Sonoco Products Company reported its financial results for 3Q 2022 ended 2 Oct 2022, said the company.
In 3Q 2022, net sales grew by 34% year-on-year to USD1.9 bn. Both GAAP operating profit and base operating profit improved year-over-year from strategic pricing benefits and acquisitions. GAAP net income and base net income grew from strong operating performance.
The company’s net sales increased 34 percent year over year to USD1.9 billion, while GAAP operating profit and base operating profit increased year over year to USD182 million and USD225 million, respectively.
Sonoco reports its financial results in two segments—consumer packaging and industrial paper packaging, with all remaining business reported as “all other.”
The consumer packaging segment new sales increased 72 percent year over year to USD1.03 billion, and Sonoco says a positive volume/mix growth was driven by global rigid paper containers and flexibles. The segment’s operating profit increased 93 percent to USD128 million.
In the industrial paper packaging segment, net sales increased 4 percent to USD661 million through what Sonoco says is strong strategic pricing performance that was partially offset by the impact of foreign currency exchange and lower volume/mix in both paper and converted products. It’s operating profit, however, increased more substantially to USD82 million, up 48 percent compared with the previous year’s quarter.
The all other business segment saw a 10 percent increase in net sales to USD198 million.
We remind, Sonoco has expanded the post-consumer recovery and recycling possibilities for its EnviroCan paper containers in the US. The announcement comes after Sonoco confirmed that all its US paper mills will accept rigid paper cans in mixed paper bales from residential Material Recovery Facilities (MRFs). Sonoco operates ten mills in various states including Wisconsin, Tennessee, California, South Carolina, Massachusetts, Virginia, Washington and Kansas.
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately USD5 billion, the Company has 21,000 employees working in more than 300 operations in 33 countries, serving some of the world’s best known brands in some 85 nations. With a purpose focused on Better Packaging. Better Life., Sonoco ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies 2018 list.
mrchub.com