Sustainable rigid packaging solutions provider Silgan has reported net sales of $1.43bn for the second quarter (Q2) of financial year 2023 (FY23), down 8% from the corresponding period’s figure of $1.54bn.
During the quarter ending 30 June 2023, the company’s Dispensing and Specialty Closures segment saw its sales drop 7% to $560.1m, with its Metal Containers and Custom Containers segments also suffering a sales drop of 6% and 17% respectively over the quarter.
Silgan also saw its net income decrease to $78.9m in Q2 FY23, from $92.7m in the same period last financial year.
Its income before interest and income taxes (EBIT) for Q2 FY23 was $144.0m.
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Its earnings per diluted share was $0.71 over the quarter, against $0.83 a year ago.
Silgan president and CEO Adam Greenlee said: “Our performance in the second quarter benefited from the breadth of the Silgan portfolio in a dynamic and changing marketplace. We continued to advance our strategic initiatives amid rapidly evolving market conditions in part by delivering continued growth in high-value dispensing products and double-digit adjusted EBIT growth in our Metal Containers segment in the second quarter.
“Business trends early in the second quarter were positive, but they shifted late in the quarter as many customers adjusted their financial priorities in 2023 to focus on new working capital and inventory management initiatives for the remainder of the year.
“While we believe consumers of our products continue to be resilient, we are beginning to see an impact from inflation at the retail level on consumer buying habits, including for core food and beverage products, as we cycle against record performance in the prior year.”
In the first two quarters of this year, Silgan’s sales decreased to $2.84bn from $2.98bn in the same period last year.
Its gross profit also declined from $507.4m in the first half (H1) of FY22 to $488.1m compared to H1 FY23.
The company reduced its adjusted net income per diluted share for FY23 to a range of $3.40 to $3.60 from the previous expectation of $3.95 to $4.15.
In May this year, Silgan Dispensing, a subsidiary of Silgan, expanded its MELODIE fragrance pump packaging line in China.