Sonoco reports 3.8% increase in first-quarter net sales
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Sonoco reports 3.8% increase in first-quarter net sales

23 Apr 2021 (Last Updated April 23rd, 2021 15:30)

US-based packaging company Sonoco has reported net sales of $1.35bn for the first quarter of the year.

US-based packaging company Sonoco has reported net sales of $1.35bn for the first quarter of the year.

The figure represents a 3.8% increase from $1.3bn registered a year prior.

The company attributed the increase to a 3.5% improvement in volume and mix supported by two extra shipping days in the quarter, as well as higher selling prices.

But its generally accepted accounting principles (GAAP) net income in the quarter fell to $72.3m, compared to $80.4m a year earlier.

Sonoco’s first-quarter GAAP earnings included after-tax non-base net charges totalling $19.4m.

The company’s gross profit in the first quarter of this year was $277.9m, compared to $266.6m a year earlier.

Sales for Sonoco’s Consumer Packaging segment were $582.8m for the quarter, up from $540.6m in the first quarter of last year.

The company’s Industrial Paper Packaging segment also reported a year-on-year growth, with sales increasing from $502.5m to $565.4m.

The sales of all other remaining businesses, which include healthcare, protective and retail packaging and industrial plastic products, amounted to $205.2m, registering a decline of 21.2%.

Sonoco president and CEO Howard Coker said: “I’m extremely proud of how our Sonoco team came together in the first quarter to work through the challenges stemming from severe winter weather and global supply chain disruptions to meet the critical needs of our customers while delivering a better than expected start to the year.

“Sonoco’s bottom line results benefitted overall from productivity gains and improved volume and mix, helped by two extra shipping days in the quarter.

“These positive factors were more than offset by a negative price and cost relationship stemming from higher raw material costs, and freight and other non-material inflation lessened the impact of businesses sold and acquired in the last twelve months.”

Earlier this month, Sonoco sold its domestic display and packaging business to mill-to-market company Hood Container.