Sonoco reports strong Q3 performance with US$1.7B in sales, Graphic Packaging records 6% decline in sales in Q3

USA – Sonoco Products Company reported its financial results for Q3 2024, achieving net sales of US$1.7 billion, reflecting a range of changes, including the divestiture of its Protective Solutions (“Protexic”) division and the closure of a thermoformed food packaging plant.

Despite these adjustments, Sonoco’s volumes remained strong, with low single-digit growth driven by acquisitions.

The company also reported a 1.6% increase in adjusted net income, which rose to US$148 million, translating to adjusted diluted earnings per share of US$1.49.

President and CEO Howard Coker highlighted the positive impact of strong consumer packaging demand and continued operational efficiency, contributing to a strong profit margin and operating cash flow.

The company’s global team executed well, mitigating price/cost challenges. Sonoco, a global packaging leader with around 21,000 employees, posted an Adjusted EBITDA of US$281 million for the quarter.

Graphic Packaging posts 6% drop in sales in Q3 of 2024

Meanwhile, Graphic Packaging Holding Company reported a 6% decline in Q3 2024 net sales, which fell to US$2.22 billion from US$2.35 billion in the same period last year.

The drop was attributed to the US$109 million impact from the divestiture of the Augusta, Georgia, bleached paperboard manufacturing facility, reduced sales from packaging operations, and a US$35 million net sales decrease due to pricing declines.

Despite these challenges, the company saw an increase in packaging volumes, particularly in Europe, following a return to growth in Q2.

Graphic Packaging’s EBITDA dropped by US$31 million to US$417 million compared to the prior year, with Adjusted EBITDA decreasing to US$433 million from US$482 million.

Adjusted net income also fell to US$194 million (US$0.64 per share) from US$229 million (US$0.74 per share) in Q3 2023.

President and CEO Michael Doss emphasized the strength of the company’s packaging innovations, such as new paperboard cup and container products for major Foodservice customers and the launch of the first-ever round Boardio paperboard canister for a leading collagen-protein brand.

Despite challenges such as customer destocking and inflationary pressures, Doss noted that the company’s sustainable packaging innovations and strong execution remained key drivers of its performance.

He also highlighted the ongoing improvement in volumes and anticipated cash flow growth following the completion of their Waco investment.

Both companies continue to focus on innovation and sustainability to maintain growth in the competitive global packaging market.

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