WestRock Company:  Mill Closure, Redeployment of Capital & 3 Other Reasons Why We Are Cautious On The Company! 

WestRock Company, in the 3rd Fiscal Quarter 2023, posted a net sales of $5.1 billion, with an adjusted EBITDA of $802 million, higher than expected due to strong execution, productivity gains, and moderating input costs. CEO David Sewell attributed the strong results to the firm’s resilience and the hard work of its team, even as they faced comparisons with record results from the prior year quarter. However, certain challenges were also observed. Demand for corrugated packaging declined year[1]on-year, and their North American shipments per day were sequentially stable. Consumer packaging market volumes were also down during the quarter as customers and retailers reduced excess inventory, elevated inflation impacted consumer demand, and strong prior year health care results were lapped. Additionally, moderation was seen in their global paper business after a record in fiscal 2022.