Sonoco has reported $475m as net income attributable to the company in financial year 2023 (FY23), an increase of 2% from $466m in FY22.
The company saw a 6% decrease in net sales to $6.78bn in FY23 from $7.25bn in FY22 due to lower volumes across its portfolio, though this was partially offset by revenue from acquisitions.
The company's operating profit for 2023 was $716m, marking a 6% increase from $675m in FY22.
This rise was due to gains on divestitures and asset sales, lower acquisition and restructuring costs, favourable productivity, and revenue from acquisitions.
Sonoco’s earnings per diluted share (EPS) also saw a slight uptick, climbing 2% to $4.80 in FY23, from $4.72 in the previous year.
In the fourth quarter (Q4) of FY23, net income attributable to Sonoco declined by 16% to $81m from $97m in the same period a year ago.
Net sales for the quarter ending 31 December 2023 also decreased by 2% to $1.63bn in Q4 FY23 from $1.67bn in Q4 FY22.
Operating profit in the same quarter increased by 7% to $135m, also bolstered by lower acquisition and restructuring costs, favourable productivity, and revenue from acquisitions.
Its diluted EPS was $0.82 in Q4 FY23, down 16% from $0.98 in the prior year’s quarter.
Sonoco president and CEO Howard Coker said: “In 2023, Sonoco made further progress on our strategic initiatives and delivered solid financial results in a challenging macroeconomic environment. We achieved the second-best year of financial results in our 125-year history.
“Our multiyear 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.”
In Q1 FY24, Sonoco expects adjusted EPS to be between $1.05 and $1.15.
For the full year, the company anticipates adjusted EPS to range from $5.10 to $5.40.
Last month, Sonoco Products reached an agreement to divest its Protective Solutions packaging business for approximately $80m in cash.
