Sonoco reports strong first quarter 2023 results
Sonoco Products Company, one of the largest sustainable global packaging companies, reported financial results for its first quarter ended April 2, 2023.
Highlights from the report included:
- Net sales decreased 2% year-over-year to $1.7 billion as strong pricing was offset by lower overall volume.
- GAAP operating profit increased 36% year-over-year as gains on asset sales and lower acquisition related costs offset lower price cost and lower volume and mix.
- Adjusted operating profit and Adjusted EBITDA declined 18% and 13%, respectively, due to lower price cost and lower overall volume and mix.
- The first-quarter 2023 effective tax rates on GAAP and Adjusted Earnings were 24.3% and 24.8%, respectively, compared with 23.7% and 25.3%, respectively, in the prior year’s first quarter. The increase in the GAAP effective tax rate is primarily attributable to the absence of a tax benefit received in the first-quarter of 2022 associated with the acquisition of Sonoco Metal Packaging. The decrease in the tax rate on Adjusted Earnings was due to a variety of small variances, mostly related to items discrete to the period in which they occurred.
- GAAP net income increased 29% and Adjusted Earnings decreased 25% from the same period last year.
- Diluted GAAP EPS increased 28% while diluted Adjusted EPS decreased 24% from the same period last year.
“Sonoco delivered a strong first quarter, highlighted by commercial pricing benefits in industrials, improving productivity, and sales growth across most consumer businesses,” said Sonoco’s President and CEO, Howard Coker.
“Our portfolio continues to be resilient in the current volatile economic environment due to the dedicated efforts and execution of the Sonoco team in support of our strategic initiatives.”