Sonoco reported financial results for its first quarter ended April 4, 2021, with sales up slightly.

First quarter 2021 net sales were $1.35 billion, compared with $1.30 billion in 2020 while GAAP earnings per diluted share declined to $0.71, compared to $0.80 in 2020.

Cash flow from operations and free cash flow did well. Cash flow from operations was $138.7 million in 1Q 2021, compared to $87.7 million in 2020. Free cash flow was $99.4 million in the first three months of 2021, compared with $57.1 million in the first three months of 2020.

“Overall, Sonoco's bottom line results benefited from productivity gains and improved volume/mix, which was helped by two extra shipping days in the quarter,” said Howard Coker, Sonoco’s president and CEO. “These positive factors were more than offset by a negative price/cost relationship stemming from higher raw material costs, and freight and other non-material inflation less the impact of businesses sold and acquired in the last 12 months.

"During the first quarter, consumers continued to embrace at-home eating which propelled our Consumer Packaging segment to a 19% improvement in operating profit. Global industrial markets further reopened from the 2020 pandemic-induced recession, which helped our Industrial Paper Packaging segment report sequential improvement in results for the third consecutive quarter, although operating profit remains down year-over-year,” Coker added.

"We expect to see continued inflation in recycled fiber and resins, our primary raw materials, along with chemicals, adhesives, freight and other operational costs over the next several months until supply chains stabilize,” Coker noted. "We have a number of operational and commercial levers that we can pull to offset this pressure, including pricing.”

As of April 4, 2021, total debt was approximately $1.70 billion, compared with $1.7 billion as of Dec. 31, 2020. The company's total debt-to-total-capital ratio was 47% as of April 4, 2021, compared to 47.1% at the end of 2020.