Sonoco Products Company reported financial results for its Q4 2023 and fiscal year ended December 31, 2023.
Q4 2023 net sales decreased by 2% to $1.6 billion driven by lower volumes and pricing. Q4 2023 adjusted operating profit and Adjusted EBITDA decreased to $167 million and $236 million, respectively, due to lower volumes across the portfolio, unfavorable price/cost in Industrial, higher employee expenses, and higher accounts receivable reserve.
FY 2023 net sales decreased by 6% year-over-year to $6.8 billion driven by lower volumes across the portfolio, partially offset by revenue from acquisitions.
Net income margin was 7.0% and adjusted EBITDA margin was 15.7% in 2023, compared with 6.4% and 16.0% in 2022, respectively.
“In 2023, Sonoco made further progress on our strategic initiatives and delivered solid financial results in a challenging macroeconomic environment,” said Howard Coker, President and CEO. “We achieved the second best year of financial results in our 125-year history. Our multi-year focus on improving and leveraging the operating model combined with our capital allocation strategy resulted in record productivity. We advanced our strategy by strengthening our portfolio with the addition of accretive acquisitions in our core businesses, and successfully divesting non-core assets.”
Sonoco’s President and CEO, Howard Coker stated, “In the Q1 2024, we expect volumes to be down over the prior year period. We also expect negative price/cost from metal price overlap and from the year-over-year Industrial comparable. For the full year, we are expecting overall sales to be up modestly and price/cost impacts to be negative, in each case compared to the prior year period. We intend to continue to aggressively manage costs and generate positive productivity while we navigate global volume uncertainties. We remain focused on executing strategic initiatives to simplify our portfolio and capture synergies from our recent acquisitions to advance Sonoco through 2024 and beyond. We look forward to providing further updates in our Investor Day, which is planned for February 22, 2024.”
Founded in 1899, Sonoco is a global provider of packaging products.
