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Sealed Air
🇺🇸 NYSE:SEE
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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.

Total Revenue
$1.15B
Previous year: $1.16B
-0.9%
EPS
$0.76
Previous year: $0.8
-5.0%
Adjusted EBITDA
$260M
Previous year: $237M
+9.7%
Gross Profit
$390M
Previous year: $378M
+3.1%
Cash and Equivalents
$290M
Previous year: $222M
+30.4%
Free Cash Flow
$137M
Previous year: $59.1M
+132.0%
Total Assets
$5.76B
Previous year: $5.22B
+10.3%

Sealed Air

Sealed Air

Sealed Air Revenue by Segment

Sealed Air Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

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