Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Multi-Color Corporation completed its acquisition of the Labels Division of Constantia Flexibles from Constantia Flexibles GmbH in a cash and equity transaction valued at approximately $1.3 billion (€1.15 billion). The combined annual revenues of the two businesses will be approximately $1.7 billion. The combination brings together Constantia Labels' high performing Food and Beverage business with Multi-Color's strong Home and Personal Care and Wine and Spirits platforms, as well as its emerging global position in Healthcare. The acquisition will provide additional growth opportunities for Multi-Color in Home and Personal Care through Constantia Labels' European operational footprint and assets, and for Constantia Labels in Food and Beverage through Multi-Color's US operational footprint and assets. The stronger combined footprint in Asia will provide further revenue opportunities. We are delighted to welcome Constantia's 2,800 associates to the Multi-Color team, as well as Mike Henry, current Executive Vice President and Head of Constantia Labels, who today becomes CEO-elect of Multi-Color and will be appointed Chief Executive Officer in January 2018.

According to the report, total Containerboard production in Q3 increased 3% compared to Q3 2023. It was up 6% when compared to the same nine months of 2023. Operating rates for all major grades except Recycled Medium declined compared to Q2 2024, but total production was essentially the same between the two quarters. Production for export decreased nearly 15% from Q2 and was the lowest quarter so far in this year, but is still up more than 26% year-to-date due to the weak export numbers in the first half of 2023. Recycled Medium had a very strong quarter with production exceeding 1.9 million tons and the operating rate above 90% for the first time since Q2 2022. Semichemical Medium production on the other hand dipped below 1 million tons for the quarter due to particularly weak September numbers. New supply for Q3 increased 2.8% from Q2 and was the highest it has been since Q2 2022, with strong domestic production and imports indicating growing demand for containerboard stateside, compared to the slightly weaker exports.

Fourth Quarter Highlights and other notable items: *Record fourth quarter net sales of $5.4 billion increased 6.1% year-over-year *Net income of $345 million increased $21 million year-over-year, or 6.4%. Adjusted Net Income of $366 million increased $34 million year-over-year, growing 10.4%. Full Year 2022 Highlights: *Record full year net sales of $21.3 billion increased 13.4% compared to $18.7 billion in the prior year *Net income of $945 million increased $106 million year-over-year, or 12.7%. Adjusted Net Income of $1.245 billion increased $338 million year-over-year, growing 37.2%