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Mar 31, 2023
Sealed Air Q1 2023 Earnings Report
SEE's Q1 2023 financial results were announced, revealing a decrease in net sales and earnings, but the company expressed confidence in growth for the second half of the year.
Key Takeaways
SEE reported Q1 2023 results with net sales of $1.3 billion, a 5% decrease as reported. Net earnings decreased by 58% to $63 million, and adjusted EBITDA was down 18% to $267 million. Despite these declines, the company anticipates growth in the second half of 2023, driven by the Liquibox acquisition, reduced destocking, and expected market recovery.
Net sales decreased by 5% as reported, totaling $1.3 billion.
Net earnings declined by 58% to $63 million.
Adjusted EBITDA decreased by 18% to $267 million.
The company completed the acquisition of Liquibox on February 1, 2023.
Sealed Air
Sealed Air
Sealed Air Revenue by Segment
Revenue by Segment
Food Revenue
CapyFin.comProtective Revenue
CapyFin.com Forward Guidance
SEE continues to expect net sales in the range of $5.85 to $6.10 billion, Adjusted EBITDA to be in the range of $1.25 to $1.30 billion, and Adjusted EPS to be in the range of $3.50 to $3.80 for the full year 2023.
Positive Outlook
- Net sales are expected to increase by 4% to 8%.
- The Liquibox acquisition is expected to have a favorable impact of approximately 6% on net sales.
- Adjusted EBITDA is expected to be in the range of $1.25 to $1.30 billion.
- The Liquibox acquisition is expected to have a favorable impact of approximately 8% on Adjusted EBITDA.
- Adjusted EPS is forecasted to be in the range of $3.50 to $3.80.
Challenges Ahead
- An unfavorable currency impact of approximately 1% is expected on net sales.
- An unfavorable currency impact of approximately 1% is expected on Adjusted EBITDA.
- Full year Adjusted EPS is based on approximately 145 million shares outstanding.
- An anticipated Adjusted Tax Rate of approximately 26% to 27% is expected.
- Excluding a $175 million tax deposit related to a tentative agreement to settle with the IRS, the Company expects Free Cash Flow in 2023 would remain in the range of $475 to $525 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income