A deal with Walmart comes shortly after one with Amazon. CEO Omar Asali discusses the importance of these enterprise customers and navigating economic uncertainty ahead of the busy holiday season. Ranpak is expanding its automation solutions at Walmart’s distribution centers. Under the multiyear agreement, Walmart will install Ranpak’s AutoFill machines at sites in the Chicago, Dallas, Philadelphia and Sacramento, California, metro areas. Walmart already uses this equipment at an Indianapolis-area fulfillment center, where it automates void filling and box closing to increase productivity.  This is the second major deal Ranpak has landed this year with an e-commerce giant. In January, Amazon agreed to spend $400 million on an eight-year deal to acquire up to 18.7 million Ranpak shares, which will amount to an estimated 17% of the company’s shares when completed.

Huhtamaki is investing for further growth in Russia. In order to respond to the fast development of the retail business and egg packaging industry in Eastern and Central parts of Russia, the company is setting up a new fiber packaging manufacturing plant at its existing site in Alabuga, Tatarstan. Preparatory work on the site is under way and production of fiber packaging is expected to begin during the first quarter of 2022. “Russia is one of our key growth markets,” says Eric Le Lay, President for the newly integrated Fiber and Foodservice Europe-Asia-Oceania business segment. “This additional capacity for molded fiber egg packaging enables further profitable growth for us in Russia. The location in Alabuga, Tatarstan, allows us to better serve our customers operating in the fast-developing Central and Eastern parts of Russia,” he continues.

The net sales growth is primarily attributed to increased selling prices of $301 million due to the pass through of inflation. On a two-year basis, organic volumes were up 3%, as we reported strong organic volume growth of 5% a year ago, compared to a 2% decline in the quarter. The volume decline is primarily attributed to general market softness in industrial markets and the moderation of advantaged products related to the easing of the COVID-19 pandemic. Net sales were also impacted by a $151 million unfavorable impact from foreign currency changes and prior year quarter divestiture sales of $16 million. The operating income decrease is primarily attributed to a $22 million unfavorable impact from foreign currency, and an $11 million unfavorable impact from the volume decline, partially offset by a $28 million favorable impact from price cost spread and product mix.