Silgan Holdings net sales down in Q2
Silgan Holdings Inc., a leading supplier of sustainable rigid packaging solutions for the world’s essential consumer goods products, reported second quarter 2023 net sales of $1.43 billion and net income of $78.9 million, or $0.71 per diluted share, as compared to second quarter 2022 net sales of $1.54 billion and net income of $92.7 million, or $0.83 per diluted share.
Adjusted net income per diluted share for the second quarter of 2023 was $0.83, after adjustments increasing net income per diluted share by $0.12. Adjusted net income per diluted share for the second quarter of 2022, which included $0.06 per diluted share from non-recurring income associated with Russia, was a record $1.09 after adjustments increasing net income per diluted share by $0.26.
“Our performance in the second quarter benefited from the breadth of the Silgan portfolio in a dynamic and changing marketplace. We continued to advance our strategic initiatives amid rapidly evolving market conditions in part by delivering continued growth in high value dispensing products and double-digit adjusted EBIT growth in our Metal Containers segment in the second quarter,” said Adam Greenlee, President and CEO.
“Business trends early in the second quarter were positive, but they shifted late in the quarter as many customers adjusted their financial priorities in 2023 to focus on new working capital and inventory management initiatives for the remainder of the year.
“While we believe consumers of our products continue to be resilient, we are beginning to see an impact from inflation at the retail level on consumer buying habits, including for core food and beverage products, as we cycle against record performance in the prior year.
“Our near-term performance will be impacted primarily by our customers’ inventory management initiatives, and we have lowered our expectations for 2023 to reflect the changing market conditions.
“As a result, our focus has shifted to aligning our cost structures with the anticipated second half volumes and driving costs out of each of our businesses. Our customer partnerships remain strong as Silgan continues to be rewarded with new long-term business awards in our markets, and we remain confident in the medium and long-term growth outlook for our businesses.
“We will continue to maintain our disciplined approach to capital deployment and our focus on returns that has consistently delivered value for shareholders, while meeting the unique needs of our customers and operating our low-cost, best-in-class manufacturing platform.”