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Jun 30, 2020
Sealed Air Q2 2020 Earnings Report
Sealed Air's financial performance reflected resilience amidst the COVID-19 pandemic, with adjusted EBITDA increasing and strategic investments being accelerated.
Key Takeaways
Sealed Air reported Q2 2020 results with net sales of $1.2 billion, a decrease of 1% as reported but an increase of 3% on a constant currency basis. Net earnings increased approximately 300% to $100 million, or $0.64 per share. Adjusted EBITDA rose by 10% to $260 million, while adjusted EPS decreased by 5% to $0.76 per share.
Net sales reached $1.2 billion, down 1% as reported but up 3% in constant currency.
Net earnings surged to $100 million, or $0.64 per share, marking an approximate 300% increase.
Adjusted EBITDA increased by 10% to $260 million.
The company re-issued full-year 2020 guidance, reflecting confidence in customer demand for essential packaging solutions.
Sealed Air
Sealed Air
Sealed Air Revenue by Segment
Revenue by Segment
Food Revenue
CapyFin.comProtective Revenue
CapyFin.com Forward Guidance
Sealed Air expects net sales in the range of $4.725 billion to $4.775 billion, representing a (1%) to flat as reported and 1% to 2% growth in constant dollars. Adjusted EBITDA is expected to be in the range of $1.01 billion to $1.03 billion. Adjusted EPS is expected to be in the range of $2.85 to $2.95. Free cash flow is expected to be in the range of $350 million to $375 million.
Positive Outlook
- Net sales are projected between $4.725B and $4.775B, indicating a potential for growth in constant dollars.
- Adjusted EBITDA is anticipated to be between $1.01B and $1.03B.
- Adjusted EPS is forecasted to be in the range of $2.85 to $2.95.
- Free cash flow is expected to range from $350M to $375M.
- Company does not have any debt maturities until August 2022.
Challenges Ahead
- Foreign currency is expected to negatively impact net sales by approximately $120 million.
- Foreign currency is now expected to have a negative impact on Adjusted EBITDA of approximately $25 million.
- Full year 2020, Sealed Air now expects net sales in the range of $4.725 billion to $4.775 billion, which represents (1%) to flat as reported
- Decline in organic volume of $49 million or 4%.
- North America, EMEA and South America declined 6%, 5% and 1%, respectively.
Revenue & Expenses
Visualization of income flow from segment revenue to net income