of the Augusta, GA bleached paperboard manufacturing facility, related bleached paperboard price and volume declines, and incremental planned maintenance expense (totaling $47 million), in line with expectations.
Excluding those items, the negative impact of lower sales and modest cost inflation were offset by Net Performance. Other acquisitions and divestitures (excluding Augusta) had a $4 million favorable impact on EBITDA in the quarter, while foreign exchange had an $8 million unfavorable impact.
Adjusted EBITDA margin including the negative impact of maintenance, the divestiture, and reduced open market paperboard participation was 18.0% versus 18.9% in the prior year quarter.
Graphic Packaging Holding Company, headquartered in Atlanta, Georgia, designs and produces consumer packaging made primarily from renewable or recycled materials.
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