SEE Reports Q2 2021 Results

Net sales of $1.3 billion, up 15% as reported; up 11% constant currency

  • Increasing full year sales outlook to $5.4 to $5.5 billion
    Net earnings of $109 million, up 8%; EPS of $0.71, up 11%
  • Adjusted EBITDA of $263 million, up 1%; Adjusted EPS of $0.79, up 4%
  • Increasing full year EPS outlook to $3.45 to $3.60
    Cash flow from Operations year to date of $200 million, down 6%
    Authorized new $1 billion Share Repurchase Program

“Demand for our automated and sustainable packaging solutions drove a net sales increase of 15%, supported by a 9% volume growth. Adjusted EBITDA increased 1% as higher sales and productivity improvements were offset by widespread supply challenges and dramatic inflationary pressure. Despite this adverse environment, our SEE Operating Engine is delivering,” said Ted Doheny, SEE’s President and CEO.

“We are raising our 2021 sales and EPS outlook and reaffirming Adjusted EBITDA and Free Cash Flow guidance.

“We are accelerating our journey to world-class by increasing our investment in ‘touchless’ automation, digital and sustainability, while returning capital to shareholders, as demonstrated by our announced 25% dividend increase and share repurchases,” continued Doheny.

Second quarter net sales in Food were $737 million, an increase of 9% as reported. Currency had a favorable impact of $26 million. On a constant dollar basis, net sales increased $37 million, or 6%, with volumes up $28 million, or 4%. Strength in automation, combined with higher food service demand as compared to last year, contributed to a constant dollar growth of 8% in the Americas and 3% in EMEA, while APAC saw a decline of 2%. Adjusted EBITDA of $158 million, or 21.5% of net sales, compares to $169 million, or 25.1% of net sales, in the prior year. Volume growth and productivity improvements were more than offset by negative price/cost spread related to higher input costs, combined with the delayed timing of formula-based price increases. Food also incurred higher freight costs in an effort to meet increased customer demand while managing global supply disruptions.

Second quarter net sales in Protective were $592 million, an increase of 24% as reported. Currency had a favorable impact of $20 million, or 4%. On a constant dollar basis, net sales increased $94 million, or 20%, driven by a 15% increase in volumes. Continued strength in eCommerce and automation, combined with higher industrial demand as compared to last year, contributed to constant dollar growth of 38% in EMEA and 19% in the Americas. Adjusted EBITDA increased 17% to $107 million, or 18.1% of sales, as compared to $92 million, or 19.1% of net sales, in the prior year. The increase in Adjusted EBITDA was primarily attributable to sales growth, partially offset by negative price/cost spread related to higher input costs to help meet customer demand.

Second Quarter 2021 U.S. GAAP Summary
Net sales of $1.3 billion increased 15% as reported. Currency contributed $46 million, or approximately 4%, to net sales growth, as compared to second quarter 2020.

Net earnings in second quarter 2021 were $109 million, or $0.71 per diluted share, as compared to net earnings of $100 million, or $0.64 per diluted share, in second quarter 2020.

The effective tax rate in second quarter 2021 was 29.7%, as compared to 30.8% in second quarter 2020.
further detail at: https://ir.sealedair.com/news-releases/news-release-details/see-reports-q2-2021-results

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