Sonoco has reported its financial results for the second quarter 2023.

Here is a summary:

• Strong performance and cash flows despite operating in a generally disruptive demand environment
• Inventory management and destocking trends among the customers as well as inflationary pricing pressures led to lower and increasingly uncertain demand which impacted operational efficiency in metal and industrials businesses
• Remained disciplined in managing working capital to generate $349 million of operating cash flow in the first six months of 2023
• Lowered full-year Adjusted EPS and Adjusted EBITDA guidance based on lower volume trends in Consumer Packaging (“Consumer”) and Industrial Paper Packaging (“Industrial”) businesses and expectations of a less favourable price/cost environment in Industrial during the second half of the year
• Maintaining full-year operating cash flow guidance

Sonoco president and CEO, Howard Coker stated: “Sonoco continues to operate well with most of our businesses achieving commercial, operational, and productivity objectives. In the second quarter, volume softness beyond our expectations negatively impacted consumer metal packaging and industrials.

In metal, accelerated inventory reduction programmes within our top food and aerosol customers resulted in lower than expected demand and negatively impacted operating leverage. In Industrials, volume for paper and converted products remained low across all geographies and end markets including paper, film, textile, and appliances.

Industrial customers cited lower end market demand and customer destocking as factors for the declines. Despite these challenges, our teams generated $349 million of operating cash flow for the first six months of 2023.

“Throughout the quarter, our teams continued to execute well in a volatile demand environment and I express my sincere appreciation for their continued support of Sonoco and our customers.”