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Dec 31, 2023
Silgan Q4 2023 Earnings Report
Silgan Holdings reported mixed Q4 2023 results with a decrease in net sales but an increase in net income, driven by growth in dispensing products and cost reduction initiatives.
Key Takeaways
Silgan Holdings Inc. reported Q4 2023 net sales of $1.3 billion, an 8% decrease compared to the same period in the prior year. Net income for the quarter was $64.4 million, or $0.60 per diluted share, compared to $24.6 million, or $0.22 per diluted share, for Q4 2022. The company highlighted continued growth in high-value dispensing products and announced a multi-year $50 million cost reduction program.
Net sales decreased by 8% to $1.3 billion due to lower volumes.
Net income increased to $64.4 million, or $0.60 per diluted share, compared to $24.6 million, or $0.22 per diluted share, in Q4 2022.
Adjusted net income per diluted share was $0.63, compared to $0.85 in Q4 2022.
The company is implementing a multi-year $50 million cost reduction program.
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 adjusted net income per diluted share for the full year of 2024 will be in the range of $3.55 to $3.75.
Positive Outlook
- Volumes in the Dispensing and Specialty Closures and Metal Containers segments for 2024 are expected to be higher than 2023 levels.
- Volumes in the Custom Containers segment are expected to be comparable to the prior year.
- The Company anticipates interest and other debt expense in 2024 of approximately $170 million.
- The company expects an effective tax rate for 2024 of approximately 24 - 25%.
- The Company currently estimates that free cash flow in 2024 will be approximately $375 million as compared to $356.7 million in 2023.
Challenges Ahead
- For the first quarter of 2024, the Company expects the impact of customer destocking to continue to impact volumes.
- A low single digit volume decline in the Dispensing and Specialty Closures and Metal Containers segments is expected.
- A mid-to-high single digit volume decline in the Custom Containers segment is expected as compared to the prior year period.
- The Company is providing an estimate of adjusted net income per diluted share for the first quarter of 2024 in the range of $0.60 to $0.70.
- This is as compared to $0.78 in the first quarter of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income