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Jun 30, 2021

Sealed Air Q2 2021 Earnings Report

Sealed Air's Q2 2021 financial results were announced, revealing a net sales increase and strategic investments in automation, digital, and sustainability.

Key Takeaways

Sealed Air reported a 15% increase in net sales, reaching $1.3 billion, driven by demand for automated and sustainable packaging solutions. Adjusted EBITDA rose by 1%, while the company is increasing its investment in automation, digital, and sustainability, alongside returning capital to shareholders through share repurchases and dividend increases.

Net sales increased by 15% to $1.3 billion, or 11% on a constant currency basis.

Net earnings increased by 8% to $109 million, with EPS up 11% to $0.71.

Adjusted EBITDA increased by 1% to $263 million, and Adjusted EPS increased by 4% to $0.79.

The company authorized a new $1 billion share repurchase program and increased its quarterly cash dividend by 25%.

Total Revenue
$1.33B
Previous year: $1.15B
+15.5%
EPS
$0.79
Previous year: $0.76
+3.9%
Adjusted EBITDA
$263M
Previous year: $260M
+1.2%
Gross Profit
$401M
Previous year: $390M
+2.8%
Cash and Equivalents
$273M
Previous year: $290M
-5.7%
Free Cash Flow
$66.4M
Previous year: $137M
-51.6%
Total Assets
$6.01B
Previous year: $5.76B
+4.3%

Sealed Air

Sealed Air

Sealed Air Revenue by Segment

Sealed Air Revenue by Geographic Location

Forward Guidance

SEE has updated its full year 2021 outlook, expecting net sales in the range of $5.4 billion to $5.5 billion and Adjusted EPS to be in the range of $3.45 to $3.60. The company continues to expect full year Adjusted EBITDA to be in the range of $1.12 billion to $1.15 billion and Free Cash Flow in the range of $520 million to $570 million.

Positive Outlook

  • Net sales are expected to increase by 10% to 12% as reported and 8% to 10% in constant dollars.
  • A favorable currency impact of approximately 2% is expected.
  • Adjusted EBITDA is projected to be in the range of $1.12 billion to $1.15 billion.
  • Adjusted EPS is forecasted to be in the range of $3.45 to $3.60.
  • Free Cash Flow is expected to be in the range of $520 million to $570 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income