From GlobeNewswire: 2025-04-29 16:30:00

Sonoco Products Company reported financial results for the first quarter of 2025, including a record net sales of $1.7 billion, a 30.6% increase from the previous year. GAAP net income was $54 million, while adjusted net income was $137 million, up 22.7% year over year. The company also achieved record adjusted EBITDA of $338 million.

The sale of Sonoco’s Thermoformed and Flexibles Packaging business for $1.8 billion to TOPPAN Holdings Inc. was completed on April 1, 2025. Approximately $1.5 billion of the proceeds were used to reduce debt. The company invested $92 million in growth projects during Q1 2025 and raised its quarterly dividend to $0.53.

Segment results showed strong performance, with the Consumer Packaging segment growing by 83% and the Industrial Paper Packaging segment improving adjusted EBITDA by 6%. The company reaffirmed its full year 2025 guidance to grow adjusted net income by approximately 20% and adjusted EBITDA by around 30%.

Sonoco’s CEO, Howard Coker, highlighted the company’s strong results and growth in the first quarter of 2025. He emphasized the completion of the sale of the Thermoformed and Flexibles Packaging business, which helped reduce debt significantly and strengthen the company’s balance sheet. Sonoco remains on track to achieve its targeted net leverage ratio by the end of 2026.

The company also provided guidance for adjusted EPS, cash flow from operating activities, and adjusted EBITDA for the full year 2025. Despite economic uncertainty, Sonoco’s focus is on driving improved performance from core Consumer and Industrial businesses while managing risks associated with changing macroeconomic conditions. The company believes its transformed portfolio is more resilient, with a focus on consumer food packaging.

Sonoco uses non-GAAP financial measures to evaluate its performance and provide investors with additional information. Adjusted EBITDA, adjusted net income, and adjusted EPS are key metrics used by the company. Free cash flow, a measure of cash flow available for discretionary use, was $(300) million for the first three months of 2025, compared to $80 million in the same period of 2024.



Read more at GlobeNewswire:: Sonoco Reports First Quarter 2025 Results