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Dec 31, 2024
Sonoco Q4 2024 Earnings Report
Sonoco reported mixed results for Q4 2024, with a modest increase in revenue but a decline in GAAP net income due to acquisition-related costs.
Key Takeaways
Sonoco posted Q4 2024 revenue of $1.36 billion, up 2% year-over-year. The company reported a GAAP net loss of $43 million due to acquisition-related costs, but adjusted net income was $100 million. Adjusted EPS came in at $1.00. Operating profit declined to $56 million, while adjusted EBITDA increased 4.6% to $247 million.
Q4 revenue increased 2% to $1.36 billion, driven by volume growth and the Eviosys acquisition.
GAAP net loss of $43 million due to acquisition-related costs, while adjusted net income was $100 million.
Adjusted EBITDA grew 4.6% year-over-year to $247 million.
Strong productivity initiatives offset cost headwinds, generating $41 million in savings.
Revenue by Segment
Forward Guidance
Sonoco expects approximately 20% growth in adjusted net income and a 30% increase in adjusted EBITDA in 2025, driven by cost synergies from the Eviosys acquisition and operational efficiency improvements.
Positive Outlook
- Projected 20% growth in adjusted net income for 2025.
- Expected 30% increase in adjusted EBITDA.
- Integration of Eviosys expected to generate $100 million in synergies over two years.
- Continued focus on cost optimization and productivity improvements.
- Strong free cash flow to support debt reduction and capital investments.
Challenges Ahead
- Higher interest expenses due to debt financing for Eviosys acquisition.
- Potential macroeconomic uncertainties impacting raw material costs.
- Continued pressure on margins from lower selling prices in key segments.
- Integration challenges associated with the Eviosys acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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