From “Global Newswire”:

Sonoco Products Company reported financial results for its fourth quarter and fiscal year ended December 31, 2023. The company achieved its second-best full-year results for Adjusted EPS in its 125-year history and generated a record $883 million of operating cash flow. Sonoco also completed the acquisition of Inapel Embalagens Ltda. in Brazil to expand its flexible packaging capabilities. Despite challenging macroeconomic conditions, the company made further progress on its strategic initiatives and delivered solid financial results for the year.

In the fourth quarter of 2023, Sonoco’s net sales decreased by 2% to $1.6 billion primarily due to lower volumes and pricing. GAAP operating profit increased due to lower acquisition and restructuring costs, favorable productivity, and revenue from acquisitions. However, the company’s net income decreased to $81 million, and Adjusted Earnings decreased to $101 million for the quarter.

For the full year 2023, Sonoco’s net sales decreased by 6% to $6.8 billion driven by lower volumes across the portfolio. Despite this, the company achieved record annual operating cash flow of $883 million and free cash flow of over $600 million. Net income margin was 7.0% and Adjusted EBITDA margin was 15.7% in 2023, compared with 6.4% and 16.0% in 2022, respectively.

In the Consumer Packaging segment, net sales were down 3% in the fourth quarter of 2023, and operating profit decreased to $83 million. For the full year, net sales were down 4%, and segment operating profit decreased to $382 million. In the Industrial Paper Packaging segment, net sales decreased 1% in the fourth quarter of 2023, but continued low volumes and price/cost pressures were partially offset by improved productivity. Net sales decreased 12% for the full year.

Sonoco reported that cash flow from operating activities for 2023 was $883 million, compared to $509 million in 2022. Total debt was $3.1 billion as of December 31, 2023, a decrease of $139 million from December 31, 2022. On December 31, 2023, the company had available liquidity of $1.1 billion.

Sonoco’s President and Chief Executive Officer, Howard Coker, highlighted that Sonoco achieved solid financial results in a challenging macroeconomic environment and delivered the second-best year of financial results in the company’s 125-year history. He also emphasized that Sonoco made further progress on its strategic initiatives, strengthening its portfolio with accretive acquisitions in core businesses, and divesting non-core assets.



Read more: Sonoco Reports Fourth Quarter and Full Year 2023 Results