Sonoco Products Company Reports 30.6% Revenue Growth to $1.7 Billion in Q1 2025

Sonoco Products Company reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $1.7 billion, a 30.6% increase from $1.3 billion in the same period of 2024. This growth was primarily driven by $464.3 million in sales from the recent acquisition of Eviosys, alongside a $22.2 million increase in sales due to higher selling prices across its Industrial and Consumer Packaging segments. However, these gains were partially offset by a $51.5 million decline in sales related to divestitures and a net decrease in volume/mix of $9.7 million.

The company's operating profit for the first quarter of 2025 was reported at $126.9 million, marking a 74.8% increase from $72.6 million in the prior year. This rise in operating profit was attributed to an $82.5 million increase in gross profit and a reduction in restructuring-related costs by $17.4 million. However, the net income attributable to Sonoco decreased to $54.4 million, or $0.55 per diluted share, down from $65.2 million, or $0.66 per diluted share, in the previous year. This decline was mainly due to increased net interest expenses and a reduced income from discontinued operations.

In terms of strategic developments, Sonoco completed the acquisition of Eviosys on December 4, 2024, which is expected to enhance its market position in metal food can and aerosol packaging. Additionally, the company finalized the sale of its Thermoformed and Flexibles Packaging business to Toppan Holdings for approximately $1.8 billion on April 1, 2025. This divestiture is part of Sonoco's strategy to streamline its operations and focus on core business areas, which also includes a review of strategic alternatives for its ThermoSafe business.

Operationally, Sonoco's Consumer Packaging segment saw a substantial increase in sales, up 83.4% year-over-year, largely due to the Eviosys acquisition. In contrast, the Industrial Paper Packaging segment experienced a 6.0% decline in sales, primarily due to lower volumes and unfavorable foreign currency impacts. The overall operating profit margin for the Consumer Packaging segment improved to 13.2%, while the Industrial Paper Packaging segment's margin increased to 12.8%. The company continues to focus on improving productivity and cost containment across its operations.

Looking ahead, Sonoco's management remains optimistic about its growth trajectory, emphasizing the importance of integrating Eviosys and leveraging its capabilities to drive innovation and sustainability in packaging solutions. The company anticipates that the strategic divestitures and acquisitions will enhance its operational focus and financial performance, positioning it well for future growth amidst ongoing market challenges.