Packaging and Containers Sector Ideas

[gfp927z]

>>> Top Dividend Champion #2: Sonoco Products Company (SON)


https://www.suredividend.com/dividend-champions-list/


5-year expected returns: 18.2%

Sonoco Products provides packaging, industrial products and supply chain services to its customers. The markets that use the company’s products include those in the appliances, electronics, beverage, construction and food industries. The company generates about $7.2 billion in annual sales.

Sonoco Products is now composed of 2 core segments, Consumer Packaging and Industrial Packaging, with all other businesses listed as “all other”.

On October 31st, 2022, Sonoco Products reported third quarter earnings results for the period ending October 2nd, 2022. Revenue was higher by 34% to $1.89 billion, but missed estimate by $10 million. Adjusted earnings-per-share of $1.60 compared very favorably to $0.91 in the prior year and was $0.21 better than expected.

Consumer Packaging revenues surged 72% to $990.1 million, due once again primarily to the purchase of Ball Metalpack that closed in the fourth quarter of 2021. Pricing, favorable volume and mix, and currency exchange headwinds also impacted results. Global rigid paper containers and flexible packaging performed well. Industrial Paper Packing sales grew 4% to $661 million as higher selling prices more than offset a small volume decline and currency exchange headwinds.

Sonoco Products raised its outlook for 2022 as well, with the company expecting adjusted earnings-per-share of $6.40 to $6.50 for the year, up from $6.20 to $6.30.

<<<



---