SONOCO PRODUCTS Reports Earnings Results for Q2 of FY2023
August 12, 2023
🌥️Earnings Overview
On August 1 2023, SONOCO PRODUCTS ($NYSE:SON) revealed their earnings report for the quarter ending June 30 2023. Total revenue was USD 1705.3 million, a decline of 10.9% compared to the prior year’s second quarter. Reported net income for the quarter decreased by 12.9% year-over-year, amounting to USD 114.6 million.
Market Price
On Tuesday, SONOCO PRODUCTS reported its earnings results for the second quarter of its fiscal year 2023. The company’s stock opened at $57.8 and closed at $59.7, up by 1.8% from its previous closing price of $58.6. This growth was attributed to increased consumer spending in North America and Europe, improved demand for industrial products, and cost-cutting initiatives. This will be used to repurchase common shares and will be used to return capital to shareholders.
Overall, SONOCO PRODUCTS reported a strong second quarter and looks set to continue its growth into the second half of the fiscal year. The company’s stock is up from its opening price and is showing signs of strength heading into the second half of the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sonoco Products. More…
| Total Revenues | Net Income | Net Margin |
| 7k | 482.4 | 6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonoco Products. More…
| Operations | Investing | Financing |
| 673.17 | -341.6 | -194.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sonoco Products. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.05k | 4.75k | 23.4 |
Key Ratios Snapshot
Some of the financial key ratios for Sonoco Products are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | 10.9% | 10.3% |
| FCF Margin | ROE | ROA |
| 4.7% | 20.1% | 6.4% |
Analysis
GoodWhale’s analysis of SONOCO PRODUCTS‘s financials reveals that the company has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable to pay off debt and fund future operations. Further, SONOCO PRODUCTS is classified as a ‘gorilla’, a type of company we have determined has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes SONOCO PRODUCTS an attractive investment for a variety of investors, as it is strong in dividend, profitability, and medium in asset, growth. The potential for a high return on investment, combined with the relative stability of the company, makes this an appealing choice for those looking for long-term investments. More…
Peers
The company has operations in 34 countries and serves customers in over 85 countries. Sonoco has been in business for over 100 years and is a publicly traded company on the New York Stock Exchange. The company’s competitors include Huhtamaki India Ltd, Huhtamäki Oyj, and Shanghai Xintonglian Packing Co Ltd.
– Huhtamaki India Ltd ($BSE:509820)
Huthamaki India Ltd is a food packaging company with a market cap of 16.63B as of 2022. The company has a return on equity of 2.38%. Huthamaki India Ltd is a leading manufacturer of food packaging products and solutions. The company provides innovative and sustainable packaging solutions for food and beverage products. Huthamaki India Ltd has a strong presence in the Indian market with a wide range of products. The company has a strong commitment to quality and customer satisfaction.
– Huhtamäki Oyj ($LTS:0K9W)
Huhtamäki Oyj is a Finnish packaging company. It is headquartered in Espoo, Finland and has operations in over 40 countries. The company is listed on the Nasdaq Helsinki stock exchange.
Huhtamäki Oyj has a market cap of 3.7B as of 2022. The company has a Return on Equity of 14.22%. Huhtamäki Oyj is a Finnish packaging company. It is headquartered in Espoo, Finland and has operations in over 40 countries. The company is listed on the Nasdaq Helsinki stock exchange.
– Shanghai Xintonglian Packing Co Ltd ($SHSE:603022)
Shanghai Xintonglian Packing Co Ltd is a company that produces and sells packaging products. It has a market cap of 2.02B as of 2022 and a Return on Equity of 3.94%. The company has a wide range of products that include paper bags, plastic bags, and other packaging materials.
Summary
SONOCO PRODUCTS recently released their earnings report for the second quarter of FY2023, ending June 30. Total revenue decreased by 10.9%, to USD 1705.3 million, while net income dropped 12.9% year over year, to USD 114.6 million. Investors should consider these developments in their decision making, as such results may signal a potential decline in the stock’s performance and future profitability. Short-term investors may want to take a wait-and-see approach, while long-term investors should keep an eye on these developments and make sure to do their due diligence before investing.
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