CORRECTION - Sonoco Reports Fourth Quarter and Full Year 2024 Results

HARTSVILLE, S.C., Feb. 18, 2025 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Sonoco Products Company (NYSE: SON), please note that the cash flow from operating activities under Full-Year 2025 Guidance should be $800 million to $900 million, not $750 million to $850 million as previously stated. The corrected release follows:

Sonoco Products Company ("Sonoco” or the "Company”) (NYSE: SON), a global leader in high-value sustainable packaging, today reported financial results for its fourth quarter and fiscal year ended December 31, 2024.

References in today's news release to consolidated "net sales,” "operating profit,” and "adjusted operating profit,” and Consumer Packaging segment "segment operating profit” and "segment adjusted EBITDA” along with the corresponding year-over-year comparable results, do not include results of the Company's Thermoformed and Flexibles Packaging business and its global Trident business (collectively, "TFP”), which are being accounted for as discontinued operations.

Summary:

• Expanded global leadership in sustainable metal packaging following the completion of the acquisition of Eviosys, Europe's leading food cans, ends and closures manufacturer, on December 4, 2024
• Entered into an agreement to sell TFP to TOPPAN Holdings, Inc. for approximately $1.8 billion
• Reported fourth quarter GAAP net loss attributable to Sonoco of $(43) million, adjusted net income attributable to Sonoco of $100 million, diluted earnings per share of $(0.44) and adjusted diluted earnings per share of $1.00
• Excluding the impact of the Eviosys acquisition, adjusted diluted earnings per share for the fourth quarter would have been $1.17, which is comparable to the Company's previously provided guidance of $1.15 to $1.35
• Generated strong operating cash flow of $834 million and $456 million of Free Cash Flow in 2024
• Produced fourth quarter adjusted EBITDA of $247 million, up 4.6% from the corresponding prior year quarter
• Achieved strong productivity from certain procurement savings, production efficiencies, and fixed cost reduction initiatives of $41 million during the fourth quarter and $183 million for 2024
• Invested a record $378 million of capital in future growth and productivity projects during 2024
• Projecting approximately 20% growth in adjusted net income attributable to Sonoco in 2025

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• Fourth quarter net sales of $1.4 billion reflect an increase of 2% compared to the corresponding prior year quarter, driven by low single digit volume gains and partial December sales attributable to Titan Holdings I B.V. ("Eviosys”) following the completion of the acquisition on December 4, 2024, partially offset by the loss of net sales from the divested Protective Solutions ("Protexic”) business, the treatment of recycling operations as a procurement function beginning January 1, 2024 and lower selling prices
• GAAP operating profit for the fourth quarter declined to $56 million due to higher acquisition-related costs and remeasurement loss on Euro denominated cash held by the Company in connection with the Eviosys acquisition; unfavorable price/cost was offset by higher productivity from procurement savings, production efficiencies and fixed cost reduction initiatives
• Effective tax rates on GAAP net income attributable to Sonoco and adjusted net income attributable to Sonoco were 36.6% and 24.8%, respectively, in Q4 2024, compared to 16.3% and 22.9%, respectively, in Q4 2023
• Fourth quarter GAAP net income attributable to Sonoco was $(43) million, resulting in GAAP EPS (diluted) of $(0.44)
• Adjusted operating profit and adjusted EBITDA for the fourth quarter were $127 million and $247 million, respectively
• Fourth quarter adjusted net income attributable to Sonoco was $100 million, resulting in adjusted diluted earnings per share ("adjusted diluted EPS”) of $1.00; excluding the loss from the Eviosys acquisition, adjusted diluted EPS would have been $1.17

"2024 was a milestone year for Sonoco in achieving our strategy to globally scale our metal packaging platform through the acquisition of Eviosys and to transform our portfolio to comprise more sustainable Consumer and Industrial packaging businesses through the announced divestiture of TFP and strategic review of some of our other resin-based diversified businesses,” said Howard Coker, President and Chief Executive Officer. "Our fourth-quarter results were within our expectations as we benefited from strong productivity improvements that more than offset price/cost headwinds that persisted across most of our businesses. Overall, we achieved the second best operating cash flow in our history and maintained solid operating performance due to the focused execution of our global team.”

Fourth Quarter and Year Ended 2024 Segment Results

(Dollars in millions except per share data)

Sonoco reports its financial results in two reportable segments: Consumer Packaging ("Consumer”) and Industrial Paper Packaging ("Industrial”), with all remaining businesses reported as All Other.

• Consumer segment net sales grew 18%, driven by partial December sales attributable to Eviosys after the completion of the acquisition and year-over-year volume growth in rigid paper containers, partially offset by lower selling prices.
• Segment operating profit and segment adjusted EBITDA grew as a result of strong productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives, which offset price/cost headwinds, with volume remaining flat.

• Industrial segment net sales were $571 million as higher volumes and higher selling prices were offset by lower sales related to the treatment of recycling as a procurement function effective January 1, 2024.
• Segment operating profit margin was 12% and adjusted EBITDA margin was 18% as strong productivity efficiencies and modest volume/mix gains were partially offset by continued price/cost pressures.