Smurfit Westrock (SW) Q1 2025 Earnings Call May 01, 2025 07:30 AM ET Company Participants Ciaran Potts - Head of Investor RelationsAnthony Smurfit - President & Group CEOKen Bowles - Executive VP, Group CFO & Executive DirectorCharlie Muir-Sands - Head of Paper & Packaging - Equity ResearchPhilip Ng - Managing DirectorMichael Roxland - MD - Equity ResearchLars Kjellberg - Managing DirectorDetlef Winckelmann - Equity research - Head of EMEA Paper & Packaging researchPatrick Mann - Vice PresidentKevin Fogarty ...

Smurfit Westrock (SW) Q1 2025 Earnings Call May 01, 2025 07:30 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the Smurfit WestRock twenty twenty five Q1 Results Webcast and Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Kieran Potts, Smurfit WestRock Group VP, Investor Relati ...

2025 First Quarter Results May 1, 2025 Paper | Packaging | Solutions Smurfit Westrock Q1 | 2025 Results | 2 Forward Looking Statements The presentation includes certain "forward-looking statements" (including within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding, among other things, the plans, strategies, outcomes, outlooks, and prospects, both business and financial, of Smurfit Westrock, the expected benefi ...

Financial Performance - First quarter Net Sales reached $7,656 million, a significant increase from $2,930 million in the same period last year[2] - Net Income for the first quarter was $382 million, with a Net Income Margin of 5.0%, compared to 6.5% in the prior year[2][10] - Adjusted EBITDA for the first quarter was $1,252 million, reflecting an Adjusted EBITDA Margin of 16.4%, slightly up from 16.2% year-over-year[2][10] - Total net sales for the three months ended March 31, 2025, reached $7,764 million, a significant increase from $2,947 million in the same period of 2024, representing a growth of approximately 163%[25] - Adjusted EBITDA for the same period was $1,252 million, compared to $475 million in the prior year, indicating a year-over-year increase of about 164%[34] - The Adjusted EBITDA margin improved slightly to 16.4% in Q1 2025 from 16.2% in Q1 2024, reflecting stable operational efficiency despite rapid sales growth[34] - North America generated net sales of $4,669 million in Q1 2025, a substantial rise from $412 million in Q1 2024, marking an increase of approximately 1035%[25] - Net income for Q1 2025 was $382 million, up from $191 million in Q1 2024, representing a growth of approximately 100%[28] Cash Flow and Investments - Cash and cash equivalents decreased to $797 million as of March 31, 2025, down from $855 million at the end of 2024, indicating a cash outflow during the period[27] - Capital expenditures for the three months ended March 31, 2025, were $477 million, compared to $208 million in the same period of 2024, reflecting increased investment in growth initiatives[28] - The company reported a net cash provided by operating activities of $235 million for Q1 2025, a significant increase from $42 million in Q1 2024[28] - Adjusted Free Cash Flow for Q1 2025 was $(144) million, compared to $(130) million in Q1 2024, indicating ongoing investment needs despite operational cash generation[37] Strategic Initiatives - The synergy program is on track to deliver $400 million, with approximately $350 million expected in the current year[5] - The company has announced the closure of over 500,000 tons of paper capacity in North America and is closing two converting facilities in the region[6] - New state-of-the-art converting plants are being constructed in Washington and Wisconsin, along with a new Bag-in-Box facility in South Carolina[7] Shareholder Returns - A quarterly dividend of $0.4308 per ordinary share has been approved, payable on June 18, 2025[13] Profitability Metrics - The company reported a Gross Profit of $1,577 million for the first quarter, compared to $710 million in the prior year[22] - Basic earnings per share attributable to common shareholders was $0.74, consistent with the previous year[22] Asset Growth - The total assets of the company increased to $44,649 million as of March 31, 2025, compared to $43,759 million at the end of 2024, showing a growth in the asset base[27]

Smurfit Westrock PLC (SW) is scheduled to report first-quarter 2025 results on May 1, before market open.Smurfit Westrock was formed by the merger of two major paper and packaging industry players, Smurfit Kappa and WestRock, on July 5, 2024. The company started reporting results for the combined company from the third quarter of 2024.The Zacks Consensus Estimate for SW’s first-quarter revenues is pegged at $7.85 billion, indicating 4.1% growth from the fourth quarter's reported figure. The estimate for ear ...

Regulated Information Issy-les-Moulineaux, April 28, 2025 DISCLOSURE OF TRANSACTIONS IN OWN SHARES CARRIED OUT FROM APRIL 22 TO APRIL 24, 2025 Sodexo purchased treasury shares, outside of its liquidity contract, within the framework of its share buyback program as authorized by the Shareholders’ Meeting held on December 17, 2024. These shares have been acquired to honor obligations related to free shares award plans. Information on these transactions are the following: Trading dateLEIISINVolume(in number o ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Smurfit Westrock (SW) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 1, 2025, might help the stock move higher if these key numbers are better than expec ...

Core Viewpoint - Sodexo has released its First half Fiscal 2025 Financial report, which is consistent with previously published preliminary financial information, indicating stable performance and adherence to guidance [2][3]. Financial Performance - The First half Fiscal 2025 financial report includes condensed consolidated financial statements as of February 28, 2025 [2]. - Consolidated revenues for Fiscal 2024 were reported at 23.8 billion euros [7]. - The company serves 80 million consumers daily and operates in 45 countries [7]. Company Overview - Founded in 1966, Sodexo is a global leader in sustainable food and facilities management services [4]. - The company emphasizes improving quality of life and contributing to economic, social, and environmental progress [4]. - Sodexo is recognized in various indices, including CAC Next 20 and FTSE 4 Good [4]. Employment and Market Position - As of August 31, 2024, Sodexo had 423,000 employees, making it the 1 France-based private employer worldwide [7]. - The company's market capitalization was reported at 8.5 billion euros as of April 3, 2025 [7].

Core Insights - The company reported consolidated revenues of €12.475 billion for the first half of Fiscal 2025, reflecting a year-on-year increase of 3.1% [2][7][18] - Organic revenue growth was 3.5%, down from 8.5% in the previous year, indicating a slowdown in growth momentum [2][19] - Underlying operating profit increased by 6.4% to €651 million, with an underlying operating profit margin of 5.2%, up 10 basis points from the previous year [2][36][45] - Group net profit from continuing operations decreased by 12.5% to €434 million, primarily due to an exceptional capital gain in the prior year [2][41] - The effective tax rate rose to 19.5% from 16.6% in the previous year, influenced by updates related to a tax audit [2][40] Financial Performance - Revenues for the first half of Fiscal 2025 were €12,475 million, compared to €12,101 million in the first half of Fiscal 2024, marking a 3.1% increase [2][18] - Organic growth was driven by food services, which grew by 4.5%, while facilities management services saw a growth of 1.7% [19][22] - The underlying operating profit margin improved to 5.2%, with all geographic zones showing improvements [36][45] - The company experienced a negative impact from currency fluctuations, contributing to a 0.1% decline in revenue growth [7][62] Geographic Performance - North America achieved organic growth of 3.5%, with strong performance in Sodexo Live! and Corporate Services, although this was partially offset by contract demobilizations [7][22] - Europe reported organic growth of 2.1%, driven by healthcare and seniors, but faced challenges in facilities management services [7][28] - The Rest of the World saw a robust organic growth of 6.6%, particularly in India, Brazil, and Australia [7][33] Guidance and Outlook - The full-year Fiscal 2025 guidance was revised, with organic revenue growth now expected to be between 3% and 4%, down from the initial guidance of 5.5% to 6.5% [6][58] - The underlying operating profit margin improvement is now projected to be between 10 and 20 basis points, reduced from the previous expectation of 30 to 40 basis points [6][58] Cash Flow and Debt - Free cash flow for the first half of Fiscal 2025 was a negative €234 million, compared to a negative €102 million in the previous year, primarily due to an exceptional tax outflow [14][47] - Net debt increased to €3.416 billion from €2.6 billion at the end of Fiscal 2024, reflecting seasonal cash flow patterns and dividend payments [14][49] - The net debt to EBITDA ratio stood at 2.3x, consistent with the previous year, indicating stable leverage despite increased debt levels [14][51]

Core Viewpoint - Sodexo is a global leader in sustainable food and facilities management services, emphasizing its commitment to improving quality of life and contributing to social and environmental progress [3]. Group 1: Company Overview - Founded in Marseille in 1966 by Pierre Bellon, Sodexo operates with a responsible business model and is characterized by its independence and founding family shareholding [3]. - The company serves 80 million consumers daily across 45 countries, making it the number one France-based private employer worldwide [5]. - Sodexo is included in several indices such as CAC Next 20, Bloomberg France 40, CAC 40 ESG, CAC SBT 1.5, FTSE 4 Good, and DJSI [3]. Group 2: Financial Performance - For fiscal 2024, Sodexo reported consolidated revenues of 23.8 billion euros [5]. - As of March 19, 2025, the company's market capitalization stood at 10.7 billion euros [5]. - The company employed 423,000 individuals as of August 31, 2024 [5].