Q1 2024 Sealed Air Corp Earnings Call Transcript
Key Points
- Sealed Air Corp (SEE) reported strong first quarter results with sales of $1.33 billion and adjusted EBITDA of $278 million, demonstrating resilience in challenging market conditions.
- The Food segment experienced low single-digit volume growth across all regions, driven by the shrink bag business and new customer wins, indicating a positive market response and expansion.
- Sealed Air Corp (SEE) achieved positive free cash flow of $78 million in Q1, a significant improvement from a negative $13 million in the same period last year, reflecting better financial management and operational efficiency.
- The company is actively engaged in developing sustainable packaging solutions, such as compostable trays and recycle-ready films, aligning with evolving market needs and regulatory requirements.
- Sealed Air Corp (SEE) is progressing in its transformational initiatives, including portfolio optimization and cost takeout measures, which have already achieved an annual run rate savings of $78 million.
- The Protective segment continues to face challenges with a low to mid-single-digit year-over-year volume decline due to pressure in industrial portfolios across all regions.
- Regulatory challenges concerning the use of polyvinylidene chloride (PVdC) in packaging materials could impact the Food segment, which uses PVdC in about one-third of its offerings.
- The pricing environment remains pressured, particularly in the Protective segment, as the company competes in a low volume, low visibility environment, which could affect profitability.
- Despite positive volume growth in the Food segment, the company experienced unfavorable net price realization, which partially offset the benefits of higher volumes.
- Sealed Air Corp (SEE) anticipates a slight sequential decline in sales for the second quarter, reflecting the dynamic and low visibility environment, which could impact short-term performance.
Good day, and thank you for standing by. Welcome to the First Quarter 2024 Sealed Air Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Brian Sullivan. Please go ahead.
Thank you, and good morning, everyone. With me today are Emile Chammas, interim co-CEO and COO; and Dustin Semach, interim co-CEO and CFO.
Before we begin our call, I would like to note that we have provided a slide presentation to supplement the call. Please visit sealedair.com, where today's webcast and presentation can be downloaded from our Investor Relations page.
Statements made during this call stating management's outlook or estimates for future periods are forward-looking statements. These statements are based solely on information that is now available to us. We encourage you to review the information in the section entitled Forward-Looking Statements in our earnings release and slide presentation, which applies to this
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