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Smurfit WestRock plc (SW-1.40%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $7,671 million from $2,915 million in the same quarter the previous year. The increase is primarily attributed to the acquisition of WestRock.
Cost of goods sold for the quarter was $6,321 million, compared to $2,173 million in the same quarter of the previous year. This increase is largely due to the acquisition of WestRock and the associated amortization of the fair value step up on inventory.
The company reported a gross profit of $1,350 million for the quarter, compared to $742 million in the previous year, with the increase driven by the acquisition of WestRock.
Transaction and integration-related expenses associated with the Combination were $267 million for the quarter, significantly higher than $17 million in the previous year.
Net loss for the quarter was $150 million, down from net income of $229 million in the previous year. The decrease is attributed to higher transaction and integration-related expenses and increased cost of goods sold.
Net cash provided by operating activities was $702 million, while net cash used for investing activities was $1,595 million, primarily due to capital expenditures and the acquisition of WestRock.
Smurfit WestRock had a working capital of $10,545 million as of September 30, 2024. The company highlights its focus on integrating WestRock and realizing synergies from the acquisition.
The filing also details various financial agreements, including a new credit agreement and the issuance of senior unsecured notes to finance the acquisition.
Smurfit WestRock does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to integration challenges following the acquisition of WestRock.
Smurfit WestRock continues to focus on expanding its market presence and integrating the operations of Smurfit Kappa and WestRock to achieve targeted synergies.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Smurfit WestRock plc quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.