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Sep 30, 2024
Silgan Q3 2024 Earnings Report
Silgan reported a decrease in net sales but an increase in adjusted EPS, driven by strategic growth initiatives and the Weener acquisition.
Key Takeaways
Silgan Holdings Inc. reported third quarter 2024 net sales of $1.75 billion and net income of $100.1 million, or $0.93 per diluted share. Adjusted net income per diluted share for the third quarter of 2024 was $1.21. The company completed the acquisition of Weener Packaging and renewed a long-term contract with its largest Metal Containers customer.
Completed acquisition of Weener Packaging.
Renewed long-term contract with largest customer.
Delivered double digit growth and record volume in dispensing products.
Record Dispensing and Specialty Closures segment Adjusted EBIT.
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 has narrowed its estimate of adjusted net income per diluted share for the full year of 2024 from a range of $3.55 to $3.75 to a range of $3.55 to $3.65. For the fourth quarter of 2024, the Company expects low single digit volume growth in the Dispensing and Specialty Closures and Custom Containers segments and is providing an estimate of adjusted net income per diluted share for the fourth quarter of 2024 in the range of $0.78 to $0.88.
Positive Outlook
- Volume/mix in the Dispensing and Specialty Closures segment and volumes in Custom Containers are expected to be higher than 2023 levels.
- Volumes in the Metal Containers segment are expected to be comparable to prior year levels.
- Adjusted net income per diluted share includes slight accretion from the recently completed acquisition of Weener Packaging
- The Company anticipates interest and other debt expense in 2024 of approximately $170 million and an effective tax rate for 2024 of approximately 23 - 24%.
- The Company is confirming its estimate of free cash flow in 2024 of approximately $375 million, as compared to $356.7 million in 2023.
Challenges Ahead
- Metal Containers volumes are expected to be below prior year levels due to the early end to the fruit and vegetable pack season in 2024 as compared to strong fruit and vegetable volumes in the fourth quarter of 2023.
- Impact of severe weather
- Mixed success of customer promotional activity
- Net sales for the third quarter of 2024 were $1.75 billion, a decrease of $58.0 million, or 3%, as compared to the same period in the prior year.
- The decline in Adjusted EBIT in the quarter was primarily the result of unfavorable price/cost including mix, largely as a result of the adverse mix impact of lower volumes related to the fruit and vegetable pack.
Revenue & Expenses
Visualization of income flow from segment revenue to net income