Financial report roundup: Crown records US3B in sales, SIG’s net income hits US US$89M, Stora Enso sales dip, PCA’s net income drops in Q3 of 2023

USA – Crown Holdings, a supplier of rigid packaging, has reported net sales of US$3.07 billion, compared to US$3.26 billion in the same period in 2022.

During the quarter ending September 30, 2023, the company’s income from operations was US$374 million against US$297 million in the same period last year.

Driven by increased beverage can volumes in North America and other factors, segment income in Q3 2023 reached US$430 million, compared to US$336 million in the same quarter of the previous year.

The interest expense increased to US$111 million in Q3 2023, up from US$76 million in Q3 2022. Net income attributable to Crown was US$159 million in the quarter, compared to million in Q3 2022.

The reported diluted earnings per share (EPS) for the period was US$1.33, versus US$1.06 in Q3 2022.

Crown chair, president, and CEO Timothy Donahue said: “Operating results for the third quarter were solid, and the company performed in line with expectations despite the cumulative effects of persistent inflation and challenging macroeconomic conditions in certain markets, such as Asia, which continue to adversely impact volumes.

“Beverage can volumes in North America expanded by 13% and the can continues to be the preferred choice by both customers and consumers alike for new beverage product introductions.”

In Q4 2023, Crown expects its adjusted diluted EPS to be in the range of US$1.40 to US$1.50. For full-year 2023, it expects adjusted diluted EPS to be in the range of US$6.00 to US$6.10.

SIG’s net income reaches US$89.4M in Q3 2023

Swiss packaging solutions provider SIG has reported a net income of €84.3 million (US$89.4m) during the third quarter (Q3) of 2023, representing an increase of 806.4% from €9.3 million (US$ 9.83m) in Q3 2022.

The adjusted net income for the latest quarter was €79 million (US$83.53m) as against €78.2 million (US$82.69m) in Q3 2022.

The company’s total revenue for the reported quarter, which ended on 30 September 2023, was €799.3 million (US$845.15m), representing a 3.6% growth from €770.8 million (US$815.01m) in Q3 2022.

In terms of specific regions, the company registered its highest revenue in Europe, followed by the Asia Pacific (APAC), Americas, and Middle East and Africa (MEA) regions.

SIG saw a 7.2% increase, on a reported currency basis, in revenue to €246.1 million (US$260.22m) in Europe in Q3 2023, compared to €229.7 million (US$242.88) in Q3 of 2022.

SIG’s earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled €236.5 million (US$250.07m), representing a growth of 89.8% from €124.6 million (US$131.75m) in Q3 last year.

For the remainder of the financial year 2023, the company expects its revenue to increase by 20% and 22% at a constant currency rate.

According to SIG, it is expecting ‘top-line growth’, as price increases within the carton business are set to continue.

This could further contribute to 7% to 9% organic constant currency revenue growth for the aseptic carton business alone.

Stora Enso’s sales in Q3 2023 down by 28%

Stora Enso, a Finnish packaging company, reported sales of €2.12 billion (US$2.26bn) in the third quarter (Q3) of the financial year 2023 (FY23), representing a 28.2% decrease from €2.96 billion (US$3.13bn) in the same period in FY22.

During the quarter, the company’s operational earnings before interest and taxes (EBIT) decreased by 96.0% to €21 million (US$22.20m) against €527 million (US$557.23m) in Q3 FY22.

The operational EBIT margin also decreased to 1.0% in Q3 FY23 from 17.8% in Q3 FY22. Stora’s operating profit dropped by 100.2% to -€1m over the quarter, compared with €511 million (US$540.31m) in Q3 FY22.

Stora Enso’s president and CEO, Hans Sohlström, stated, “Consistent with the previous quarter’s prediction, Stora Enso had an unsatisfactory financial performance in the third quarter. We faced deteriorating market conditions and price pressure for all segments, including our packaging business. The global pulp demand is still weak, and the supply is high.

“The inflation and high interest rates continue to have a negative impact on the construction market, which is affecting our wood products offering.

“Our variable costs have decreased from peak levels but are still high compared to historical levels, while the availability of wood availability remained tight. We anticipate no significant improvement in market demand or inventory levels for the end of the year.”

PCA’s net income drops 30.2% in Q3 2023

Packaging Corporation of America (PCA) has registered a net income of US$183.2 million during the third quarter (Q3) of 2023, down by 30.2% from US$262.5 million in Q3 2022.

Excluding special items, PCA’s net income for Q3 2023 was US$185 million or US$2.05 per share.

This decline in net income excluding special items can be attributed to factors such as lower prices, mix, and volumes in PCA’s Packaging segment, as well as higher depreciation expenses and lower volumes in its Paper segment.

These items were partially offset by reduced operating costs, decreased converting costs, lower scheduled maintenance outage expenses, and lower freight and logistics expenditures, among other factors.

During the quarter that ended on September 30, 2023, the company reported basic and diluted earnings per share of US$2.04 and US$2.03, respectively.

PCA’s net sales in Q3 2023 totaled US$1.9 billion, representing a decline of 8.8% from US$2.1 billion in the previous year’s Q3.

Specifically, in the Packaging segment, the company saw a 9.3% decline in sales, dropping from US$1.9 billion in Q3 2022 to US$1.7 billion in Q3 of the current year.