Sonoco Reports Strong 2Q 2022 Results

Sonoco reported financial results for its second quarter ended July 3, 2022.

In the second quarter of 2022, net sales were a record $1.91 billion, an approximately 38% increase from last year’s second quarter 2021 sales of $1.38 billion. GAAP net income per diluted share was $1.33, compared with a loss of $(3.34) in the same period in 2021.

Cash flow from operations was $184.5 million for the first half of 2022, compared with $102.0 million in the same period of 2021. Free cash flow was a provision of $40.3 million, compared with $9.4 million generated in the same period of 2021.

“Our Sonoco team delivered strong second-quarter results which exceeded the high-end of our raised guidance,” Howard Coker, president and CEO, said. “Our current-quarter performance represents a step-change improvement year-over-year and resulted in record sales and record net income driven by continued strong execution in our Consumer Packaging and Industrial Paper Packaging segments.

“Overall, the company’s second-quarter earnings primarily benefited from continued strong strategic pricing performance across most of our businesses, continued strong results from the Sonoco Metal Packaging acquisition and productivity gains. These positive factors were partially offset by the impact of foreign currency translation,” Coker added.

“Our Consumer Packaging segment achieved record sales while operating profit grew approximately 114% versus the prior-year period primarily due to continued strong performance from Metal Packaging and Global Rigid Paper Containers, continued solid price/cost performance and improved productivity despite continued supply chain disruptions. Our Industrial Paper Packaging segment also produced record sales and operating profit, which improved approximately 57% versus the prior year period primarily from continued strong price/cost performance.”

Net sales for the second quarter of 2022 were a record $1.91 billion, compared with last year’s second quarter sales of $1.38 billion. This growth was driven by strong pricing performance and continued strong results from the Metal Packaging acquisition. These positive factors were partially offset by the negative impact from foreign currency translation.

GAAP gross profit was $387 million in the second quarter of 2022 compared to $262.7 million in the same period of 2021.


Sonoco’s Consumer Packaging segment primarily serves prepared and fresh food markets along with other packaging for direct-to-consumer products. The products produced and sold within the Consumer Packaging segment consist primarily of round and shaped rigid paper containers; steel tinplate cans and aerosol containers; thermoformed plastic trays and containers; and printed flexible packaging.

Second quarter 2022 sales for the segment were a record $990 million, compared with $597.8 million in the second quarter of 2021. Segment operating profit was $139.4 million in the second quarter, compared with $65.3 million in the second quarter of 2021.

Segment sales increased approximately 66% compared to the prior year’s quarter due primarily to the Metal Packaging acquisition and solid pricing performance.

The Industrial Paper Packaging segment serves a variety of customers who use its products to package their goods for transport, storage or sale or to produce similar fiber-based products. The primary products produced and sold within the Industrial Paper Packaging segment include fiber-based tubes, cones, and cores; fiber-based protective packaging and components; wooden, metal and composite wire and cable reels and spools; and recycled paperboard. The segment’s recycling business is a source of key inputs needed to produce the Company’s products with incompatible and excess recycled materials sold to third parties.

Second quarter 2022 sales for the segment increased for the eighth consecutive quarter to a record $727.4 million, compared with $608.5 million in the second quarter of 2021. Segment operating profit was a record $94.2 million in the second quarter of 2022, compared with $59.8 million in the same quarter last year.

Year-to-Date Results

For the first six months of 2022, net sales were a record $3.68 billion, up $948.3 million, compared with $2.74 billion in the first six months of 2021. Sales improved approximately 35% in the first half of the year driven by strong pricing performance and sales added from the Metal Packaging acquisition. These positive factors were partially offset by the negative impact of foreign exchange and the April 2021 divestiture of the U.S. display and packaging business.

GAAP net income attributable to Sonoco for the first half of 2022 was $247 million or $2.50 per diluted share, compared with a net loss of $(261.8) million or $(2.60) per diluted share in the same period in 2021.


Cash generated from operations for the first six months of 2022 was $184.5 million, compared with $102 million in the same period of 2021, an increase of $82.5 million.  Free cash flow for the first six months of 2022 was a provision of $40.3 million, compared with $9.4 million of cash generated in the same period last year.

As of July 3, 2022, total debt was approximately $3.13 billion, compared with $1.61 billion as of Dec. 31, 2021. The company’s total-debt-to-total-capital ratio was 61.8% as of July 3, 2022, compared to 46.5% at the end of 2021. The increase in total debt stems from the debt incurred to fund the Metal Packaging acquisition.

“I am extremely proud of the way our team has advanced our value-creation strategy to produce the best first-half financial operating performance in the history of Sonoco,” Coker concluded. “We have significantly improved the performance of our core Consumer and Industrial businesses, and with the addition of Metal Packaging, we have strengthened our portfolio which gives us the confidence to further raise our base earnings guidance for 2022.”