Ranpak Holdings Corp. (NYSE:PACK) Q3 2023 Earnings Call Transcript

Omar Asali: I think we’re constantly doing that, and we’ve had a big focus on that, Adam, the last number of quarters, and this is why Bill was referring to sort of the refabs and refurbishing some of the equipment. And we’re doing some of that in retail. But the other thing that we’re doing in retail, and this is what I was alluding to earlier for some of our wrapping customers, a big part of our solution has been helping retailers, if you will, ship from DCs and from their warehouse. And now we’re introducing a number of products to help ship from store, whether it’s just the back of the store or actually the front of the store. And these are very different type of converters, different type of equipment. If you’re doing stuff in the front of the store, they tend to be a lot smaller, have a much smaller footprint to fit and have different frankly aesthetics.

And we’ve been launching some of these things, and we continue to focus on that pipeline for the near term, i.e., in the next couple of quarters. So we think from a converter standpoint, you may see some pickup, if you will, of number of converters that are out there as we have that ship from store footprint. But per converter, these are a lot cheaper per unit cost for us, and we’re hoping that they will be driving a lot more volume given what we’re seeing from some of our retail customers. So it’s a little bit of just changing the mix and the service that we’re providing to some of the wrapping customers where we feel the last couple of quarters, our focus on what’s happening in the warehouse and DCs has not been the optimal focus given the activity that some of these retailers are seeing and what they’re trying to do in terms of optimizing their footprint and use the store to help with fulfillment.

Adam Samuelson: Okay. I appreciate that color. I’ll pass it on thanks.

Omar Asali: Thank you.

Operator: Thank you. We have no further questions. So I’ll now hand back over to Bill Drew for closing remarks.

Bill Drew: Thank you, Lauren, and thank you all for joining us today. We look forward to seeing you next quarter.

Operator: Thank you, everyone. This concludes today’s call. Thank you for joining. You may now disconnect your lines.