HARTSVILLE, S.C. ,Feb. 14, 2024 -Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), one of the largest sustainable global packaging companies, today reported financial results for its fourth quarter and fiscal year endedDecember 31, 2023 .
Summary
- Achieved second best full year results for Adjusted EPS in the Company’s 125-year history
- Generated a record
$883 million of operating cash flow and$600 million of Free Cash Flow in the full year of 2023 - Invested a record level of capital in the business for future growth and productivity
- Achieved record results in Operating Profit and Adjusted EBITDA in flexible packaging and record net sales in rigid paper containers in the
Consumer Packaging (“Consumer”) segment - Produced record Operating Profit margins and Adjusted EBITDA margins in
Industrial Paper Packaging (“Industrial”) segment despite a low volume environment - Expanded the Company’s flexible packaging capabilities with the acquisition of
Inapel Embalagens Ltda . inBrazil - Made further progress on strategic priorities including portfolio simplification, organic growth investments, and Environmental, Social, and Governance commitments
- Solid fourth quarter operating results driven by strong productivity offset by higher employee expenses, healthcare, and accounts receivable reserve
- Effective
January 1, 2024 , we integrated the flexible packaging and thermoforming packaging businesses within the Consumer segment to streamline operations, enhance customer service, and better position the business to accelerate growth
Q4-23 (versus Q4-22):
- Net sales decreased 2% to
$1.6 billion driven by lower volumes and pricing - GAAP operating profit increased to
$135 million due to lower acquisition and restructuring costs, favorable productivity, and revenue from acquisitions - Effective tax rates on GAAP and Adjusted Earnings were 21.7% and 25.7%, respectively, in Q4 2023 compared to 1.9% and 21.3%, respectively, in Q4 2022
- GAAP net income decreased to
$81 million for GAAP EPS (diluted) of$0.82 - Adjusted Earnings decreased to
$101 million for Adjusted EPS (diluted) of$1.02 - Adjusted operating profit and Adjusted EBITDA decreased to
$167 million and$236 million , respectively, due to lower volumes across the portfolio, unfavorable price/cost in Industrial, higher employee expenses, and higher accounts receivable reserve, which were partially offset by higher productivity and favorable price/cost in Consumer
2023 (versus 2022):
- Net sales decreased 6% year-over-year to
$6.8 billion driven by lower volumes across the portfolio, partially offset by revenue from acquisitions - GAAP operating profit increased to
$716 million due to gains on divestitures and asset sales, lower acquisition and restructuring costs, favorable productivity, and revenue from acquisitions - Effective tax rates on GAAP and Adjusted Earnings for the full year 2023 were 24.3% and 24.6%, respectively, compared with 20.7% and 23.9%, respectively, in the prior year
- Net income margin was 7.0% and Adjusted EBITDA margin was 15.7% in 2023, compared with 6.4% and 16.0% in 2022, respectively
- GAAP net income increased to
$475 million for GAAP EPS (diluted) of$4.80 - Adjusted Earnings decreased to
$520 million for Adjusted EPS (diluted) of$5.26 - Adjusted operating profit decreased to
$804 million as lower overall volumes and unfavorable metal price overlap were partially offset by favorable productivity and revenue from acquisitions
“In 2023,
Coker continued, “We generated record annual operating cash flow of
Source: Sonoco
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