05.06.24
Sonoco Products Company reported financial results for its first quarter ended March 31, 2024.
Net sales decreased 5% to $1.6 billion driven by lower pricing and the treatment of recycling operations as a procurement function beginning January 1, 2024; volumes remained flat as lower volumes offset the benefit of acquisitions.
Adjusted operating profit and Adjusted EBITDA decreased to $176 million and $245 million, respectively, due to lower volumes in the Consumer Packaging segment and unfavorable price/cost in the Industrial Packaging segment, which were partially offset by higher productivity across the portfolio.
GAAP operating profit decreased to $112 million primarily due to the absence of gains ($72 million) recognized in Q1 2023 related to the sales of the company’s timberland properties and Sonoco Sustainability Solutions; lower volumes and price/cost were partially offset by higher productivity.
Sonoco generated $166 million of operating cash flow and $80 million of free cash flow.
“Sonoco delivered first quarter results in line with our expectations,” said Howard Coker, Sonoco’s president and CEO. “While the overall demand environment remains muted and price/cost headwinds persist, focused execution and operating discipline delivered $51 million of productivity from value creating capital investments and business simplification initiatives over the past several years.
“On the strategic front, we continued to make notable progress on portfolio alignment with the sale of our Protective Solutions business, integration of our flexibles and thermoformed businesses, and strengthening our strategic pipeline of both organic and inorganic investment opportunities,” Coker added.
Net sales decreased 5% to $1.6 billion driven by lower pricing and the treatment of recycling operations as a procurement function beginning January 1, 2024; volumes remained flat as lower volumes offset the benefit of acquisitions.
Adjusted operating profit and Adjusted EBITDA decreased to $176 million and $245 million, respectively, due to lower volumes in the Consumer Packaging segment and unfavorable price/cost in the Industrial Packaging segment, which were partially offset by higher productivity across the portfolio.
GAAP operating profit decreased to $112 million primarily due to the absence of gains ($72 million) recognized in Q1 2023 related to the sales of the company’s timberland properties and Sonoco Sustainability Solutions; lower volumes and price/cost were partially offset by higher productivity.
Sonoco generated $166 million of operating cash flow and $80 million of free cash flow.
“Sonoco delivered first quarter results in line with our expectations,” said Howard Coker, Sonoco’s president and CEO. “While the overall demand environment remains muted and price/cost headwinds persist, focused execution and operating discipline delivered $51 million of productivity from value creating capital investments and business simplification initiatives over the past several years.
“On the strategic front, we continued to make notable progress on portfolio alignment with the sale of our Protective Solutions business, integration of our flexibles and thermoformed businesses, and strengthening our strategic pipeline of both organic and inorganic investment opportunities,” Coker added.