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Dec 31, 2021
Silgan Q4 2021 Earnings Report
Silgan Holdings reported record earnings and cash generation in 2021.
Key Takeaways
Silgan Holdings Inc. reported full year 2021 net income of $359.1 million, or $3.23 per diluted share, as compared to full year 2020 net income of $308.7 million, or $2.77 per diluted share. Adjusted net income per diluted share was a record $3.40 for the full year of 2021, after adjustments increasing net income per diluted share by $0.17. The Company reported net income for the fourth quarter of 2021 of $85.0 million, or $0.76 per diluted share, as compared to net income for the fourth quarter of 2020 of $60.1 million, or $0.54 per diluted share.
Earnings per diluted share (EPS) of $3.23, an increase of 17% over 2020.
Adjusted EPS increased 11% to $3.40 versus the previous record in 2020.
EPS of $0.76 in the fourth quarter of 2021 and adjusted EPS of $0.79, an increase of 32% over the prior year quarter.
Adjusted EPS for 2022 is expected to increase another 15%, at the midpoint of the Company's estimated range.
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 currently estimates that its adjusted net income per diluted share for the full year of 2022 will be in the range of $3.80 to $4.00, a 15 percent increase at the midpoint of the range over record adjusted net income per diluted share for the full year of 2021 of $3.40.
Positive Outlook
- Segment income in the Dispensing and Specialty Closures segment in 2022 is expected to increase significantly over the prior year primarily due to the inclusion of a full year from the acquisitions of Gateway and Unicep.
- A less volatile resin market as compared to the significant unfavorable impact in the prior year from the lagged pass through of increasing resin costs throughout 2021.
- More efficient operating performance.
- The continued recovery in the beauty and fragrance markets.
- A return to more normal volume levels for hygiene and cleaning products as compared to the negative impact in 2021 from inventory management throughout the supply chain for these products.
Challenges Ahead
- Free cash flow in 2022 will be negatively impacted by an anticipated significant increase in working capital principally related to unprecedented metal inflation in 2022.
- Increased growth investment opportunities with core customers.
- Higher cash taxes.
- Lower unit volumes in Metal Container segment.
- Higher interest expense in 2022 primarily due to higher weighted average outstanding borrowings as a result of the acquisitions completed in the third and fourth quarters of 2021 and higher weighted average interest rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income