Sonoco'Q3 2023 net sales decreased to $1.7 billion driven by lower volumes and average selling prices. Adjusted earnings decreased to $145 million for Adjusted EPS (diluted) of $1.46.
Adjusted operating profit and Adjusted EBITDA declined to $213 million and $280 million, respectively, due to lower overall volume and mix and price/cost, partially offset by higher productivity.
Q3 2023 generated sequential growth in sales, net income, and Adjusted EBITDA and improved net income margin and Adjusted EBITDA margin to 7.6% and 16.4%, respectively.
“Our Q3 results benefited from seasonally higher demand as well as better than expected productivity and cost management from our global team,” said Sonoco’s President and CEO, Howard Coker. “Consumer volumes were lower year over year, but were sequentially higher across the segment with the exception of metal aerosol cans, which were below our forecasts on persistent end market demand softness. In the Industrial segment, volumes were generally as expected. We closed the RTS Packaging and Chattanooga mill acquisitions, and integration has progressed to plan. Despite the continued weak macroeconomic backdrop, we achieved strong profit margin and operating cash flow in the quarter.”
Sonoco’s President and CEO, Howard Coker, “For the Q4, we expect seasonally lower demand volumes and unfavorable index-based pricing impacts. We are raising full year Adjusted EPS and Adjusted Earnings guidance based on year-to-date results and our fourth quarter guidance. Additionally, we are expecting full year operating cash flow to be $850 - $900 million and free cash flow to be $600 - $690 million based on lower operating cash flow and lower capital expenses. We remain focused on supporting our customers, managing expenses, and continuous improvement programs as we exit the year.”
Founded in 1899, Sonoco is a global provider of packaging products.
