Sealed Air Reports Q4 and Full Year 2024 Results and Provides 2025 Outlook
Sealed Air (NYSE: SEE) reported its Q4 and full year 2024 results, highlighting significant developments and financial outcomes.
Key Highlights:
- Dustin Semach promoted to CEO.
- Completed reorganization into two market-focused businesses: Food and Protective.
- Food segment saw a 3% increase in Q4 sales, while Protective segment declined by 7%.
- Net sales for Q4 were $1.37 billion, flat compared to Q4 2023.
- Net loss for Q4 was less than $1 million, compared to net earnings of $125 million in Q4 2023.
- Adjusted EPS for Q4 decreased to $0.75 from $0.88 in the prior year.
- Adjusted EBITDA for Q4 was $271 million, down from $274 million in the prior year.
- Full year 2024 net sales were $5.39 billion, a 2% decrease from 2023.
- Full year net earnings were $270 million, down from $339 million in 2023.
- Adjusted EPS for the full year decreased to $3.14 from $3.18 in the prior year.
- Adjusted EBITDA for the full year was $1.11 billion, slightly up from $1.11 billion in 2023.
- Generated $89 million in cost savings for 2024.
- Net leverage ratio reduced to 3.6x.
- Provided a positive outlook for 2025, targeting growth and margin expansion.
Sealed Air will host a conference call on February 25, 2025, to discuss these results.
Sealed Air (NYSE: SEE) ha riportato i risultati del Q4 e dell'intero anno 2024, evidenziando sviluppi significativi e risultati finanziari.
Punti Salienti:
- Dustin Semach è stato promosso a CEO.
- Completata la riorganizzazione in due aziende focalizzate sul mercato: Alimentare e Protettivo.
- Il segmento Alimentare ha registrato un aumento delle vendite del 3% nel Q4, mentre il segmento Protettivo ha subito un calo del 7%.
- Le vendite nette per il Q4 sono state di 1,37 miliardi di dollari, stabili rispetto al Q4 2023.
- La perdita netta per il Q4 è stata inferiore a 1 milione di dollari, rispetto agli utili netti di 125 milioni di dollari nel Q4 2023.
- L'EPS rettificato per il Q4 è diminuito a 0,75 dollari da 0,88 dollari dell'anno precedente.
- L'EBITDA rettificato per il Q4 è stato di 271 milioni di dollari, in calo rispetto ai 274 milioni di dollari dell'anno precedente.
- Le vendite nette per l'intero anno 2024 sono state di 5,39 miliardi di dollari, con una diminuzione del 2% rispetto al 2023.
- Gli utili netti per l'intero anno sono stati di 270 milioni di dollari, in calo rispetto ai 339 milioni di dollari nel 2023.
- L'EPS rettificato per l'intero anno è diminuito a 3,14 dollari da 3,18 dollari dell'anno precedente.
- L'EBITDA rettificato per l'intero anno è stato di 1,11 miliardi di dollari, leggermente in aumento rispetto all'1,11 miliardi di dollari del 2023.
- Generati 89 milioni di dollari di risparmi sui costi per il 2024.
- Il rapporto di leva netta è stato ridotto a 3,6x.
- Fornita una prospettiva positiva per il 2025, puntando a crescita ed espansione dei margini.
Sealed Air ospiterà una conference call il 25 febbraio 2025 per discutere questi risultati.
Sealed Air (NYSE: SEE) informó sus resultados del cuarto trimestre y del año completo 2024, destacando desarrollos significativos y resultados financieros.
Puntos Clave:
- Dustin Semach fue promovido a CEO.
- Se completó la reorganización en dos negocios enfocados en el mercado: Alimentos y Protección.
- El segmento de Alimentos vio un aumento del 3% en las ventas del cuarto trimestre, mientras que el segmento de Protección disminuyó un 7%.
- Las ventas netas del cuarto trimestre fueron de 1.37 mil millones de dólares, estables en comparación con el cuarto trimestre de 2023.
- La pérdida neta del cuarto trimestre fue de menos de 1 millón de dólares, en comparación con ganancias netas de 125 millones de dólares en el cuarto trimestre de 2023.
- El EPS ajustado para el cuarto trimestre disminuyó a $0.75 desde $0.88 del año anterior.
- El EBITDA ajustado para el cuarto trimestre fue de 271 millones de dólares, por debajo de los 274 millones de dólares del año anterior.
- Las ventas netas del año completo 2024 fueron de 5.39 mil millones de dólares, una disminución del 2% con respecto a 2023.
- Las ganancias netas del año completo fueron de 270 millones de dólares, en comparación con 339 millones de dólares en 2023.
- El EPS ajustado para el año completo disminuyó a $3.14 desde $3.18 del año anterior.
- El EBITDA ajustado para el año completo fue de 1.11 mil millones de dólares, ligeramente por encima de 1.11 mil millones de dólares en 2023.
- Generó 89 millones de dólares en ahorros de costos para 2024.
- La relación de apalancamiento neto se redujo a 3.6x.
- Se proporcionó una perspectiva positiva para 2025, con el objetivo de crecimiento y expansión de márgenes.
Sealed Air llevará a cabo una conferencia telefónica el 25 de febrero de 2025 para discutir estos resultados.
Sealed Air (NYSE: SEE)는 2024년 4분기 및 연간 결과를 발표하며 중요한 발전과 재무 성과를 강조했습니다.
주요 하이라이트:
- Dustin Semach가 CEO로 승진했습니다.
- 식품 및 보호의 두 개 시장 중심 비즈니스로 재편성되었습니다.
- 식품 부문은 4분기 매출이 3% 증가했으나, 보호 부문은 7% 감소했습니다.
- 4분기 순매출은 13억 7천만 달러로, 2023년 4분기와 비교하여 변동이 없었습니다.
- 4분기 순손실은 100만 달러 미만으로, 2023년 4분기 순이익 1억 2천5백만 달러에 비해 감소했습니다.
- 4분기 조정 EPS는 0.75달러로, 전년의 0.88달러에서 감소했습니다.
- 4분기 조정 EBITDA는 2억 7천1백만 달러로, 전년의 2억 7천4백만 달러에서 감소했습니다.
- 2024년 전체 순매출은 53억 9천만 달러로, 2023년보다 2% 감소했습니다.
- 연간 순이익은 2억 7천만 달러로, 2023년의 3억 3천9백만 달러에서 감소했습니다.
- 조정 EPS는 전년의 3.18달러에서 3.14달러로 감소했습니다.
- 연간 조정 EBITDA는 11억 1천만 달러로, 2023년의 11억 1천만 달러에서 약간 증가했습니다.
- 2024년을 위해 8천9백만 달러의 비용 절감을 달성했습니다.
- 순 레버리지 비율이 3.6배로 감소했습니다.
- 2025년을 위한 긍정적인 전망을 제공하며, 성장과 마진 확장을 목표로 하고 있습니다.
Sealed Air는 2025년 2월 25일에 이 결과를 논의하기 위한 컨퍼런스 콜을 개최할 예정입니다.
Sealed Air (NYSE: SEE) a annoncé ses résultats du 4ème trimestre et de l'année complète 2024, mettant en avant des développements significatifs et des résultats financiers.
Points Clés :
- Dustin Semach a été promu au poste de PDG.
- La réorganisation en deux entreprises axées sur le marché : Alimentation et Protection a été complétée.
- Le segment Alimentation a connu une augmentation de 3 % des ventes au 4ème trimestre, tandis que le segment Protection a diminué de 7 %.
- Les ventes nettes pour le 4ème trimestre se sont élevées à 1,37 milliard de dollars, stables par rapport au 4ème trimestre 2023.
- La perte nette pour le 4ème trimestre a été inférieure à 1 million de dollars, comparée à un bénéfice net de 125 millions de dollars au 4ème trimestre 2023.
- Le BPA ajusté pour le 4ème trimestre a diminué à 0,75 $ contre 0,88 $ l'année précédente.
- Le BAIIA ajusté pour le 4ème trimestre était de 271 millions de dollars, en baisse par rapport à 274 millions de dollars l'année précédente.
- Les ventes nettes pour l'année 2024 se sont élevées à 5,39 milliards de dollars, soit une baisse de 2 % par rapport à 2023.
- Le bénéfice net pour l'année complète était de 270 millions de dollars, en baisse par rapport à 339 millions de dollars en 2023.
- Le BPA ajusté pour l'année complète a diminué à 3,14 $ contre 3,18 $ l'année précédente.
- Le BAIIA ajusté pour l'année complète était de 1,11 milliard de dollars, légèrement supérieur à 1,11 milliard de dollars en 2023.
- Des économies de coûts de 89 millions de dollars ont été réalisées pour 2024.
- Le ratio d'endettement net a été réduit à 3,6x.
- Une perspective positive pour 2025 a été fournie, ciblant la croissance et l'expansion des marges.
Sealed Air organisera une conférence téléphonique le 25 février 2025 pour discuter de ces résultats.
Sealed Air (NYSE: SEE) hat seine Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht und dabei bedeutende Entwicklungen und finanzielle Ergebnisse hervorgehoben.
Wichtige Höhepunkte:
- Dustin Semach wurde zum CEO befördert.
- Die Umstrukturierung in zwei marktorientierte Geschäftsbereiche: Lebensmittel und Schutz wurde abgeschlossen.
- Der Lebensmittelbereich verzeichnete im 4. Quartal einen Anstieg der Verkäufe um 3%, während der Schutzbereich um 7% zurückging.
- Die Nettoumsätze für das 4. Quartal betrugen 1,37 Milliarden Dollar, stabil im Vergleich zum 4. Quartal 2023.
- Der Nettoverlust für das 4. Quartal lag bei weniger als 1 Million Dollar, verglichen mit einem Nettogewinn von 125 Millionen Dollar im 4. Quartal 2023.
- Das bereinigte EPS für das 4. Quartal sank auf 0,75 Dollar von 0,88 Dollar im Vorjahr.
- Das bereinigte EBITDA für das 4. Quartal betrug 271 Millionen Dollar, rückläufig von 274 Millionen Dollar im Vorjahr.
- Die Nettoumsätze für das gesamte Jahr 2024 betrugen 5,39 Milliarden Dollar, ein Rückgang von 2% im Vergleich zu 2023.
- Der Nettogewinn für das gesamte Jahr betrug 270 Millionen Dollar, ein Rückgang von 339 Millionen Dollar im Jahr 2023.
- Das bereinigte EPS für das gesamte Jahr sank auf 3,14 Dollar von 3,18 Dollar im Vorjahr.
- Das bereinigte EBITDA für das gesamte Jahr betrug 1,11 Milliarden Dollar, leicht über 1,11 Milliarden Dollar im Jahr 2023.
- Im Jahr 2024 wurden 89 Millionen Dollar an Kosteneinsparungen erzielt.
- Das Netto-Leverage-Verhältnis wurde auf 3,6x gesenkt.
- Eine positive Prognose für 2025 wurde abgegeben, mit dem Ziel von Wachstum und Margenausweitung.
Sealed Air wird am 25. Februar 2025 eine Telefonkonferenz abhalten, um diese Ergebnisse zu erörtern.
- Generated $89 million in cost savings for 2024.
- Net leverage ratio reduced to 3.6x.
- Adjusted EBITDA for the full year increased to $1.11 billion.
- Food segment Q4 sales increased by 3%.
- Net sales for Q4 were flat at $1.37 billion.
- Net loss for Q4 was less than $1 million.
- Adjusted EPS for Q4 decreased to $0.75.
- Full year net sales decreased by 2%.
- Full year net earnings decreased to $270 million.
Insights
Sealed Air's Q4 and full-year 2024 results reveal a tale of two businesses with diverging trajectories, as the company completes its strategic reorganization and focuses on deleveraging. The 20.6% full-year Adjusted EBITDA margin (up from 20.2% in 2023) demonstrates resilience amid challenging market conditions, particularly in the Protective segment.
The Food segment shows impressive momentum with 5% constant currency volume growth in Q4, driven by competitive share gains across all regions. This performance is particularly noteworthy in a mature packaging market, suggesting SEE's solutions are resonating with customers in the food industry. The segment's EBITDA margin expansion to 22.5% (from 21.8%) indicates improving operational leverage and pricing power.
Conversely, the Protective segment faces significant headwinds with 7% sales decline and a substantial 390 basis point EBITDA margin contraction to 14.8%. This performance reflects continued weakness in industrial and fulfillment markets, suggesting the segment's recovery timeline may extend longer than previously anticipated. Management's focus on "stabilizing" Protective rather than projecting immediate growth reflects this reality.
The company's cost take-out program delivered $89 million in incremental savings, helping offset price pressures and contributing to the overall margin improvement. This disciplined cost management, combined with $508 million in free cash flow generation, enabled SEE to reduce its net leverage ratio to 3.6x from 3.9x at year-end 2023.
The unusually high effective tax rate of 100.5% in Q4 (41.2% for full year) significantly impacted reported earnings, though this was primarily due to a one-time deferred tax asset write-off associated with legal entity restructuring. The adjusted tax rate of 25.9% for 2024 represents a more normalized level, though still higher than 2023's 23.6%.
With Dustin Semach's promotion to CEO, investors should expect continuity in financial discipline while pursuing targeted growth opportunities, particularly in Food's case-ready and fluids solutions. The company's focus on "accelerating the pace of execution" suggests increased urgency in implementing its strategic initiatives to drive shareholder value in 2025.
Fourth Quarter and Full Year 2024 Highlights
- Dustin Semach promoted to Chief Executive Officer
- Completed the full reorganization into two market-focused businesses, Food and Protective
- Food volume growth driven by competitive share gains and continued end-market demand
- Protective portfolio rebalance and enhanced customer focus continues
- Cost take-out generated
$89 million - Net leverage ratio reduced to 3.6x with maintained focus on deleveraging the balance sheet
- Providing our financial outlook for 2025
"During the fourth quarter, we completed the reorganization into two market-focused businesses, Food and Protective, and had a strong finish to the year," said Dustin Semach, Sealed Air's President and CEO. "We exceeded our expectations across Adjusted EBITDA, Adjusted EPS and Free Cash Flow, reflecting improved discipline in fundamentals. I want to express my deep gratitude to our 16,400 plus Sealed Air team members for their commitment to our transformation and their tireless efforts in solving our customers' most critical packaging challenges."
"With the foundation now firmly in place, we are focused on maximizing the potential of each business based on their respective end-markets and portfolios. We are accelerating the momentum in Food by expanding further into higher growth end-markets with our case ready and fluids solutions and continuing to stabilize Protective. In parallel, we are continuing to streamline our operations and drive further productivity across the company. As a result, we are targeting growth and margin expansion in 2025. We are focused on accelerating the pace of execution to improve the outcomes for our customers and maximize value for our shareholders," said Semach.
($ millions, except per share data)
GAAP Results | Fourth Quarter | Full Year | |||||||
2024 | 2023 | Reported △% | Constant Dollar △% | 2024 | 2023 | Reported △% | Constant Dollar △% | ||
Net Sales | (0.3) % | 0.9 % | (1.8) % | (1.1) % | |||||
Net Earnings | $— | (100.3) % | (20.6) % | ||||||
Diluted EPS | (100.0) % | (21.4) % | |||||||
Cash Flow from Operations | 41.0 % | ||||||||
Non-GAAP Results | Fourth Quarter | Full Year | |||||
2024 | 2023 | Reported △% | 2024 | 2023 | Reported △% | ||
Adjusted EBITDA | (1.3) % | 0.4 % | |||||
Adjusted Net Earnings | (13.9) % | (0.5) % | |||||
Adjusted Diluted EPS | (14.8) % | (1.3) % | |||||
Free Cash Flow(1) | (2.8) % | ||||||
_____________________________ | |
(1) | 2023 excludes the impact of |
Unless otherwise stated, all results compare fourth quarter 2024 results to fourth quarter 2023 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported. | |
Financial Highlights
Fourth Quarter 2024
Net sales of
Income tax expense was
Net loss was less than
Adjusted earnings per diluted share decreased to
Adjusted EBITDA was
Full Year 2024
Net sales of
Income tax expense was
Full year 2024 net earnings were
Adjusted earnings per diluted share decreased to
Adjusted EBITDA was
Business Segment Highlights
Fourth quarter net sales in Food were
Fourth quarter net sales in Protective were
Cash Flow and Net Debt
Cash flow provided by operating activities during full year 2024 was
Dividend payments for both the full year 2024 and 2023 were
Net Debt, defined as total debt less cash and cash equivalents, decreased to
Outlook for Full Year 2025
(in $ millions except EPS) | Range | Constant dollar △% |
Net Sales | ( | |
Adjusted EBITDA | ( | |
Adjusted EPS | ( | |
Free Cash Flow |
Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-GAAP financial measures. We have not provided guidance for the most directly comparable GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity and low visibility of certain Special Items.
Conference Call Information
Sealed Air Corporation will host a conference call and webcast on Tuesday, February 25, 2025 at 10:00 a.m. (ET) to discuss our Fourth Quarter and Full Year 2024 Results. The conference call will be webcast live on the Investors homepage at www.sealedair.com/investors. A replay of the webcast will also be available thereafter. A slide presentation, which includes supplemental information relating to the Company's fourth quarter earnings will be made available through the "Presentations & Events" section of the Company's Investor Relations website at https://ir.sealedair.com/events-and-presentations prior to the call.
About Sealed Air
Sealed Air Corporation (NYSE: SEE), is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. Sealed Air designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC® brand food packaging, LIQUIBOX® brand liquids systems, SEALED AIR® brand protective packaging, AUTOBAG® brand automated packaging systems, and BUBBLE WRAP® brand packaging. In 2024, Sealed Air generated
Website Information
We routinely post important information for investors on our website, www.sealedair.com, in the Investors section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Non-GAAP Information
In this press release, we include certain non-GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an "organic" and a "constant dollar" basis, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, net leverage ratio and Adjusted Tax Rate. Management uses non-GAAP financial measures to assess operating and financial performance, set budgets, provide guidance and compare with peers' performance. We believe such non-GAAP financial measures are useful to investors. Non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP information. See the attached supplementary information for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Information reconciling forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures is not presented because it is not available without unreasonable effort. The reconciling information that is not available includes forward-looking ranges of certain Special Items with high variability, complexity and low visibility. We are unable to address the probable significance of such unavailable information, which could have a potential significant impact on our future GAAP financial results.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as "anticipate," "believe," "plan," "assume," "could," "should," "estimate," "expect," "intend," "potential," "seek," "predict," "may," "will" or the negative of these terms and similar expressions. All statements contained in this press release, other than statements of historical facts, such as those regarding our growth initiatives, business strategies, operating plans, business outlook, restructuring activities and market conditions, are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. These risks include important factors discussed in the "Risk Factors" section in Part I of our most recent Annual Report on Form 10-K, as updated by our other filings with the Securities and Exchange Commission.
Any forward-looking statements made by us in this press release are based solely on management's estimates as of the date of this press release. While we may elect to update such forward-looking statements, we disclaim any obligation to do so even if subsequent events cause our views to change, except as may be required by applicable law.
Company Contacts |
Investors |
Mark Stone |
mark.stone@sealedair.com |
919.673.3218 |
Louise Lagache |
louise.lagache@sealedair.com |
Media |
Amanda Hoggarth |
amanda.hoggarth@sealedair.com |
The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.
Sealed Air Corporation Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||
(In USD millions, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 1,372.8 | $ 1,377.5 | $ 5,392.6 | $ 5,488.9 | ||||
Cost of sales | 966.0 | 972.6 | 3,767.5 | 3,847.6 | ||||
Gross profit | 406.8 | 404.9 | 1,625.1 | 1,641.3 | ||||
Selling, general and administrative expenses | 188.8 | 176.5 | 752.6 | 759.1 | ||||
(Loss) Gain on disposal and sale of businesses and property and | (10.4) | 5.9 | (16.2) | (49.3) | ||||
Amortization expense of intangible assets | 15.6 | 16.7 | 62.6 | 62.7 | ||||
Restructuring charges | 33.0 | 6.4 | 57.8 | 15.6 | ||||
Operating profit | 159.0 | 211.2 | 735.9 | 754.6 | ||||
Interest expense, net | (58.7) | (66.4) | (247.6) | (263.0) | ||||
Other expense, net | (15.9) | (28.9) | (29.9) | (61.9) | ||||
Earnings before income tax provision | 84.4 | 115.9 | 458.4 | 429.7 | ||||
Income tax provision | 84.8 | (9.0) | 188.9 | 90.4 | ||||
Net (loss) earnings from continuing operations | (0.4) | 124.9 | 269.5 | 339.3 | ||||
(Loss) Gain on sale of discontinued operations, net of tax | (6.9) | (0.9) | (4.8) | 2.3 | ||||
Net (loss) earnings | $ (7.3) | $ 124.0 | $ 264.7 | $ 341.6 | ||||
Basic: | ||||||||
Continuing operations | $ — | $ 0.86 | $ 1.85 | $ 2.35 | ||||
Discontinued operations | (0.05) | — | (0.03) | 0.02 | ||||
Net (loss) earnings per common share - basic | $ (0.05) | $ 0.86 | $ 1.82 | $ 2.37 | ||||
Diluted: | ||||||||
Continuing operations | $ — | $ 0.86 | $ 1.84 | $ 2.34 | ||||
Discontinued operations | (0.05) | — | (0.03) | 0.02 | ||||
Net (loss) earnings per common share - diluted | $ (0.05) | $ 0.86 | $ 1.81 | $ 2.36 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 145.8 | 144.5 | 145.5 | 144.4 | ||||
Diluted | 146.4 | 144.9 | 146.0 | 144.9 | ||||
Sealed Air Corporation Condensed Consolidated Balance Sheets (Unaudited)
| ||||
(In USD millions) | December 31, | December 31, | ||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 371.8 | $ 346.1 | ||
Trade receivables, net | 443.1 | 442.6 | ||
Income tax receivables | 25.0 | 44.9 | ||
Other receivables | 99.8 | 94.2 | ||
Advances and deposits | 36.1 | 72.8 | ||
Inventories, net | 722.2 | 774.3 | ||
Prepaid expenses and other current assets | 193.8 | 188.4 | ||
Total current assets | 1,891.8 | 1,963.3 | ||
Property and equipment, net | 1,397.9 | 1,416.4 | ||
Goodwill | 2,878.5 | 2,892.5 | ||
Identifiable intangible assets, net | 381.6 | 439.0 | ||
Deferred taxes | 112.0 | 130.8 | ||
Operating lease right-of-use-assets | 98.0 | 86.5 | ||
Other non-current assets | 262.3 | 272.1 | ||
Total assets | $ 7,022.1 | $ 7,200.6 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Short-term borrowings | $ 140.5 | $ 140.7 | ||
Current portion of long-term debt | 64.6 | 35.7 | ||
Current portion of operating lease liabilities | 29.7 | 29.2 | ||
Accounts payable | 771.0 | 764.6 | ||
Accrued restructuring costs | 42.6 | 23.1 | ||
Income tax payable | 53.3 | 28.7 | ||
Other current liabilities | 533.8 | 487.0 | ||
Total current liabilities | 1,635.5 | 1,509.0 | ||
Long-term debt, less current portion | 4,198.8 | 4,513.9 | ||
Long-term operating lease liabilities, less current portion | 74.8 | 66.7 | ||
Deferred taxes | 26.1 | 35.8 | ||
Other non-current liabilities | 462.4 | 525.7 | ||
Total liabilities | 6,397.6 | 6,651.1 | ||
Stockholders' equity: | ||||
Preferred stock | — | — | ||
Common stock | 15.5 | 15.4 | ||
Additional paid-in capital | 1,445.7 | 1,429.5 | ||
Retained earnings | 643.4 | 496.5 | ||
Common stock in treasury | (404.2) | (436.4) | ||
Accumulated other comprehensive loss, net of taxes | (1,075.9) | (955.5) | ||
Total stockholders' equity | 624.5 | 549.5 | ||
Total liabilities and stockholders' equity | $ 7,022.1 | $ 7,200.6 | ||
Sealed Air Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||
Year Ended December 31, | ||||
(In USD millions) | 2024 | 2023 | ||
Net earnings | $ 264.7 | $ 341.6 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities(1) | 349.8 | 376.3 | ||
Changes in operating assets and liabilities: | ||||
Trade receivables, net | (34.1) | 73.4 | ||
Inventories | (4.3) | 136.0 | ||
Income tax receivable/payable | 45.6 | (0.4) | ||
Accounts payable | 28.1 | (122.8) | ||
Tax refunds / (payments and deposits) to resolve certain prior years' tax matters | 54.0 | (195.0) | ||
Other assets and liabilities | 24.2 | (92.9) | ||
Net cash provided by operating activities | $ 728.0 | $ 516.2 | ||
Cash flows from investing activities: | ||||
Capital expenditures | $ (220.2) | $ (244.2) | ||
Proceeds related to sale of business and property and equipment, net | 1.0 | 10.2 | ||
Businesses acquired in purchase transactions, net of cash acquired | 4.2 | (1,160.7) | ||
(Payments) / Proceeds related to debt, equity, and equity method investments, net | (1.1) | 2.8 | ||
Proceeds from cross currency swaps | 3.1 | 1.6 | ||
Settlement of foreign currency forward contracts | (19.5) | 12.1 | ||
Net cash used in investing activities | $ (232.5) | $ (1,378.2) | ||
Cash flows from financing activities: | ||||
Net proceeds of short-term borrowings | $ 5.2 | $ 131.6 | ||
Proceeds from long-term debt | 416.2 | 1,833.4 | ||
Payments of long-term debt | (710.5) | (958.4) | ||
Dividends paid on common stock | (118.0) | (117.9) | ||
Repurchases of common stock | — | (79.9) | ||
Payments of debt modification/extinguishment costs and other | (7.6) | (22.3) | ||
Impact of tax withholding on share-based compensation | (9.9) | (21.8) | ||
Principal payments related to financing leases | (8.2) | (9.0) | ||
Net cash (used in) provided by financing activities | $ (432.8) | $ 755.7 | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | $ (37.0) | $ (3.7) | ||
Cash and cash equivalents | 346.1 | 456.1 | ||
Restricted cash and cash equivalents | — | — | ||
Balance, beginning of period | $ 346.1 | $ 456.1 | ||
Net change during the period | 25.7 | (110.0) | ||
Cash and cash equivalents | 371.8 | 346.1 | ||
Restricted cash and cash equivalents | — | — | ||
Balance, end of period | $ 371.8 | $ 346.1 | ||
Non-GAAP Free Cash Flow: | ||||
Cash flow from operating activities | $ 728.0 | $ 516.2 | ||
Capital expenditures for property and equipment | (220.2) | (244.2) | ||
Free Cash Flow | $ 507.8 | $ 272.0 | ||
Supplemental Cash Flow Information: | ||||
Interest payments, net of amounts capitalized | $ 284.1 | $ 265.2 | ||
Income tax payments, net of cash refunds(2) | $ 109.7 | $ 357.7 | ||
Restructuring payments including associated costs | $ 58.1 | $ 19.2 | ||
Non-cash items: | ||||
Transfers of shares of our common stock from treasury for our profit-sharing plan contributions | $ 25.4 | $ 23.9 | ||
________________________ | |
(1) | 2024 primarily consists of depreciation and amortization of |
(2) | 2023 includes |
Sealed Air Corporation Components of Change in Net Sales by Segment (Unaudited) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
(In USD millions) | Food | Protective | Total Company | |||||||||
2023 Net Sales | $ 892.6 | 64.8 % | $ 484.9 | 35.2 % | $ 1,377.5 | 100.0 % | ||||||
Price | 1.6 | 0.2 % | (5.9) | (1.2) % | (4.3) | (0.3) % | ||||||
Volume(1) | 43.5 | 4.9 % | (26.3) | (5.4) % | 17.2 | 1.2 % | ||||||
Total constant dollar change (non-GAAP)(2) | 45.1 | 5.1 % | (32.2) | (6.6) % | 12.9 | 0.9 % | ||||||
Foreign currency translation | (15.2) | (1.8) % | (2.4) | (0.5) % | (17.6) | (1.2) % | ||||||
Total change (GAAP) | 29.9 | 3.3 % | (34.6) | (7.1) % | (4.7) | (0.3) % | ||||||
2024 Net Sales | $ 922.5 | 67.2 % | $ 450.3 | 32.8 % | $ 1,372.8 | 100.0 % | ||||||
Year Ended December 31, | ||||||||||||
(In USD millions) | Food | Protective | Total Company | |||||||||
2023 Net Sales | $ 3,519.7 | 64.1 % | $ 1,969.2 | 35.9 % | $ 5,488.9 | 100.0 % | ||||||
Price | (69.5) | (2.0) % | (49.3) | (2.5) % | (118.8) | (2.1) % | ||||||
Volume(1) | 136.5 | 3.9 % | (101.8) | (5.2) % | 34.7 | 0.6 % | ||||||
Total organic change (non-GAAP)(2) | 67.0 | 1.9 % | (151.1) | (7.7) % | (84.1) | (1.5) % | ||||||
Acquisition | 23.5 | 0.7 % | — | — % | 23.5 | 0.4 % | ||||||
Total constant dollar change (non-GAAP)(2) | 90.5 | 2.6 % | (151.1) | (7.7) % | (60.6) | (1.1) % | ||||||
Foreign currency translation | (27.6) | (0.8) % | (8.1) | (0.4) % | (35.7) | (0.7) % | ||||||
Total change (GAAP) | 62.9 | 1.8 % | (159.2) | (8.1) % | (96.3) | (1.8) % | ||||||
2024 Net Sales | $ 3,582.6 | 66.4 % | $ 1,810.0 | 33.6 % | $ 5,392.6 | 100.0 % | ||||||
__________________________ | |
(1) | Our volume reported above includes the net impact of changes in unit volume as well as the period-to-period change in the mix of products sold. |
(2) | Total organic change is a non-GAAP financial measure which excludes acquisitions within the first twelve months after acquisition, divestiture activity from the time of the sale, and the impact of foreign currency translation. Total constant dollar change is a non-GAAP financial measure which excludes the impact of foreign currency translation. |
Sealed Air Corporation Components of Change in Net Sales by Region (Unaudited) | ||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||
(In USD millions) | EMEA | APAC | Total Company | |||||||||||||
2023 Net Sales | $ 882.7 | 64.1 % | $ 285.4 | 20.7 % | $ 209.4 | 15.2 % | 100.0 % | |||||||||
Price | 0.1 | — % | (2.9) | (1.0) % | (1.5) | (0.7) % | (4.3) | (0.3) % | ||||||||
Volume(1) | 7.2 | 0.8 % | 6.6 | 2.3 % | 3.4 | 1.6 % | 17.2 | 1.2 % | ||||||||
Total constant dollar | 7.3 | 0.8 % | 3.7 | 1.3 % | 1.9 | 0.9 % | 12.9 | 0.9 % | ||||||||
Foreign currency translation | (14.5) | (1.6) % | (1.6) | (0.6) % | (1.5) | (0.7) % | (17.6) | (1.2) % | ||||||||
Total change (GAAP) | (7.2) | (0.8) % | 2.1 | 0.7 % | 0.4 | 0.2 % | (4.7) | (0.3) % | ||||||||
2024 Net Sales | $ 875.5 | 63.8 % | $ 287.5 | 20.9 % | $ 209.8 | 15.3 % | 100.0 % | |||||||||
Year Ended December 31, | ||||||||||||||||
(In USD millions) | EMEA | APAC | Total Company | |||||||||||||
2023 Net Sales | 65.2 % | 20.9 % | $ 761.3 | 13.9 % | 100.0 % | |||||||||||
Price | (76.1) | (2.1) % | (36.4) | (3.2) % | (6.3) | (0.8) % | (118.8) | (2.1) % | ||||||||
Volume(1) | 27.8 | 0.8 % | (9.1) | (0.8) % | 16.0 | 2.1 % | 34.7 | 0.6 % | ||||||||
Total organic change (non- GAAP)(2) | (48.3) | (1.3) % | (45.5) | (4.0) % | 9.7 | 1.3 % | (84.1) | (1.5) % | ||||||||
Acquisition | 17.2 | 0.4 % | 4.0 | 0.4 % | 2.3 | 0.3 % | 23.5 | 0.4 % | ||||||||
Total constant dollar | (31.1) | (0.9) % | (41.5) | (3.6) % | 12.0 | 1.6 % | (60.6) | (1.1) % | ||||||||
Foreign currency translation | (21.1) | (0.6) % | 0.1 | — % | (14.7) | (2.0) % | (35.7) | (0.7) % | ||||||||
Total change (GAAP) | (52.2) | (1.5) % | (41.4) | (3.6) % | (2.7) | (0.4) % | (96.3) | (1.8) % | ||||||||
2024 Net Sales | 65.4 % | 20.5 % | $ 758.6 | 14.1 % | 100.0 % | |||||||||||
__________________________ | |
(1) | Our volume reported above includes the net impact of changes in unit volume as well as the period-to-period change in the mix of products sold. |
(2) | Total organic change is a non-GAAP financial measure which excludes acquisitions within the first twelve months after acquisition, divestiture activity from the time of the sale, and the impact of foreign currency translation. Total constant dollar change is a non-GAAP financial measure which excludes the impact of foreign currency translation. |
Sealed Air Corporation Segment Information Reconciliation of Net Earnings to Non-GAAP Consolidated Adjusted EBITDA (Unaudited) | ||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||
(In USD millions) | 2024 | 2023 | 2024 | 2023 | ||||
Adjusted EBITDA from continuing operations: | ||||||||
Food | $ 207.6 | $ 194.9 | $ 807.7 | $ 775.0 | ||||
Adjusted EBITDA Margin | 22.5 % | 21.8 % | 22.5 % | 22.0 % | ||||
Protective | 66.7 | 90.5 | 313.5 | 361.8 | ||||
Adjusted EBITDA Margin | 14.8 % | 18.7 % | 17.3 % | 18.4 % | ||||
Corporate | (3.5) | (11.1) | (10.6) | (30.2) | ||||
Non-GAAP Consolidated Adjusted EBITDA | $ 270.8 | $ 274.3 | ||||||
Adjusted EBITDA Margin | 19.7 % | 19.9 % | 20.6 % | 20.2 % | ||||
Three Months Ended December 31, | Year Ended December 31, | |||||||
(In USD millions) | 2024 | 2023 | 2024 | 2023 | ||||
GAAP Net earnings from continuing operations | $ (0.4) | $ 124.9 | $ 269.5 | $ 339.3 | ||||
Interest expense, net | 58.7 | 66.4 | 247.6 | 263.0 | ||||
Income tax provision | 84.8 | (9.0) | 188.9 | 90.4 | ||||
Depreciation and amortization, net of adjustments(1) | 59.5 | 52.5 | 243.7 | 239.6 | ||||
Special Items: | ||||||||
Liquibox intangible amortization | 7.6 | 8.0 | 30.3 | 27.9 | ||||
Liquibox inventory step-up amortization | — | (0.6) | — | 10.2 | ||||
Restructuring charges | 33.0 | 6.4 | 57.8 | 15.6 | ||||
Other restructuring associated costs | 8.1 | — | 30.3 | 34.5 | ||||
Foreign currency exchange loss due to highly inflationary | 2.0 | 12.5 | 9.9 | 23.1 | ||||
Loss on debt redemption and refinancing activities | — | 8.3 | 6.8 | 13.2 | ||||
Impairment of debt investment | 8.5 | — | 8.5 | — | ||||
Contract terminations | — | (0.7) | (0.1) | 14.6 | ||||
Charges related to acquisition and divestiture activity | 1.0 | 3.8 | 4.2 | 28.3 | ||||
CEO severance | — | 6.1 | — | 6.1 | ||||
Other Special Items | 8.0 | (4.3) | 13.2 | 0.8 | ||||
Pre-tax impact of Special Items | 68.2 | 39.5 | 160.9 | 174.3 | ||||
Non-GAAP Consolidated Adjusted EBITDA | $ 270.8 | $ 274.3 | $ 1,106.6 | |||||
__________________________ | |
(1) | Depreciation and amortization by segment are as follows: |
Three Months Ended December 31, | Year Ended December 31, | |||||||
(In USD millions) | 2024 | 2023 | 2024 | 2023 | ||||
Food | $ 45.0 | $ 39.9 | $ 186.1 | $ 175.7 | ||||
Protective | 22.1 | 20.6 | 87.9 | 91.8 | ||||
Consolidated depreciation and amortization(i) | $ 67.1 | $ 60.5 | $ 274.0 | $ 267.5 | ||||
Liquibox intangible amortization | (7.6) | (8.0) | (30.3) | (27.9) | ||||
Depreciation and amortization, net of adjustments | $ 59.5 | $ 52.5 | $ 243.7 | $ 239.6 | ||||
__________________________ | |
(i) | Includes share-based incentive compensation of |
The calculation of the non-GAAP Adjusted income tax rate is as follows:
Three Months Ended December 31, | Year Ended December 31, | |||||||
(In USD millions) | 2024 | 2023 | 2024 | 2023 | ||||
GAAP Earnings before income tax provision from | $ 84.4 | $ 115.9 | $ 458.4 | $ 429.7 | ||||
Pre-tax impact of Special Items | 68.2 | 39.5 | 160.9 | 174.3 | ||||
Non-GAAP Adjusted Earnings before income tax | $ 152.6 | $ 155.4 | $ 619.3 | $ 604.0 | ||||
GAAP Income tax provision from continuing | $ 84.8 | $ (9.0) | $ 188.9 | $ 90.4 | ||||
Tax Special Items(1) | (56.1) | 30.6 | (64.7) | 20.0 | ||||
Tax impact of Special Items | 14.2 | 6.4 | 36.2 | 32.3 | ||||
Non-GAAP Adjusted Income tax provision from | $ 42.9 | $ 28.0 | $ 160.4 | $ 142.7 | ||||
GAAP Effective income tax rate | 100.5 % | (7.8) % | 41.2 % | 21.0 % | ||||
Non-GAAP Adjusted income tax rate | 28.1 % | 18.0 % | 25.9 % | 23.6 % | ||||
__________________________ | |
(1) | For the year ended December 31, 2024, Tax Special Items reflect the write-off of a deferred tax asset associated with a legal entity restructuring and accruals for uncertain tax positions. For the year ended December 31, 2023, Tax Special Items reflect adjustments related to the settlement of the IRS audit partially offset by accruals for uncertain tax positions. |
Sealed Air Corporation Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-GAAP Adjusted Net Earnings and Non-GAAP Adjusted Net Earnings Per Common Share (Unaudited) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(In USD millions, except per share data) | Net Earnings | Diluted EPS | Net Earnings | Diluted EPS | Net Earnings | Diluted EPS | Net Earnings | Diluted EPS | ||||||||
GAAP net earnings and diluted EPS | $ (0.4) | $ — | ||||||||||||||
Special Items(1) | 110.1 | 0.75 | 2.5 | 0.02 | 189.4 | 1.30 | 122.0 | 0.84 | ||||||||
Non-GAAP adjusted net earnings and | ||||||||||||||||
Weighted average number of common | 146.4 | 144.9 | 146.0 | 144.9 | ||||||||||||
__________________________ | |
(1) | Special Items include items in the table below. |
Three Months Ended December 31, | Year Ended December 31, | |||||||
(In USD millions, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||
Special Items: | ||||||||
Liquibox intangible amortization | $ 7.6 | $ 8.0 | $ 30.3 | $ 27.9 | ||||
Liquibox inventory step-up amortization | — | (0.6) | — | 10.2 | ||||
Restructuring charges | 33.0 | 6.4 | 57.8 | 15.6 | ||||
Other restructuring associated costs | 8.1 | — | 30.3 | 34.5 | ||||
Foreign currency exchange loss due to highly inflationary | 2.0 | 12.5 | 9.9 | 23.1 | ||||
Loss on debt redemption and refinancing activities | — | 8.3 | 6.8 | 13.2 | ||||
Impairment of debt investment | 8.5 | — | 8.5 | — | ||||
Contract terminations | — | (0.7) | (0.1) | 14.6 | ||||
Charges related to acquisition and divestiture activity | 1.0 | 3.8 | 4.2 | 28.3 | ||||
CEO severance | — | 6.1 | — | 6.1 | ||||
Other Special Items | 8.0 | (4.3) | 13.2 | 0.8 | ||||
Pre-tax impact of Special Items | 68.2 | 39.5 | 160.9 | 174.3 | ||||
Tax impact of Special Items and Tax Special Items | 41.9 | (37.0) | 28.5 | (52.3) | ||||
Net impact of Special Items | $ 110.1 | $ 2.5 | $ 189.4 | $ 122.0 | ||||
Weighted average number of common shares | 146.4 | 144.9 | 146.0 | 144.9 | ||||
Loss per share impact from Special Items | $ (0.75) | $ (0.02) | $ (1.30) | $ (0.84) | ||||
Calculation of Net Debt (Unaudited)
| ||||
(In USD millions) | December 31, | December 31, | ||
Short-term borrowings | $ 140.5 | $ 140.7 | ||
Current portion of long-term debt | 64.6 | 35.7 | ||
Long-term debt, less current portion | 4,198.8 | 4,513.9 | ||
Total debt | 4,403.9 | 4,690.3 | ||
Less: cash and cash equivalents | (371.8) | (346.1) | ||
Non-GAAP Net debt | $ 4,032.1 | $ 4,344.2 | ||
Net Leverage Ratio (Net Debt / Adjusted EBITDA) | 3.6x | 3.9x | ||
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SOURCE Sealed Air
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