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Dec 31, 2023
Sonoco Q4 2023 Earnings Report
Sonoco's Q4 2023 earnings were impacted by lower volumes and pricing, but offset by productivity.
Key Takeaways
Sonoco reported a decrease in net sales by 2% to $1.6 billion. GAAP operating profit increased to $135 million. Adjusted EPS decreased to $1.02. The company highlighted strong productivity offset by higher employee expenses.
Net sales decreased 2% to $1.6 billion due to lower volumes and pricing.
GAAP operating profit increased to $135 million due to lower acquisition and restructuring costs, favorable productivity, and revenue from acquisitions.
Adjusted operating profit and Adjusted EBITDA decreased to $167 million and $236 million, respectively.
Company achieved second best full year results for Adjusted EPS in the Company’s 125-year history
Sonoco
Sonoco
Sonoco Revenue by Segment
Revenue by Segment
Consumer Packaging Revenue
CapyFin.comIndustrial Paper Packaging Revenue
CapyFin.com Forward Guidance
In the first quarter of 2024, the company expects volumes to be down over the prior year period and negative price/cost from metal price overlap and from the year-over-year Industrial comparable. For the full year, Sonoco is expecting overall sales to be up modestly and price/cost impacts to be negative.
Positive Outlook
- Expecting overall sales to be up modestly
- Intend to continue to aggressively manage costs
- Generate positive productivity
- Focused on executing strategic initiatives to simplify our portfolio
- Capture synergies from recent acquisitions to advance Sonoco through 2024 and beyond
Challenges Ahead
- Expect volumes to be down over the prior year period in Q1 2024
- Expect negative price/cost from metal price overlap in Q1 2024
- Expect negative price/cost from the year-over-year Industrial comparable in Q1 2024
- Expecting price/cost impacts to be negative for the full year
- Navigating global volume uncertainties
Revenue & Expenses
Visualization of income flow from segment revenue to net income