Sonoco Products reported financial results for its Q2 ended July 2, 2023. Net sales decreased to $1.7 billion driven by lower volumes. Q2 2023 GAAP operating profit decreased to $188 million as lower overall volume and mix was partially offset by lower acquisition-related and restructuring costs, gains on asset sales, higher price/cost and productivity. Achieved net income margin was 6.7% and Adjusted EBITDA margin was 16.1% in Q2 2023.
Sonoco President and CEO, Howard Coker stated, “Sonoco continues to operate well with most of our businesses achieving commercial, operational, and productivity objectives. In the Q2, volume softness beyond our expectations negatively impacted Consumer metal packaging and Industrials. In Industrials, volume for paper and converted products remained low across all geographies and end markets including paper, film, textile, and appliances. Industrial customers cited lower end market demand and customer destocking as factors for the declines. Despite these challenges, our teams generated $349 million of operating cash flow for the first six months of 2023.”
Founded in 1899, Sonoco is a global provider of packaging products.
