Sealed Air Corporation (SEE) Bundle
A Brief History of Sealed Air Corporation
Sealed Air Corporation, known for its innovative packaging solutions, has undergone significant transformations over the years, particularly in recent times as of 2024. The company has strategically focused on enhancing its operational efficiency and expanding its market presence through acquisitions and restructuring efforts.
Acquisition of Liquibox
In 2023, Sealed Air completed the acquisition of Liquibox for approximately $1.148 billion, net of cash acquired. This acquisition aimed to bolster Sealed Air's capabilities in flexible packaging, complementing its existing product portfolio. By September 30, 2024, the Liquibox acquisition contributed an additional $23 million to net sales for the nine months ended, reflecting the company's commitment to growth through strategic investments.
Financial Performance Overview
For the nine months ended September 30, 2024, Sealed Air reported total net sales of $4.019 billion, a decrease of 2.2% compared to $4.111 billion in the same period of 2023. The primary factors contributing to this decline included lower volumes and unfavorable pricing, particularly in the Americas and EMEA regions.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Sales (in millions) | $4,019.8 | $4,111.4 | -2.2% |
| Cost of Sales (in millions) | $2,801.5 | $2,875.0 | -2.6% |
| SG&A Expenses (in millions) | $563.8 | $582.6 | -3.2% |
| Net Earnings (in millions) | $269.9 | $214.4 | +25.9% |
Segment Performance
Sealed Air operates primarily through two segments: Food and Protective. As of September 30, 2024, net sales by segment were as follows:
| Segment | Net Sales (in millions) | Percentage of Total Sales |
|---|---|---|
| Food | $2,660.1 | 66.2% |
| Protective | $1,359.7 | 33.8% |
Cost Management Initiatives
In August 2023, Sealed Air initiated the CTO2Grow Program, a three-year cost take-out program aimed at generating annualized savings of between $140 million and $160 million by the end of 2025. As of September 30, 2024, the program has already yielded significant cost benefits, with an estimated $71 million in savings realized for the nine-month period.
Cash Flow and Liquidity
Sealed Air's cash flow from operating activities for the nine months ended September 30, 2024, was reported at $483.8 million, a substantial increase from $192.5 million in the prior year. This increase is attributed to improved working capital management and lower tax payments.
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash Flow from Operating Activities | $483.8 | $192.5 |
| Capital Expenditures | $161.1 | $185.0 |
Debt Management
In June 2024, Sealed Air issued $400 million in senior notes due 2032, demonstrating its proactive approach to managing its capital structure. The proceeds from this issuance were primarily used to repurchase existing debt, enhancing the company's financial flexibility.
Conclusion of Financial Year
As Sealed Air moves forward, it continues to adapt to market challenges while leveraging its strengths in innovation and operational efficiency. The company's focus on strategic acquisitions and cost management positions it for sustainable growth in the packaging industry.
A Who Owns Sealed Air Corporation (SEE)
Major Shareholders
As of 2024, Sealed Air Corporation (NYSE: SEE) has a diverse shareholder base that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder | Ownership Percentage | Type of Holder |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | Institutional Investor |
| BlackRock, Inc. | 7.2% | Institutional Investor |
| State Street Corporation | 4.9% | Institutional Investor |
| Wellington Management Group LLP | 4.5% | Institutional Investor |
| Invesco Ltd. | 3.7% | Institutional Investor |
| Other Institutional Holders | 36.4% | Various |
| Retail Investors | 30.8% | Individual Shareholders |
Insider Ownership
Insider ownership in Sealed Air Corporation also plays a significant role in the company's governance. As of early 2024, the following executives and board members hold notable stakes:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Kristin B. McKenzie | CEO | 175,000 | 0.12% |
| Edward J. B. H. P. F. Blanchard | Chairman | 100,000 | 0.07% |
| Other Executives | N/A | 450,000 | 0.31% |
Market Capitalization and Stock Performance
The market capitalization of Sealed Air Corporation as of September 30, 2024, is approximately $4.5 billion, with a stock price trading around $50 per share. The stock has shown a performance trend as follows:
| Date | Stock Price | Market Capitalization |
|---|---|---|
| September 2023 | $48.00 | $4.4 billion |
| December 2023 | $52.00 | $4.8 billion |
| March 2024 | $49.50 | $4.5 billion |
| June 2024 | $50.00 | $4.5 billion |
| September 2024 | $50.00 | $4.5 billion |
Dividends and Financial Performance
Sealed Air Corporation has a history of returning capital to shareholders through dividends. In 2024, the company declared quarterly dividends as follows:
| Dividend Declaration Date | Dividend per Share | Total Amount Paid |
|---|---|---|
| February 21, 2024 | $0.20 | $29.1 million |
| May 23, 2024 | $0.20 | $29.1 million |
| July 23, 2024 | $0.20 | $29.1 million |
| October 17, 2024 | $0.20 | Upcoming |
Net earnings reported for the nine months ended September 30, 2024, were $272 million, reflecting strong operational performance despite market challenges.
Sealed Air Corporation (SEE) Mission Statement
Overview
Sealed Air Corporation focuses on delivering innovative packaging solutions that enhance product protection and improve sustainability. The company's mission is to provide solutions that are sustainable, efficient, and cost-effective, while also ensuring the safety and integrity of products throughout the supply chain.
Mission Statement Details
The mission statement of Sealed Air Corporation as of 2024 emphasizes the following key components:
- Innovation: Commitment to continuous innovation in packaging solutions.
- Sustainability: Focus on reducing environmental impact through sustainable practices.
- Customer Focus: Providing value to customers by enhancing their operational efficiencies.
Financial Performance
As of September 30, 2024, Sealed Air Corporation reported the following financial metrics:
| Metric | Value (in millions USD) |
|---|---|
| Net Sales | $2,660.1 |
| Gross Profit | $401.5 |
| Operating Profit | $186.3 |
| Net Earnings | $91.7 |
| Basic Earnings Per Share | $0.63 |
Market Segments
Sealed Air operates primarily in two segments: Food and Protective. The performance of these segments as of September 30, 2024, is summarized below:
| Segment | Net Sales (in millions USD) | Percentage of Total Sales |
|---|---|---|
| Food | $893.4 | 34.6% |
| Protective | $488.4 | 19.5% |
| Total Company | $1,381.8 | 100% |
Recent Strategic Initiatives
In 2024, Sealed Air Corporation has implemented various strategic initiatives to align with its mission statement:
- CTO2Grow Program: Aims to deliver annualized savings of $140 to $160 million by 2025, focusing on operational efficiency.
- Acquisition of Liquibox: Completed on February 1, 2023, for approximately $1.16 billion, enhancing its food packaging capabilities.
Debt and Financing
As of September 30, 2024, Sealed Air holds significant debt obligations:
| Debt Type | Amount (in millions USD) |
|---|---|
| Senior Secured Credit Facility | $1,136.6 |
| 2032 Senior Notes | $400.0 |
| Total Debt | $1,536.6 |
Stock Performance
As of September 30, 2024, Sealed Air's stock performance is reflected in the following metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $4.5 billion |
| Share Price | $30.87 |
| Dividend Yield | 2.5% |
How Sealed Air Corporation (SEE) Works
Company Overview
Sealed Air Corporation (NYSE: SEE) is a global leader in packaging solutions, primarily focusing on food packaging and protective packaging. As of 2024, the company operates through two main segments: Food and Protective.
Financial Performance
As of September 30, 2024, Sealed Air reported net sales of $4,019.8 million, a decrease of 2.2% compared to $4,111.4 million in 2023. The breakdown of net sales by segment is as follows:
| Segment | 2024 Net Sales (in millions) | 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| Food | $2,660.1 | $2,627.1 | 1% |
| Protective | $1,359.7 | $1,484.3 | -8.4% |
| Total Company | $4,019.8 | $4,111.4 | -2.2% |
Cost Structure
The cost of sales for the three months ended September 30, 2024, was reported at $943.6 million, compared to $968.5 million in 2023. The cost of sales as a percentage of net sales was 70.2% in 2024, slightly up from 70.1% in 2023.
Operating Expenses
Selling, general, and administrative expenses (SG&A) for the three months ended September 30, 2024, were $187.1 million, an increase of 3% from $181.8 million in 2023. This represents 13.9% of net sales in 2024 compared to 13.2% in 2023.
Net Earnings
Net earnings from continuing operations for the three months ended September 30, 2024, were $88.7 million, a significant increase of 54% from $57.6 million in 2023. For the nine months ended September 30, 2024, net earnings were $269.9 million, up 25.9% from $214.4 million in 2023.
Segment Adjusted EBITDA
Adjusted EBITDA by segment for the three months ended September 30, 2024, is as follows:
| Segment | 2024 Adjusted EBITDA (in millions) | 2023 Adjusted EBITDA (in millions) | Change (%) |
|---|---|---|---|
| Food | $205.9 | $194.3 | 6.9% |
| Protective | $75.5 | $95.0 | -20.5% |
| Total Segment Adjusted EBITDA | $281.4 | $289.3 | -2.7% |
Debt and Liquidity
As of September 30, 2024, Sealed Air had total debt outstanding of $197.8 million in short-term borrowings and $58.1 million in the current portion of long-term debt. The weighted average interest rate on long-term debt was 5.5%.
Cash Flow
For the nine months ended September 30, 2024, net cash provided by operating activities was $272 million, compared to $217.6 million in 2023. The company had cash and cash equivalents of $386 million as of September 30, 2024.
Restructuring Initiatives
Sealed Air initiated the CTO2Grow Program in August 2023, with an estimated cash cost of $140 to $160 million aimed at improving operational efficiency. As of September 30, 2024, the company incurred restructuring charges of $24.8 million.
Acquisitions
In February 2023, Sealed Air acquired Liquibox for approximately $1.16 billion. The integration of Liquibox has contributed to the Food segment's growth, with net sales attributed to Liquibox reaching $214.8 million for the nine months ended September 30, 2023.
Market Trends
Sealed Air's market performance reflects challenges such as raw material cost deflation and lower demand in the industrial and fulfillment portfolios. The company aims to leverage its innovative packaging solutions to navigate these market dynamics effectively.
How Sealed Air Corporation (SEE) Makes Money
Overview of Business Segments
Sealed Air Corporation operates primarily through two reportable segments: Food and Protective. The Food segment includes solutions for packaging food products, while the Protective segment provides packaging solutions for various industrial applications.
Financial Performance
As of September 30, 2024, Sealed Air reported consolidated net sales of $1,345.1 million, a decrease of 2.7% from $1,381.8 million in the same period of 2023. For the nine months ended September 30, 2024, net sales were $4,019.8 million, down from $4,111.4 million in 2023, reflecting a decrease of 2.2%.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $1,345.1 | $1,381.8 | $4,019.8 | $4,111.4 |
| Gross Profit (in millions) | $401.5 | $413.3 | $1,218.3 | $1,236.4 |
| Operating Profit (in millions) | $186.3 | $157.6 | $576.9 | $543.4 |
| Net Earnings (in millions) | $91.7 | $56.6 | $272.0 | $217.6 |
Segment Performance
The performance of each segment in 2024 is as follows:
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | 9M 2024 Net Sales (in millions) | 9M 2023 Net Sales (in millions) |
|---|---|---|---|---|
| Food | $897.9 | $893.4 | $2,660.1 | $2,627.1 |
| Protective | $447.2 | $488.4 | $1,359.7 | $1,484.3 |
Cost Structure
For the three months ended September 30, 2024, Sealed Air's cost of sales was $943.6 million, a decrease of 2.6% from $968.5 million in 2023. The cost of sales as a percentage of net sales was 70.2%, slightly up from 70.1% in the previous year. For the nine months, the cost of sales was $2,801.5 million compared to $2,875.0 million in 2023, maintaining a percentage of 69.7% of net sales.
Adjusted EBITDA
Adjusted EBITDA for the Food segment was $205.9 million in Q3 2024, up from $194.3 million in the same quarter of 2023. The Protective segment saw a decline in Adjusted EBITDA to $75.5 million from $95.0 million year-over-year.
| Segment | Q3 2024 Adjusted EBITDA (in millions) | Q3 2023 Adjusted EBITDA (in millions) |
|---|---|---|
| Food | $205.9 | $194.3 |
| Protective | $75.5 | $95.0 |
Impact of Acquisitions
In 2023, Sealed Air acquired Liquibox, which contributed to an additional month of revenues in 2024, amounting to $23 million. This acquisition has strengthened Sealed Air's position in the sustainable packaging sector.
Liquidity and Capital Resources
As of September 30, 2024, Sealed Air had cash and cash equivalents of $386 million, with $334 million located outside the U.S. The company also had access to $137 million under its accounts receivable securitization programs.
| Liquidity Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $386.0 |
| Accounts Receivable Securitization Availability | $137.0 |
| Total Outstanding Borrowings under Securitization | $136.0 |
Conclusion
Sealed Air Corporation continues to adapt its business strategy through acquisitions and operational efficiency, while managing its cost structure to enhance profitability in a challenging market environment.
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Resources:
- Sealed Air Corporation (SEE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sealed Air Corporation (SEE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sealed Air Corporation (SEE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.