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]

Financial Performance - Smurfit Westrock reported Net Sales of $7656 billion[26] - Adjusted EBITDA reached $1252 billion[8, 26] - Adjusted EBITDA Margin was 164%[8, 26] - North America's Net Sales were $47 billion with an Adjusted EBITDA of $785 million and an Adjusted EBITDA Margin of 168%[28] - EMEA & APAC's Net Sales were $26 billion with an Adjusted EBITDA of $389 million and an Adjusted EBITDA Margin of 151%[28] - LATAM's Net Sales were $05 billion with an Adjusted EBITDA of $115 million and an Adjusted EBITDA Margin of 225%[28] Strategic Initiatives - The company is investing across all three regions in containerboard, corrugated, and consumer systems[14] - Smurfit Westrock is rationalizing its operations with four closures, reducing capacity by approximately 600kt[17] - The company expects approximately $350 million will be captured in Adjusted EBITDA in 2025, with approximately $80 million achieved in Q1 2025[32] Guidance - Q2 2025 Adjusted EBITDA is guided at approximately $12 billion[32] - FY 2025 Adjusted EBITDA is projected to be between $50 billion and $52 billion[32, 43]

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]

Core Viewpoint - Smurfit Westrock PLC is set to report its first-quarter 2025 results on May 1, following the merger of Smurfit Kappa and WestRock in July 2024, with expectations of revenue growth and improved earnings per share [1][2]. Financial Estimates - The Zacks Consensus Estimate for first-quarter revenues is $7.85 billion, reflecting a 4.1% increase from the previous quarter [2]. - The earnings per share estimate is 65 cents, up from 34 cents in the prior quarter, with a 4.8% upward revision in the last 60 days [2]. - Adjusted EBITDA is projected at $1.25 billion for the first quarter of 2025 [4]. Segment Performance - The Europe, MEA, and APAC segment is expected to generate revenues of $2.61 billion, up from $2.52 billion in the fourth quarter, with adjusted EBITDA estimated at $418.6 million [6]. - North America segment revenues are estimated at $4.54 billion, slightly down from $4.59 billion, with adjusted EBITDA expected to rise to $755.3 million [7]. - The LATAM segment is projected to see revenues of $483.6 million, down from $524 million, with adjusted EBITDA estimated at $112.3 million [8]. Market Dynamics - Demand for corrugated packaging and containerboard remains stable, driven by e-commerce growth and the need for sustainable packaging solutions [3]. - However, increased costs related to recovered fiber, labor, and distribution, particularly in Europe, may negatively impact margins [4]. Earnings Prediction - The model indicates a potential earnings beat for Smurfit Westrock, supported by a positive Earnings ESP of +3.72% and a Zacks Rank of 3 [9]. Stock Performance - Smurfit Westrock's shares have decreased by 13.9% over the past six months, compared to a 4.5% decline in the industry [10].