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CORRECTION – Sonoco Reports Fourth Quarter and Full Year 2024 Results
SONSonoco(SON) GlobeNewswire·2025-02-19 00:25

Core Insights - Sonoco Products Company reported a net loss of 43millionforQ42024,asignificantdeclinefromanetincomeof43 million for Q4 2024, a significant decline from a net income of 81 million in Q4 2023, resulting in a diluted EPS of (0.44)comparedto(0.44) compared to 0.82 in the prior year [5][10][34] - The company generated strong operating cash flow of 834millionin2024,althoughthiswasadecreasefrom834 million in 2024, although this was a decrease from 883 million in 2023 [19] - Sonoco's full-year 2025 guidance projects cash flow from operating activities to be between 800millionand800 million and 900 million, with adjusted net income growth expected to be around 20% year-over-year [18][20] Financial Performance - For Q4 2024, net sales were 1.363billion,a21.363 billion, a 2% increase from 1.336 billion in Q4 2023, driven by low single-digit volume gains and partial sales from the Eviosys acquisition [4][10] - The operating profit for Q4 2024 was 56million,down4656 million, down 46% from 103 million in Q4 2023, primarily due to higher acquisition-related costs [4][10] - Adjusted operating profit for Q4 2024 was 127million,a5127 million, a 5% decrease from 134 million in Q4 2023 [6][10] Segment Performance - The Consumer Packaging segment saw net sales increase by 18% in Q4 2024, reaching 705million,attributedtotheEviosysacquisitionandvolumegrowthinrigidpapercontainers[11][13]−TheIndustrialPaperPackagingsegmentreportednetsalesof705 million, attributed to the Eviosys acquisition and volume growth in rigid paper containers [11][13] - The Industrial Paper Packaging segment reported net sales of 571 million, a 4% decline from 593millioninQ42023,impactedbylowersalesrelatedtorecyclingoperations[12][14]−The"AllOther"segmentexperienceda40593 million in Q4 2023, impacted by lower sales related to recycling operations [12][14] - The "All Other" segment experienced a 40% decline in net sales to 88 million in Q4 2024, reflecting the sale of the Protexic business [15] Strategic Developments - Sonoco completed the acquisition of Eviosys, enhancing its global leadership in sustainable metal packaging [5][8] - The company announced the divestiture of its Thermoformed and Flexibles Packaging business to TOPPAN Holdings for approximately 1.8billion[5][20]−Sonocoaimstoachieveatwo−yearsynergytargetof1.8 billion [5][20] - Sonoco aims to achieve a two-year synergy target of 100 million from the Eviosys integration [20] Cash Flow and Capital Expenditures - Free Cash Flow for 2024 was 456million,downfrom456 million, down from 600 million in 2023 [19] - The company invested a record 378millionincapitalexpendituresforgrowthandproductivityprojectsduring2024[5][19]GuidanceandOutlook−SonocoexpectsadjustedEPSfor2025tobeintherangeof378 million in capital expenditures for growth and productivity projects during 2024 [5][19] Guidance and Outlook - Sonoco expects adjusted EPS for 2025 to be in the range of 6.00 to 6.20,withadjustedEBITDAprojectedbetween6.20, with adjusted EBITDA projected between 1.3 billion and $1.4 billion [19][20] - The company is focused on reducing leverage to a target of 3.0X to 3.3X Net Debt/Adjusted EBITDA by the end of 2026 [20]