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Sealed Air
🇺🇸 NYSE:SEE
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Sep 30, 2023

Sealed Air Q3 2023 Earnings Report

Sealed Air's Q3 2023 results reflected continued weakness in end-markets, with net sales down 1% as reported, but flat at constant currency.

Key Takeaways

Sealed Air reported Q3 2023 financial results with net sales of $1.38 billion, a 1% decrease as reported, but flat at constant currency. Net earnings decreased by 57% to $58 million, and adjusted EBITDA was down 3% to $285 million. The company is focused on improving execution across innovation, supply chain, and commercial efforts while accelerating cost take-out and portfolio optimization.

Net sales were $1.38 billion, down 1% as reported but flat at constant currency.

Net earnings decreased 57% to $58 million.

Adjusted EBITDA was $285 million, a 3% decrease as reported.

Adjusted EPS (Diluted) was $0.77, down 21% as reported.

Total Revenue
$1.38B
Previous year: $1.4B
-1.3%
EPS
$0.77
Previous year: $0.98
-21.4%
Adjusted EBITDA
$285M
Previous year: $293M
-2.7%
Gross Profit
$413M
Previous year: $434M
-4.7%
Cash and Equivalents
$281M
Previous year: $249M
+13.1%
Free Cash Flow
$138M
Previous year: $137M
+0.4%
Total Assets
$7.37B
Previous year: $6.08B
+21.3%

Sealed Air

Sealed Air

Sealed Air Revenue by Segment

Sealed Air Revenue by Geographic Location

Forward Guidance

For the full year 2023, SEE continues to expect net sales in the range of $5.40 to $5.60 billion and Adjusted EBITDA to be in the range of $1.075 to $1.125 billion. The Company continues to forecast full year Adjusted EPS to be in the range of $2.75 to $2.95, which is based on approximately 145 million shares outstanding and an anticipated Adjusted Tax Rate of approximately 27%. Excluding full year 2023 payments related to the IRS settlement, the Company continues to expect Free Cash Flow in 2023 in the range of $325 to $375 million.

Positive Outlook

  • Net sales are expected to be in the range of $5.40 to $5.60 billion.
  • Adjusted EBITDA is projected to be between $1.075 and $1.125 billion.
  • Adjusted EPS is forecasted to be in the range of $2.75 to $2.95.
  • Approximately 145 million shares outstanding are expected.
  • Free Cash Flow is anticipated to be in the range of $325 to $375 million, excluding IRS settlement payments.

Challenges Ahead

  • Guidance does not include the impact of Special Items due to high variability and complexity.
  • Restructuring charges could impact U.S. GAAP financial measures.
  • Adjustments in the valuation of SEE Ventures portfolio may affect results.
  • Amortization of intangible assets and inventory step-up expense from the Liquibox acquisition may have an impact.
  • The ultimate outcome of legal or tax proceedings could influence financial results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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