NYSE$SON

Sonoco Products Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Sonoco's second quarter results reflected solid performance with sequential growth in adjusted EBITDA and EPS, driven by productivity improvements and volume gains in the Industrials segment.

Sonoco reported GAAP net income of $91 million, with adjusted EBITDA reaching $262 million. Diluted earnings per share were $0.92, and adjusted diluted earnings per share stood at $1.28. The company reaffirmed its full-year 2024 guidance for adjusted EBITDA, adjusted EPS, and operating cash flow, excluding the pending Eviosys acquisition and potential divestitures.

  • GAAP net income attributable to Sonoco was $91 million, with Adjusted EBITDA at $262 million.
  • Diluted earnings per share reached $0.92, and diluted Adjusted earnings per share was $1.28.
  • The company generated strong productivity of $51 million during the second quarter.
  • An agreement to acquire Eviosys for approximately $3.9 billion was entered into, expected to be completed in the fourth quarter of 2024.

Headline financials

Total Revenue

$1.62B

Previous: $1.71B-4.8%
EPS

$0.92

Previous: $1.38-33.3%
Industrial Adj EBITDA

$97.8M

No prior period
Industrial Adj EBITDA Margin

0.2%

No prior period
All Other Op Profit

$13.9M

No prior period
All Other Op Margin

0.1%

No prior period
All Other Adj EBITDA

$16.6M

No prior period
All Other Adj EBITDA Margin

0.2%

No prior period
Dividends Paid

$520K

No prior period
Adjusted Operating Profit

$142M

Previous: $211M-32.7%
Adjusted EBITDA

$262M

Previous: $275M-4.6%
Adjusted Net Income

$127M

No prior period
Consumer Segment Op Profit

$73.8M

No prior period
Consumer Op Profit Margin

0.1%

No prior period
Consumer Adj EBITDA

$99M

No prior period
Consumer Adj EBITDA Margin

0.2%

No prior period
Industrial Op Profit

$67M

No prior period
Industrial Op Margin

0.1%

No prior period
Capital Expenditures

-$180M

Previous: -$162M-11.1%
Free Cash Flow

-$88.9M

Previous: -$47M-88.9%
Net Income

$90.8M

Previous: $115M-20.8%
Operating Income

$140M

Previous: $188M-25.3%
Gross Profit

$357M

Previous: $357M+0.0%
Cash & Equivalents

$140M

Previous: $319M-56.1%
Total Assets

$7.15B

Previous: $7.05B+1.5%
Stock-Based Comp

$6.66M

Previous: $7.64M-12.8%

Revenue & EPS history

Sonoco · Revenue · Quarterly

$1.62B

Q2 2024-4.8%vs Q2 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Sonoco · $1.52B total across 2 segments · Q3 2023

  • Consumer Packaging
    $938M-9.0%
  • Industrial Paper Packaging
    $580M-12.3%

Forward guidance

The company expects sequential adjusted earnings per share improvement in the third quarter from seasonally higher volumes in Consumer, stable volumes in Industrials, and continued strong productivity. The company's first half 2024 results reinforce confidence in its ability to meet its current full year 2024 financial expectations.

Tailwinds

  • Sequential adjusted earnings per share improvement expected in the third quarter.
  • Seasonally higher volumes anticipated in the Consumer segment.
  • Stable volumes projected in the Industrials segment.
  • Continued strong productivity expected.
  • Confidence in meeting full year 2024 financial expectations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.5%

Avg return

Earnings day

-1.3%

Avg return

5 days after

-0.7%

Avg return

30 days after

40%

27 / 68 earnings

Positive

+9.7%

Q4 2025

Best reaction

-12.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%-0.6%-2.5%
Q4 2025+9.7%+9.3%+0.3%
Q3 2025-0.2%-3.2%-1.1%
Q1 2025-12.3%-3.8%-2.6%
Q4 2024-3.7%-3.2%-3.0%
Q3 2024-2.5%-4.2%-1.1%
Q2 2024-1.0%-6.8%+6.4%
Q1 2024-1.0%-0.8%+4.7%
Q4 2023+2.8%+0.0%+2.4%
Q3 2023+5.6%+7.5%+7.6%
Q2 2023+1.4%-2.1%-1.1%
Q1 2023-1.7%-0.8%-1.3%
Q4 2022-0.3%+0.4%-6.6%
Q3 2022-9.7%-10.6%-5.4%
Q2 2022+3.9%+5.3%+8.9%
Q1 2022-4.4%-8.5%-14.6%
Q4 2021-2.0%+0.4%-2.7%
Q3 2021-3.3%-3.7%-0.7%
Q2 2021-5.1%-4.1%-1.6%
Q1 2021+0.1%-0.4%+3.6%
Q4 2020-2.8%-3.0%+2.5%
Q3 2020-4.2%-9.2%+3.3%
Q2 2020+2.1%-0.1%+2.9%
Q1 2020+2.4%-4.4%-6.9%
Q4 2019+0.0%-0.1%-17.2%
Q3 2019-0.4%+0.1%+1.1%
Q2 2019-4.5%-5.0%-10.8%
Q1 2019-1.1%+0.6%+3.7%
Q4 2018-3.1%-1.3%-2.7%
Q3 2018+5.3%+1.8%+9.0%
Q2 2018+6.5%+5.2%+4.8%
Q1 2018+3.6%+3.6%+3.8%
Q4 2017-1.8%-3.3%-5.3%
Q3 2017+4.0%+2.4%+0.8%
Q2 2017-6.9%-6.7%-8.8%
Q1 2017+3.2%+2.9%-2.4%
Q4 2016-3.2%-2.1%-2.1%
Q3 2016-0.4%-2.2%+5.2%
Q2 2016+1.0%+1.8%+1.8%
Q1 2016-3.3%
Q4 2015+1.0%
Q3 2015+0.6%
Q2 2015-4.8%
Q1 2015-2.5%
Q4 2014+1.1%
Q3 2014+3.4%
Q2 2014-1.8%
Q1 2014+0.7%
Q4 2013+1.1%
Q3 2013+3.3%
Q2 2013+2.3%
Q1 2013-1.9%
Q4 2012+0.7%
Q3 2012+0.2%
Q2 2012-1.4%
Q1 2012+0.9%
Q4 2011+2.7%
Q3 2011+4.2%
Q2 2011-6.8%
Q1 2010-0.6%
Q1 2011-0.3%
Q4 2008-1.6%
Q4 2010-1.6%
Q3 2009-0.8%
Q3 2010-0.8%
Q4 2009-0.0%
Q2 2009-0.0%
Q2 2010-0.0%

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