Sonoco Products Company: Initiation Of Coverage – Competitive Advantage, Capital Allocation & M&A Strategy!

Sonoco’s management, during its Fourth Quarter 2023 Earnings, commented on its strategic initiatives and financial performance despite a challenging year. The company encountered lower volumes throughout 2023 but managed to deliver strong EBITDA margins of 15.7%, similar to the previous year. These strong margins stemmed from record performances in rigid paper cans and flexibles businesses. On the industrial side, despite volume levels comparable to 2008, the team delivered record profit margins due to diligent cost management across the paper ecosystem.