Sealed Air Half-Year Report 2023
The Liquibox acquisition had a favorable impact of $75 million, or 9%, and price realization had a favorable impact of $24 million, or 3%. Volumes were essentially flat with growth in our food automation solutions offset by continued food retail market declines and the adverse impact from prior supply disruptions. Adjusted EBITDA of $191 million, or 21.7% of net sales, increased 14% from $168 million, or 20.8% of net sales.
The increase in Adjusted EBITDA was primarily attributable to the Liquibox acquisition.
Second quarter net sales in Protective were $500 million, a decrease of 18% as reported. Currency fluctuations had an unfavorable impact of $3 million, or less than 1%. On a constant dollar basis, net sales decreased $109 million, or 18%. Volumes decreased $115 million, or 19%, resulting from continued market pressures and destocking in the industrial and fulfillment sectors.
Reinvent Sealed Air 2.0
- Accelerating Growth Platforms with a Customer First Solutions Approach: Expand and grow our portfolio of automated solutions, advance our prismiq™ digital printing & services, develop new innovative sustainable solutions, and expand our digital e-commerce platform.
- Expanding the Fluids & Liquids Business, synergizing the competitive strengths of Cryovac and
Liquibox: Combining highly complementary solutions within SEE’s fast-growing fluids & liquids business while generating strong synergies and accelerating innovation. - Drive SEE Operational Excellence, Automating & Digitizing the Global Network with SEE
Touchless Automation: Heightened focus on world-class operations, operating leverage, productivity, zero-harm, and flawless quality in everything we do, to make every customer a reference. - SEE Operating Model and Engine: Deliver high-quality growth faster than the markets we serve as we simplify and digitize our organizational structure to withstand global slowdowns and offset inflation
Second Quarter 2023 U.S. GAAP Summary
- Net sales of $1.38 billion decreased 3% as reported, with Americas decreasing 4%, EMEA essentially flat and APAC increasing 1%.
- Net earnings were $94 million, or $0.65 per diluted share, as compared to net earnings of $114 million, or $0.77 per diluted share.
- Income tax expense was $45 million, resulting in an effective tax rate of 32.5% in the second quarter of 2023. This compares to an income tax expense of $43 million in the prior year, or an effective tax rate of 27.2%.
Second Quarter 2023 Non-U.S. GAAP Summary
- Net sales decreased $12 million, or 1%, on a constant dollar basis. Volumes decreased by $117 million, or 8%, while the Liquibox acquisition had a favorable impact of $75 million, or 5%, and price realization had a favorable impact of $30 million, or 2%. By region, in constant dollars, APAC increased 6% and EMEA was essentially flat, while the Americas decreased 2%.
- Adjusted EBITDA was $280 million, or 20.3% of net sales, as compared to $293 million, or 20.7%. The decrease in Adjusted EBITDA was primarily due to lower volumes, partially offset by earnings generated from Liquibox.
- The Adjusted Tax Rate was 26.9% in the second quarter of 2023, as compared to 24.7% in the prior year
- Adjusted earnings per diluted share decreased to $0.80, from $1.01, primarily due to lower Adjusted EBITDA and higher interest expense, partially offset by the operating income generated from Liquibox.
