Q1 2024 Sonoco Products Co Earnings Call Transcript
Key Points
- Sonoco Products Co (SON) reported strong first quarter 2024 financial results with sales of $1.6 billion and adjusted EBITDA of $245 million.
- Adjusted earnings per share were $1.12, exceeding the midpoint of the guidance range.
- Productivity gains were significant, amounting to $51 million due to focused execution and operating discipline.
- The company successfully completed the divestiture of the Protective Solutions business, aligning with its strategy of portfolio simplification.
- Sonoco Products Co (SON) has entered into a 15-year virtual power purchase agreement, supporting its sustainability goals and reducing emissions.
- Net sales decreased by 5% to $1.64 billion due to index-based price pressures.
- Negative price cost of $0.51 per share and negative volume mix of $0.12 per share impacted earnings.
- Consumer segment faced challenges with volume mix declining due to inflationary pricing at retail.
- Industrial segment also experienced a decrease in sales by 4%, with price cost negatively impacting EBITDA by $67 million.
- The 'All Other' business segment saw a 14% decrease in sales, reflecting ongoing challenges in non-core areas.
Good day, and thank you for standing by. Welcome to the Q1 2024 Sonoco 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, Lisa Weeks, Vice President of Investor Relations. Please go ahead.
Thank you, operator, and thanks to everyone for joining us today for Sonoco's first quarter earnings call. Last evening, we issued a news release highlighting our financial performance for the first quarter, and we prepared a presentation that we will reference during this call. The press release and presentation are available online under the Investor Relations section of our website at sonoco.com.
As a reminder, during today's call, we will discuss a number of forward-looking statements based on current expectations, estimates and projections. These statements are not guarantees of future performance and are subject to certain risks and uncertainties. Therefore,
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