- Sonoco Products Co (NYSE:SON) reported a first-quarter FY22 sales growth of 30.9% year-on-year to $1.77 billion, beating the consensus of $1.74 billion.
- Consumer Packaging sales rose 49% Y/Y to $868.1 million, and the Industrial Paper Packaging sales gained 23.7% to $699.1 million.
- Gross profit rose 33.7% to $371.6 million. The gross margin expanded 50 basis points to 21%.
- Selling, general and administrative expenses rose 31% Y/Y to $190.4 million.
- Operating margin was 9.5%, and the operating income was $169.1 million.
- The company held $151.5 million in cash and equivalents as of April 3, 2022. Cash generated from operations for the quarter was $1.1 million, versus $138.7 million last year.
- Base EPS of $1.85 beat the analyst consensus of $1.72.
- Outlook: Sonoco sees Q2 Base EPS of $1.20 - $1.30, versus the consensus of $1.14.
- It expects FY22 EPS of $5.25 - $5.45 (prior view $4.60 - $4.80), against the consensus of $4.98.
- Price Action: SON shares closed higher by 2.04% at $65.91 on Wednesday.
