Sonoco Products Company reported financial results for its Q2 ended June 30, 2024. Net sales decreased 5% to $1.6 billion primarily driven by the Protective Solutions ("Protexic") divestiture, the closure of a thermoformed food packaging plant, the treatment of recycling operations as a procurement function beginning January 1, 2024 and lower selling prices; overall volumes were positive and up low single digits including the impact of acquisitions.
Q2 2024 Adjusted еarnings decreased to $127 million resulting in Adjusted EPS (diluted) of $1.28.
Q2 2024 Adjusted operating profit and Adjusted EBITDA decreased to $193 million and $262 million, respectively, primarily due to unfavorable price/cost in the Industrial Paper Packaging ("Industrial") segment.
"Sonoco delivered solid Q2 results with sequential growth in adjusted EBITDA and EPS," said Sonoco's President and CEO, Howard Coker. "While the pace of Consumer volume recovery remains muted, we were pleased to see low single digit organic volume improvements in Industrials. Importantly, productivity was $51 million in the Q2 bringing our first half 2024 total to $102 million, well ahead of our full year outlook. Our assertive actions to improve productivity from value creating capital and portfolio simplification has continued to yield results. In addition, we continued executing on our disciplined and dynamic capital deployment strategy by investing in capital and innovation projects while returning capital to shareholders."
Commenting on the Company's outlook, President and CEO, Howard Coker, said: "We expect sequential adjusted earnings per share improvement in the Q3 from seasonally higher volumes in Consumer, stable volumes in Industrials, and continued strong productivity. Our first half 2024 results reinforce our confidence in our ability to meet our current full year 2024 financial expectations."
Founded in 1899, Sonoco is a global provider of packaging products.
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