- Sonoco Products Co (NYSE:SON) reported second-quarter FY22 sales of 38% year-on-year to $1.91 billion, beating the consensus of $1.87 billion.
- Consumer Packaging sales rose 65.6% Y/Y to $990 million, and Industrial Paper Packaging sales gained 19.5% to $727.4 million.
- Gross profit rose 47.3% to $387 million. The gross margin expanded 120 basis points to 20.2%.
- Selling, general and administrative expenses rose 38.8% Y/Y to $178.9 million.
- The operating margin was 10.3%, and the operating income was $197.5 million.
- The company held $174.9 million in cash and equivalents as of July 3, 2022. Cash generated from operations for six months was $184.5 million, and free cash flow was a provision of $40.3 million.
- Base EPS of $1.76 beat the analyst consensus of $1.68.
- Dividend: Sonoco declared a $0.49 per share quarterly dividend, payable on September 9, 2022, to shareholders of record as of August 10, 2022.
- Outlook: Sonoco sees Q3 EPS of $1.35 – $1.45, versus the consensus of $1.17.
- SON raised the FY22 Base EPS outlook to $6.20 – $6.30 (prior view $5.25 – $5.45), against the consensus of $5.71.
- Price Action: SON shares traded higher by 3.08% at $61.33 on the last check Thursday.
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Cannabis Fintech Co. Seeks TSXV Listing As POSaBIT CEO Highlights Potential Benefits
Cannabis payment solutions provider POSaBIT Systems has applied for its common shares to be listed on the TSX Venture Exchange. POSaBIT Systems' CEO and co-founder, Ryan Hamlin, described the application as a continuation of its commitment to increase investment and liquidity options to shareholders. The listing is subject to TSX Venture Exchange review and the fulfilment of all requisite listing and regulatory requirements. The application follows POSaBIT's announcement that it plans to engage in a non-brokered private placement deal of up to 3,107,142 units for gross total proceeds of around CA$870,000 ($652,654). Each unit will be comprised of one common share and 0.88 common share purchase warrants, with each warrant exercisable into one common share in the company at CA$0.40 per warrant share for five years.
