Sonoco says adverse weather hit its metal can volumes in Q3. Drought cut vegetable harvests in Europe and the Americas, reducing demand for food cans.

“During the third quarter, our businesses faced a combination of external challenges,” said Howard Coker, president and CEO of Sonoco. “Drought conditions across parts of Europe and the U.S. impacted crop yields and pressured food can demand, while the impact of inflation on raw materials, freight, energy, and other operating costs exceeded our expectations.”

Net sales in the Consumer Packaging segment fell 2.9% to $1,396m in the three months to 27 September. The segment includes Sonoco’s metal food and aerosol can business. Volume and mix fell 3% compared with a year earlier. The lost can volumes more than offset price increases to recover inflation and tariff costs, and exchange rates also weighed on sales.

Segment adjusted EBITDA fell 8.8% to $237m, and the margin fell to 17.0% from 18.0%. Sonoco said productivity savings and cost controls were not enough to offset inflation and the lower volumes.

“Results in Consumer Packaging fell short of expectations,” said Coker. He added that the international paper can business had performed well, with double-digit volume growth driven by demand for snacks in emerging markets.

Sonoco reported a net loss of $732m for the quarter, or $7.36 a share. This reflects a non-cash goodwill impairment charge of $829m, of which $802m relates to the Consumer Packaging segment’s EMEA and APAC businesses and $27m to Industrial Paper Packaging in APAC. A year earlier it made a net profit of $123m.

Group net sales fell 4.2% to $2,042m, mainly because Sonoco sold its ThermoSafe business in November 2025. Excluding divestments, sales were essentially flat. Adjusted earnings per share fell to $1.67 from $1.92, and adjusted EBITDA fell 9% to $352m.

The Industrial Paper Packaging segment grew net sales by 5.2% to $646m, thanks to price increases, but its adjusted EBITDA fell 4.6% to $122m.

Coker said the company is taking “targeted actions through our Profitability Performance Plan to further reduce costs, improve productivity and address the impact of inflationary pressures.” Sonoco did not give details of the plan.

For the fourth quarter, Sonoco expects “a more balanced performance in aerosol and food can volumes” in the Consumer segment, alongside continued growth in international paper cans. Its revised full-year guidance is for net sales of $7.20-7.40bn, adjusted EBITDA of $1.20-1.25bn, adjusted earnings per share of $5.30-5.50 and operating cash flow of $600-650m. Net debt was $4.1bn at the end of September. Sonoco said the third quarter’s working capital included the usual seasonal needs of its metal packaging business.