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Mar 31, 2024
Sonoco Q1 2024 Earnings Report
Sonoco's first quarter results met expectations amidst a muted demand environment and persistent price/cost headwinds, with productivity gains partially offsetting these challenges.
Key Takeaways
Sonoco reported first quarter 2024 results with net sales of $1.638 billion and net income of $65 million. The company achieved adjusted EBITDA of $245 million and adjusted EPS of $1.12. While facing lower volumes and price/cost pressures, productivity improvements contributed $51 million in savings. Sonoco completed the sale of Protective Solutions and revised its adjusted EPS and adjusted EBITDA guidance for the year.
Generated $166 million of operating cash flow and $80 million of Free Cash Flow.
Achieved net income attributable to Sonoco of $65 million, Adjusted EBITDA of $245 million, diluted earnings per share of $0.66 and diluted Adjusted earnings per share of $1.12.
Completed the sale of Protective Solutions on April 1, 2024, and used the majority of the $82 million cash proceeds to pay down debt.
Increased the quarterly dividend on April 17, 2024 for the 41st consecutive year to $0.52 per share.
Sonoco
Sonoco
Sonoco Revenue by Segment
Revenue by Segment
Consumer Packaging Revenue
CapyFin.comIndustrial Paper Packaging Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
Sonoco expects sequential adjusted earnings per share improvement of 16% over first quarter results from increased sales in metal packaging and trade paper and continued strong productivity across all businesses.
Positive Outlook
- Expect sequential adjusted earnings per share improvement of 16% over first quarter results
- Increased sales in metal packaging
- Increased sales in trade paper
- Continued strong productivity across all businesses
- Focused on financial discipline and returning capital to our shareholders.
Challenges Ahead
- Uncertainty regarding the future performance of the overall economy
- Effects of inflation
- Continued challenges in global supply chains
- Potential changes in raw material prices
- Other costs, and the Company’s effective tax rate
Revenue & Expenses
Visualization of income flow from segment revenue to net income