Sonoco Products Company · NYSE:SON
Sonoco Products — Q4 2023 Earnings Presentation
20 slides from Sonoco Products's earnings presentation, Feb 15, 2024
Slide 1: Sonoco Fourth Quarter 2023 Earnings Presentation
SONOCO SONOCO FOURTH QUARTER 2023 Earnings Presentation | February 2024 Sonoco | www.sonoco.com
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures Statements included herein that are not historical in nature, are intended to be, and are hereby identified as “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amen
Slide 3: Today's Attendees
Today’s Attendees HOWARD COKER ROB DILLARD RODGER FULLER LISA WEEKS President & CEO Chief Financial Officer Chief Operating Officer VP of IR & Communications 3 Sonoco | www.sonoco.com
Slide 4: 2023 Results Summary
2023 Results Summary Adjusted Adjusted Adjusted REVENUE EBITDA NET INCOME* EARNINGS PER SHARE* $6.78B $1,067M $520M $5.26 15.7% Margin 7.7% Margin 2023 HIGHLIGHTS • Made progress on strategic initiatives and delivered solid results in a challenging macro - Generated record $883 million of Operating
Slide 5: Financial Results
Financial Results Rob Dillard Chief Financial Officer 5 Sonoco | www.sonoco.com
Slide 6: 2023 Financial Results
2023 Financial Results YoY % 2-Year 2021 2022 2023 Change CAGR Net Sales ($M) $5,590 $7,251 $6,781 -6.5% 10.1% Adjusted Operating Profit ($M) $565 $920 $804 -12.6% 19.3% Adjusted Operating Profit Margin 10.1% 12.7% 11.9% Adjusted EBITDA ($M) $771 $1,162 $1,067 -8.1% 17.7% Adjusted EBITDA Margin 13.8
Slide 7: Q4-23 Financial Results vs 2022
Q4-23 Financial Results vs 2022 YoY % Q4-22 Q3-23 Q4-23 Change Net Sales ($M) $1,676 $1,710 $1,636 -2.4% Adjusted Operating Profit ($M) $184 $213 $167 -9.3% Adjusted Operating Profit Margin 11.0% 12.4% 10.2% Adjusted EBITDA ($M) $246 $280 $236 -4.0% Adjusted EBITDA Margin 14.6% 16.4% 14.4% Adjusted
Slide 8: Q4-23 Performance Review
Q4-23 Performance Review Sales Bridge (Year-over-Year) Sales Drivers (Dollars in millions) $1,676 FX/Other $19 • Volume/Mix: Lower from the impact of inflationary Q4-22 $1,636 Volume/Mix pricing on retail in Consumer and cyclically low ($20)* Q4-23 Price Industrial Demand ($39) • Price: Unfavorable
Slide 9: Q4-23 Segment Results
Q4-23 Segment Results Adjusted Operating Net Sales Operating Profit as OP Bridge Drivers (Y/Y) Profit % of Sales Y/Y Y/Y $MM Y/Y Growth $MM % Growth Growth CONSUMER $856 (3%) $83 (3%) 9.7% 2 bps • Volumes down from lower consumer purchases for food and household products from inflationary impacts an
Slide 10: Capital Allocation
Capital Allocation Capital Allocation Framework is Aligned to Business Strategy to Drive Value Creation for Shareholders Capital Allocation Priorities Operating Cash Flow ($M) 251 268 267 183 187 138 Cash Flow from Operations 79 98 1 Capital Expenditures to support ongoing business and drive growth
Slide 11: 2024 Financial Outlook
2024 Financial Outlook Summary • EBITDA and EPS ranges reflective of modest $ in Millions (except EPS) 2024 Guidance volume recovery, meaningful price/cost headwinds in the first half in Consumer and Industrial, and higher depreciation Adjusted EBITDA $1,050 - $1,100 • Operating Cash Flow reflects i
Slide 12: Segment Outlook
Segment Outlook CONSUMER PACKAGING INDUSTRIAL PRODUCTS ALL OTHER BUSINESSES Q1-24 Outlook Q1-24 Outlook Q1-24 Outlook • Volumes effectively flat year over year, • Volumes up sequentially and down low • Volumes remain soft sequentially growing mid to high single digits single digits year-over-year an
Slide 13: Closing Remarks
Closing Remarks Howard Coker President and Chief Executive Officer 13 Sonoco | www.sonoco.com
Slide 14: Recent Developments
Recent Developments Sonoco announces sale of Sonoco acquires leading Protective Solutions from All Brazilian flexibles company Other businesses Launches new Pringles packaging with Sonoco’s paper bottom 14 Sonoco | www.sonoco.com
Slide 15: Looking Forward to Investor Day 2024
Looking Forward to Investor Day 2024 Next steps in Sonoco’s transformation Actions to further elevate Sonoco’s operating model Long range plans from our business unit leaders in Consumer and Industrial Updates on our financial strategy and outlook 15 Sonoco | www.sonoco.com
Slide 16: Appendix
Appendix 16 Sonoco | www.sonoco.com
Slide 17: EPS Summary 2023 Vs. 2022
EPS Summary 2023 Vs. 2022 Fourth Quarter Year To Date 2023 2022 2023 2022 GAAP EPS $ 0.82 $ 0.98 $ 4.80 $ 4.72 Addback for: Acquisition and divestiture related costs, net 0.02 0.06 0.20 0.53 LIFO Reserve change (0.01) 0.03 (0.09) 0.22 Acquisition intangibles amortization expense 0.18 0.15 0.66 0.62
Slide 18: P&L Summary (Adjusted) Fourth Quarter: 2023 Vs. 2022
P&L Summary (Adjusted) Fourth Quarter: 2023 Vs. 2022 (Dollars in millions) Better / (Worse) 2023 2022 $ % Net sales $ 1,636 $ 1,676 $ (40) (2.4)% Gross profit 338 317 20 6.4 % SG&A Expenses, net of Other Income (171) (133) (37) (28.1)% Operating profit $ 167 $ 184 $ (17) (9.3)% Net interest (32) (29
Slide 19: P&L Summary (Adjusted) Year to date: 2023 Vs. 2022
P&L Summary (Adjusted) Year to date: 2023 Vs. 2022 (Dollars in millions) Better / (Worse) 2023 2022 $ % Net sales $ 6,781 $ 7,251 $ (470) (6.5)% Gross profit 1,424 1,501 (77) (5.1)% SG&A Expenses, net of Other Income (620) (581) (39) (6.8)% Operating Profit $ 804 $ 920 $ (116) (12.5)% Net interest (
Slide 20: Balance Sheet
Balance Sheet (Dollars in millions) 12/31/2023 12/31/2022 Change $ Cash and cash equivalents $ 152 $ 227 $ (75) Trade accounts receivable, net of allowances 905 863 42 Other receivables 107 99 8 Inventories 774 1,096 (322) Prepaid expenses 113 76 37 Current Assets $ 2,051 $ 2,361 $ (310) Property, p
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