Sonoco Products : First Quarter 2025 Q1 2025 Earnings Presentation

Quarterly Financial Review

1st Quarter 2025

April 29, 2025

Today's Attendees

Roger Schrum

Interim Head of Investor Relations and Communications

Howard Coker

President and CEO

Jerry Cheatham

Interim Chief Financial Officer

Rodger Fuller

Chief Operating Officer

3

Business Update

Howard Coker

President and Chief Executive Officer

4

Q1 2025 Results

Summary

Strong Consumer and

Revenue

(excluding discontinued operations)

$1.71B

Up 31%

Q1 Highlights

• Record Top Line and Adj. EBITDA Performance

• Strong Consumer Packaging Adj. EBITDA, results up 127%

  • Driven by Sonoco Metal Packaging EMEA

    Industrial Results Drive

    acquisition, SMP U.S. growth

• Solid Industrial Paper Packaging Adj. EBITDA up C%

  Improvement

  Total Adj. EBITDA1

  $338M

  Up 38%

  16.6% Margin,

  up 170 bps

  Total Adj.

  Earnings Per Share

  $1.38

  Up 23%

  • Driven by strong North and South America

    performance

• Higher interest expense, taxes and FX impact adj. EPS

  Q1 Business Drivers

• Total Revenue2 up 24% driven by SMP EMEA acquisition, favorable legacy business volume and price partially offset by divestitures and FX/other

• Adjusted EBITDA up 38% driven by SMP EMEA acquisition, favorable price/cost and productivity partially offset by slower Industrial volume/mix

  
  
  

• TFP results were lower than expected due to price/cost headwinds

5

1. Adj. EBITDA margin calculated as Adj. EBITDA of $338M over Net sales of $1.71B plus Net sales related to Discontinued Operations of $321M

2. Includes Net Sales related to Continued and Discontinued Operations

TFP Sale Closed

ON TIME AND AS EXPECTED

(~10X TTM Adj. EBITDA)

$1.8B Transaction

Paid Off

$1.5B Term Loan

6

sonoco.com/na

Excludes TFP, Includes SMP EMEA

B E C O M E S

Rebranded Eviosys.com as

sonoco.com/metalpackagingemea

7

7

Q1 2025 Financial Results

Jerry Cheatham

Interim Chief Financial Officer

8

Q1 Financial Results

	Q1 2025	Q1 2024	YOY Change %
Net Sales 1	$1,70G	$1,309	31%
Net Sales 2	$321	$329	(3)%
Adj. OP 3	$213	$130	63%
Adj. EBITDA4	$338	$245	38%
Adj. EBITDA Margin (% of Sales) 5	1C.C%	14.9%	170bps
Adj. EPSC	$1.38	$1.12	23%

(Dollars in Millions, Except EPS)

9

1. Excluding discontinued operations

2. Discontinued operations

3. Excluding discontinued operations

4. Including discontinued operations

5. EBITDA % calculated over Sales including Continued and

   Discontinued Operations

6. Including discontinued operations

   Q1 2025 Results

   Consumer Packaging Segment

   
   
   

   Sales1 ($M)

   83%

   $1,066

   $582

   
   
   

   Q1 2024 Q1 2025

   
   
   

   Adj. EBITDA2 ($M)

   127%

   $1G0

   $83

   14% 18%

   Q1 2024 Q1 2025

   Key Updates

   
   
   

   • Material pricing and higher volumes drove strong performance on Metal Packaging US

   • Global Rigid Paper saw favorable volume/mix mainly driven by North America (snacks and construction)

   • Metal Packaging US achieves ~10% volume/mix growth

   • Productivity of $8.1M across Consumer3

   
   
   

   Sales Volume/Mix (y/y)	Q1 2025	2025 FY Outlook
   Rigid Paper Containers (RPC)	Flat	+LSD
   Metal Packaging US	+DD	+DD

   1. Excludes discontinued operations (TFP) which had sales of $321 million in Q1 2025

   2. Excludes discontinued operations

10 3) Includes continuing and discontinued operations

Q1 2025 Results

Industrial Paper Packaging Segment

6%

$G5

$101

16%

18%

Sales ($M)

-6%

$5G3

$558

Sales Volume/Mix (y/y)	Q1 2025	2025 FY Outlook
North America	-LSD	-LSD
Central and South America	Flat	+LSD
Europe	-MSD	-LSD

Q1 2024 Q1 2025

Adj. EBITDA ($M)

Q1 2024 Q1 2025

Key Updates

• Selling prices increased due to changes in index pricing resulting in favorable price/cost

• Europe faced volume and price/cost headwinds as a result of exiting Greece

• Favorable productivity of $7.1M driven by the global converting businesses

  
  
  

  11

  
  
  
  
  

  Q1 2025 Results

  All Other Segment

  Key Updates

  Sales ($M)

  $85

  
  
  

  $134

  Adj. EBITDA ($M)

  $14

  16%

  17%

  
  
  

  $21

  • Sales decline reflect divestiture of Protective Solutions, slower Industrial Plastics volume/mix

  • ThermoSafe generated an 8% sequential improvement in adj. EBITDA

  • Strong GLP-1 and vaccine pipelines developing for the second half

  • Continuing to evaluate divestiture of ThermoSafe

Q1 2024 Q1 2025 Q1 2024 Q1 2025

12

Debt Reduction Progress

Maintaining Strong Liquidity

1,500

700

600

600

500

500

500

537

300

700

1,250

Revolving Credit Facility Term Loans Bonds

25 26 27 28 26 30 31 32 33 34 35 36 40

Balances reflect the balance of outstanding principal of the respective debt facility

13

Highlights

• After Q1, $1.5 billion 364-day Term Loan repaid on April 3, 2025 from TFP proceeds

• Proforma weighted average interest rate of 3.7% on remaining debt

• Today, pro forma for the divestiture of TFP, our net leverage is below 4x

  • Remain on track to achieve Net Leverage of 3.3X to 3.0X by end of 2026

• Total liquidity of ~$G15 million in Cash and Revolver C Commercial Paper capacity

Full Year Financial Outlook Update

$ in Millions (except EPS) 2025 Guidance

Adjusted EBITDA $1,300 - $1,400

Adjusted EPS $6.00 - $6.20

Operating Cash Flow $800 - $G00

Reaffirming 2025 Guidance

14

Upside/Downside Assumptions Entering Q2

Weaker US Dollar Price/Cost Outlook

Productivity and Fixed Cost Controls

Consumer Volume/Mix

Industrial Volume/Mix

Effective Tax Rate

?

Tariff Impacts

Sonoco's

Transformation

The Last Five Years

2 No. of PsLs

0 18

2 Revenue

0 $5.2B

2 Core Businesses

0 3

2 Revenue

5 $7.75 - $8.0B

2020

ACQUISITION

Can Packaging

DIVESTITURE

Display C Packaging (Poland)

15

2021

DIVESTITURE

Display C Packaging (U.S.)

2022

ACQUISITION

Ball Metalpack; Skjern

2023

ACQUISITION

RTS - Chattanooga Mill

DIVESTITURE

BulkSak; S3

2024

ACQUISITION

Eviosys

DIVESTITURE

TFP

Protexic

16

Awards and Recognitions

Defensive Nature of the New Sonoco

Operational Mix

2005

56% 44%

Industrial Consumer

2025

34 % 66%

Industrial Consumer

Relatively well-positioned given localized

manufacturing to served markets

285 plants in 40 countries

Ability to pass along tariffed input costs Defensive nature of larger consumer

portfolio (66% Consumer/33% Industrial)

17

100 CONSECUTIVE YEARS of Dividends

$2.02 $2.07 $2.11

$1.19 $1.23 $1.27

$1.37

$1.46

$1.54 $1.62

$1.70 $1.72 $1.80

$1.92

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Quarterly Dividend of

$0.53 Per Share

to be paid May G, 2025

18

42 Years

Of consecutive annual increases

Sonoco Named

#4 Top Dividend Champion

in 2025 by Sure Dividend.com

1

Mind the Store

(RPC, IPP, SMP NA/EMEA)

2

SMP EMEA

Integration

Manage Tariff Risks

Global Network

Optimization

CEO

Priorities

3 Optimize the Organization for the Future

4

Maintain Culture:

Effective Change Management

5 Prepare to Divest ThermoSafe

G Drive Value Creation Story for Shareholders

19

Looking Forward:

The New SONOCO

Proforma 2025

Sales

$7.75 - $8.0B*

Employees

23,400

Plants

285

Countries

40

20 *Includes 1Q of TFP and full year ThermoSafe

&

Roger Schrum

Interim Head of Investor Relations

Email: [e-mail]

Office Phone: [phone]

Mobile Phone: [phone]

21

Appendix

Quarter-ending: March 31, 2025

EPS Summary | 2025 vs. 2024

	First Quarter
	2025	2024
GAAP EPS	$ 0.55	$ 0.66
Addback for:
Acquisition and divestiture related costs, net	0.30	0.04
LIFO Reserve change	-	-
Acquisition intangibles amortization expense	0.32	0.18
Restructuring, net	0.11	0.25
Loss / (Gain) on disposition and other	0.04 -
Non-operating pension costs	0.02	0.02
Other Items	0.04	(0.03)
Adjusted EPS*	$ 1.38	$ 1.12

*NOTE: Due to rounding individual items may not sum appropriately

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P&L Summary (Adjusted) | First Quarter: 2025 vs. 2024

(Dollars in millions)

			Better / (Worse)
	2025	2024	$ %
Net sales	$ 1,709	$ 1,309	$ 400	30.6 %
Gross profit	372	272	100	36.8 %
SG&A Expenses	(159)	(141)	(18)	(12.8)%
Operating profit	$ 213	$ 131	$ 82	62.6 %
Other non-operating expense Net interest	(6) (49)	- (27)	(6) (22)	(100.0)% (81.5)%
Income before income taxes	$ 158	$ 104	$ 54	51.9 %
Provision for income taxes	(41)	(27)	(14)	(51.9)%
Income before equity in earnings of affiliates	$ 117	$ 77	$ 40	51.9 %
Equity in Affiliates and Minority Interest	2	1	1	NM1
Net income from continuing operations	$ 119	$ 78	$ 41	52.6 %
Net income from discontinued operations	$ 18	$ 34	$ (16)	(47.1)%
ADJ. EBITDA	$ 338	$ 245	$ 93	38.0 %
Gross profit % 21.8 %		20.8 %
SG&A, net of Other Income % 9.3 %		10.8 %
Operating profit % 12.4 %		10.0 %
ADJ. EBITDA % 16.6 %		14.9 %
Effective tax rate 25.7 %		26.2 %

24 NOTE: Due to rounding individual items may not sum down

Segment Analysis | First Quarter: 2025 vs. 2024

(Dollars in millions)

Net Sales1 Segment Operating Profit1

	2025	2024	% Chg	2025	2024	% Chg
Consumer Packaging	$ 1,066	$ 582	83.4 %	$ 141	$ 59	140.4 %
Industrial Paper Packaging	558	593	(6.0)%	71	66	8.0 %
All Other	85	134	(36.6)%	12	17	(30.4)%
Total Sonoco	$ 1,709	$ 1,309	30.6 %	$ 224	$ 142	57.7 %

Segment Operating Profit as a %

of Sales

Margin Change

Consumer Packaging 13.2 % 10.1 % 3.1 %

Industrial Paper Packaging 12.8 % 11.1 % 1.7 %

All Other

14.0 %

12.8 %

1.2 %

Total Sonoco 13.1 % 10.8 % 2.3 %

NOTE: Totals are based on unrounded amounts

1 Excludes discontinued operations

25

Balance Sheet

(Dollars in millions)

Cash and cash equivalents	$	182	$	431	$	(249)
Trade accounts receivable, net of allowances		994		908		86
Other receivables		192		176		16
Inventories		1,142		1,016		126
Prepaid expenses		201		197		4
Current assets of discontinued operations		464		451		13
Current Assets	$	3,174	$	3,179	$	(5)
Property, plant and equipment, net		2,776		2,719		57
Goodwill		2,589		2,526		63
Other intangible assets, net		2,624		2,587		37
Long-term deferred income taxes		15		17		(2)
Right of use asset - operating leases		330		308		22
Other assets		197		209		(12)
Non-current assets of discontinued operations		976		964		12
Total Assets	$	12,681	$	12,508	$	173
Payable to suppliers and others	1,574		1,735		(161)
Income taxes payable	23		7		16
Current liabilities of discontinued operations	240		242		(2)
Total debt	7,126		7,040		86
Pension and other postretirement benefits	183		181		2
Noncurrent operating lease liabilities	278		259		19
Deferred income taxes and other	697		644		53
Non-current liabilities of discontinued operations	97		114		(17)
Total equity	2,462		2,286		176
Total Liabilities and Shareholders' Equity	$	12,681	$	12,508	$	173
Net debt / Total capital	73.8 %		74.3 %
Net debt = Total debt minus cash and cash equivalents Total capital = Net debt plus total equity			NOTE: Due to rounding individual items may not sum down

3/30/2025 12/31/2024 Change $

26