HARTSVILLE, S.C. (News release) -- Sonoco Products Company, a global leader in high-value sustainable packaging, reported financial results for its fourth quarter and fiscal year ended December 31, 2024.
References in today's news release to consolidated "net sales," "operating profit," and "adjusted operating profit," and Consumer Packaging segment "segment operating profit" and "segment adjusted EBITDA" along with the corresponding year-over-year comparable results, do not include results of the Company's Thermoformed and Flexibles Packaging business and its global Trident business (collectively, "TFP"), which are being accounted for as discontinued operations.
Summary:
- Expanded global leadership in sustainable metal packaging following the completion of the acquisition of Eviosys, Europe's leading food cans, ends and closures manufacturer, on December 4, 2024
- Entered into an agreement to sell TFP to TOPPAN Holdings, Inc. for approximately $1.8 billion
- Reported fourth quarter GAAP net loss attributable to Sonoco of $(43) million, adjusted net income attributable to Sonoco of $100 million, diluted earnings per share of $(0.44) and adjusted diluted earnings per share of $1.00
- Excluding the impact of the Eviosys acquisition, adjusted diluted earnings per share for the fourth quarter would have been $1.17, which is comparable to the Company's previously provided guidance of $1.15 to $1.35
- Generated strong operating cash flow of $834 million and $456 million of Free Cash Flow in 2024
- Produced fourth quarter adjusted EBITDA of $247 million, up 4.6% from the corresponding prior year quarter
- Achieved strong productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives of $41 million during the fourth quarter and $183 million for 2024
- Invested a record $378 million of capital in future growth and productivity projects during 2024
- Projecting approximately 20% growth in adjusted net income attributable to Sonoco in 2025
"2024 was a milestone year for Sonoco in achieving our strategy to globally scale our metal packaging platform through the acquisition of Eviosys and to transform our portfolio to comprise more sustainable Consumer and Industrial packaging businesses through the announced divestiture of TFP and strategic review of some of our other resin-based diversified businesses," said Howard Coker, President and Chief Executive Officer. "Our fourth-quarter results were within our expectations as we benefited from strong productivity improvements that more than offset price/cost headwinds that persisted across most of our businesses. Overall, we achieved the second best operating cash flow in our history and maintained solid operating performance due to the focused execution of our global team."
Commenting on the Company's outlook, Sonoco's President and CEO, Howard Coker, said, "As we enter the new year, we are focused on successfully integrating Eviosys into Sonoco Metal Packaging and achieving our two-year $100 million synergy target. We have announced the divestiture of TFP and intend to continue pursuing strategic alternatives for our remaining temperature-assured cold-chain packaging business. We intend to use proceeds from divestitures, along with projected strong free cash flow, to lower leverage to 3.0X to 3.3X Net Debt/Adjusted EBITDA by the end of 2026. We will continue to invest in our global Consumer and Industrial packaging businesses while maintaining our focus on profitability and productivity. Finally, we expect to achieve an extraordinary 100 consecutive years of returning cash to our shareholders in the form of dividends. By transforming into a simpler, stronger and more sustainable company, we have positioned Sonoco to grow projected adjusted net income attributable to Sonoco by approximately 20% year over year and adjusted EBITDA by approximately 30% year over year in 2025."
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