On July 31, 2024, Silgan Holdings Inc (SLGN, Financial) released its 8-K filing for the second quarter of 2024. Silgan Holdings, a leading manufacturer of metal food containers in North America, also operates in plastic dispensers and containers for personal and healthcare products, and a closures business that manufactures metal and plastic lids and caps.
Performance Overview
Silgan Holdings Inc (SLGN, Financial) reported net sales of $1.38 billion for Q2 2024, a 3% decrease from $1.43 billion in Q2 2023. Net income for the quarter was $76.1 million, or $0.71 per diluted share, compared to $78.9 million, or $0.71 per diluted share, in the same period last year. Adjusted net income per diluted share was $0.88, surpassing the analyst estimate of $0.79.
Key Financial Achievements
Despite a slight decline in net sales, Silgan Holdings Inc (SLGN, Financial) demonstrated robust performance in several areas:
- Volume growth in all segments as customer destocking draws to a close.
- Dispensing and Specialty Closures segment saw a year-over-year Adjusted EBIT growth of over 20%.
- Double-digit volume growth in dispensing products.
- Announced agreement to acquire Weener Packaging, expanding the global dispensing business.
Segment Performance
Silgan Holdings Inc (SLGN, Financial) operates in three main segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. Here is a breakdown of their performance:
| Segment | Net Sales (Q2 2024) | Net Sales (Q2 2023) | Adjusted EBIT (Q2 2024) | Adjusted EBIT (Q2 2023) |
|---|---|---|---|---|
| Dispensing and Specialty Closures | $565.4 million | $560.1 million | $92.7 million | $76.9 million |
| Metal Containers | $650.8 million | $710.8 million | $58.5 million | $75.7 million |
| Custom Containers | $165.2 million | $155.8 million | $22.5 million | $18.5 million |
Income Statement Highlights
Key details from the income statement include:
- Gross profit increased to $256.0 million from $250.1 million in Q2 2023.
- Income before interest and income taxes (EBIT) was $141.8 million, down from $144.0 million in Q2 2023.
- Interest and other debt expense decreased to $41.3 million from $46.8 million in Q2 2023.
Balance Sheet and Cash Flow
Silgan Holdings Inc (SLGN, Financial) reported the following key metrics:
- Cash and cash equivalents stood at $302.8 million as of June 30, 2024.
- Total assets were $7.69 billion, compared to $7.91 billion as of June 30, 2023.
- Net cash used in operating activities was $526.9 million for the first six months of 2024.
Commentary and Outlook
"The Silgan team delivered solid second quarter results that were above the midpoint of our guidance range, as our business continues to show strength and improving year-over-year trends," said Adam Greenlee, President and CEO.
Silgan Holdings Inc (SLGN, Financial) remains optimistic about its future performance, confirming its estimate of adjusted net income per diluted share for the full year of 2024 in the range of $3.55 to $3.75. The company also expects free cash flow of approximately $375 million for 2024.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Silgan Holdings Inc for further details.
