Benzinga | Jul 22, 2021 03:39PM EDT

Sonoco Products Posts Mixed Q2 Results; Backs FY21 Guidance

* Sonoco Products Co (NYSE:SON) reported second-quarter FY21 net revenue growth of 11.1% year-on-year to $1.38 billion, beating the analyst consensus of $1.30 billion.

* Consumer Packaging sales rose 4.3% Y/Y to $597.8 million, and the Industrial Paper Packaging sales gained 33.7% to $608.5 million.

* Gross profit rose 5.9% to $262.7 million. The gross margin declined 92 basis points to 19.0%.

* Selling, general and administrative expenses rose 6.1% Y/Y to $128.8 million.

* The operating margin was 9.8%, and the operating income was $135.2 million.

* The company held $263.5 million in cash and equivalents as of July 4, 2021. Cash generated from operations for the year-to-date period was $102.0 million, versus $282.0 million last year.

* Base EPS of $0.84 missed the analyst consensus of $0.86.

* "Sonoco's balanced mix of consumer and industrial packaging businesses achieved second quarter base earnings results which were well within our guidance range despite unprecedented raw material and non-material inflation and some continued impact of COVID-19 on certain of our served markets," said CEO Howard Coker.

* Outlook: Sonoco sees Q3 Base EPS of $0.87 - $0.93, versus the consensus of $0.91.

* FY21 Base EPS outlook unchanged at $3.50 - $3.60, versus the consensus of $3.57.

* Price action: SON shares are trading lower by 4.66% at $62.58 on the last check Thursday.