Sonoco Announces Price Increase for Paperboard Converted Products
December 19, 2023
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Sonoco Products ($NYSE:SON) Company is a global manufacturer and marketer of industrial and consumer packaging products. The company has announced plans to increase the prices of its paperboard converted products. This increase is due to the increasing costs of raw materials, labor, and transportation, as well as other factors. The company is citing the increased demand for its products and the lack of available inventory to meet its customer’s needs as reasons for the price increase. As a result, Sonoco will be increasing the prices of all its paperboard converted products. The company’s paperboard products include boxes, cartons, and other packaging solutions for a wide variety of industries. Sonoco’s paperboard product offerings provide customers with options for product protection, increased shelf life, and enhanced brand visibility.
The company has a long history of providing quality, cost-effective solutions for its customers. The price increase is expected to take effect in the near future. Sonoco Products Company continues to strive to create innovative packaging solutions to meet the changing needs of its customers. The company is committed to providing high-quality products at affordable prices, while also working to protect the environment and reduce its environmental footprint. With the announced price increase, Sonoco Products Company hopes to remain competitive and continue to provide top-notch service to its customers.
Stock Price
On Monday, SONOCO PRODUCTS, a global provider of a variety of consumer and industrial packaging products and services, announced a price increase for its paperboard converted products. This will affect customers primarily in North America. The company attributes the increase to the rising costs of fiber-based materials, energy, transportation, and other operating costs necessary to manufacture these products. The announcement had no immediate impact on the stock market, as the stock opened at $56.1 and closed at $56.0, up by 1.3% from last closing price of 55.3. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sonoco Products. More…
| Total Revenues | Net Income | Net Margin |
| 6.82k | 490.92 | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonoco Products. More…
| Operations | Investing | Financing |
| 803.87 | -630.75 | -105.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sonoco Products. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.27k | 4.93k | 23.81 |
Key Ratios Snapshot
Some of the financial key ratios for Sonoco Products are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | 10.8% | 10.8% |
| FCF Margin | ROE | ROA |
| 6.7% | 20.0% | 6.4% |
Analysis
GoodWhale is here to analyze SONOCO PRODUCTS‘s financials. Our star chart shows that SONOCO PRODUCTS is strong in asset, dividend, profitability, and medium in growth. This means that the company is classified as a ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. Considering an investor’s perspective, this means that those looking for steady returns may be interested in SONOCO PRODUCTS. Moreover, the company has a high health score of 8/10 considering its cashflows and debt, meaning it is capable to sustain future operations in times of crisis. Therefore, those seeking a low risk investment may find SONOCO PRODUCTS an attractive option. More…
Peers
The company has operations in 34 countries and serves customers in over 85 countries. Sonoco has been in business for over 100 years and is a publicly traded company on the New York Stock Exchange. The company’s competitors include Huhtamaki India Ltd, Huhtamäki Oyj, and Shanghai Xintonglian Packing Co Ltd.
– Huhtamaki India Ltd ($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 is a global packaging solutions company that has recently announced a price increase for all of its paperboard-converted products. This increase is expected to have a positive financial impact on Sonoco’s bottom line, as the higher prices should help to offset the current market pressures from increased raw material and transportation costs. Additionally, it may help to improve the company’s competitive positioning by raising its margins and strengthening its market share. Investors should look for signs that the increase is having a positive financial impact on Sonoco by tracking the company’s earnings, revenue, and margins in the coming months.
