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2023 ANNUAL REPORT
2023 ANNUAL REPORT SONOCO 2023 Percentage of Sales by Region Who We Are. Founded in 1899, Sonoco (NYSE: SON) is a global provider of highly engineered and sustainable packaging products. With net sales of approximately $6.8 billion in 2023, the Company has approximately 23,000 employees working in more than 300 operations around the world, serving some of the world s best-known brands. With our corporate purpose of Better Packaging. Better Life., Sonoco is committed to creating sustainable products and a better world for our customers, employees, and communities. Sonoco was named one of America s Most Responsible Companies by Newsweek. For more information on the Company, visit our website at www.sonoco.com. +29% 2020 2021 2022 $6.8B Net Sales U.S. $ Billions 2023 78% 14% 2021 2022 2023 EMEA 5% APAC 3% SOUTH AMERICA +35% 2020 NORTH AMERICA +38% 2020 2021 2022 2023 $1,067M $5.26 U.S. $ Millions U.S. $ / Diluted Share Adjusted EBITDA* * See reconciliations of these non-GAAP financial measures to the nearest GAAP measures on page 10. Adjusted EPS*
SONOCO 2023 ANNUAL REPORT Progress On Our Transformation Journey. R. Howard Coker President and CEO In 2023, we continued to make progress on strategic initiatives and delivered solid results in a difficult macroeconomic environment. Despite lower volumes, we maintained strong adjusted EBITDA margins supported in part by record performances in our Consumer segment rigid paper cans and flexibles businesses. In the Industrial segment, despite volume levels similar to 2008, our team delivered record profit margins through diligent cost management throughout the paper ecosystem. With intentional focus on working capital, we generated record operating cash flow and free cash flow for the year. We also returned capital to shareholders and increased our annual dividend for the 40th straight year. These results were the second best annual financial performance in the company s history and were delivered by the continued resiliency and dedication of the incredible Sonoco team. As we celebrate our 125th anniversary, we reflect not only on the great history of innovation, ingenuity, and people that have defined Sonoco, but also on the progress of our more recent, multi-year transformation journey to improve the performance of the company. We have built a stronger and more focused portfolio that delivers greater value. We have simplified the company and unified our global operating model, and we have improved financial results. We did all of this while remaining disciplined with capital allocation and managing risks while maintaining a strong capital structure. While we continue portfolio simplification in the near-term, we look to the future focused on four core businesses; three in Consumer (rigid paper containers, metal packaging, and our new scaled flexibles and thermoforming packaging business, effective as of January 1, 2024) and a single global platform in our Industrial Paper segment. Each is aligned to the attributes of a core Sonoco business where we believe packaging adds the most value: advanced material science, high product functionality, continuous process manufacturing, the ability to serve large, global customers, and participation in markets where we have the right to win and take leadership positions. Consumer Packaging Segment Rigid Paper Containers Metal Packaging Industrial Paper Segment Flex-Therm Industrial Paper Packaging These two segments contain our four core businesses; remaining businesses reported as All Other 2
3 2023 ANNUAL REPORT Consumer Segment RIGID PAPER CONTAINERS Enhance your brand s sustainability ethos with our rigid paper containers. Lightweight, convenient, and boasting superior shelf presence, they embody eco-friendly excellence. SONOCO Rigid Paper Containers In the changing landscape of sustainable packaging, paper continues to emerge as a preferred substitute for manufacturers worldwide. As a global leader in Rigid Paper Containers (RPC), Sonoco is uniquely positioned to take advantage of secular tailwinds driving growth with our commitment to innovative products and processes while staying cost competitive for our customers. Today, RPC serves thee major markets: food and beverage, household, and health and personal care, each of which are primed for future growth from favorable macro trends. The first trend is sustainability, which is a key element of our customers packaging strategy to meet consumer preferences and regulatory requirements. We are differentiated because we have the know-how in engineering and science to transition multiple substrates into our fully recyclable paper products. The second trend is international expansion as our food customers are expanding globally. Sonoco serves customers throughout our global network and we are willing to invest alongside our customers to make capital investments to meet this demand. Today, we have 39 global sites in 13 countries; we plan to expand some sites and open new sites to increase capacity and enable more customers to launch in a sustainable packaging solution from the start. Key End Markets Food & Beverage Health & Personal Care Household & Home Care All trademarks, registered or unregistered, are the property of their respective owners. Specific ownership information available upon request. The third growth trend is innovation. The launch of Sonoco s patented GreenCan/ Kosmos solution, which offers 90% to 98% recycled fiber, is a notable example. These products meet high barrier requirements for products such as coffee or cocoa powder and have gained positive market feedback. From the confluence of these factors, we are expecting increased revenues in the next five years. Through strong collaboration with customers, our dedicated team of experts continues to innovate and be a positive change disruptor for the future.
SONOCO Metal Packaging In 2022, Sonoco created a new core, consumer platform by acquiring capabilities for tinplate steel aerosol and food can manufacturing and merging with our existing metal component and closures capabilities. To date, we are well ahead of planned synergies and we continue to make strategic investments within our operations network to better serve customers with this highly sustainable substrate. With a streamlined footprint of 12 domestic operations in the U.S., our network of plants drives economic value for our customer base by reducing freight cost while also allowing for rapid response times to dynamic supply needs. Our capital investments are centered on continuing to drive operational excellence and innovations within our business, including the aerosol marketplace, where we are the only producer of both 2-piece and 3-piece aerosol cans, and accelerating our progress on automation and digital technologies. In the markets we serve, prioritizing growth and delivering top-tier quality and service to our core customers is essential, while our innovative approach sets us apart. We are leaders in aerosol can manufacturing, serving markets like spray paint, household products, and personal care items. In food cans, we serve markets including vegetables, tomatoes, and baked beans, while expanding into dairy products and ready-made foods such as chilis, soups, and wet pet food. Our focus is on nurturing strong customer relationships and leveraging innovation to enhance value within our established packaging formats. Metal packaging is a stable business producing solid cash flows with growth opportunities over the next several years. Capital investments will continue to drive operational performance as we look to expand profits with a focused investment strategy for growth, continuous improvement, and innovations with one of the most recycled substrates in the market today. 2023 ANNUAL REPORT Consumer Segment METAL PACKAGING Protect consumer products while protecting the environment with sustainable metal packaging that amplifies your brand on store shelves. Whether it s food cans, aerosol cans, or metal can ends, our innovative solutions are backed by decades of experience. Key Product Lines Food and Beverage Cans Beans, Vegetables and Tomatoes, Soups and Chilis, Meats, Milk Aerosol Cans Spray Paint, Household Products, Whipped Toppings, Personal Care 4
 • shareholder letter icon 3/15/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/17/2023 SON Stockholder Letter
 • stockholder letter icon More "Packaging & Containers" Category Stockholder Letters
 • Benford's Law Stocks icon SON Benford's Law Stock Score = 70


SON Shareholder/Stockholder Letter Transcript:

2023
ANNUAL REPORT

2023 ANNUAL REPORT
SONOCO
2023 Percentage of
Sales by Region
Who We Are.
Founded in 1899, Sonoco (NYSE: SON) is a global provider
of highly engineered and sustainable packaging products.
With net sales of approximately $6.8 billion in 2023, the
Company has approximately 23,000 employees working in
more than 300 operations around the world, serving some
of the world   s best-known brands.
With our corporate purpose of Better Packaging. Better
Life., Sonoco is committed to creating sustainable products
and a better world for our customers, employees, and
communities. Sonoco was named one of America   s
Most Responsible Companies by Newsweek. For more
information on the Company, visit our website at
www.sonoco.com.
+29%
2020
2021
2022
$6.8B
Net Sales
U.S. $ Billions
2023
78%
14%
2021
2022
2023
EMEA
5%
APAC
3%
SOUTH
AMERICA
+35%
2020
NORTH
AMERICA
+38%
2020
2021
2022
2023
$1,067M
$5.26
U.S. $ Millions
U.S. $ / Diluted Share
Adjusted EBITDA*
* See reconciliations of these non-GAAP financial measures to the nearest GAAP measures on page 10.
Adjusted EPS*

SONOCO
2023 ANNUAL REPORT
Progress On Our
Transformation
Journey.
R. Howard Coker
President and CEO
In 2023, we continued to make progress on strategic initiatives and
delivered solid results in a difficult macroeconomic environment. Despite
lower volumes, we maintained strong adjusted EBITDA margins supported
in part by record performances in our Consumer segment rigid paper cans
and flexibles businesses. In the Industrial segment, despite volume levels
similar to 2008, our team delivered record profit margins through diligent
cost management throughout the paper ecosystem. With intentional focus
on working capital, we generated record operating cash flow and free cash
flow for the year. We also returned capital to shareholders and increased
our annual dividend for the 40th straight year. These results were the
second best annual financial performance in the company   s history and
were delivered by the continued resiliency and dedication of the incredible
Sonoco team.
As we celebrate our 125th anniversary, we reflect not only on the great
history of innovation, ingenuity, and people that have defined Sonoco, but also on the progress of our more recent,
multi-year transformation journey to improve the performance of the company. We have built a stronger and more
focused portfolio that delivers greater value. We have simplified the company and unified our global operating
model, and we have improved financial results. We did all of this while remaining disciplined with capital allocation
and managing risks while maintaining a strong capital structure.
While we continue portfolio simplification in the near-term, we look to the future focused on four core businesses;
three in Consumer (rigid paper containers, metal packaging, and our new scaled flexibles and thermoforming
packaging business, effective as of January 1, 2024) and a single global platform in our Industrial Paper segment.
Each is aligned to the attributes of a core Sonoco business where we believe packaging adds the most value:
advanced material science, high product functionality, continuous process manufacturing, the ability to serve large,
global customers, and participation in markets where we have the right to win and take leadership positions.
Consumer Packaging Segment
Rigid Paper Containers
Metal Packaging
Industrial Paper Segment
Flex-Therm
Industrial Paper Packaging
These two segments contain our four core businesses; remaining businesses reported as All Other
2

3
2023 ANNUAL REPORT
Consumer Segment
RIGID
PAPER
CONTAINERS
Enhance your brand   s
sustainability ethos
with our rigid
paper containers.
Lightweight, convenient,
and boasting superior
shelf presence, they
embody eco-friendly
excellence.
SONOCO
Rigid Paper Containers
In the changing landscape of sustainable
packaging, paper continues to emerge as
a preferred substitute for manufacturers
worldwide. As a global leader in Rigid
Paper Containers (RPC), Sonoco is uniquely
positioned to take advantage of secular
tailwinds driving growth with our commitment
to innovative products and processes while
staying cost competitive for our customers.
Today, RPC serves thee major markets: food
and beverage, household, and health and
personal care, each of which are primed for
future growth from favorable macro trends.
The first trend is sustainability, which is a key
element of our customers    packaging strategy
to meet consumer preferences and regulatory
requirements. We are differentiated because
we have the know-how in engineering and
science to transition multiple substrates into
our fully recyclable paper products.
The second trend is international expansion
as our food customers are expanding globally.
Sonoco serves customers throughout our global
network and we are willing to invest alongside
our customers to make capital investments to
meet this demand. Today, we have 39 global
sites in 13 countries; we plan to expand some
sites and open new sites to increase capacity
and enable more customers to launch in a
sustainable packaging solution from the start.
Key End Markets
Food & Beverage
Health & Personal Care
Household & Home Care
All trademarks, registered or unregistered, are the property of their respective owners.
Specific ownership information available upon request.
The third growth trend is innovation. The
launch of Sonoco   s patented GreenCan/
Kosmos solution, which offers 90% to 98%
recycled fiber, is a notable example. These
products meet high barrier requirements for
products such as coffee or cocoa powder and
have gained positive market feedback.
From the confluence of these factors, we are
expecting increased revenues in the next
five years. Through strong collaboration with
customers, our dedicated team of experts
continues to innovate and be a positive
change disruptor for the future.

SONOCO
Metal Packaging
In 2022, Sonoco created a new core, consumer
platform by acquiring capabilities for tinplate
steel aerosol and food can manufacturing and
merging with our existing metal component
and closures capabilities. To date, we are well
ahead of planned synergies and we continue
to make strategic investments within our
operations network to better serve customers
with this highly sustainable substrate.
With a streamlined footprint of 12 domestic
operations in the U.S., our network of plants
drives economic value for our customer base
by reducing freight cost while also allowing for
rapid response times to dynamic supply needs.
Our capital investments are centered on
continuing to drive operational excellence and
innovations within our business, including the
aerosol marketplace, where we are the only
producer of both 2-piece and 3-piece aerosol
cans, and accelerating our progress
on automation and digital technologies.
In the markets we serve, prioritizing growth
and delivering top-tier quality and service
to our core customers is essential, while our
innovative approach sets us apart. We are
leaders in aerosol can manufacturing, serving
markets like spray paint, household products,
and personal care items. In food cans, we
serve markets including vegetables, tomatoes,
and baked beans, while expanding into dairy
products and ready-made foods such as chilis,
soups, and wet pet food. Our focus is on
nurturing strong customer relationships and
leveraging innovation to enhance value within
our established packaging formats.
Metal packaging is a stable business
producing solid cash flows with growth
opportunities over the next several years.
Capital investments will continue to drive
operational performance as we look to expand
profits with a focused investment strategy
for growth, continuous improvement, and
innovations with one of the most recycled
substrates in the market today.
2023 ANNUAL REPORT
Consumer Segment
METAL
PACKAGING
Protect consumer products while
protecting the environment with
sustainable metal packaging that
amplifies your brand on store
shelves. Whether it   s food cans,
aerosol cans, or metal can ends,
our innovative solutions
are backed by
decades of
experience.
Key Product Lines
Food and Beverage Cans
Beans, Vegetables and Tomatoes,
Soups and Chilis, Meats, Milk
Aerosol Cans
Spray Paint, Household Products,
Whipped Toppings, Personal Care
4



shareholder letter icon 3/15/2024 Letter Continued (Full PDF)
 

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