Sonoco Products Company · NYSE:SON
Sonoco Products — Q1 2023 Earnings Presentation
18 slides from Sonoco Products's earnings presentation, May 2, 2023
Slide 1: Sonoco First Quarter 2023 Earnings Presentation
SONOCO SONOCO FIRST QUARTER 2023 Earnings Presentation | April 2023 Sonoco Products Company | www.sonoco.com
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures Statements in this presentation and the accompanying oral commentary (the “presentation”) that are not historical in nature may constitute “forward-looking statements” within the meaning of Section 22E of the Securities Exchange Act of 1934, a
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 Products Company | www.sonoco.com
Slide 4: Q1 2023 Results Summary
Q1 2023 Results Summary Adjusted Adjusted Adjusted REVENUE EBITDA NET INCOME EARNINGS PER SHARE* $1.73B $276M $138M $1.40 -2.3% y/y 16% Margin 8% Margin High End of Guidance HIGHLIGHTS • Solid execution by the team to start the year • Commercial excellence and improving productivity underpin perform
Slide 5: Corporate Responsibility Report – Released April 2023
Corporate Responsibility Report – Released April 2023 2022 ESG/Sustainability Progress Highlights • Updated report prepared in reference to GRI, TCFD, and SASB standards • Details progress to 2030 targets in line with the Science Based Targets initiative • Joining the United Nations (UN) Global Comp
Slide 6: Financial Results
Financial Results Rob Dillard Chief Financial Officer 6 Sonoco Products Company | www.sonoco.com
Slide 7: Q1-23 Consolidated Financial Results
Q1-23 Consolidated Financial Results YoY % Q1-22 Q4-22 Q1-23 Change Net Sales ($M) $1,771 $1,676 $1,730 (2%) Performance Summary • Overall consumer sales as expected; Adjusted Operating Profit ($M) $261 $184 $213 (18%) stability in Rigid Paper Containers and Flexibles versus weakness in Metal (aeros
Slide 8: Q1-23 Performance Review
Q1-23 Performance Review Sales Bridge (Year-over-Year) Sales Drivers (Dollars in millions) Price $1,771 $98 • Volume/Mix: Industrial was down 13% on a year-over- $1,730 year basis Q1-22 FX/Other Q1-23 Volume/Mix* ($116) ($23) • Price: Strategic pricing contributed positively across all *Includes the
Slide 9: Q1-23 Segment Results
Q1-23 Segment Results Segment Operating Profit Net Sales Operating OP Bridge Drivers (Y/Y) Profit as % of Sales Y/Y Y/Y $M Y/Y Change $M % Change Change CONSUMER $909 5% $92 (47%) 10.1% (990 bps) • Volumes/mix down primarily driven by Metal Packaging (aerosol) • Expected price/cost headwind due to p
Slide 10: Capital Allocation
Capital Allocation Capital Allocation Framework is Aligned to Business Strategy to Drive Value Creation for Shareholders Capital Allocation Priorities Operating Cash Flow ($M) 183 187 Cash Flow from Operations 139 138 118 79 98 (37) 1 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Capital Exp
Slide 11: 2023 Revised Financial Outlook
2023 Revised Financial Outlook Summary $ Millions 2023 (Unless Noted Otherwise) Guidance • Raising Full Year EPS guidance at Adjusted EBITDA $1,100 - $1,150 the midpoint from $5.80 to $5.85 • Maintaining annual adjusted EBITDA Adjusted EPS guidance (Excludes Amortization of $5.70 - $6.00 Acquisition
Slide 12: Q2-23 Segment Outlook
Q2-23 Segment Outlook CONSUMER PACKAGING INDUSTRIAL PRODUCTS ALL OTHER BUSINESSES • Volumes improving sequentially across • Continued softness in volumes globally • Stable demand across the portfolio consumer packaging • Monitoring Europe and Asia volumes for • Pricing actions across the business •
Slide 13: Closing Remarks
Closing Remarks Howard Coker President and Chief Executive Officer 13 Sonoco Products Company | www.sonoco.com
Slide 14: Looking Ahead: 2023 and Beyond
Sonoco is a global leader in higher-value, sustainable packaging We are continuing to transform the company through portfolio management and M&A Moving towards higher margins, with less cyclicality and improving earnings We have increasing opportunity to leverage our operating model to expand margin
Slide 15: Appendix
Appendix 15 Sonoco Products Company | www.sonoco.com
Slide 16: EPS Summary 2023 Vs. 2022
EPS Summary 2023 Vs. 2022 First Quarter 2023 2022 GAAP EPS $ 1.50 $ 1.17 Addback for: Acquisition related costs, net 0.04 0.37 LIFO Reserve change (0.04) 0.14 Acquisition intangibles amortization expense 0.16 0.14 Restructuring, net 0.22 0.11 Gain on disposition (0.56) — Non-operating pension costs
Slide 17: P&L Summary (Adjusted) 1st Quarter: 2023 Vs. 2022
P&L Summary (Adjusted) 1st Quarter: 2023 Vs. 2022 (Dollars in millions) Better / (Worse) 2023 2022 $ % Net sales $ 1,730 $ 1,771 $ (41) (2.3)% Gross profit 369 416 (47) (11.3)% SG&A Expenses, net of Other Income (156) (155) (1) (0.6)% Operating profit $ 213 $ 261 $ (48) (18.4)% Net interest (33) (19
Slide 18: Balance Sheet
Balance Sheet (Dollars in millions) 4/2/2023 12/31/2022 Change $ Cash and cash equivalents $ 210 $ 227 $ (17) Trade accounts receivable, net of allowances 903 863 40 Other receivables 90 99 (9) Inventories 1,083 1,096 (13) Prepaid expenses 77 76 1 Current Assets $ 2,362 $ 2,361 $ 1 Property, plant a
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