NYSE$SON

Sonoco Products Co · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Achieved record fourth quarter and annual financial results, driven by strategic pricing and the Metal Packaging acquisition.

Sonoco reported strong Q4 2022 results with a 16% increase in revenue and a 48% increase in GAAP EPS. The company's performance was driven by strategic pricing and the acquisition of Metal Packaging. Sonoco is focused on portfolio simplification and structural transformation.

  • Revenue grew 16% and GAAP EPS grew by 48% year-over-year.
  • Successfully integrated the Metal Packaging acquisition to expand rigid packaging in North America
  • Completed Skjern Paper acquisition in Denmark in the fourth quarter to expand sustainable paper packaging products in Europe
  • Reaffirmed commitments to ESG initiatives as noted in our annual corporate responsibility report

Headline financials

Total Revenue

$1.68B

Previous: $1.44B+16.5%
EPS (adj)

$1.27

Previous: $0.90+41.1%
Dividends Paid

$187M

No prior period
Adjusted EBITDA

$184M

No prior period
Capital Expenditures

$92M

Previous: $99.4M-7.5%
Free Cash Flow

$190M

Previous: -$20.8M+1011.5%
Net Income

$97.1M

Previous: $67.7M+43.5%
Operating Income

$127M

Previous: $105M+21.2%
Gross Profit

$314M

Previous: $264M+19.1%
Cash & Equivalents

$227M

Previous: $171M+33.0%
Total Assets

$7.09B

Previous: $5.07B+39.8%
Stock-Based Comp

$5.86M

Previous: $5.22M+12.3%

Revenue & EPS history

Sonoco · Revenue · Quarterly

$1.68B

Q4 2022+16.5%vs Q4 2021
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Sonoco · $1.48B total across 2 segments · Q4 2022

  • Consumer Packaging
    $879M+49.3%
  • Industrial Paper Packaging
    $597M-8.9%

Forward guidance

Sonoco provided guidance for Q1 2023 and full year 2023. The company expects Base EPS for Q1 2023 to be $1.15 to $1.25 and Base EPS for full year 2023 to be $5.70 to $5.90.

Tailwinds

  • First quarter guidance assumes improving sequential volumes in the Consumer segment
  • Annual guidance assumes full year improvements in Consumer segment volumes
  • Cash flow from operating activities: $925 million to $975 million
  • Free cash flow: $550 million to $650 million
  • Continued focus on portfolio optimization, improving price/cost through strategic pricing, and productivity positions us to expand profits and increase free cash flow

Headwinds

  • First quarter guidance assumes no sequential volume improvement in the Industrial segment
  • Annual guidance assumes limited recovery in volumes in the Industrial segment
  • Uncertainty regarding the future performance of the overall economy
  • Continued effects of the pandemic on global supply chains
  • Potential changes in raw material prices, other costs, and the Company's effective tax rate

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 Q4 2022

Historical avgQ4 2022

-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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