Sealed Air has reported net sales of $1.35bn for the third quarter (Q3) of 2024, a decrease of 3%.
The Asia-Pacific region saw an increase of 4% while the Americas and Europe, the Middle East, and Africa regions both experienced a decline of 4%.
On a constant dollar basis, net sales fell by $32m, or 2%.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q3 2024 was $276m, representing 20.5% of net sales, compared to $285m, or 20.6%, in Q3 2023.
The decrease in adjusted EBITDA was primarily due to lower volumes and unfavourable net price realisation in the Protective segment.
However, this was partially offset by lower operating costs driven by productivity benefits from the CTO2Grow Program.
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By GlobalData
During the initial nine months of 2024, cash flow from operating activities was a source of $484m, significantly higher than the $193m reported during the previous year’s quarter, which included a tax deposit of $175m.
This notable increase reflects the company’s improved operational efficiency and financial management.
Capital expenditures during these months were $161m, a decrease from $185m during the same period in the previous year.
Dividend payments for both 2024 and 2023 remained stable at $89m, indicating a consistent return to shareholders.
The results for the current year were impacted unfavourably by a special Items expense of $33m.
This included $16m of restructuring and other associated costs with regard to the CTO2Grow Program and $8m related to the Liquibox intangible assets amortisation.
Sealed Air CEO Patrick Kivits said: “With the shift into two verticals, Food and Protective, and the onboarding of new leadership, we have positioned Sealed Air for long-term success.
“Over the coming months, we are focused on operationalising each vertical and finalising the long-term growth strategy for each business. In parallel, we are stepping up our cost take-out initiatives to right-size each business and improve profitability until our transformation takes hold.”
