Sonoco Products Company · NYSE:SON
Sonoco Products — Q1 2025 Earnings Presentation
26 slides from Sonoco Products's earnings presentation, Apr 30, 2025
Slide 1: Quarterly Financial Review 1st Quarter 2025
Quarterly Financial Review 1st Quarter 2025 April 29, 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 and CEO Interim Chief Chief Operating Investor Relations Financial Officer Officer and Communications 3
Slide 4: Business Update
Business Update Howard Coker President and Chief Executive Officer 4
Slide 5: Strong Consumer and Industrial Results Drive Improvement
Q1 2025 Results Q1 Highlights Summary Revenue (excluding discontinued operations) • Record Top Line and Adj. EBITDA Performance Strong $1.71B • Strong Consumer Packaging Adj. EBITDA, results up Consumer and Up 31% 127% • Driven by Sonoco Metal Packaging EMEA Industrial acquisition, SMP U.S. growth R
Slide 6: TFP Sale Closed
(~10X TTM Adj. EBITDA) $1.8B Transaction TFP Sale Closed Paid Off ON TIME AND AS EXPECTED $1.5B Term Loan 6
Slide 7: Rebranding to sonoco.com
sonoco.com/na Excludes TFP, Includes SMP EMEA BECOMES Rebranded Eviosys.com as sonoco.com/metalpackagingemea 77
Slide 8: Q1 2025 Financial Results
Q1 2025 Financial Results Jerry Cheatham Interim Chief Financial Officer 8
Slide 9: Q1 Financial Results
Q1 Financial Results Q1 2025 Q1 2024 YOY Change % Net Sales 1 $1,709 $1,309 31% Net Sales 2 $321 $329 (3)% Adj. OP 3 $213 $130 63% Adj. EBITDA4 $338 $245 38% Adj. EBITDA Margin (% of Sales) 5 16.6% 14.9% 170bps Adj. EPS6 $1.38 $1.12 23% (Dollars in Millions, Except EPS) 1) Excluding discontinued ope
Slide 10: Consumer Packaging Segment
Q1 2025 Results Consumer Packaging Segment Key Updates Sales1 ($M) Adj. EBITDA2 ($M) ► Material pricing and higher volumes 83% 127% drove strong performance on Metal Packaging US $1,066 $190 ► Global Rigid Paper saw favorable $582 $83 volume/mix mainly driven by North 14% 14% America (snacks and con
Slide 11: Industrial Paper Packaging Segment
Q1 2025 Results Industrial Paper Packaging Segment Key Updates Sales ($M) Adj. EBITDA ($M) ► Selling prices increased due to -6% 6% changes in index pricing resulting in favorable price/cost $593 $101 $95 $558 ► Europe faced volume and 16% price/cost headwinds as a 18% 16% result of exiting Greece 1
Slide 12: All Other Segment
Q1 2025 Results All Other Segment Key Updates ► Sales decline reflect divestiture of Protective Solutions, slower Industrial Plastics volume/mix Sales ($M) Adj. EBITDA ($M) ► ThermoSafe generated an 8% sequential improvement in adj. EBITDA $134 $21 ► Strong GLP-1 and vaccine pipelines $85 $14 develo
Slide 13: Debt Reduction Progress
Debt Reduction Progress Highlights Maintaining Strong Liquidity ► After Q1, $1.5 billion 364- Revolving Credit Facility Term Loans Bonds day Term Loan repaid on April 3, 2025 from TFP proceeds 1,250 ► Proforma weighted average interest rate of 3.7% on 1,500 remaining debt ► Today, pro forma for the
Slide 14: Full Year Financial Outlook Update
Full Year Financial Outlook Update Upside/Downside Assumptions Entering Q2 $ in Millions (except EPS) 2025 Guidance Weaker US Dollar Adjusted EBITDA $1,300 - $1,400 Price/Cost Outlook Productivity and Fixed Cost Controls Adjusted EPS $6.00 - $6.20 Consumer Volume/Mix Industrial Volume/Mix Operating
Slide 15: Sonoco's Transformation: The Last Five Years
2 No. of P&Ls 2 Core Businesses Sonoco’s Transformation 0 18 0 3 2 Revenue 2 Revenue The Last Five Years 0 $5.2B 5 $7.75 – $8.0B 2020 2021 2022 2023 2024 ACQUISITION DIVESTITURE ACQUISITION ACQUISITION ACQUISITION Can Packaging Display & Packaging Ball Metalpack; RTS - Chattanooga Mill Eviosys (U.S.
Slide 16: Awards and Recognitions
Awards and Recognitions > ee AMERICA’S MOST RESPONSIBLE COMPANIES aK ke MOST TRUSTWORTHY COMPANIES IN AMERICA
Slide 17: Defensive Nature of the New Sonoco
Defensive Nature of the New Sonoco Operational Mix Relatively well-positioned given localized 2005 manufacturing to served markets 56 % Industrial 44% Consumer 285 plants in 40 countries Ability to pass along tariffed input costs 2025 34 % Industrial 66% Consumer Defensive nature of larger consumer
Slide 18: 100 Consecutive Years of Dividends
100 CONSECUTIVE YEARS of Dividends $2.07 $2.11 $2.02 $1.92 $1.80 $1.70 $1.72 $1.62 $1.54 $1.46 $1.37 $1.23 $1.27 $1.19 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Quarterly Dividend of $0.53 Per Share 42 Years Sonoco Named Of consecutive annual increases #4 Top Dividend Cha
Slide 19: CEO Priorities
Mind the Store 1 (RPC, IPP, SMP NA/EMEA) Manage Tariff Risks SMP EMEA 2 Integration Global Network Optimization 3 Optimize the Organization for the Future CEO Maintain Culture: Priorities 4 Effective Change Management 5 Prepare to Divest ThermoSafe 6 Drive Value Creation Story for Shareholders 19
Slide 20: Looking Forward: The New Sonoco
Looking Forward: The New SONOCO Proforma 2025 Sales $7.75 - $8.0B * Employees 23,400 Plants 285 Countries 40 20 *Includes 1Q of TFP and full year ThermoSafe
Slide 21: Roger Schrum, Interim Head of Investor Relations
& Roger Schrum Interim Head of Investor Relations Email: roger.schrum@sonoco.com Office Phone: 843-339-6018 Mobile Phone: 843-615-8650 21
Slide 22: Appendix
Appendix Quarter-ending: March 31, 2025
Slide 23: EPS Summary | 2025 vs. 2024
EPS Summary | 2025 vs. 2024 First Quarter 2025 2024 GAAP EPS $ 0.55 $ 0.66 Addback for: Acquisition and divestiture related costs, net 0.30 0.04 LIFO Reserve change — — Acquisition intangibles amortization expense 0.32 0.18 Restructuring, net 0.11 0.25 Loss / (Gain) on disposition and other 0.04 — N
Slide 24: P&L Summary (Adjusted) | First Quarter: 2025 vs. 2024
P&L Summary (Adjusted) | First Quarter: 2025 vs. 2024 (Dollars in millions) Better / (Worse) 2025 2024 $ % Net sales $ 1,709 $ 1,309 $ 400 30.6 % Gross profit 372 272 100 36.8 % SG&A Expenses (159) (141) (18) (12.8)% Operating profit $ 213 $ 131 $ 82 62.6 % Other non-operating expense (6) — (6) (100
Slide 25: Segment Analysis | First Quarter: 2025 vs. 2024
Segment Analysis | First Quarter: 2025 vs. 2024 (Dollars in millions) Net Sales1 Segment Operating Profit1 2025 2024 % Chg 2025 2024 % Chg Consumer Packaging $ 1,066 $ 582 83.4 % $ 141 $ 59 140.4 % Industrial Paper Packaging 558 593 (6.0)% 71 66 8.0 % All Other 85 134 (36.6)% 12 17 (30.4)% Total Son
Slide 26: Balance Sheet
Balance Sheet (Dollars in millions) 3/30/2025 12/31/2024 Change $ Cash and cash equivalents $ 182 $ 431 $ (249) Trade accounts receivable, net of allowances 994 908 86 Other receivables 192 176 16 Inventories 1,142 1,016 126 Prepaid expenses 201 197 4 Current assets of discontinued operations 464 45
Sonoco Products Company — Q1 2025 Earnings Presentation on 6ix