Sealed Air reports 2.6% decrease in net sales in Q2 FY24, Novelis net sales increase by 2% in Q1 FY25

USA – Global packaging solutions provider Sealed Air (SEE) has announced a 2.6% decline in net sales for the second quarter (Q2) of the financial year 2024 (FY24), reporting US$1.34 billion compared to US$1.38 billion in Q2 FY23.

Despite the drop in sales, the company saw a 4.2% increase in net earnings, reaching US$97.8 million in Q2 FY24, up from US$93.9 million in the same quarter last year. Earnings per diluted share (EPS) also rose by 3.1% to $0.67, compared to $0.65 in Q2 FY23.

SEE’s non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved to US$285 million, representing 21.2% of net sales, up from US$280 million, or 20.3%, in Q2 FY23.

This improvement was primarily driven by lower operating costs from the CTO2Grow program and increased volumes, despite challenges in net price realization.

The company’s income tax expense decreased to US$38 million, with an effective tax rate of 27.8%, down from 32.5% in the previous year.

As of June 30, 2024, SEE’s total debt stood at US$4.6 billion, a slight decrease from US$4.7 billion at the end of 2023.

SEE CEO Patrick Kivits commented, “Our second-quarter results exceeded expectations, reflecting strong sequential demand in our Food business and accelerated benefits from our CTO2Grow program.

“I joined Sealed Air at a pivotal time in its journey. I am committed to accelerating the transformation that began eight months ago to restore business fundamentals and drive long-term sustainable growth.

“Our people are at the center of this transformation, and I appreciate their dedication to Sealed Air and our customers. I am excited about the opportunities ahead.”

Sealed Air anticipates full-year net sales to be between US$5.2 billion and US$5.6 billion, with adjusted EPS ranging from $2.65 to $3.05.

Novelis reports 2% increase in Q1 FY25 net sales

Meanwhile, sustainable aluminium solutions provider Novelis reported a 2% increase in net sales for the first quarter (Q1) of the financial year 2025 (FY25), reaching US$4.18 billion, up from US$4.09 billion in Q1 FY24.

Despite the sales growth, net income attributable to common shareholders decreased by 3% to US$151 million, compared to US$156 million in the same period last year.

This decline was attributed to initial charges from flooding at the company’s Sierre, Switzerland, plant at the end of June, along with higher restructuring costs and an unfavorable metal price lag.

However, excluding special items, net income increased significantly by 32% year over year, rising to US$204 million.

The company’s adjusted EBITDA also grew robustly by 19% compared to the previous year, reaching US$500 million.

This growth was driven primarily by higher volume and favourable product pricing, though partially offset by a less favourable product mix and increased costs.

Higher average aluminum prices and increased total shipments contributed to the company’s net sales growth for the quarter.

Total flat-rolled product shipments increased by 8%, totaling 951 kilotonnes, largely due to normalized demand for beverage packaging sheets following a previous period impacted by customer inventory reductions.

Novelis President and CEO Steve Fisher stated, “Novelis delivered meaningful year-over-year improvements across several financial metrics this quarter, led by a double-digit increase in beverage packaging shipments benefiting from normalized demand, our broad global presence, and strong customer relationships.

“I commend our teams for their focus on operational efficiencies and customer service while continuing to advance our organic growth projects as we strategically invest to capture strong mid- to long-term growth trends.”

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