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Dec 31, 2022
Sealed Air Q4 2022 Earnings Report
Sealed Air's Q4 2022 results were impacted by lower sales and special items, while full year adjusted EPS grew by 15%.
Key Takeaways
Sealed Air reported a decrease in net sales by 8% to $1.4 billion in Q4 2022. Net earnings decreased by 44% to $95 million. Adjusted EBITDA decreased by 10% to $297 million, and adjusted EPS decreased by 12% to $0.99. The company completed the Liquibox acquisition and launched Reinvent SEE 2.0.
Net sales in Q4 were $1.4 billion, down 8% as reported, and down 4% in constant currency.
Net earnings in Q4 were $95 million, down 44%.
Adjusted EBITDA in Q4 was $297 million, down 10% as reported, and down 7% in constant currency.
Adjusted EPS in Q4 was $0.99, down 12% as reported, and down 7% in constant currency.
Sealed Air
Sealed Air
Sealed Air Revenue by Segment
Revenue by Segment
Food Revenue
CapyFin.comProtective Revenue
CapyFin.com Forward Guidance
For the full year 2023, SEE expects net sales in the range of $5.85 to $6.10 billion, and Adjusted EBITDA is expected to be in the range of $1.25 to $1.30 billion. Full year Adjusted EPS is forecasted to be in the range of $3.50 to $3.80.
Positive Outlook
- Net sales are expected to increase by 4% to 8%.
- 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.
- Liquibox acquisition is expected to have a favorable impact of approximately 8% on Adjusted EBITDA.
- Adjusted EPS is expected to be in the range of $3.50 to $3.80.
Challenges Ahead
- Challenging macroeconomic environment, especially in the first half of 2023.
- Unfavorable currency impact of approximately 1% on net sales.
- Unfavorable currency impact of approximately 1% on Adjusted EBITDA.
- Reinvent SEE 2.0 is expected to reduce cost structure by $35 to $45 million over the next 12 to 18 months, but the net benefit is currently excluded from guidance.
- Free Cash Flow in 2023 is expected to be in the range of $475 to $525 million, with capital expenditures in the range of $260 to $280 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income