Sonoco's Net Sales Surged 11% to $1.30 Billion in Q1 2018

SEATTLE (Scrap Monster): Hartsville-based global packaging company Sonoco has reported financial results for its first quarter of the current year. The top-line and bottom-line results recorded double-digit growth over the previous year. Based on the strong quarterly performance, the company has raised the full-year guidance for 2018.

The Q1 2018 earnings per diluted share rose significantly from 0.53 in 2017 to 0.73 in 2018. The base net income stood at 0.74 per diluted share in Q1 2018 as compared with $0.59 in the corresponding quarter last year. The net sales during the quarter surged higher significantly by more than 11% to $1.30 billion. The first quarter net sales had totaled only $1.17 billion in 2017.The cash flow from operations increased significantly from $67.4 million in Q1 2017 to $119.8 million in the first quarter of 2018. The quarter also reported positive free cash flow, said the company press release.

Sonoco has guided the Q2 2018 base earnings to be in the range between $0.83 and $0.89 per diluted share. Further, it has raised its full year base earnings to $3.22 to $3.32 per diluted share, higher from its previous guidance of $3.16 to $3.26 per diluted share. The full year operating cash flow for the current year will remain between $560 million and $580 million. The free cash flow guidance remains unchanged at $180-$200 million.

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Commenting on the results, Rob Tiede, Sonoco’s President and CEO stated that the company’s business achieved record consolidated top-line and bottom-line results during the first quarter. Sonoco achieved overall sales volume growth, despite the impact of one fewer business day.

Among various segments, the Consumer Packaging segment recorded 18.2% growth in net sales, with operating profits growing marginally by 2.7%. Paper and Industrial Converted Products segment reported the highest Q1 operating profit in almost a decade. The operating profits from the Protective Solutions segment and Display and Packaging segment dropped marginally during the quarter.

During the quarter, Sonoco had reached an agreement to acquire Plant City, Florida-based Highland Packaging Solutions.