- Crown Holdings Inc (NYSE:CCK) reported first-quarter FY22 sales growth of 23.3% year-on-year to $3.2 billion, above the consensus of $2.94 billion.
- The company attributed the sales growth to increased beverage sales unit volumes and the pass-through of higher material costs.
- Selling, general and administrative expenses rose 9.8% Y/Y to $157 million.
- The operating margin was 10.9%, and operating income for the quarter rose 5.2% to $344 million.
- The company held $389 million in cash and equivalents as of March 31, 2022.
- Adjusted EPS of $2.01 beat the analyst consensus of $1.82.
- "As expected, the Company's Transit Packaging business experienced an inflationary cost/price squeeze during the first quarter, the recovery of which we expect will begin in the second quarter," said CEO Timothy J. Donahue.
- Additionally, Crown Holdings has entered into a definitive agreement to sell the Transit Packaging segment's Kiwiplan business. It will receive pre-tax proceeds of $182 million from the transaction.
- Outlook: Crown sees Q2 adjusted EPS of $2.00 - $2.10, against the Street view of $2.06.
- The company expects FY22 adjusted EPS of $8.00 - $8.20 versus the consensus of $8.14.
- Price Action: CCK shares closed lower by 2.30% at $116.61 on Monday.
