Sonoco Reports Fourth Quarter and Full Year 2023 Results

Sonoco Products Company reported financial results for its fourth quarter and fiscal year ended December 31, 2023.

Summary

• Achieved second best full year results for Adjusted EPS in the Company's 125-year history
• Generated a record $883 million of operating cash flow and $600 million of Free Cash Flow in the full year of 2023
• Invested a record level of capital in the business for future growth and productivity
• Achieved record results in Operating Profit and Adjusted EBITDA in flexible packaging and record net sales in rigid paper containers in the Consumer Packaging ("Consumer") segment
• Produced record Operating Profit margins and Adjusted EBITDA margins in Industrial Paper Packaging ("Industrial") segment despite a low volume environment
• Expanded the Company's flexible packaging capabilities with the acquisition of Inapel Embalagens Ltda. in Brazil
• Made further progress on strategic priorities including portfolio simplification, organic growth investments, and Environmental, Social, and Governance commitments
• Solid fourth quarter operating results driven by strong productivity offset by higher employee expenses, healthcare, and accounts receivable reserve
• Effective January 1, 2024, we integrated the flexible packaging and thermoforming packaging businesses within the Consumer segment to streamline operations, enhance customer service, and better position the business to accelerate growth

CEO Comments
Sonoco's President and CEO, Howard Coker stated "In 2023, Sonoco made further progress on our strategic initiatives and delivered solid financial results in a challenging macroeconomic environment," said Howard Coker, President and Chief Executive Officer. "We achieved the second best year of financial results in our 125-year history. Our multi-year focus on improving and leveraging the operating model combined with our capital allocation strategy resulted in record productivity. We advanced our strategy by strengthening our portfolio with the addition of accretive acquisitions in our core businesses, and successfully divesting non-core assets."

Coker continued, "We generated record annual operating cash flow of $883 million and free cash flow of over $600 million. We remained focused on disciplined capital allocation and a strong balance sheet, and were pleased to increase our annual dividend for the 40th straight year. I am extremely proud of the hard-working Sonoco team members who remain focused on delivering value for our customers and executing initiatives to support the Company's continued success in the future."

TAPPI
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