Sealed Air Boosts FY22 Outlook On Solid Q1 Performance

Sealed Air Corp SEE reported first-quarter FY22 sales growth of 12% year-on-year to $1.42 billion, beating the consensus of $1.39 billion.
Sales in the Americas rose 18% Y/Y, EMEA increased 4%, and APAC lost 1%.
Net sales in the Food segment increased by 15%, and Protective improved by 8%.
Adjusted EPS of $1.12 beat the analyst consensus of $0.93.
Gross profit rose 18.9% Y/Y to $477 million with a gross profit margin of 33.6%.
Operating margin was 18.4%, and operating income for the quarter rose 29.4% to $262.1 million.
Selling, general and administrative expenses rose 8.5% Y/Y to $205 million.
The company held $278.2 million in cash and equivalents as of March 31, 2022. The cash flow from operations for Q1 totaled $48 million.
Adjusted EBITDA was $327 million, with the margin expanding 190 basis points to 23.1%.
Outlook: Sealed Air sees FY22 sales of $5.85 billion - $6.05 billion (prior view $5.8 billion - $6.0 billion), versus the consensus of $5.9 billion.
The company forecasts FY22 Adjusted EPS of $4.05 - $4.20 (previous view $3.95 - $4.15), against the consensus of $4.10.
Price Action: SEE shares traded higher by 2.18% at $65.76 on the last check Tuesday.

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