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Dec 31, 2021
Sonoco Q4 2021 Earnings Report
Reported fourth-quarter and full-year 2021 results, with net sales up and base earnings per diluted share at $0.90.
Key Takeaways
Sonoco reported a 4.6% increase in fourth-quarter net sales to $1.44 billion and GAAP earnings per diluted share of $0.66, compared to a loss of $(0.12) in 2020. Base earnings per diluted share increased to $0.90 from $0.82 in the prior year. The company also raised its 2022 guidance, reflecting the benefit of the Ball Metalpack acquisition.
Fourth-quarter net sales increased by 4.6% to $1.44 billion.
GAAP earnings per diluted share were $0.66, a significant improvement from the $(0.12) loss in the previous year.
Base earnings per diluted share rose to $0.90, compared to $0.82 in 2020.
The company completed the acquisition of Ball Metalpack on January 26, 2022, for $1.35 billion.
Sonoco
Sonoco
Sonoco Revenue by Segment
Revenue by Segment
Consumer Packaging Revenue
CapyFin.comIndustrial Paper Packaging Revenue
CapyFin.com Forward Guidance
Sonoco expects 2022 base earnings to be in the range of $4.60 to $4.80 per diluted share, with first quarter base earnings per diluted share expected to be between $1.25 to $1.35. Full-year 2022 operating cash flow and free cash flow are expected to be in a range of $690 million to $740 million and $365 million and $415 million, respectively.
Positive Outlook
- Core Consumer and Industrial businesses are well positioned to achieve stronger performance coming out of the pandemic.
- Efforts to recover higher costs continue to gain traction.
- The 'invest in ourselves' strategy is expected to continue delivering enhanced growth and improved productivity.
- The company expects to further simplify its structure, creating a more effective and efficient organization.
- The addition of Ball Metalpack increases the capability of the core can-making franchise and expands the position in more-defensive consumer markets.
Challenges Ahead
- An expected negative year-over-year impact from foreign exchange rates.
- A higher effective tax rate is anticipated.
- Increased selling, general and administrative expenses are projected.
- Selling, general and administrative expenses are expected to increase due to the non-recurrence of Covid-related incentives received in 2021.
- Uncertainty regarding the future performance of the overall economy and continued effects of the pandemic on global supply chains.
Revenue & Expenses
Visualization of income flow from segment revenue to net income