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Apr 02, 2023

Sonoco Q1 2023 Earnings Report

Sonoco reported strong first quarter results and raised full year 2023 guidance.

Key Takeaways

Sonoco's first-quarter results met the high end of the previously provided quarterly guidance, leading to an increase in the full-year outlook. The company saw a decrease in net sales by 2% year-over-year to $1.7 billion, while GAAP operating profit increased by 36%.

First-quarter results met the high end of the previously provided quarterly guidance

Raising full year guidance based on strength of operating model

Continued progress on strategic priorities including portfolio optimization

Increased quarterly cash dividend to $0.51 per share; 40th straight year of annual dividend increases

Total Revenue
$1.73B
Previous year: $1.77B
-2.3%
EPS
$1.4
Previous year: $1.85
-24.3%
Gross Profit
$374M
Previous year: $372M
+0.8%
Cash and Equivalents
$210M
Previous year: $152M
+38.6%
Free Cash Flow
$86M
Previous year: -$66.3M
-229.8%
Total Assets
$7.06B
Previous year: $6.96B
+1.5%

Sonoco

Sonoco

Sonoco Revenue by Segment

Forward Guidance

Sonoco is raising the high end of its full year guidance after a good start to the year. The company expects to maintain solid performance with limited demand recovery in Industrials.

Positive Outlook

  • Executing well operationally
  • Expect to maintain solid performance with limited demand recovery in Industrials
  • Increased demand in Industrials will provide opportunities for better performance beyond our current outlook
  • Committed to deploying capital to high return investments for growth and efficiencies
  • Further focusing our portfolio, and delivering continued value to our shareholders

Challenges Ahead

  • Uncertainty regarding the future performance of the overall economy
  • Continued effects of the pandemic on global supply chains
  • Potential changes in raw material prices
  • Potential changes in other costs
  • Potential changes in the Company's effective tax rate

Revenue & Expenses

Visualization of income flow from segment revenue to net income