Silgan Holdings Reports $5.9 Billion in Net Sales for Fiscal Year 2024, Sees 2.2% Decline

Silgan Holdings Inc. reported consolidated net sales of approximately $5.9 billion for the fiscal year ending December 31, 2024, reflecting a 2.2% decrease compared to $6.0 billion in 2023. The decline was primarily attributed to the pass-through of lower raw material costs in the metal containers and dispensing and specialty closures segments, alongside lower organic volumes in the dispensing and specialty closures segment. However, the acquisition of Weener Packaging in the fourth quarter of 2024 contributed positively to sales, particularly in the dispensing products category, which saw a 4% increase in net sales to $2.3 billion. The metal containers segment experienced a decrease in sales to $2.9 billion, down 7.6% from the previous year, while custom containers saw a modest increase to $649.6 million.

The company’s profitability was impacted by several factors, including increased rationalization charges of $59.5 million in 2024, which were part of a comprehensive cost reduction initiative aimed at achieving $50 million in savings over two years. Income before interest and income taxes fell to $515.1 million, down from $595.4 million in 2023, with a margin decrease to 8.8% from 9.9%. The increase in selling, general, and administrative expenses, which rose to 7.5% of net sales, was driven by costs associated with acquisitions and the inclusion of Weener Packaging's expenses.

Strategically, Silgan Holdings has focused on expanding its market presence through acquisitions, having completed 41 since its inception. The recent acquisition of Weener Packaging, a producer of differentiated dispensing solutions, is expected to enhance the company’s product innovation capabilities and strengthen customer relationships. The company operates 123 manufacturing facilities across North America, Europe, Asia, and South America, serving over 100 countries. As of December 31, 2024, Silgan employed approximately 17,200 individuals, with a significant portion represented by unions.

Looking ahead, Silgan Holdings anticipates continued growth in its dispensing products and improved volumes in its metal containers segment, particularly in the pet food market. The company expects to benefit from the full-year impact of the Weener Packaging acquisition and aims to maintain its low-cost producer position while pursuing further acquisitions and organic growth opportunities. The management remains committed to enhancing shareholder value through efficient capital deployment and operational improvements, despite the challenges posed by fluctuating raw material costs and market conditions.