Packaging solution provider Sonoco has reported $1.77bn in net sales for first quarter (Q1) of fiscal year 2022 (FY22), up 30.9% compared to the corresponding period last year.
The record sales were driven by higher selling prices, sales added from the Metal Packaging acquisition, and a 2.0 growth in volume/mix.
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During the quarter ending 3 April 2022, the company’s generally accepted accounting principles (GAAP) net income increased by $43.0m from last year, to $115.3m, while its GAAP earnings per diluted share (EPS) grew to $1.17, up from $0.71 in 2021.
Base net income attributable to Sonoco rose to $1.85 per diluted share, from $1.00 per diluted share the year prior.
The company’s GAAP gross profit for the quarter was $371.6m, compared to $277.9m in the same period in 2021.
Sonoco president and chief executive officer Howard Coker said: “Our Sonoco team delivered exceptional top-line and bottom-line results during the first quarter, which exceeded the high end of our recently increased guidance and were driven by record performances in our Consumer Packaging, and Industrial Paper Packaging segments.
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By GlobalData“Overall, the company’s first-quarter earnings benefited from strong price/cost recovery across most of our businesses, the addition of Metal Packaging, and solid customer demand in our Consumer and All Other businesses. These positive factors were only partially offset by last year’s divestiture of the US display and packaging business, and the impact of foreign currency translation.”
For the second quarter (Q2), Sonoco expects its base earnings to be in the range of $1.20 to $1.30 per diluted share.
The company also raised its full-year base earnings for 2022 from $5.25 to $5.45 per diluted share.
Coker added: “We are very excited about our accelerated start to the year and, combined with our expectation for continued solid business activity in the second quarter, we are confident about our outlook for a strong 2022 performance.”
In December last year, Sonoco signed a definitive agreement to acquire sustainable metal packaging manufacturer Ball Metalpack for $1.35bn in cash.
