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Sealed Air(SEE) - 2024 Q4 - Annual Results
SEESealed Air(SEE)2025-02-25 12:10

Financial Performance - Net sales for Q4 2024 were 1.37billion,flatcomparedtoQ42023,witha31.37 billion, flat compared to Q4 2023, with a 3% increase in the Food segment and a 7% decrease in the Protective segment[6]. - Full year 2024 net sales decreased by 2% to 5.39 billion, with the Food segment increasing by 2% and the Protective segment decreasing by 8%[10]. - Adjusted EBITDA for Q4 2024 was 271million,or19.7271 million, or 19.7% of net sales, compared to 274 million, or 19.9% in Q4 2023[9]. - Full year 2024 adjusted EBITDA increased slightly to 1.11billion,or20.61.11 billion, or 20.6% of net sales, from 1.11 billion, or 20.2% in the prior year[14]. - Operating profit for Q4 2024 was 159.0million,adecreaseof24.7159.0 million, a decrease of 24.7% compared to 211.2 million in Q4 2023[32]. - Net loss for Q4 2024 was 7.3million,comparedtonetearningsof7.3 million, compared to net earnings of 124.0 million in Q4 2023[32]. - Basic net loss per share for Q4 2024 was (0.05),whilebasicearningspershareforQ42023was(0.05), while basic earnings per share for Q4 2023 was 0.86[32]. - The company reported a GAAP net earnings from continuing operations of (0.4)millionforQ42024,comparedto(0.4) million for Q4 2024, compared to 124.9 million in Q4 2023[46]. - For the year ended December 31, 2024, GAAP earnings before income tax from continuing operations was 458.4million,comparedto458.4 million, compared to 429.7 million in 2023, reflecting a 6.5% increase[47]. - Non-GAAP adjusted net earnings for the year ended December 31, 2024, were 458.9million,withdilutedEPSof458.9 million, with diluted EPS of 3.14, compared to 461.3millionanddilutedEPSof461.3 million and diluted EPS of 3.18 in 2023, indicating a slight decrease in earnings[48]. Cash Flow and Leverage - Free cash flow for full year 2024 was 454million,comparedto454 million, compared to 467 million in the prior year[18]. - The net leverage ratio improved to 3.6x as of December 31, 2024, down from 3.9x a year earlier[20]. - Free cash flow for the year ended December 31, 2024, was 507.8million,anincreasefrom507.8 million, an increase from 272.0 million in 2023[38]. - The total debt as of December 31, 2024, was 4,403.9million,downfrom4,403.9 million, down from 4,690.3 million in 2023, resulting in a non-GAAP net debt of 4,032.1million[51].SegmentPerformance−Thecompanycompletedareorganizationintotwomarket−focusedbusinesses:FoodandProtective,aimingtomaximizegrowthinrespectiveend−markets[3].−Thefoodsegment′sadjustedEBITDAfor2024was4,032.1 million[51]. Segment Performance - The company completed a reorganization into two market-focused businesses: Food and Protective, aiming to maximize growth in respective end-markets[3]. - The food segment's adjusted EBITDA for 2024 was 807.7 million, reflecting a margin of 22.5%, up from 21.8% in 2023[46]. - The protective segment's adjusted EBITDA decreased to 313.5millionin2024,withamarginof17.3313.5 million in 2024, with a margin of 17.3%, down from 18.4% in 2023[46]. - The company anticipates 2024 net sales to be 5,392.6 million, with food segment projected at 3,526.1million(65.43,526.1 million (65.4%) and protective segment at 1,107.9 million (20.5%) [44]. Restructuring and Costs - Cost take-out initiatives generated 89millioninincrementalsavingsforfullyear2024,contributingtoimprovedoperationalefficiency[5].−Thecompanyincurredrestructuringchargesof89 million in incremental savings for full year 2024, contributing to improved operational efficiency[5]. - The company incurred restructuring charges of 33.0 million in Q4 2024, compared to 6.4millioninQ42023[32].−RestructuringchargesfortheyearendedDecember31,2024,totaled6.4 million in Q4 2023[32]. - Restructuring charges for the year ended December 31, 2024, totaled 57.8 million, up from 15.6millionin2023,reflectingincreasedcostsassociatedwithrestructuringefforts[49].AssetsandLiabilities−Totalassetsdecreasedto15.6 million in 2023, reflecting increased costs associated with restructuring efforts[49]. Assets and Liabilities - Total assets decreased to 7,022.1 million as of December 31, 2024, from 7,200.6millionasofDecember31,2023[34].−Totalliabilitiesdecreasedto7,200.6 million as of December 31, 2023[34]. - Total liabilities decreased to 6,397.6 million as of December 31, 2024, from 6,651.1millionasofDecember31,2023[34].−Cashandcashequivalentsincreasedto6,651.1 million as of December 31, 2023[34]. - Cash and cash equivalents increased to 371.8 million as of December 31, 2024, from 346.1millionasofDecember31,2023[34].Taxation−TheGAAPeffectiveincometaxratefortheyearendedDecember31,2024,was41.2346.1 million as of December 31, 2023[34]. Taxation - The GAAP effective income tax rate for the year ended December 31, 2024, was 41.2%, significantly higher than 21.0% in 2023[47]. - Non-GAAP adjusted income tax rate for the year ended December 31, 2024, was 25.9%, compared to 23.6% in 2023, indicating an increase in the effective tax burden[47]. Currency Impact - Foreign currency translation negatively impacted total change (GAAP) by (35.7) million (-0.7%) for the year ended December 31, 2023[42]. - The company incurred a foreign currency exchange loss of 9.9millionfortheyearendedDecember31,2024,comparedto9.9 million for the year ended December 31, 2024, compared to 23.1 million in 2023, indicating a reduction in losses from currency fluctuations[49].