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Jul 03, 2022
Sonoco Q2 2022 Earnings Report
Reported record sales and net income, driven by strong performance in Consumer Packaging and Industrial Paper Packaging segments.
Key Takeaways
Sonoco reported strong second-quarter results with record sales of $1.91 billion and base earnings of $1.76 per diluted share, driven by strong performance in the Consumer Packaging and Industrial Paper Packaging segments. The company has increased its full-year base earnings guidance to a range of $6.20 to $6.30 per diluted share.
Net sales reached a record $1.91 billion, a 38% increase year-over-year.
GAAP net income per diluted share was $1.33, compared to a loss of $(3.34) in the same period last year.
Base net income was $1.76 per diluted share, an 89% increase from $0.93 per diluted share in the same period of 2021.
The Company has increased its outlook for full-year base earnings to a range of $6.20 to $6.30 per diluted share.
Sonoco
Sonoco
Sonoco Revenue by Segment
Revenue by Segment
Consumer Packaging Revenue
CapyFin.comIndustrial Paper Packaging Revenue
CapyFin.com Forward Guidance
The Company expects third-quarter base earnings to be in the range of $1.35 to $1.45 per diluted share. Full-year 2022 base earnings are expected to be between $6.20 to $6.30 per diluted share. Full-year 2022 cash flow from operations and free cash flow guidance remains unchanged at a range of $690 million to $740 million and $365 million to $415 million, respectively.
Positive Outlook
- Consumer Packaging segment will continue to benefit from the integration of Metal Packaging.
- Sonoco remains committed to our strategic priorities of simplifying our portfolio into fewer, but bigger businesses.
- Sonoco plans to invest in expanding our core Consumer and Industrial businesses to drive further growth and productivity improvement.
- Sonoco is executing self-help actions and achieving our sustainability goals.
- Sonoco remains focused on returning cash to our shareholders with sector-leading, regular dividends.
Challenges Ahead
- Segment margin percentage should normalize for the remainder of the year.
- The planned shutdown of the Hartsville corrugated medium machine to complete Project Horizon will occur within the third quarter.
- The eight-week shutdown is expected to negatively impact third-quarter Industrial Paper Packaging operating profit between $10 million to $15 million.
- Uncertainty regarding the future performance of the overall economy.
- Continued effects of the pandemic on global supply chains, and 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