Sonoco net sales up by 38% in Q2

Sonoco reported financial results for its second quarter ended July 3, 2022 with net sales up 38% from the same period in 2021.

Net sales were a record $1.91billion, up from $1.38billion.

GAAP net income per diluted share was $1.33, compared with a loss of $(3.34) in the same period in 2021.

GAAP net income includes net after-tax, non-base charges totalling $42.1 million, or $0.43 per diluted share. 

Base net income attributable to Sonoco was $1.76 per diluted share, an approximately 89% increase from $0.93 per diluted share in the same period of 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. 

Commenting on the Company’s performance, Howard Coker, President and Chief Executive Officer, said: “Our Sonoco team delivered strong second-quarter results which exceeded the high-end of our raised guidance. 

“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 (“Metal Packaging”) acquisition and productivity gains. These positive factors were partially offset by the impact of foreign currency translation.

“Our Consumer Packaging segment achieved record sales while operating profit grew approximately 114 percent 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 percent versus the prior year period primarily from continued strong price/cost performance. 

“Finally, our All Other group of businesses showed improvement during the quarter with operating profit up approximately 6 percent over the same period in the prior year due to positive price/cost performance and productivity.”

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