Sonoco Products Co

SON: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$65.00	Rmz	Sgwbsmhjv

Sonoco Earnings: Volumes Remain Pressured Amid Tepid Global Packaging Demand

Spencer Liberman

Aug 1, 2023

No-moat-rated Sonoco reported underwhelming second-quarter results, largely due to higher-than-expected inventory destocking and softening end market demand. Net sales fell almost 11% year over year as all three segments saw declines in volumes. Despite strong demand for some of its consumer packaging, Sonoco continues to navigate a challenging operating environment as inventory management and inflationary pressures weigh on demand for its products. As such, we maintain our $55 fair value estimate.

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