05.03.23
Sonoco Products Company reported financial results for its first quarter ended April 2, 2023.
Net sales decreased 2% year-over-year to $1.7 billion as strong pricing was offset by lower overall volume. GAAP operating profit increased 36% year-over-year to $230 million as gains on asset sales and lower acquisition related costs offset lower price cost and lower volume and mix. Net income was $148 million, up 29%.
“Sonoco delivered a strong first quarter, highlighted by commercial pricing benefits in industrials, improving productivity, and sales growth across most consumer businesses,” said Howard Coker, Sonoco’s president and CEO. “Our portfolio continues to be resilient in the current volatile economic environment due to the dedicated efforts and execution of the Sonoco team in support of our strategic initiatives.”
Total debt (long-term, short-term and current portion) was $3,165 million as of April 2, 2023, a decrease of $57 million from Dec. 31, 2022. Cash flow from operating activities for the first three months of 2023 was $98 million, compared to $1 million in the same period of 2022, an increase of $97 million. Free cash flow for the first three months of 2023 was $86 million.
Commenting on the company’s outlook, Coker said, “We are raising the high end of our full year guidance after a good start to the year. We are executing well operationally and expect to maintain solid performance with limited demand recovery in Industrials. Increased demand in Industrials will provide opportunities for better performance beyond our current outlook. As we progress through the year, we remain committed to deploying capital to high return investments for growth and efficiencies, further focusing our portfolio, and delivering continued value to our shareholders.”
Net sales decreased 2% year-over-year to $1.7 billion as strong pricing was offset by lower overall volume. GAAP operating profit increased 36% year-over-year to $230 million as gains on asset sales and lower acquisition related costs offset lower price cost and lower volume and mix. Net income was $148 million, up 29%.
“Sonoco delivered a strong first quarter, highlighted by commercial pricing benefits in industrials, improving productivity, and sales growth across most consumer businesses,” said Howard Coker, Sonoco’s president and CEO. “Our portfolio continues to be resilient in the current volatile economic environment due to the dedicated efforts and execution of the Sonoco team in support of our strategic initiatives.”
Total debt (long-term, short-term and current portion) was $3,165 million as of April 2, 2023, a decrease of $57 million from Dec. 31, 2022. Cash flow from operating activities for the first three months of 2023 was $98 million, compared to $1 million in the same period of 2022, an increase of $97 million. Free cash flow for the first three months of 2023 was $86 million.
Commenting on the company’s outlook, Coker said, “We are raising the high end of our full year guidance after a good start to the year. We are executing well operationally and expect to maintain solid performance with limited demand recovery in Industrials. Increased demand in Industrials will provide opportunities for better performance beyond our current outlook. As we progress through the year, we remain committed to deploying capital to high return investments for growth and efficiencies, further focusing our portfolio, and delivering continued value to our shareholders.”