Sealed Air Corporation SEE reported a second-quarter FY23 sales decrease of almost 3% year-on-year to $1.38 billion, missing the consensus of $1.42 billion.
Adjusted EPS of $0.80 beat the analyst consensus of $0.68.
Sales in the Americas fell 4% Y/Y, EMEA remained flat, and APAC rose 1%.
Net sales in the Food segment increased by 9%, and Protective decreased by 18%.
Gross profit fell 4.6% Y/Y to $418 million with a gross profit margin of 30.3%.
Adjusted EBITDA was $280.3 million, down nearly 4%, with the margin contracting 40 basis points to 20.3%.
The company held $285.1 million in cash and equivalents as of the quarter end. Total debt as of quarter end was $4.970 billion.
"We expect demand weakness to continue with second half volumes similar to first half of 2023," said Ted Doheny, SEE's President and CEO.
On August 7, 2023, SEE's Board of Directors approved the 3-year CTO2Grow Program to drive annualized savings of $140 million-$160 million by the end of 2025. The total cash cost of this program is estimated to be in the range of $140 million-$160 million.
Outlook: Sealed Air cuts FY23 revenue guidance from $5.85 billion - $6.10 billion to $5.40 billion - $5.60 billion versus $5.86 billion consensus estimates.
Sealed Air cuts FY23 adjusted EPS outlook From $3.50 - $3.80 to $2.75 - $2.95 versus the $3.43 consensus estimate.
Price Action: SEE shares traded lower by 5.46% at $41.67 on the last check Tuesday.
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