Core Insights - Sodexo's first half Fiscal 2025 revenues reached €12.475 billion, reflecting a year-on-year increase of 3.1% with organic revenue growth of 3.5% [5][4] - The company has revised its full-year organic revenue growth guidance to between 3% and 4%, down from the previous range of 5.5% to 6.5% due to weaker-than-expected performance in North America, particularly in Education and Healthcare sectors [11][8] - Underlying operating profit for the first half was €651 million, up 6.4% year-on-year, with an underlying operating profit margin improvement of 10 basis points to 5.2% [10][7] Financial Performance - First half Fiscal 2025 key figures include: - Revenues: €12,475 million (2025) vs. €12,101 million (2024), a growth of 3.1% [5] - Organic revenue growth: 3.5% compared to 8.5% in the previous year [4] - Underlying operating profit: €651 million (2025) vs. €612 million (2024), an increase of 6.4% [5] - Net profit from continuing operations: €434 million (2025) vs. €496 million (2024), a decrease of 12.5% [5] Regional Performance - North America reported organic growth of 3.5%, impacted by soft volumes in Education and delays in Healthcare contract openings [5][6] - Europe experienced organic growth of 2.1%, with strong performance in Healthcare & Seniors but continued soft growth in Facilities Management [5] - The Rest of the World saw organic growth of 6.6%, driven by strong performances in Australia, India, and Brazil [5] Guidance and Strategic Focus - The company is focusing on strengthening execution in North America, particularly in commercial discipline and operational efficiency, in response to the revised guidance [9][8] - Full-year underlying operating profit margin guidance has been adjusted to an improvement of 10 to 20 basis points, down from 30 to 40 basis points [11][9]

Core Viewpoint - Smurfit Westrock has experienced a significant decline in share price, losing approximately 20.5% over the past month, underperforming the S&P 500 index [1] Earnings Report Summary - The most recent earnings report indicates a negative trend in estimates, with a consensus estimate shift of -30.62% over the past month [2] VGM Scores - Smurfit Westrock currently holds a subpar Growth Score of D and a Momentum Score of F, while achieving a Value Score of C, placing it in the middle 20% for this investment strategy. The overall aggregate VGM Score is F, which is critical for investors not focused on a single strategy [3] Outlook - The estimates for Smurfit Westrock have been trending downward, indicating a broader negative sentiment. The company holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the upcoming months [4]

Core Insights - Sodexo has been recognized as one of the World's Most Ethical Companies for the second consecutive year, highlighting its commitment to business integrity and ethical practices [1][2][3] Company Overview - Founded in 1966 in Marseille, Sodexo is a global leader in sustainable food and facilities management services, focusing on improving quality of life and contributing to social and environmental progress [9] - As of August 31, 2024, Sodexo employs 423,000 people and serves 80 million consumers daily across 45 countries [13] Recognition Details - In 2025, a total of 136 companies were recognized across 19 countries and 44 industries, with Sodexo being the only honoree in the food service industry [2] - The recognition is based on a comprehensive evaluation across five categories, reflecting the company's strong ethical principles and behaviors [2] Performance Metrics - The 2025 honorees outperformed a comparable index of global companies by 7.8 percentage points from January 2020 to January 2025, indicating a positive correlation between ethical practices and business performance [4] Methodology - The assessment for the World's Most Ethical Companies is based on Ethisphere's proprietary Ethics Quotient, which requires over 240 proof points on various ethical practices and governance [5] Company Financials - For fiscal 2024, Sodexo reported consolidated revenues of 23.8 billion euros and had a market capitalization of 11.7 billion euros as of January 6, 2025 [13]

Employment and Workforce - As of December 31, 2024, Smurfit Westrock employed approximately 100,000 people across 40 countries, with 52,500 in North America, 37,000 in Europe, MEA, and APAC, and 10,500 in Latin America[120]. - Approximately 54% of hourly employees in the U.S. and 60% of employees in Europe are covered by collective bargaining agreements, reflecting strong labor relations[121]. - The company has a robust talent development program, with over 500 senior leaders participating in the flagship Open Leadership program in partnership with INSEAD[131]. - The company’s talent planning initiatives ensure timely talent mobility into key vacancies across the organization[130]. - The company’s employee benefits packages are competitive and tailored to local market relevance[133]. Safety and Compliance - The company achieved a lost time incident rate of 0.27 and a global Total Recordable Incident Rate of 0.58 for 2024, indicating a strong commitment to safety[123]. - The company has implemented comprehensive safety management systems to safeguard employee health and safety, which are critical for attracting and retaining talent[137]. - The company invested approximately $127 million in capital expenditures related to environmental compliance during fiscal 2024[142]. - The company is subject to various environmental laws and regulations, which significantly impact its manufacturing processes[140]. Innovation and Sustainability - Smurfit Westrock won 106 awards in 2024, including 16 awards at the Flexographic Industry Association UK awards and 13 WorldStar 2024 awards, showcasing its industry leadership in innovation[102]. - The "Better Planet Packaging" initiative has executed over 80 successful projects for leading brands, focusing on sustainable packaging solutions[103]. - The Sustainability Committee of the Board met three times in 2024 to review the company's climate strategy and stakeholder expectations[107]. - The company plans to publish an overview of its climate risk management approach in the first half of 2025, aligning with the Task Force on Climate-related Financial Disclosures[113]. - Consolidated sustainability targets and data are expected to be reported for the 2025 financial year, following the mid-year merger of Smurfit Kappa Group and WestRock[114]. - The company is committed to sustainability, focusing on renewable and recyclable materials to create innovative packaging solutions[105]. - Smurfit Westrock's innovation model includes 30 interconnected customer-centric Innovation and Experience centers to enhance local implementation and efficiency[100]. Leadership and Compensation - The company’s executive leadership includes experienced individuals with extensive backgrounds in the industry, enhancing strategic decision-making[145][146][147][148][149][150]. - The company’s compensation packages are designed to attract, retain, and motivate employees, aligning with performance and business growth[133]. - The company is committed to equal pay for equal work, conducting frequent pay analysis and global pay equity benchmarking[135]. - The company holds a substantial number of patents and trademarks, which are crucial for its manufacturing operations[136].

Core Insights - Sodexo has secured a significant five-year contract with Santos, Australia's largest natural gas supplier, which will enhance its business operations and geographical presence in Australia [1][3] - The contract encompasses a wide range of services across Santos' operations, including accommodation management, catering, and health & wellness services for 25 camps, impacting the daily lives of approximately 2,000 residents [3][4] - The mobilization of this contract is expected to create over 500 jobs and provide benefits to local communities in Queensland, South Australia, and Western Australia [4] Company Overview - Founded in 1966, Sodexo is a global leader in sustainable food and facilities management services, focusing on improving quality of life and contributing to social and environmental progress [5] - As of August 31, 2024, Sodexo reported consolidated revenues of 23.8 billion euros and employed 423,000 people across 45 countries, serving 80 million consumers daily [8] - The company is recognized in various indices, including CAC Next 20 and FTSE 4 Good, reflecting its commitment to responsible business practices [5][8]

Company Overview - Sodexo, founded in 1966 in Marseille by Pierre Bellon, is a global leader in sustainable food and valued experiences across various life moments [3] - The company operates with a dual focus on improving the quality of life for employees and the communities it serves, while also contributing to economic, social, and environmental progress [3] - Sodexo is recognized for its independence, family shareholding, and responsible business model, and is included in several indices such as CAC Next 20 and FTSE 4 Good [3] Key Financial Figures - For fiscal year 2024, Sodexo reported consolidated revenues of 23.8 billion euros [5] - As of August 31, 2024, the company employed 423,000 people and served 80 million consumers daily [5] - The market capitalization of Sodexo was 11.7 billion euros as of January 6, 2025 [5] Share Capital and Voting Rights - All shares of Sodexo have the same voting rights, except for treasury shares which do not have voting rights and registered shares held for more than four years, which have double voting rights [1] - The theoretical voting rights are calculated based on shares with single or double voting rights, including treasury shares that are temporarily deprived of voting rights [2]

Financial Data and Key Metrics Changes - The company reported a strong fourth quarter performance with adjusted EBITDA of USD 1.166 billion and an adjusted EBITDA margin of 15.5% [9][29] - For the full year 2024, the combined adjusted EBITDA outcome was USD 4.706 billion, consistent with prior guidance [9][52] - Net sales for the fourth quarter exceeded USD 7.5 billion, with adjusted free cash flow of almost USD 260 million [29][71] Business Line Data and Key Metrics Changes - North America operations delivered sales of USD 4.6 billion with adjusted EBITDA of USD 710 million and an adjusted EBITDA margin of 15.4% [30][72] - EMEA and APAC division reported sales of USD 2.5 billion, adjusted EBITDA of USD 371 million, and an adjusted EBITDA margin of 14.7% [33][75] - Latin America segment achieved sales of USD 0.5 billion, adjusted EBITDA of USD 121 million, and an adjusted EBITDA margin of over 23% [35][77] Market Data and Key Metrics Changes - In North America, corrugated box pricing increased year-on-year, while box volumes remained stable [31][73] - EMEA and APAC saw box volumes increase by 1% on an absolute basis, with prices broadly unchanged [34][76] - Latin America experienced a 3% decline in box volumes on a same-day basis, primarily due to market conditions in Argentina [36][78] Company Strategy and Development Direction - The company aims to be the go-to sustainable packaging partner with a focus on innovation and efficiency [11][44] - A synergy program is expected to exceed USD 400 million, with benefits realized in the current and next year [17][60] - The company is committed to a decentralized operational model, empowering local managers with P&L responsibility [15][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong positioning and ability to capitalize on market opportunities [26][68] - The company anticipates delivering an adjusted EBITDA of approximately USD 1.25 billion for the first quarter of 2025 [42][83] - Management acknowledged the challenges faced in the market but emphasized the long-term growth potential of the sustainable packaging industry [47][88] Other Important Information - The company has over 100,000 employees operating in 40 countries, generating net sales of over USD 31 billion last year [12][54] - The board approved a quarterly dividend increase from USD 0.3025 to USD 0.4308 per share, reflecting a commitment to shareholder returns [39][81] - Capital expenditure for 2025 is projected to be between USD 2.2 billion and USD 2.4 billion, well ahead of depreciation [19][80] Q&A Session Summary Question: Insights on box volumes in North America and contract discussions - Management noted that the value over volume strategy has been implemented without significant negative effects on volumes, but some volume degradation is expected as core issues are addressed [92][94] Question: Feedback on price increases in the European containerboard market - Management indicated that margins in Europe have outperformed competitors despite falling paper prices, with price increases expected to be implemented [100][102] Question: Details on operational and commercial improvement opportunities - Management highlighted that many businesses were previously underselling, and by focusing on better operational practices, significant improvements are anticipated [110][112]

2024 Fourth Quarter and Full Year Results February 12, 2025 Definitions Smurfit Westrock uses the non-GAAP financial measures "Adjusted EBITDA" and "Adjusted EBITDA Margin" to evaluate its overall performance. The composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit Westrock defines Adjusted EBITDA as income before income taxes, unallocated corporate costs, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service (benefit) expens ...

Core Insights - Smurfit Westrock Plc reported fourth-quarter 2024 earnings of 28 cents per share, an increase from 19 cents in the same quarter last year, but missed the Zacks Consensus Estimate of 68 cents [1][10] - The company was formed by the merger of Smurfit Kappa and WestRock on July 5, 2024, and results are reported as a unified entity starting from the third quarter of 2024 [2] Financial Performance - Net sales for Q4 surged 163.4% year over year to $7.54 billion, although it fell short of the Zacks Consensus Estimate of $7.80 billion [3] - Cost of sales increased by 182.1% to $6.1 billion, while gross profit rose 105.7% to $1.44 billion [4] - Adjusted EBITDA reached $1.17 billion, a 161% increase from the previous year, with an adjusted EBITDA margin of 15.5%, slightly down from 15.6% [4] Segment Performance - Europe, MEA & APAC segment sales were $2.52 billion, up 17.4% year over year, with adjusted EBITDA of $371 million, a 4.8% increase [5] - North America segment sales skyrocketed to $4.59 billion from $0.38 billion in the prior year, with adjusted EBITDA rising to $710 million from $72 million [6] - LATAM segment sales increased by 52.8% to $524 million, with adjusted EBITDA soaring 112.8% to $121 million [7] Cash Position and Balance Sheet - Cash and cash equivalents at the end of 2024 were $0.86 million, down from $1 billion at the end of 2023 [8] - Net cash provided by operating activities was $781 million, compared to $611 million in the same quarter last year [8] - Adjusted free cash flow at the end of 2024 was $257 million, down from $391 million in the previous year [8] Annual Performance - For 2024, adjusted earnings were reported at 74 cents per share, missing the Zacks Consensus Estimate of $2.66, down from $3.30 in the previous year [10] - Net sales for the year increased by 74.6% to $21.11 billion, but also fell short of the Zacks Consensus Estimate of $30.90 billion [10] - Adjusted EBITDA for 2024 was $4.7 billion, aligning with company guidance [10] Stock Performance - Smurfit Westrock's shares have increased by 34.7% over the past six months, compared to the industry's growth of 34.2% [11]

Company Performance - Smurfit Westrock reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.68 per share, representing an earnings surprise of -50% [1] - The company posted revenues of $7.54 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.32%, compared to year-ago revenues of $4.62 billion [2] - Over the last four quarters, Smurfit Westrock has surpassed consensus EPS estimates just once and has not beaten consensus revenue estimates during the same period [2] Stock Outlook - The stock has lost about 0.4% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The current consensus EPS estimate for the coming quarter is $0.89 on $8 billion in revenues, and for the current fiscal year, it is $3.28 on $31.98 billion in revenues [7] - The estimate revisions trend for Smurfit Westrock is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Paper and Related Products industry, to which Smurfit Westrock belongs, is currently in the bottom 44% of the Zacks industry rankings [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly impact stock performance [5][8]