Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), one of the largest sustainable global packaging companies, today reported financial results for its third quarter ended October 2, 2022.
Third Quarter 2022 Highlights
*Third-quarter results exceeded the high end of guidance
*Announced the Skjern Paper acquisition to expand production capacity in Europe
*Launched state-of-the-art uncoated recycled paperboard (URB) #10 machine in the Hartsville Mill Complex
*Released updated Corporate Responsibility Report highlighting commitments to ESG initiatives
*Continued progress on strategic priorities which are expected to benefit financial results in 2023 and beyond
Net sales increased 34% year-over-year to $1.9 billion from strategic pricing performance and continued strong results from the Sonoco Metal Packaging (“Metal Packaging”) acquisition. These increases were partially offset by lower industrial volumes and the impact of foreign currency exchange.
GAAP operating profit and base operating profit increased year-over-year from strategic pricing benefits and acquisitions.
The third-quarter 2022 effective tax rates on GAAP and base earnings were 23.7% and 23.1%, respectively, compared with 2.3% and 18.8%, respectively, in the prior year’s quarter. The increase in the GAAP effective tax rate was primarily due to the absence of a third-quarter 2021 benefit received in association with the amendment of the Company’s 2017 tax return filed to report an increased utilization of its foreign tax credits. The higher base tax rate is largely attributable to the 2022 absence of a release of uncertain tax position reserves upon expiration of the statute of limitations that occurred in the third-quarter of 2021.
GAAP net income and base net income increased from strong operating performance, partially offset by higher interest expense related to the financing of the Metal Packaging acquisition.
Diluted GAAP and base EPS increased 11% and 60%, respectively, from the same period last year
details at: https://investor.sonoco.com/node/47896/pdf