Sonoco's Q1 2025: Unpacking Contradictions in Consumer Packaging Growth, Eviosys Performance, and Sustainability Goals

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Strong Financial Performance:
- Sonoco Products Company reported net sales of $1.7 billion for Q1 2025, up 31% year-over-year, along with adjusted EBITDA increasing by 38%.
- The growth was driven by a full quarter of the Eviosys acquisition, positive price-cost dynamics, and improved productivity.

Consumer Segment Performance:
- The consumer segment saw a remarkable 127% increase in adjusted EBITDA, attributed to the acquisition of Eviosys, strong volume mix, and favorable price-cost dynamics.
- The integration of Eviosys produced synergy savings, with the company expecting $40 million in savings for 2025.

Industrial Segment Challenges:
- The industrial segment experienced a 6% improvement in adjusted EBITDA, despite challenges such as lower volumes and a planned exit from Chinese operations.
- The improvement was driven by favorable price-cost dynamics and productivity gains, though volume softness was noted in certain regions.

Global Metal Packaging Integration:
- Sonoco achieved a strong integration of its metal packaging businesses, aiming to treat operations as a single enterprise for synergy savings and innovation.
- The integration is expected to capture best practices, enhance global supply chain strength, and drive long-term savings.