Sonoco Products Company Reports $5.3 Billion in Net Sales for Fiscal Year 2024

Sonoco Products Company reported a consolidated net sales figure of $5.3 billion for the fiscal year ending December 31, 2024, reflecting a decrease of 2.5% compared to $5.4 billion in 2023. The decline in revenue was attributed to several factors, including a $132 million drop in sales from the divestiture of its Protective Solutions business, a $100 million reduction due to the reclassification of recycling operations as a procurement function, and lower selling prices across its Consumer and Industrial Paper Packaging segments. However, these declines were partially offset by a $266 million increase in sales from recent acquisitions, including Eviosys, RTS Packaging, and the Chattanooga Mill.

The company's GAAP operating profit for 2024 was reported at $326.6 million, a significant decrease of 44.6% from $589 million in the previous year. This decline was primarily driven by a $63.3 million drop in gross profit, a $25.6 million loss from the sale of two production facilities in China, and increased acquisition-related costs totaling $67 million. Adjusted operating profit, which excludes certain one-time costs, was $573.1 million, down 11.4% from $646.6 million in 2023. Net income attributable to Sonoco was $163.9 million, or $1.65 per diluted share, compared to $475 million, or $4.80 per diluted share, in 2023.

Strategically, Sonoco completed the acquisition of Eviosys, a leading European food can manufacturer, for approximately $3.8 billion on December 4, 2024. This acquisition is expected to enhance Sonoco's market leadership in metal food can and aerosol packaging, aligning with its long-term growth strategy. Additionally, the company announced plans to divest its Thermoformed and Flexibles Packaging business to Toppan for about $1.8 billion, with the transaction expected to close in the first half of 2025. These moves are part of Sonoco's broader strategy to simplify its portfolio and focus on core business areas.

Operationally, Sonoco had approximately 28,000 full-time employees as of December 31, 2024, including around 6,500 who joined the company through the Eviosys acquisition. The company operates about 315 locations across 40 countries, with significant sales contributions from the U.S. (67%), Europe (18%), and other regions. The Consumer Packaging segment accounted for approximately 48% of consolidated net sales, while the Industrial Paper Packaging segment represented about 44%. The company has also initiated a review of strategic alternatives for its ThermoSafe business, which generated $245 million in revenue in 2024.

Looking ahead, Sonoco aims to integrate Eviosys effectively and achieve targeted synergies while continuing to focus on profitability through productivity improvements. The company plans to utilize proceeds from divestitures to reduce debt and invest in its remaining core segments. Sonoco's management remains optimistic about its ability to navigate market challenges and capitalize on growth opportunities in the packaging industry, emphasizing a commitment to sustainability and operational excellence.