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Mar 31, 2023
Silgan Q1 2023 Earnings Report
Silgan's first quarter performance in 2023 was solid, with strong operating performance overcoming headwinds from interest expense, foreign currency translation, and resin cost fluctuations.
Key Takeaways
Silgan Holdings Inc. reported first quarter 2023 net sales of $1.42 billion and net income of $72.0 million, or $0.65 per diluted share. Adjusted net income per diluted share for the first quarter of 2023 was $0.78. The company confirms outlook for 2023 earnings and free cash flow.
Double digit growth in dispensing products for high value fragrance and beauty markets
Organic volume growth of 3% in Metal Containers
Businesses continued to deliver strong operating performance
Confirmed estimate of 2023 adjusted earnings per diluted share in the range of $3.95 to $4.15
Silgan
Silgan
Silgan Revenue by Segment
Revenue by Segment
Dispensing & Specialty Closures Revenue
CapyFin.comMetal Containers Revenue
CapyFin.comCustom Containers Revenue
CapyFin.com Forward Guidance
The Company continues to expect strong organic growth for dispensing and metal container products in 2023 and is confirming its estimate of adjusted net income per diluted share for the full year of 2023 in the range of $3.95 to $4.15.
Positive Outlook
- Expects strong organic growth for dispensing and metal container products in 2023.
- Estimate of adjusted net income per diluted share for the full year of 2023 in the range of $3.95 to $4.15.
- Free cash flow in 2023 is expected to benefit from strong operating performance
- Improvements in working capital
- For the second quarter of 2023, the Company expects organic volume growth in its Dispensing and Specialty Closures segment driven by improving demand across major product categories and continued volume growth in the Metal Containers segment
Challenges Ahead
- Includes the unfavorable impact of higher interest expense of approximately $0.20 per diluted share versus the prior year
- Includes the delayed pass through of higher resin costs in the first half of 2023
- Interest expense before loss on early extinguishment of debt of approximately $155 million in 2023
- An effective tax rate for 2023 of approximately 24% to 25%
- Capital expenditures are expected to be approximately $250 million in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income