Sonoco(US:SON) Globenewswire·2025-02-19 00:25Core Insights - Sonoco Products Company reported a net loss of $43 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) compared to $0.82 in the prior year [5][10][34] - The company generated strong operating cash flow of $834 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 $800 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 $1.363 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 $56 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 $127 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 $705 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 $593 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 $1.8 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 $456 million, down from $600 million in 2023 [19] - The company invested a record $378 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, 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]