Q1 2024 Earnings
and 2024 Outlook
Emile Chammas
Interim Co-CEO, COO
Dustin Semach
Interim Co-CEO, CFO
Brian Sullivan
Executive Director Assistant Treasurer & Investor Relations
May 2, 2024 - Conference Call Supplement (Unaudited Results)
1
Safe Harbor and Regulation G Statement
Forward-looking Statements
This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securiti es Litigation Reform Act of 1995. All statements other than statements of historical facts included in this presentation regarding our strategies, prospects, financial condition, operat ions, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, expectations regarding future impacts of acquisitions, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially from these statements. For information about some of those risks and uncertainties, see the "Risk Factors" section appearing in our most recent Annual Report on Form 10-K, as filed with the Securities Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligatio n to publicly update such statement.
Non-U.S. GAAP Financial Measures
Our management uses non-U.S. GAAP financial measures to evaluate the Company's performance, which exclude items we consider unus ual or special items. We believe that the use of non- U.S. GAAP measures helps investors to gain a better understanding of core operating results and future prospects, consistent with how management measures and forecasts the Company's performance, especially when comparing such results to previous periods or forecasts. Please see Sealed Air's May 2, 2024 ear nings press release and the appendix of this presentation for important information about the use of non-U.S. GAAP financial measures relevant to this presentation, including applicable reconciliations to U.S. GAAP financial measures. Information reconciling forward-looking U.S. GAAP measures to non-U.S. GAAP measures is not available without unreasonable effort. Values in this presentation are approximate due to rounding. Additionally, the individual components of bridges or the individual quarterly components presented in the current or prior q uarter earnings presentation may not sum to the full year amount due to rounding.
Website Information - Please visit our website Sealedair.com
We routinely post important information for investors on our website, www.sealedair.com, in the "Investors" section. We use t his 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 se ction 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.
© 2024 SEE | 2
SEE business and market update
Emile Chammas | Dustin Semach |
Interim Co-CEO, COO | Interim Co-CEO, CFO |
© 2024 SEE | 3
Q1 2024 results
Revenue | Earnings | Earnings/Share |
Net Sales | Adj. EBITDA | Adj. EPS |
$1.3B $278M $0.78
Down 1% as reported | Up 4% as reported | Up 5% as reported |
Down 1% constant currency
© 2023 SEE | 4
(1%) Net Sales | ||
$1,349M | 2% $1,330M | |
(3%) | 0% |
Constant Dollar (1%)
4% Adj. EBITDA
$267M 0% 2% 1% $278M
SEE Q1 2024 performance
SEE Q1 sales down 1% as reported. Organic decline of 3% due to lower pricing in both segments. Volume flat with growth in Food offset by continued market softness in Protective
Q1 Adj. EBITDA of $278M, up 4% as reported
Net Price Realization1, unfavorable $19M
Adj. EBITDA margin of 20.9%, up 110 bps primarily driven by lower operating costs, including benefits from CTO2Grow actions
1Net Price Realization defined as YoY Price less inflation on | © 2024 SEE | 5 |
Direct Material, Freight, Non-Material and Labor costs |
Q1 2024 segment performance
Food
Q1 organic sales down 1% driven by unfavorable pricing partially offset by volume growth in all regions
Q1 Adj. EBITDA of $190M, down 3% as reported
Adj. EBITDA margin of 21.8%, down 100 bps
Net Price Realization1, unfavorable ~$10M
2% Net Sales
$853M | 3% | $868M |
(1%) | 0% |
Protective
Q1 organic sales down 7% driven by unfavorable pricing and continued market softness
Q1 Adj. EBITDA of $90M, up 11% as reported Adj. EBITDA margin of 19.4%, up 320 bps Net Price Realization1, unfavorable ~$10M
(7%) Net Sales
$496M
0% $461M
(7%) 0%
Constant Dollar 2% | Constant Dollar (7%) |
1Net Price Realization defined as YoY Price less inflation on Direct Material, Freight, Non -Material and Labor costs | © 2024 SEE | 6 |
Q1 2024 sales performance
($M) | SEE |
Q1 Sales | $1,330 |
As Reported Change | (1%) |
Constant Dollar Change | (1%) |
Organic Change | (3%) |
% of Sales | 100% |
Segments
Food Protective
$868 $461
2% (7%)
2% (7%)
(1%) (7%)
65%35%
Regions
Americas | EMEA | Asia Pacific |
$881 | $274 | $175 |
0% | (6%) | (3%) |
0% | (6%) | 1% |
(2%) | (7%) | 0% |
66% | 21% | 13% |
© 2024 SEE | 7
Free cash flow
$78M
($13M)
Q1'23Q1'24
Net Debt / Adj. EBITDA
De-lever
~3.9x | <3.5x |
Q1'24 | Target |
Free cash flow
Higher earnings, lower incentive compensation payments and better working capital management
Continue to monetize working capital throughout 2024
Capital allocation
Disciplined capital allocation focused on debt paydown
Target net debt / adj. EBITDA to below 3.5x by end 2025
Total Debt reduction of ~$28M in Q1'24
© 2023 SEE | 8
2024 outlook reaffirmed
Net Sales
Adj. EBITDA
Adj. EPS
Free Cash Flow
$5.20 to $5.60B
$1.050 to $1.150B
$2.65 to $3.05
$325 to $425M
© 2024 SEE | 9
Vision:
To become a world-class sustainable automated packaging solutions provider, partnering with our customers to solve their most critical food and protective packaging needs.
Purpose:
We are in business to protect,
to solve critical packaging challenges,
and to make our world better than we find it.
© 2024 SEE | 10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Sealed Air Corporation published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 12:58:33 UTC.