{"id":12907,"date":"2026-04-22T06:19:31","date_gmt":"2026-04-22T10:19:31","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=12907"},"modified":"2026-04-22T06:19:31","modified_gmt":"2026-04-22T10:19:31","slug":"sonoco-q1-2026-profit-rises-despite-dip-in-sales","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=12907","title":{"rendered":"Sonoco Q1 2026 profit rises despite dip in sales"},"content":{"rendered":"


\n<\/p>\n

\n
\n
\n \n <\/picture>
As of 29 March 2026, total debt stood at $4.7bn and net debt was $4.5bn. Credit: viewimage \/ Shutterstock.com.<\/figcaption><\/figure>\n<\/p><\/div>\n

Sonoco has posted first-quarter attributable net income of $67.6m, compared with $54.4m in the same quarter of 2025.<\/p>\n

Diluted earnings per share attributable to Sonoco increased to $0.68 from $0.55 a year earlier.<\/p>\n

\n
\n
\"\"\/<\/figure>\n

Discover B2B Marketing That Performs <\/h4>\n

\n\t\t\t\t\t\tCombine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.\n\t\t\t\t\t<\/p>\n


\n\t\t\t\t\t\t\tFind out more <\/svg><\/span><\/a><\/p>\n<\/section>\n<\/div>\n

Net sales for the first quarter of 2026 came in at $1.7bn, a decline of 1.9% from the comparable period last year.<\/p>\n

The reduction was mainly linked to the sale of the ThermoSafe<\/a> temperature-assured packaging business in November 2025.<\/p>\n

The company said pricing actions taken in response to inflation and tariffs, together with favourable foreign exchange movements, partly balanced the effect of weaker volume or mix.<\/p>\n

Operating profit was unchanged at $127m.<\/p>\n

Sonoco said savings from cost-cutting measures and procurement, along with a positive relationship between pricing and costs, were offset by the loss of earnings from the divested ThermoSafe unit and by weaker volume or mix.<\/p>\n

Adjusted operating profit for the quarter was $201m while adjusted EBITDA [earnings before interest, taxes, depreciation, and amortisation] totalled $277m.<\/p>\n

As of 29 March 2026, total debt stood at $4.7bn and net debt was $4.5bn, representing increases of $0.4bn and $0.6bn, respectively, from 31 December 2025. Sonoco said the change was chiefly due to seasonal movements in net working capital within its metal packaging business.<\/p>\n

The company also opened a paper can manufacturing site in Nong Yai, Thailand, aimed at the stacked chip market in Asia.<\/p>\n

In addition, it has committed $20m to expand nailed wood reel production at its site in Hartselle, Alabama, US, in response to wire and cable infrastructure demand tied to AI data centres.<\/p>\n

Sonoco president and CEO Howard Coker said: \u201cWe are proud of our team\u2019s solid performance in the first quarter despite disruptions from severe winter weather, which impacted our customers and our operations, a fire that destroyed a recycling facility in South Carolina and the effects of rapidly changing macroeconomic and geopolitical conditions.<\/p>\n

\u201cResults from our consumer packaging segment exceeded our expectations while our industrial paper packaging segment faced operational and demand challenges. Overall, productivity and a favourable price \/ cost environment more than offset a decline in volume \/ mix.\u201d<\/p>\n

For 2026, Sonoco kept its net sales forecast unchanged at $7.25bn to $7.75bn. It projected adjusted EPS to come in at the lower end of its earlier guidance range of $5.80 to $6.20 per diluted share.<\/p>\n

Sonoco recently revealed plans to increase prices<\/a> in the Europe, the Middle East, and Africa (EMEA) market for uncoated recycled paperboard, tube and core products.<\/p>\n

The company plans to add \u20ac80 ($92.5)\u00a0per tonne to URB [uncoated recycled board] grades and apply an 8% rise to all tube and core products sold in the region.<\/p>\n

<\/p>\n

<\/p>\n

\n