Q1 2025 Sealed Air Corp Earnings Call Transcript
Key Points
- Sealed Air Corp (SEE) reported a strong first quarter performance, with adjusted EBITDA up 2% on a constant currency basis and adjusted earnings per share up 9% on a constant currency basis.
- The company successfully completed the integration of its supply chains into two market-focused businesses, Food and Protective, enhancing its ability to serve customers and adapt to market dynamics.
- The Food segment delivered modest volume growth, driven by market share gains in retail end markets and a shift in consumer preferences towards fresh foods.
- Sealed Air Corp (SEE) is well-positioned against direct tariffs due to its largely domestic production for domestic consumption model and exemptions under USMCA.
- The company is taking proactive measures to mitigate potential tariff impacts and minimize inflation through supply chain optimization and pricing actions.
- Net sales for the first quarter were down 2% on a constant currency basis, with volumes declining primarily in the Protective segment.
- The Protective segment experienced an 8% organic decline in net sales, driven by volume declines and unfavorable net price realization.
- There is ongoing concern about potential trade-downs in the US beef market, which could impact the Food segment's performance.
- Sealed Air Corp (SEE) operates in a low visibility environment, particularly in the Protective segment, with uncertainties around trade policies and market demand.
- Free cash flow was a use of $12 million in the first quarter, compared to a source of $78 million in the same period last year, primarily due to increased incentive compensation and tax payments.
Good day, and thank you for standing by. Welcome to the Sealed Air Q1 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference call is being recorded.
I would now like to hand the conference over to your first speaker today, Mark Stone.
Thank you, and good morning, everyone. This is Mark Stone, Sealed Air's Vice President, Investor Relations. With me today are Dustin Semach, our President and CEO; and Roni Johnson, our interim CFO.
Before we begin our call, I would like to note that we have provided a slide presentation to supplement today's discussion. This presentation, along with our first quarter earnings release, is available to download from our Investor Relations page on our website at car.com.
I would like to remind everyone that during today's call, we may make forward-looking statements including our outlook or estimate for future periods. These statements are based solely on information that is currently available to
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