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Oct 02, 2022

Sonoco Q3 2022 Earnings Report

Sonoco reported strong third quarter results, exceeding guidance with increased net sales and operating profit, driven by strategic pricing and the Metal Packaging acquisition.

Key Takeaways

Sonoco's Q3 2022 results showed a 34% increase in net sales to $1.9 billion, driven by strategic pricing and the Sonoco Metal Packaging acquisition. GAAP operating profit increased by 44% to $182 million, and base EPS grew by 60% to $1.60. The company also increased its full-year 2022 base earnings guidance.

Third-quarter results exceeded the high end of guidance.

Announced the Skjern Paper acquisition to expand production capacity in Europe.

Launched state-of-the-art uncoated recycled paperboard (URB) #10 machine in the Hartsville Mill Complex.

Released updated Corporate Responsibility Report highlighting commitments to ESG initiatives.

Total Revenue
$1.89B
Previous year: $1.42B
+33.6%
EPS
$1.6
Previous year: $0.91
+75.8%
Gross Profit
$367M
Previous year: $258M
+42.5%
Cash and Equivalents
$182M
Previous year: $160M
+13.9%
Free Cash Flow
$91.3M
Previous year: $61.5M
+48.5%
Total Assets
$6.98B
Previous year: $4.93B
+41.6%

Sonoco

Sonoco

Sonoco Revenue by Segment

Forward Guidance

Sonoco projects Q4 2022 base EPS to be in the range of $1.20 to $1.30 and full year 2022 base EPS to be in the range of $6.40 to $6.50. Cash flow from operating activities is projected to be $565 to $615 million with free cash flow of $265 to $315 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income