11.02.22
Sonoco Products Company reported financial results for its third quarter ended Oct. 2, 2022.
Third Quarter 2022 Highlights
• Third-quarter results exceeded the high end of guidance.
• Announced the Skjern Paper acquisition to expand production capacity in Europe.
• Launched state-of-the-art uncoated recycled paperboard (URB) #10 machine in the Hartsville Mill Complex.
• Released updated Corporate Responsibility Report highlighting commitments to ESG initiatives.
• Continued progress on strategic priorities which are expected to benefit financial results in 2023 and beyond.
Net sales increased 34% year-over-year to $1.9 billion from strategic pricing performance and continued strong results from the Sonoco Metal Packaging acquisition. These increases were partially offset by lower industrial volumes and the impact of foreign currency exchange.
GAAP operating profit and base operating profit increased year-over-year from strategic pricing benefits and acquisitions. GAAP net income and base net income increased from strong operating performance, partially offset by higher interest expense related to the financing of the Metal Packaging acquisition.
“We delivered another strong quarter of results from stable consumer demand and improving supply conditions, while executing a number of activities critical to our future,” said Howard Coker, president and CEO of Sonoco. “We are delighted that we have successfully completed the initial start-up of our advanced #10 URB machine in the Hartsville Mill Complex which will improve our paper making efficiency. In parallel, we are expanding paper production capability with the planned acquisition of Skjern Paper in Denmark to support growing demand for sustainable paper-based packaging in Europe."
Third Quarter 2022 Highlights
• Third-quarter results exceeded the high end of guidance.
• Announced the Skjern Paper acquisition to expand production capacity in Europe.
• Launched state-of-the-art uncoated recycled paperboard (URB) #10 machine in the Hartsville Mill Complex.
• Released updated Corporate Responsibility Report highlighting commitments to ESG initiatives.
• Continued progress on strategic priorities which are expected to benefit financial results in 2023 and beyond.
Net sales increased 34% year-over-year to $1.9 billion from strategic pricing performance and continued strong results from the Sonoco Metal Packaging acquisition. These increases were partially offset by lower industrial volumes and the impact of foreign currency exchange.
GAAP operating profit and base operating profit increased year-over-year from strategic pricing benefits and acquisitions. GAAP net income and base net income increased from strong operating performance, partially offset by higher interest expense related to the financing of the Metal Packaging acquisition.
“We delivered another strong quarter of results from stable consumer demand and improving supply conditions, while executing a number of activities critical to our future,” said Howard Coker, president and CEO of Sonoco. “We are delighted that we have successfully completed the initial start-up of our advanced #10 URB machine in the Hartsville Mill Complex which will improve our paper making efficiency. In parallel, we are expanding paper production capability with the planned acquisition of Skjern Paper in Denmark to support growing demand for sustainable paper-based packaging in Europe."