Financial Performance - Net sales for Q1 2025 reached $7,656 million, a significant increase from $2,930 million in Q1 2024, representing a growth of approximately 161%[18] - Gross profit for the quarter was $1,577 million, compared to $710 million in the same period last year, indicating a gross margin improvement[18] - Net income attributable to common shareholders was $384 million, up from $191 million in Q1 2024, reflecting a year-over-year increase of 101%[20] - Comprehensive income for Q1 2025 was $749 million, a substantial rise from $88 million in Q1 2024, highlighting improved overall financial performance[22] - Net income for Q1 2025 was $382 million, a 100% increase from $191 million in Q1 2024[9] - Basic earnings per share remained stable at $0.74 for both Q1 2025 and Q1 2024, despite the significant increase in net income[20] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,252 million, compared to $475 million in 2024, indicating strong operational performance[195] Assets and Liabilities - Total assets increased to $44,649 million as of March 31, 2025, compared to $43,759 million at the end of 2024, showing a growth of approximately 2%[17] - Total liabilities rose to $26,760 million from $26,372 million, indicating an increase of about 1.5%[17] - Total equity increased to $17,889 million by March 31, 2025, up from $17,387 million at the end of 2024[25] - Total debt increased to $14,219 million as of March 31, 2025, compared to $13,595 million at December 31, 2024, representing a rise of 4.6%[82] - The outstanding payment obligations under supplier finance programs were $389 million as of March 31, 2025, down from $450 million at the end of 2024[36] Cash Flow and Investments - Cash provided by operating activities increased to $235 million in Q1 2025 from $42 million in Q1 2024[9] - Capital expenditures rose significantly to $477 million in Q1 2025, compared to $208 million in Q1 2024[9] - Net cash used for investing activities was $476 million in Q1 2025, primarily due to capital expenditures of $477 million[186] - Net cash provided by financing activities was $151 million in Q1 2025, driven by a net increase in debt of $444 million[187] Acquisitions and Mergers - The integration of Smurfit Kappa and WestRock is expected to yield significant synergies, although specific financial benefits were not quantified in the report[8] - The aggregate merger consideration for the acquisition of Smurfit Kappa was $13,461 million, completed on July 5, 2024[42] - Net income attributable to common shareholders rose by $193 million to $384 million in Q1 2025, up from $191 million in Q1 2024, primarily due to the acquisition of WestRock[139] - The company anticipates continued growth and operational improvements as it integrates the two businesses and leverages its expanded scale and geographic reach[8] Segment Performance - For the three months ended March 31, 2025, North America segment net sales were $4,578 million, Europe, MEA and APAC segment net sales were $2,576 million, and LATAM segment net sales were $502 million[54] - Adjusted EBITDA for the North America segment increased by $726 million to $785 million in Q1 2025, primarily due to the WestRock acquisition[168] - The LATAM segment's net sales increased by $172 million to $513 million in Q1 2025, primarily due to the WestRock acquisition[172] - The Europe, MEA and APAC segment's net sales increased by $388 million to $2,582 million in Q1 2025, with a $378 million impact from the WestRock acquisition[169] Operational Changes - The company plans to permanently close its coated recycled board mill in St. Paul, Minnesota, and discontinue production at its containerboard mill in Forney, Texas, impacting approximately 650 employees and reducing capacity by over 500,000 tons annually[123][135] - Smurfit Westrock expects to incur approximately $287 million in pre-tax charges related to the closures, including $188 million in non-cash asset impairment charges[136][125] Tax and Legal Matters - The effective tax rate for the three months ended March 31, 2025, was 2.1%, influenced by a tax benefit of $72 million from the resolution of unrecognized tax benefits[91] - The total amount in dispute regarding tax claims in Brazil was R$761 million ($132 million) as of March 31, 2025, which could materially affect cash flows depending on the resolution[100] - The company has estimated liabilities of $69 million related to asbestos-related litigation as of March 31, 2025, with expected insurance recoveries of $45 million[102] - An international arbitration award granted the company compensation exceeding $469 million from Venezuela, with legal costs of $5 million, pending enforcement proceedings[108] Miscellaneous - The company is currently evaluating the impact of new accounting standards on its disclosures, including ASU 2023-09 and ASU 2024-03[39][40] - The company has no off-balance sheet arrangements as of March 31, 2025, ensuring transparency in its financial obligations[190] - There have been no material changes to the contractual obligations and commitments since the last fiscal year, maintaining consistency in financial planning[189]

Group 1 - The market has not fully recognized the strategic value of the Smurfit Westrock Plc merger, presenting a buying opportunity [1] - Current market weakness is viewed as a strong opportunity to buy the dip [1] Group 2 - Analysts have a beneficial long position in the shares of Smurfit Westrock Plc and related entities [2]

Group 1 - The core business of Sodexo includes Food and Facilities Management Services, focusing on improving quality of life and contributing to social and environmental progress [3] - Sodexo operates in 45 countries and serves 80 million consumers daily, highlighting its global reach and impact [6] - The company reported consolidated revenues of 23.8 billion euros for Fiscal 2024, indicating strong financial performance [6] Group 2 - As of April 3, 2025, Sodexo's market capitalization stands at 8.5 billion euros, reflecting its valuation in the market [6] - The company employs 423,000 individuals, making it the largest private employer based in France [6] - Sodexo is recognized in various indices, including CAC Next 20 and FTSE 4 Good, showcasing its commitment to sustainable practices [3]

Group 1 - Sodexo conducted a share buyback program, purchasing a total of 100,000 shares from April 28 to April 29, 2025, at an average purchase price of €55.6481 [1] - The shares were acquired to fulfill obligations related to free shares award plans as authorized by the Shareholders' Meeting on December 17, 2024 [1] - The transactions included various trading venues, with the highest volume on April 29, 2025, where 29,800 shares were purchased at €55.6191 [1] Group 2 - Sodexo, founded in 1966, is a global leader in sustainable food and facilities management services, emphasizing independence and a responsible business model [2] - The company aims to improve the quality of life for employees and consumers while contributing to economic, social, and environmental progress [2] - As of fiscal 2024, Sodexo reported consolidated revenues of €23.8 billion and served 80 million consumers daily [3]

Group 1 - The conference call is focused on the Q1 2025 results of Smurfit Westrock, with key participants including the CEO and CFO [1][2] - Ciaran Potts, the Group VP of Investor Relations, is leading the presentation and will address forward-looking statements and non-GAAP financial measures [3][4]

Core Viewpoint - Smurfit Westrock Plc reported earnings of 73 cents per share for Q1 2025, exceeding estimates but showing no year-over-year growth [1][3]. Financial Performance - Q1 2025 net sales were $7.7 billion, missing the consensus estimate of $7.85 billion, while sales in the year-ago quarter were $2.93 billion [3]. - Adjusted EBITDA for Q1 2025 was $1.25 billion, up from $0.5 billion in the previous year, with an adjusted EBITDA margin of 16.4% compared to 16.2% [4]. - Gross profit increased 122% year-over-year to $1.58 billion, with a gross margin of 20.6%, down from 24.2% in the year-ago quarter [3]. Segment Performance - Europe, MEA & APAC segment sales were $2.6 billion, a 17.7% increase year-over-year, with adjusted EBITDA rising 1% to $389 million [5]. - North America segment sales surged to $4.7 billion from $0.4 billion in the previous year, with adjusted EBITDA increasing to $785 million from $59 million [6]. - LATAM segment sales reached $513 million, up 50% year-over-year, with adjusted EBITDA skyrocketing 113% to $115 million [7]. Cash Position and Balance Sheet - Cash and cash equivalents at the end of Q1 2025 were $797 million, down from $855 million at the end of 2024 [8]. - Net cash provided by operating activities was $235 million, compared to $42 million in the year-ago quarter [9]. Future Outlook - The company expects to achieve $400 million in synergies, with approximately $350 million expected in the current year [11]. - Q2 2025 adjusted EBITDA is projected to be $1.2 billion, with full-year adjusted EBITDA expected between $5 billion and $5.2 billion [12]. Stock Performance - Smurfit Westrock's shares have declined 18.8% over the past six months, compared to a 12.7% decline in the industry [13].

For the quarter ended March 2025, Smurfit Westrock (SW) reported revenue of $7.66 billion, up 62% over the same period last year. EPS came in at $0.73, compared to $0.39 in the year-ago quarter.The reported revenue represents a surprise of -2.47% over the Zacks Consensus Estimate of $7.85 billion. With the consensus EPS estimate being $0.65, the EPS surprise was +12.31%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Core Viewpoint - Smurfit Westrock reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and showing significant growth from $0.39 per share a year ago, indicating a positive earnings surprise of 12.31% [1][2] Financial Performance - The company posted revenues of $7.66 billion for the quarter ended March 2025, which was 2.47% below the Zacks Consensus Estimate, and a substantial increase from $4.73 billion in the same quarter last year [2] - Over the last four quarters, Smurfit Westrock has only surpassed consensus EPS estimates once, indicating challenges in meeting revenue expectations [2] Stock Performance - Smurfit Westrock shares have declined approximately 22% since the beginning of the year, contrasting with the S&P 500's decline of 5.3%, suggesting underperformance relative to the broader market [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.80 for the upcoming quarter and $2.97 for the current fiscal year, alongside projected revenues of $8.04 billion and $31.79 billion respectively [7] - The Zacks Rank for Smurfit Westrock is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Paper and Related Products industry, to which Smurfit Westrock belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable industry outlook that could positively influence stock performance [8]

Financial Data and Key Metrics Changes - The company reported net sales of over $7.6 billion and adjusted EBITDA of $1.252 billion, with an adjusted EBITDA margin of 16.4%, showing double-digit growth compared to the same period last year [13][14]. - Adjusted EBITDA margin improved significantly, reflecting a focus on costs, quality, and efficiency, alongside benefits from the synergy program [14][15]. - The company expects full-year adjusted EBITDA to be between $5 billion and $5.2 billion, with second-quarter adjusted EBITDA projected at approximately $1.2 billion [20]. Business Line Data and Key Metrics Changes - North America segment delivered net sales of $4.7 billion with adjusted EBITDA of $785 million and an adjusted EBITDA margin of 16.8%, showing significant margin improvement due to higher selling prices [15][16]. - EMEA and APAC segment reported net sales of $2.6 billion with adjusted EBITDA of $389 million and an adjusted EBITDA margin of 15.1%, demonstrating resilience despite a challenging environment [17]. - Latin America segment achieved net sales of $500 million with adjusted EBITDA of $115 million and an adjusted EBITDA margin of over 22%, driven by pricing initiatives [18]. Market Data and Key Metrics Changes - In North America, corrugated box pricing increased while box volumes decreased by 4.7% year-on-year [16]. - EMEA region saw corrugated box volumes broadly flat, with a 1.5% increase on a same-day basis, while higher box prices were offset by cost headwinds [17]. - Latin America experienced a 6.3% decline in corrugated box volumes on a same-day basis, primarily due to challenges in Argentina, but pricing initiatives helped maintain strong results [18]. Company Strategy and Development Direction - The company is focused on becoming the highest-performing company in its sector, with a strong emphasis on operational improvements and capital optimization [7][8]. - A synergy program is on track to deliver £400 million in synergies by the end of 2025, with additional opportunities identified for further operational improvements [19]. - The company is committed to investing in its asset base to enhance quality, service, and innovation, with plans to implement 25 new converting machines starting in 2026 [8][12]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future success despite geopolitical uncertainties, citing a resilient business model primarily serving the FMCG sector [15]. - The company noted a steadying of order books in April after a weak March, but remains cautious about significant demand recovery in the near term [48][50]. - Management highlighted the importance of consumer confidence for demand recovery, particularly in the North American market, while expressing optimism about the European market [61][62]. Other Important Information - The company announced the closure of over 600,000 tonnes in paper capacity across the U.S., Mexico, and the Netherlands, aimed at strengthening operations and improving long-term returns [9][10]. - The company is implementing approximately 140 quick win projects in North America expected to deliver around $50 million in additional EBITDA [11]. Q&A Session Summary Question: Can you elaborate on the assumptions for your 2025 guidance? - Management indicated that they do not anticipate significant box volume improvement, likely due to their value strategy, and are monitoring the potential for a second price hike in Europe [25][31]. Question: Will CapEx in 2026 be much higher than in 2025? - Management stated that CapEx plans for 2026 are not yet determined and will depend on the future environment and growth opportunities [26][30]. Question: What are the cost savings associated with the mill closures? - The full-year impact of the two mill closures is estimated to be $50 million to $60 million in incremental EBITDA, with approximately $100 million in capital savings over five years [42][43]. Question: How is the company addressing tariffs and cross-border trade? - Management has been adjusting supply chains to comply with tariffs, noting minimal immediate impact but acknowledging potential demand destruction if tariffs lead to broader economic issues [88]. Question: What is the expected timing for the benefits from the mill closures? - Benefits from the closures are expected to be realized in the second half of the year, following a required process for notifying affected employees [94].

Financial Data and Key Metrics Changes - The company reported net sales of over $7.6 billion and adjusted EBITDA of $1.252 billion, with an adjusted EBITDA margin of 16.4%, showing double-digit growth compared to the same period last year [11][12] - Adjusted EBITDA margin improved significantly, reflecting a relentless focus on costs, quality, and efficiency, alongside the benefits of the synergy program [11][12] Business Line Data and Key Metrics Changes - North America segment delivered net sales of $4.7 billion with adjusted EBITDA of $785 million and an adjusted EBITDA margin of 16.8%, showing significant margin improvement due to higher selling prices [12][13] - EMEA and APAC segment achieved net sales of $2.6 billion with adjusted EBITDA of $389 million and an adjusted EBITDA margin of 15.1%, demonstrating resilience despite a challenging environment [14][15] - Latin America segment reported net sales of $500 million with adjusted EBITDA of $115 million and an adjusted EBITDA margin of over 22%, significantly higher than the previous year [15][16] Market Data and Key Metrics Changes - In North America, corrugated box pricing increased while box volumes decreased by 4.7% on a same-day basis [12][13] - EMEA and APAC saw corrugated box volumes broadly flat, with a 1.5% increase on a same-day basis, while higher box prices were offset by cost headwinds [14][15] - Latin America experienced a 6.3% decline in corrugated box volumes on a same-day basis, primarily due to challenges in Argentina [16] Company Strategy and Development Direction - The company aims to become the highest performing in its sector, focusing on operational improvements and a disciplined approach to capital allocation [5][6] - A synergy program is on track to deliver $400 million in full run-rate synergies by the end of 2025, with additional opportunities identified for operational focus [17][19] - The company is committed to optimizing its asset base and reducing costs, including the closure of over 600,000 tonnes in paper capacity [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future success despite geopolitical uncertainties, citing a strong geographic footprint and product portfolio [12][19] - The outlook for demand remains cautious, with management not banking on a significant recovery but expecting some improvement in the second half of the year [46][58] - The company is actively managing costs and has seen improvements in order books as of April, indicating a potential stabilization in demand [45][46] Other Important Information - The company has authorized an investment of around $25 million for 25 converting machines to be implemented in 2026, aimed at lowering operating costs [6][7] - The company is focused on maintaining agility in capital allocation, allowing for adjustments based on market conditions [26][31] Q&A Session Summary Question: Can you elaborate on the assumptions behind your 2025 guidance? - Management indicated that they do not anticipate significant box volume improvement and are focused on profitability rather than volume [26][27] Question: What are the expected impacts of the new machines on CapEx in 2026? - Management has not finalized the CapEx number for 2026, emphasizing flexibility based on market conditions [24][25] Question: What are the cost savings associated with the mill closures? - The full-year impact of the two mill closures is expected to yield an incremental EBITDA of $50 million to $60 million and approximately $100 million in avoided maintenance capital over five years [39][40] Question: How is the company managing economic downtime? - The planned $100 million downtime is a one-off for Q2, with expectations for improved output in subsequent quarters [93][94] Question: What is the impact of tariffs on cross-border trade? - Management has adjusted supply chains in response to tariffs, with minimal immediate impact but ongoing uncertainty affecting consumer confidence [84][85] Question: How do quick win projects fit into the synergy targets? - Quick win projects are part of the broader synergy targets, contributing to the overall goal of achieving $400 million in synergies [100][102]