Sonoco Reports Second Quarter 2024 Results

Sonoco Products Company reported financial results for its second quarter ended June 30, 2024.

Net sales decreased 5% to $1.6 billion primarily driven by the Protective Solutions (Protexic) divestiture, the closure of a thermoformed food packaging plant, the treatment of recycling operations as a procurement function beginning January 1, 2024 and lower selling prices; overall volumes were positive and up low single digits including the impact of acquisitions

GAAP operating profit decreased to $140 million primarily due to higher acquisition-related costs, restructuring, and asset impairment charges; unfavorable price/cost was offset by higher productivity

Adjusted operating profit and adjusted EBITDA decreased to $193 million and $262 million, respectively, primarily due to unfavorable price/cost in the Industrial Paper Packaging (Industrial) segment. Sonoco generated $275 million of operating cash flow and $96 million of free cash flow during the first half of 2024.

In addition, Sonoco entered into an agreement on June 24, 2024, to acquire Eviosys for approximately $3.9 billion, which is expected to be completed in the fourth quarter of 2024.

“Sonoco delivered solid second quarter results with sequential growth in adjusted EBITDA and EPS,” said Howard Coker, Sonoco’s president and CEO. “While the pace of Consumer volume recovery remains muted, we were pleased to see low single digit organic volume improvements in Industrials. Importantly, productivity was $51 million in the second quarter bringing our first half 2024 total to $102 million, well ahead of our full year outlook.”