Sealed Air(SEE) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 were $1.37 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 $271 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 $1.11 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 $159.0 million, a decrease of 24.7% compared to $211.2 million in Q4 2023[32]. - Net loss for Q4 2024 was $7.3 million, compared to net earnings of $124.0 million in Q4 2023[32]. - Basic net loss per share for Q4 2024 was $(0.05), 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) 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 $458.4 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 $458.9 million, with diluted EPS of $3.14, compared to $461.3 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 $454 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 $507.8 million, an increase from $272.0 million in 2023[38]. - The total debt as of December 31, 2024, was $4,403.9 million, down from $4,690.3 million in 2023, resulting in a non-GAAP net debt of $4,032.1 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 $313.5 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 $3,526.1 million (65.4%) and protective segment at $1,107.9 million (20.5%) [44]. Restructuring and Costs - Cost take-out initiatives generated $89 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 $6.4 million in Q4 2023[32]. - Restructuring charges for the year ended December 31, 2024, totaled $57.8 million, up from $15.6 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 $7,200.6 million as of December 31, 2023[34]. - Total liabilities decreased to $6,397.6 million as of December 31, 2024, from $6,651.1 million as of December 31, 2023[34]. - Cash and cash equivalents increased to $371.8 million as of December 31, 2024, from $346.1 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 $9.9 million for the year ended December 31, 2024, compared to $23.1 million in 2023, indicating a reduction in losses from currency fluctuations[49].