Veritiv 2022 Net Income Rises 133% Over Prior Year

On. Feb. 28, JanSan products distributor Veritiv Corp. reported 2022 fourth-quarter and total-year earnings, which showed a large increase in total revenue despite disappointing 4Q sales numbers.

For 4Q, Veritiv reported net sales of $1.7 billion, a decrease of 10.8% from the same quarter in 2021. Organic sales grew 1.8%, the company said. Net income for 4Q was $71.6 million, an increase of 25.8% from the prior year.

For all of 2022, net income was $337.9 million, an increase of 133.7% over 2021. Net sales for all of 2022 were $7.1 billion, an increase of 4.3% from the prior year. Organic sales increased 13.5% compared with 2021.

“Disciplined execution of our strategic initiatives and a diversified portfolio contributed to the best fourth quarter and full year net income, EPS, Adjusted EBITDA, and Adjusted EBITDA margin performance in company history,” said Sal Abbate, Veritiv CEO.  “Adjusted EBITDA margin for 2022 was a record 7.2%, which is more than three times greater than 2019 pre-pandemic levels.  Throughout 2022, we invested in above-market growth initiatives to maximize returns while simultaneously divesting lower-growth and non-strategic businesses.”

Veritiv was listed among MDM’s 2022 list of Top JanSan Distributors.

Abbate added, “Organic sales growth of 1.8% continued to be positive in the fourth quarter, albeit a deceleration from the third quarter, driven by customer inventory destocking and softening demand.  As we turn to 2023, we will continue to both invest in value-added and sustainable solutions that solve complexities for our customers, as well as execute on our next wave of commercial and operational efficiency initiatives. We believe these actions will support a sustainable Adjusted EBITDA margin well above historical levels.”