Sonoco Products Company · NYSE:SON
Sonoco Products — Q4 2024 Earnings Presentation
29 slides from Sonoco Products's earnings presentation, Feb 19, 2025
Slide 1: 4Q and FY 2024 Results, 2025 Guidance
4Q AND FY 2024 RESULTS 2025 GUIDANCE February 19, 2025
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 Roger Schrum Howard Coker Jerry Cheatham Rodger Fuller Interim Head of President & CEO Interim Chief Chief Operating Investor Relations & Financial Officer Officer Communications 3
Slide 4: Business Update
BUSINESS UPDATE Howard Coker President & CEO
Slide 5: Strengthen Portfolio | Fewer, Bigger Businesses
STRENGTHEN PORTFOLIO | FEWER, BIGGER BUSINESSES Successfully negotiated sale of TFP to Toppan for $1.8B Completed largest acquisition in • Received most regulatory approvals Company’s history on Dec. 4, 2024 • Jump started integration with Day One Celebrations 5
Slide 6: Q4 2024 Results Summary
Q4 2024 Results Summary STRONG PRODUCTIVITY, OFFSET BY PRICE/COST HEADWINDS Revenue Adj. Earnings Per Share FY Operating (excluding discontinued operations) Total Adj. EBITDA* (excl. Eviosys) Cash Flow $1.36B $247M Up 5% $1.17 $834M Up 2% 14.9% Margin, up 50 bps Up 14.7% FCF $456M Q4 Highlights Sono
Slide 7: Investing in Ourselves for Growth, Productivity
Capital Expenditures Since 2020 ($ Million, Gross*) “INVESTING IN $450 $400 $350 $393 $363 $360 OURSELVES” FOR $300 $329 $250 $200 $256 $150 $194 GROWTH, PRODUCTIVITY $100 $50 $0 2020 2021 2022 2023 2024 2025P Rigid Paper Containers Sonoco Metal Packaging Industrial Paper Products 1 Greenfield And S
Slide 8: Financial Results & 2025 Guidance
FINANCIAL RESULTS & 2025 GUIDANCE Jerry Cheatham Interim Chief Financial Officer
Slide 9: Q4 Financial Results
Q4 FINANCIAL RESULTS (Dollars in Millions, Except EPS) Q4 2024 Q4 2023 YOY Change % Net Sales 1 $1,363 $1,336 2% Net Sales 2 $297 $300 (1)% Adj. OP 3 $127 $134 (5)% Adj. EBITDA $247 $236 5% Adj. EPS $1.00 $1.02 (2)% Adj. EPS 4 $1.17 $1.02 14.7% Guidance $1.15 to $1.35 1) Excluding discontinued opera
Slide 10: Consumer Packaging Segment
4Q Results CONSUMER PACKAGING SEGMENT Sales1 ($M) Adj. EBITDA2 ($M) Key Updates 18% 9% Strong productivity in RPC and Metal $705 $100 Packaging $91 RPC volume up +LSD $597 14% 14% driven by Europe and 15% NA growth 15% 4Q 2023 4Q 2024 4Q 2023 4Q 2024 Strong aerosol volume growth, offset by normal se
Slide 11: Industrial Paper Packaging Segment
4Q Results INDUSTRIAL PAPER PACKAGING SEGMENT Sales ($M) Adj. EBITDA ($M) Key Updates -4% 12% $593 $102 Strong productivity $91 drives margins $571 Positive volume/mix in 18% 14% 15% 14% most regions, except 15% 15% Asia Pacific 4Q 2023 4Q 2024 4Q 2023 4Q 2024 Price/cost headwind continued Sales Vol
Slide 12: All Other Segment
4Q Results ALL OTHER SEGMENT Key Updates Sales ($M) Adj. EBITDA ($M) -40% Sales decline reflects sale of Protective $146 $23 Solutions Lower volume/mix in $88 remaining other businesses 16% $8 Reviewing strategic 9% alternatives for temperature-assured packaging business. 4Q 2023 4Q 2024 4Q 2023 4Q
Slide 13: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Second Best Year of Operating Cash Flow (Dollars in Thousands) 2024 Operating Cash Flow $833,845 Capital Expenditures, Net ($377,586) Free Cash Flow $456,259 Dividends ($203,492) 13
Slide 14: 2025 Guidance Projections
2025 GUIDANCE PROJECTIONS Key Assumptions Thermoformed & Flexible Packages OCC Average FX Assumptions OCC at Expecting headwinds Eviosys for TFP results $100/average from most trade a full year through 1Q for the year partner currencies 14
Slide 15: 2025 Sales | Total Sonoco
2025 SALES | TOTAL SONOCO (Dollars in Millions) $8,400 $1,350 - $1,450 $8,200 $7,750 - $8,000 $8,000 ($200) – ($250) $7,800 $7,600 $7,400 $7,200 $7,000 $175 - $200 $6,800 $6,597 $0 - ($10) $6,600 $6,400 $6,200 $400 $200 0 2024 Sales Volume Mix Price Acq./Divest FX/Other 2025 Sales 15
Slide 16: 2025 Adjusted EPS Projection
2025 ADJUSTED EPS PROJECTION $7.00 19% - 23% ~$0.85 - $0.90 $6.00 - $6.20 $6.00 $(0.25) -$(0.30) ~$0.45 - $0.55 $0.17 $5.06 $5.00 $4.89 $4.00 $3.00 $2.00 $1.00 0.00 Adj. EPS 2024 Eviosys Adj. EPS Operational Acq./Divestitures Non-Operational * Adj. EPS 2025 (Excl. Eviosys) 16 * FX, Tax, Interest in
Slide 17: 2025 Cash Flow
2025 CASH FLOW KEY ASSUMPTIONS AND PRELIMINARY RANGE Working 2025 Guidance Capital Cash Capital Depreciation investment of Expenditures • OCF: $800 to $900 million ~ $450 million ~ $25 million ~ $360 million • FCF: $450 to $550 million 17
Slide 18: Sonoco Today | We Are...
SONOCO TODAY | We Are… THE GLOBAL LEADER IN value-added, sustainable metal and fiber consumer and industrial packaging Focused on completing Investing in Ourselves the transformation to “Fewer, Bigger Businesses” • Driving net leverage down to 3.0X to 3.3X Net Debt/Adj. EBITDA by end of 2026 • Inves
Slide 19: The New Sonoco
THE NEW SONOCO 2024 Proforma 2025 Sales* Sales* $6.6B $7.75-$8B Industrial Paper Packaging Adj. EBITDA Adj. EBITDA* $1,035M Industrial Paper Packaging $1.3-$1.4B Rigid Paper Containers Operating Cash Flow Operating Cash Flow* $834M $800-$900M End Markets End Markets Metal Packaging Industrial 39% In
Slide 20: Q4 2024 Earnings
® Q4 2024 EARNINGS SONOCO
Slide 21: Appendix
APPENDIX Quarter ended: December 31, 2024
Slide 22: EPS Summary
EPS SUMMARY 2024 vs. 2023 Fourth Quarter Year To Date 2024 2023 2024 2023 GAAP EPS $ (0.44) $ 0.82 $ 1.65 $ 4.80 Addback for: Acquisition and divestiture related costs, net 0.52 0.02 1.16 0.20 LIFO Reserve change (0.05) (0.01) (0.05) (0.09) Acquisition intangibles amortization expense 0.24 0.18 0.76
Slide 23: P&L Summary (Adjusted) - Fourth Quarter
P&L SUMMARY (ADJUSTED) Fourth Quarter: 2024 vs. 2023 (Dollars in Millions) Better / (Worse) 2024 2023 $ % Net sales $ 1,363 $ 1,336 $ 27 2.0 % Gross profit 283 286 (3) (1.0)% SG&A Expenses, net of Other Income (156) (152) (4) (2.6)% Operating profit $ 127 $ 134 $ (7) (5.2)% Net interest (34) (31) (3
Slide 24: P&L Summary (Adjusted) - Year over Year
P&L SUMMARY (ADJUSTED) Year over Year: 2024 YTD vs. 2023 YTD (Dollars in Millions) Better / (Worse) 2024 2023 $ % Net sales $ 5,305 $ 5,441 $ (136) (2.5)% Gross profit 1,139 1,191 (52) (4.4)% SG&A Expenses, net of Other Income (566) (544) (22) (4.0)% Operating Profit $ 573 $ 647 $ (74) (11.4)% Net i
Slide 25: Segment Analysis - Fourth Quarter
SEGMENT ANALYSIS Fourth Quarter: 2024 vs. 2023 (Dollars in Millions) Net Sales1 Segment Operating Profit1 2024 2023 % Chg 2024 2023 % Chg Consumer Packaging $ 705 $ 597 18.1 % $ 66 $ 65 1.0 % Industrial Paper Packaging 570 593 (3.8)% 69 62 11.6 % All Other 88 146 (39.8)% 5 19 (73.4)% Total Sonoco $
Slide 26: Segment Analysis - Year to Date
SEGMENT ANALYSIS Year to Date: 2024 vs. 2023 (Dollars in Millions) Net Sales1 Segment Operating Profit1 2024 2023 % Chg 2024 2023 % Chg Consumer Packaging $ 2,532 $ 2,471 2.5 % $ 295 $ 286 3.2 % Industrial Paper Packaging 2,349 2,374 (1.0)% 272 318 (14.6)% All Other 424 596 (28.9)% 53 85 (37.4)% Tot
Slide 27: Balance Sheet
BALANCE SHEET (Dollars in Millions) 12/31/2024 12/31/2023 Change $ Cash and cash equivalents $ 431 $ 139 $ 292 Trade accounts receivable, net of allowances 908 686 222 Other receivables 176 58 118 Inventories 1,016 604 412 Prepaid expenses 197 104 93 Current assets of discontinued operations 451 460
Slide 28: Debt Reduction Planning
DEBT REDUCTION PLANNING Revolving Credit Facility New Term Loans Existing Term Loan New Bonds Existing Bonds Use proceeds from TFP divestiture, other asset sales along with strong FCF for debt reduction 1,500 1,250 Targeting reducing 364-Day leverage to 3.0X to 3.3X DDTL Net Debt/Adj. EBITDA by end
Slide 29: Dividend Is Foundational
DIVIDEND IS FOUNDATIONAL Raised Dividend for the 41st Consecutive Year $2.07 $2.02 $1.92 $1.80 $1.70 $1.72 $1.62 $1.54 $1.46 Dividend in $s $1.37 $1.27 $1.23 $1.19 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 41 99 29 Quarterly Dividend of $0.52 per Years of Consecutive Consecuti
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