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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
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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