08.04.23
Sonoco Products Company reported financial results for its second quarter ended July 2, 2023.
Net sales decreased 11% to $1.7 billion, driven by lower volumes. GAAP operating profit decreased 5% to $188 million as lower overall volume and mix was partially offset by lower acquisition-related and restructuring costs, gains on asset sales, higher price/cost and productivity. Cash flow from operating activities for the first six months of 2023 was $349 million, compared to $184 million in the same period of 2022.
“Sonoco continues to operate well with most of our businesses achieving commercial, operational, and productivity objectives,” said Howard Coker, Sonoco’s president and CEO. “In the second quarter, volume softness beyond our expectations negatively impacted Consumer metal packaging and Industrials.
“In metal, accelerated inventory reduction programs within our top food and aerosol customers resulted in lower than expected demand and negatively impacted operating leverage,” Coker added. “In Industrials, volume for paper and converted products remained low across all geographies and end markets including paper, film, textile, and appliances. Industrial customers cited lower end market demand and customer destocking as factors for the declines. Despite these challenges, our teams generated $349 million of operating cash flow for the first six months of 2023.”
Net sales decreased 11% to $1.7 billion, driven by lower volumes. GAAP operating profit decreased 5% to $188 million as lower overall volume and mix was partially offset by lower acquisition-related and restructuring costs, gains on asset sales, higher price/cost and productivity. Cash flow from operating activities for the first six months of 2023 was $349 million, compared to $184 million in the same period of 2022.
“Sonoco continues to operate well with most of our businesses achieving commercial, operational, and productivity objectives,” said Howard Coker, Sonoco’s president and CEO. “In the second quarter, volume softness beyond our expectations negatively impacted Consumer metal packaging and Industrials.
“In metal, accelerated inventory reduction programs within our top food and aerosol customers resulted in lower than expected demand and negatively impacted operating leverage,” Coker added. “In Industrials, volume for paper and converted products remained low across all geographies and end markets including paper, film, textile, and appliances. Industrial customers cited lower end market demand and customer destocking as factors for the declines. Despite these challenges, our teams generated $349 million of operating cash flow for the first six months of 2023.”