SEALED AIR Reports Fourth Quarter FY2022 Earnings Results for Period Ending February 9, 2023.

Earnings Overview

SEALED AIR ($NYSE:SEE) reported their fourth quarter FY2022 earnings results on December 31, 2022, with the quarter ending February 9, 2023. Total revenue for the period was USD 94.3 million, a 47.9% decrease from the year prior. Net income was USD 1405.9 million, an 8.2% decline year-over-year.

Transcripts Simplified

Sealed Air reported fourth quarter net sales of $1.4 billion with 4% growth in Food and 15% decline in Protective. In constant dollars, full year net sales were up 6% to $5.6 billion with 11% growth in Food and essentially flat performance in Protective. Q4 adjusted EBITDA of $297 million decreased 10% compared to last year with margins of 21.1%. For the full year, adjusted EBITDA grew 7% to $1.21 billion with margin expansion of 110 basis points.

Q4 adjusted earnings per diluted share was $0.99, with an adjusted tax rate of 26.1%. On a full year basis, adjusted earnings per diluted share was $4.10, with an adjusted tax rate of 25.4%. Sealed Air repurchased approximately $280 million or 4.5 million shares in 2022 and had $616 million remaining under its authorized share repurchase program at year end.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Sealed Air. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Sealed Air. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Sealed Air. More…

Key Ratios Snapshot

Some of the financial key ratios for Sealed Air are shown below. More…

Market Price

The company’s stock opened at $52.6 and closed at $50.0, representing a drop of 6.6% from the previous closing price of 53.6. Despite the generally positive results, the market reacted negatively to the news, leading to a drop in the company’s stock price. Despite this, SEALED AIR is confident that its performance for the fourth quarter of FY2022 will be an indication of greater success moving forward. Live Quote…

Analysis

At GoodWhale, we conducted an analysis of SEALED AIR’s fundamentals. Our Risk Rating found that SEALED AIR is a medium risk investment when it comes to financial and business aspects. We identified one risk warning in their balance sheet and suggest that users register on GoodWhale.com to take a closer look. We believe that conducting an in-depth analysis is the best way to identify potential opportunities and risks associated with any given company. Our Risk Rating provides users with a comprehensive overview of the company’s financial health and its business operations. This helps investors determine whether or not it is a worthwhile investment. We also detected a risk warning in SEALED AIR’s balance sheet. Our Risk Rating system flagged this issue, prompting us to suggest that users register on GoodWhale.com to access more detailed information regarding this potential risk. We encourage investors to use our services to gain more insight into the company’s fundamentals and make an informed decision about their investments. More…

Peers

The company’s products are used in a variety of industries, including food, beverage, healthcare, and industrial. Sealed Air Corp has a number of competitors, including PT Megalestari Epack Sentosaraya Tbk, Huhtamäki Oyj, Raj Packaging Industries Ltd.

– PT Megalestari Epack Sentosaraya Tbk ($IDX:EPAC)

PT Megalestari Epack Sentosaraya Tbk has a market cap of 165.17B as of 2022. The company is engaged in the production of paper and paperboard products. It has a wide range of products that include corrugated board, Kraft paper, and tissue paper. The company has a strong presence in the Indonesian market and is one of the leading paper and paperboard manufacturers in the country.

– Huhtamäki Oyj ($LTS:0K9W)

Huthamäki Oyj is a Finnish packaging company that specializes in food and beverage packaging. The company has a market capitalization of 3.79 billion as of 2022 and a return on equity of 14.22%. Huthamäki Oyj is a leading provider of flexible packaging solutions and one of the largest manufacturers of plastic cups and lids in Europe. The company’s products are used by major food and beverage brands around the world.

– Raj Packaging Industries Ltd ($BSE:530111)

Raj Packaging Industries Ltd has a market cap of 185.53M as of 2022, a Return on Equity of 11.2%. The company is engaged in the business of manufacturing and marketing of corrugated packaging products and other flexible packaging products. It has a wide range of products catering to different industries such as food and beverage, pharmaceuticals, electronics, textiles, and many others. The company has a strong presence in the domestic market with a market share of around 60%. It also has a significant export business, accounting for around 20% of its total sales.

Summary

Sealed Air reported their fourth quarter earnings for FY2022 on December 31, 2022, with total revenue of USD 94.3 million and a reported net income of USD 1405.9 million. This was an 8.2% decrease from the same period the year prior, causing their stock price to drop on the same day. Investors will want to closely monitor the performance of Sealed Air’s stock as the company works to recover from these losses. With a focused understanding of their operations and an eye on their competitors, investors can make an informed decision whether or not to invest in Sealed Air.