On February 27, 2024, Sealed Air Corp (SEE, Financial) released its 8-K filing, disclosing its financial performance for the fourth quarter and full year of 2023, and providing an outlook for 2024. The company, known for its packaging solutions including CRYOVAC® food packaging and BUBBLE WRAP® brand packaging, operates through two segments: Food Care and Product Care, catering to a variety of markets from food packaging to e-commerce and industrial applications.
SEE's Q4 results were in line with expectations, despite a challenging market environment. The company's net sales for the quarter were $1.4 billion, a 2% decrease as reported, but remained flat on a constant currency basis. For the full year, net sales reached $5.5 billion, marking a 3% decrease as reported and a 1% decrease on a constant currency basis. The company's net earnings saw a significant increase in Q4, rising by 32% to $125 million, but experienced a 31% decrease to $339 million for the full year.
Adjusted EBITDA for Q4 was reported at $274 million, an 8% decrease, and $1,107 million for the full year, down by 9%. Diluted earnings per share (EPS) for Q4 increased by 32% to $0.86, while the full year saw a 30% decrease to $2.34. Adjusted diluted EPS for Q4 was down by 11% to $0.88, and down 22% to $3.18 for the full year.
SEE's cash flow from operations stood at $516 million for 2023. The company's free cash flow, excluding $195 million of payments and deposits related to tax matters, was reported at $467 million, a 24% increase from the previous year.
"Our fourth quarter results were in line with our expectations. We ramped our CTO2Grow initiatives to improve the competitiveness of our businesses and help offset continued weakness in our end-markets," said Emile Chammas, SEE’s Interim Co-CEO and COO.
"We delivered strong free cash flow in the fourth quarter and made significant progress in deleveraging our balance sheet," added Dustin Semach, SEE’s Interim Co-CEO and CFO.
Despite the mixed results, SEE's leadership remains focused on transforming the business and improving fundamentals. The company's 2024 outlook anticipates net sales between $5.2 to $5.6 billion and Adjusted EBITDA in the range of $1.05 to $1.15 billion. Adjusted EPS is forecasted to be between $2.65 to $3.05, based on approximately 146 million shares outstanding and an anticipated Adjusted Tax Rate of 26% to 27%. Free Cash Flow for 2024 is expected to be in the range of $325 to $425 million, with capital expenditures projected at approximately $230 million.
SEE's performance in 2023 reflects the resilience of its business model in the face of market headwinds. The company's focus on cash flow generation and balance sheet strength, alongside strategic initiatives to enhance competitiveness, positions it to navigate a challenging macroeconomic landscape. As the search for a new CEO progresses, SEE is poised to capitalize on market recovery in the latter half of 2024, with an emphasis on restoring core business fundamentals.
For detailed financial tables and a complete analysis of SEE's performance, including reconciliations of U.S. GAAP to Non-U.S. GAAP financial measures, investors are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Sealed Air Corp for further details.
