Global packaging company Sonoco has recorded $163m in GAAP operating profit in the third quarter (Q3) of financial year 2023 (FY23), down by 10% from $182m in Q3 FY22.
This decrease has been attributed to a reduced overall volume and mix and price/cost that was partly offset by higher productivity.
The company generated net sales of $1.71bn in Q3 FY23, down 10% from $1.89bn in the same period in FY22.
Net income attributable to Sonoco increased by 7% to $131m in Q3 FY23, compared to $122m in the prior year’s quarter.
Its earnings per diluted share (EPS) was $1.32 over the quarter, up by 6% from $1.24 in Q3 FY22.
During the reported quarter, net sales of the company’s Consumer Packaging segment dropped by 9% to $938m.
That segment’s operating profit also dropped by 12% to $112m over the quarter.
Sonoco’s Industrial Paper Packaging segment recorded net sales of $580m, which is 12% below the previous year’s quarterly figure of $661m.
Sonoco president and CEO Howard Coker said: “Our third-quarter results benefited from seasonally higher demand as well as better-than-expected productivity and cost management from our global team.
“Consumer volumes were lower year-over-year, but were sequentially higher across the segment with the exception of metal aerosol cans, which were below our forecasts on persistent end-market demand softness. In the Industrial segment, volumes were generally as expected.
“We closed the RTS Packaging and Chattanooga mill acquisitions, and integration has progressed to plan. Despite the continued weak macroeconomic backdrop, we achieved strong profit margin and operating cash flow in the quarter.”
In Q4 2023, Sonoco forecasts its adjusted EPS to be in the range of $1.01 to $1.16.
For full-year 2023, adjusted EPS is anticipated to be in the range of $5.25 to $5.40.
Earlier in September this year, Sonoco completed the acquisition of the remaining equity interest in RTS Packaging from its joint venture partner Westrock.
