Silgan Announces Strong Growth in 2022; Anticipates Increased Revenue, Segment Income and Free Cash Flow In 2023

Silgan Holdings Inc. (NYSE:SLGN), a leading supplier of sustainable rigid packaging solutions for the world’s essential consumer goods products, today reported record full year net sales of $6.41 billion, a 12.9 percent increase over prior year net sales of $5.68 billion, and full year 2022 net income of $340.8 million, or $3.07 per diluted share, as compared to full year 2021 net income of $359.1 million, or $3.23 per diluted share.

Adjusted net income per diluted share for the full year of 2022 was a record $3.98, after adjustments increasing net income per diluted share by $0.91 primarily related to the write-off of net assets in Russia. Adjusted net income per diluted share for the full year of 2021 was $3.40, after adjustments increasing net income per diluted share by $0.17 primarily related to rationalization charges. A reconciliation of historical net income per diluted share to “adjusted net income per diluted share,” a Non-GAAP financial measure used by the Company that adjusts net income per diluted share for certain items, can be found in Table A at the back of this press release.

“The Silgan team continued to operate at a very high level, capitalizing on our momentum in the marketplace alongside our customers in 2022. As a result, we delivered our 6th consecutive year of record adjusted EPS in 2022, with a new all-time record that is 17 percent above the previous record in 2021,” said Adam Greenlee, President and CEO. “Since our founding, our unique business model has proven successful throughout a variety of economic cycles as demonstrated by our 12 percent 10 year CAGR for adjusted EPS. The past three years have showcased the exceptional strength of our team and the execution of our strategic initiatives as well as our ability to adapt to rapidly changing market conditions, with a greater than 20 percent CAGR for adjusted EPS from pre-pandemic levels,” continued Mr. Greenlee.

“As our focus shifts to 2023, we believe the prospects for continued success and growth are stronger than at any point in our history. We expect the results of our long-term growth strategy of building partnerships with our customers, financial discipline, effective deployment of capital and a relentless focus on costs and profitability will continue to deliver increased revenues, organic volume growth and increased segment income in 2023, as well as significantly improved free cash flow generation,” concluded Mr. Greenlee.

The Company reported net cash provided by operating activities of $748.4 million in 2022 as compared to $556.8 million in 2021. Free cash flow for 2022 was $368.2 million as compared to $466.1 million in 2021. The decrease in free cash flow was due primarily to higher working capital, the payment of the European Commission settlement and higher interest payments, partially offset by higher income before interest and income taxes in 2022. The Company is providing a reconciliation in Table C of this press release of net cash provided by operating activities to “free cash flow,” a Non-GAAP financial measure used by the Company which adjusts net cash provided by operating activities for certain items. Net sales for 2022 were $6.41 billion, an increase of $734.4 million, or 12.9 percent, as compared to $5.68 billion in 2021. This increase was the result of higher net sales in all segments.

Income before interest and income taxes for 2022 was a record $602.0 million, an increase of $25.9 million, or 4.5 percent, as compared to $576.1 million for 2021, while margins decreased to 9.4 percent from 10.1 percent for the same periods largely due to $74.1 million of rationalization charges in 2022. The increase in income before interest and income taxes was the result of higher income in the Dispensing and Specialty Closures and Custom Containers segments, partially offset by lower income in the Metal Containers segment due to higher rationalization charges and higher corporate expenses as a result of a charge of $25.2 million related to the European Commission settlement. Rationalization charges were $74.1 million in 2022 primarily due to the write-off of net assets to service the Russian market in the Metal Containers segment, which also decreased margins in 2022 as compared to 2021. Rationalization charges were $15.0 million in 2021. The full year of 2021 also included costs attributed to announced acquisitions and a charge for the write-up of inventory for purchase accounting of $5.0 million and $2.6 million, respectively.
more at: https://www.silganholdings.com/news/news-details/2023/Silgan-Announces-Strong-Growth-in-2022-Anticipates-Increased-Revenue-Segment-Income-and-Free-Cash-Flow-In-2023/default.aspx

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