Global packaging solutions provider Sealed Air (SEE) has reported generally accepted accounting principles (GAAP) net sales of $1.34bn in the second quarter (Q2) of financial year 2024 (FY24), marking a 2.6% decline from $1.38bn in Q2 FY23.
The company's net earnings were $97.8m in Q2 FY24, up by 4.2% from $93.9m in Q2 FY23.
Its earnings per diluted share (EPS) also rose to $0.67, a 3.1% increase from the prior year's quarter of $0.65.
SEE’s non-GAAP adjusted earnings before interest, taxes, depreciation, and amortisation improved to $285m in Q2 FY24, or 21.2% of net sales, compared to $280m, or 20.3%, in Q2 FY23.
This rise was primarily due to lower operating costs from the CTO2Grow programme and higher volumes, despite challenges in net price realisation.
The company's income tax expense decreased to $38m, with an effective tax rate of 27.8%, down from a 32.5% rate in the prior year.
SEE total debt stood at $4.6bn as of 30 June 2024, a slight decrease from $4.7bn at the end of 2023.
SEE CEO Patrick Kivits said: "Our second-quarter results were ahead of our expectations, reflecting strong sequential demand within our Food business and accelerated benefits from our CTO2Grow programme.
"I have joined Sealed Air at a pivotal time in its journey. I plan on accelerating the transformation that began eight months ago to restore business fundamentals and drive long-term sustainable growth. Our people are at the centre of this transformation and I want to express my appreciation for their commitment to Sealed Air and our customers. I am excited about the opportunities ahead of us."
Looking ahead, Sealed Air anticipates full-year net sales to be between $5.2bn and $5.6bn, with adjusted EPS ranging from $2.65 to $3.05.
In June this year, SEE announced the appointment of Kivits as its new chief executive officer, effective 1 July.
