SEE - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the Second Quarter 2022 Sealed Air Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] Please be advised, today's conference is being recorded. to Sullivan. conference like speaker to now Brian today, would hand over the your I ahead. go Please

Brian Sullivan

Thank you, our morning, our and good CEO; Ted today and Doheny, are Chris Stevens, CFO. everyone. With me

I Before we have a presentation slide like discussion. note help our that provided guide would to begin we to call, our

website future webcast outlook, from to forward-looking for to in which release and to our visit SEE. periods and go us. predictions sealedair.com. section the statements and applies can a downloaded Ted for at available information today's be presentation addition our earnings IR to during In you stating results encourage the deep are made statements review through are on based our forward-looking presentation solely We Please outlook website now slide information will These management's our this call. dive sustainability Statements where is this that on call or in statements. titled

the to factors. final find and to as performance on updated our reports report XX-K may you Form Additionally, are website. these our quarterly on on most recent also number in Many a which differ current or revised on our GAAP. SEC US listed factors measures of annual discuss on on our report Form We that can do website conform Form and future XX-Q due of X-K, and not

I measures turn included to to to measures GAAP over and Ted. US now presentation, You will non-US in that will three. Ted? today's reconciliation find of earnings this reference on results Operator, throughout corresponds important appendix call you their information financial these GAAP of turn presentation. slide we GAAP the will in use US the to our please our the release, find

Edward Doheny

start and is with for taking We digital you quarter with packaging you, three, graphic automation, earnings our the on our of second and all thank sustainable where XXXX showing we call. Thank Starting joining solutions. slide Brian, purpose. are

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challenging purpose for results first call, XXXX our shareholders. will creation and and today's will discuss SEE see review inflationary and our and can XXXX quarterly and sustained our After in On environment. results Chris detail into Our sales QX a despite strong Chris we financial sustainability that, operating deep performance recap a I and On more strategy. outlook. earnings, drive slide global vision people, our four, delivered then outlook. our our and and value pressures customers you dive I'll provide

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driven slide to by create our our fueling operations continue engine. attractive SEE invest model into where innovative we and targets with our are highlight SEE which leverage returns. global We in we operating to automation, three all our five, and our growth increase On solutions productivity. customer share growth We drive digital sustainability, value to operating

targets than X% over model our to and be SEE cash EPS next growth as operating four years. to growth adjusted of for XX%. years. defined aim growth at cash our sales the X% our free growth the earnings divided performance than X% We've highlights XX%. to by model X% as EBITDA flow updated conversion, actual greater adjusted adjusted deliver free past flow greater net as over operating We're SEE three targeting Our through We XXXX, annual well to

of approximately to We investments, continue year. capital expenditures accelerate of each expecting will X% sales

to the a automation, six we drive as macroeconomic they digital slide faster market-driven to despite sustainability persistent and serve. across create than customers our at headwinds. to Let's using growth and and as constraints markets look well sales supply our inflationary value turn portfolio diversified solutions We for how take solid our performance experienced

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Automation. on turn for SEE slide an seven Let's to update

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pass We company. call are Chris in I review our will more financial detail. to a results the now sustainability to

Chris Stephens

morning Thank and everyone. you, good Ted

see sales well trends by reflecting was as sales review price net up can to QX, XX% were price up volume XX% by region. up pressures. and region. to X%. price favorable down were and XX%, XX segment growth XX, start actions to QX, was inflationary X% $X.X from second and Let's help in slide primarily formula in and net you slide EMEA overall, X% constant our billion. up organic and QX In and in In up growth by pricing in while food by XX% were On mitigate net both volumes food XXXX with protective, and protective. sales In in XX% X% APAC was on as Americas X%. up continued By XX% dollars, pass-throughs growth quarter realization sales segment region, XXXX,

X% in regions. Food EMEA We customers up primarily price Lower our are X%, all to APAC offset Americas volumes a supply down attributed with manner share. disruptions gain X% care and partially down working to with X%. continued with are across disciplined volumes with down to were directly

line given last QX these distribution with COVID-related If economic volumes we X%, were reported volumes declines tougher you and been comps to down year. in vaccine QX exclude all recovery regions with relative in would constraints, in Protective 'XX tailwinds. have

volumes primarily lower to me the adjusted impact costs and China adjusted totaled with $XX performance. due million operating million On nonmaterial our experienced in QX continued $X higher earnings down of labor QX EBITDA discussed consolidated previous let on the disruptions. also XX Unfavorable year, driven in $XXX present the COVID-related up for we from disruptions basis and per supply now comment gains $XX full $X.XX supply sales volumes margins by the during approximately strong mix growth. by slide and diluted Adjusted we lockdowns 'XX compares adjusted million expect loss. the of continued QX expectations was approximately points. or and due We challenges. $XX already to EBITDA our QX and share sales, quarter. operating costs. XX, earnings Having to higher and to million inflation of $X.XX in have of Strong of in lower were driven realization QX favorable EBITDA XX.X%, compared Productivity year, impact million price approximately XX% million last of up margin $XX increased limited

compared tax million. our of same active adjusted with was period of to a stock repurchased We the year. rate last Our quarter buyer approximately XXX,XXX XX.X% XX.X% $XX shares the an were approximately at in in cost

diluted million At to million program. quarter XXX.X share average outstanding was under QX million remaining XXX.X compared weighted shares authorized Our had 'XX. QX in end, repurchase in we $XXX our 'XX

all the with of the price, in mid-single basis with net up increased Turning related to price, quarter. driven $XXX Automation net while primarily XX contributing X% on On both in concerns in a while inventory see X% outlook, to of sales quarter with segment related equipment, compared X% million of XX% to account XX% sales in of We In particularly food. in in the segment in Price with the Protective food increased in year X% in the regions regions are dollars, Price XX, constant to organic on automation or down volume starting of dollars slide again, million customers were was include across market and their service year-over-year, constant and all QX results economic sales for up decline volume basis. favorable X%. sales, $XXX decline general digits. organic and at Adjusted in to million up down points. dollars Russia. X% on approximately XX.X%, slide QX, all was the retail, economic an were contributing systems, XX, by parts basis. saw where was volume impact quarter, favorable regions was an constant to last the and EBITDA $XXX levels. constraints of adjusting margins XX%, down supply The which sanctions sales

Additionally, tough a last we had year. comparison from

volumes quarter industrial second a As following in fueled the fulfillment, COVID last in were e-commerce Protective growth rebound the XXXX. in and XX% strong of the end shutdown year, reminder, in markets up by

million margins at the QX XXX Adjusted the sales AUTOBAG by XX% quarter, in which of sales, EBITDA of As were fueled in for quarter, in points. for up they accounts Auto automation approximately digits placements. X% double the basis segment and $XXX up increased Box with XX.X%,

growth supporting cash material on let's million ago. XX. EBITDA, $XXX strategic capital our initiatives. strong higher and global mainly strategy, by $X increased while driven sheet shareholders. slide our difference on the allocation XXXX outlined inventory to to help On $XX In invested turn we flow half attractive maintain XX, balance million was profitable for mitigate given Now builds same maximizing slide a driving cash costs of focused to flow capital disruptions. was purpose-driven and million higher in value on cash supply returns We stock offset first free by year period free of a adjusted source the a compared of The

We continue adjusted cash going cash earnings to earnings. capital divided And forward, flow, on as Ted noted, plan on measure focus less generation. we expenditures cash we flow specifically adjusted basis, operations to cash net from define as an net free calculating conversion which by strong

sustainability. and approach applications and automation, segments, activities investment our focusing are geographies. as innovation activities digital across We on touchless M&A these on disciplined a such CapEx, We take and

inorganic through planning equipment highlighted, double years Ted in organic As next business Automation slide our SEE we seven, the on the are investments. and three to

FX, guidance from given to range, serve turn sales to markets headwinds review drive end our gain to and share. full care XXXX selected maintaining with pricing EBITDA year outlook. are we Let's and our focus we XX our slide to Despite

million Full growth cash EBITDA outlook a the billion $X.XX amortization guidance net $X.XX XX%. lastly, XX%, outstanding. testament XXX flow of to of $X.XX Our midpoint. effective growth and to model. we and which we a This let the year generating for can a and organic on reported adjusted the of me tax of $XXX adjusted volume margin basis our productivity, operating control. $X.XX and challenges through approximately million free to sales $XXX back is $X.XX approximately range remarks. of billion million. assumes to are EBITDA XX% quarter from executing approximately assumes XX% million to on pass assumes to we and Full With X% strong growth shares to And year EPS reiterating assumes XX%, Ted adjusted driving flow, team flat $XXX which closing and remains billion our growth cash for call to the interest are rate a at at To and of as depreciation now SEE approximately net X% of approximately focused we range price and world-class continue in adjusted is $X.XX strategy, SEE our and of summarize, the performance executing that, million to we $XXX had Ted? work billion

Edward Doheny

Thanks, Chris. XX. to And let's move slide

open how we to the operating our SEE questions, to to I want emphasize Before engine perform. up continues call

We better shareholders for generating net it the people, than are we positive to and results society. determined make customers, find our world by

We questions. for up Operator? the I'll are call company. that, sustainable With open a

Operator

with Thank William question you. Instructions] Blair. comes the first Our of line De [Operator from Lawrence Maria

Your open. ahead. line is go Please

Lawrence De Maria

here. just Hi. Thanks. I Good into two dig everybody. things morning back wanted to

about demand down, or maybe something back you incremental chain. some how seem be that? there? But comp, Is there have protein year? Obviously, the was First, next And you supply on driving that are out else? secondly, we concerned orders color may there the there called the X% concerned trend pent-up -- volume a consumption some Food-Tech as look into is come for you're any of previously. to down So more the weakness negative on what's outlook automation

Just that some Thank more you. color on helpful. be would

Chris Stephens

Larry, it's Good Chris. morning,

flat question. Let the to that on. Ted supply my you disruptions the the of and been prepared would supply But in quarter, the food in on volume me we if side noted kind last I'll these follow remarks, felt Actually, side, if with the on that then of what commenting answer just experienced. first year. let have volumes we basically saw for disruptions, more line we've we -- we attributable consistent excluded on mainly part the

to second continuing the half work those constraints. this year, into heading So of supply through

easing, news. good are which Some is

specific that low about Ted food, to growth et So second But maybe given single-digit half we when expect we there, to seasonality, think cetera. [indiscernible] be

Edward Doheny

Yes. Hi, Larry, good questions proposed.

the you points. head at the highlighted, food, if side, So to the actually establish really of It's that Chris top it's of percentage been If it, equipment helping we of the the your a as growth you in look is we then -- had specialty on also quarter second volume. on have part our positive would which the materials couple question. connected

solutions suppliers. about actually suppliers we on we're are actually equipment as equipment the have talk So in at on that was major especially automation, we To of on especially with if if our another multiplier. focusing where in increase part do get your on demand actually it the where our slide in investment, on I look of the the I what through. huge of a demand on we're slide with question, I to side, automation sales week slide a put deck was we in and our just the automation you on and we another supply deck past we Japan. actually time unpacked we're of the with backlog Two Japan and in quarter constraints seeing the equipment, our the some struggling food. still food. increase second seven, and seeing about spent misses talked lot put

So what can also the in how do get get to suppliers specialty equipment, do we a we Japan, more major materials.

to automation, the trip got world-class getting to we into we in was the part automation, country third of be Japan. want The to Japan and be in of

appendix, actually graphic in rotary and actually the it there So a This major have matches They're arm. Japan. they actually chamber customers now have is have machine, in the that and we on where robotics we side, we system met put our new robotics. place, pork with the in in buying we our

quite more there three so are systems place And actually which in exciting. was

to So the is up, it. got backlog just deliver we

drive automation So of part still opportunities, is growth. the for food our second our half to answer us

place, opportunities. opportunities the with And we're we other to Japan, Alessandra that So two when with for did road and quite non-deal shout with is, to doing visit there had We last in actually interested about Japanese the what And lead. great we investors. investors in a dynamite excited new a we're quite week in we've the have mentioning show [indiscernible] country just highlights on automation sustainability. met leader

is, that that's we're So looking potential is through automation. to for we're second We upside enhancing good got backlog, half. that the to answer why question. to and Short be get and the that opportunity miss in constraints investment our

Lawrence De Maria

you Thank very Yeah. very, Thanks. much.

Edward Doheny

Next question. Operator?

Operator

next Phil from the question line comes our of Ng -- And with

Philip Ng

macro cycles, into business end then backdrop Protective I'm up Hey, you some a and a guys. the more uptick in my of automation, curious, you markets, in And these component? higher-value in inflation. in behavior I digital in uneven pivot it's growth any see Thanks just the have past how algo looks your on Food a I your question. recession? lot. the different, do amount service automation or given of of materially given Thanks digital terms your products holding shift Ted, just the just of whether, for just focused and customer guess, seen understand taking value-added potential

Edward Doheny

feel it. a there. it's it's in big is, question we recession, we Are the good simple out for And no. yes or Yes, a question. us And definitely answer a

with our digital, different and are using things now So sustainability, our automation, happening. right two through what's customers

making quite the side The in same. automation, can is smaller who more the that smaller work the actually with is where for so now actually us on be solutions markets being especially because to markets interesting issues cost With how cost for have the with do key. and on we're as effective They their digital So is well we their significant with, is it's crunch we labor could smaller doing situation customers, digital still help the in a what plans. able softening, with actually the protein were digital, and and we can side, extremely side they're customers. those give still us, large hey, them customers

we think side can equation, So help on of the all. the recession we

So excited that opportunity. actually quite for

to So for we strategy customers the recession to question, debate, it don't up coming. our as this I going the growth feel with the want a opportunities definitely really with debate the We is open recessionary But tremendous some us inflationary think well. pressures. in is environment

Philip Ng

months Ted, your in it, customers, have from you're your order a feeling you the seen few any call it saying patterns last little over point shift given more?

Edward Doheny

-- sense you? patterns maybe, the Chris, order in if Yes, of

Chris Stephens

Yes, continues to supply on automation constraint kind of we terms just order if of I We the the be of you activity constraints. about follow supply it if kind continues side work delivery, the about think in strong, to be side, think of to talk -- through is there. the very but got

the given vaccine it, and distribution Protective. quarter, flat we quarter been side half supply the but Food, year the on you the for Protective tougher quarter thought On year, and food given over of cetera, more volumes that, we're comps we for piece aside, second if given feeling the last behavior, shorter-cycle expect et of the again, flattish the business, Protected. would the for have put order constraints we the the for Food

Edward Doheny

chance thank, a so to me gave you, it And thank Chris.

some specific me examples. let So you give

So you slide look at if six.

in has what end the market. So shifted

talked Let's side. bubble about sustainability go the and the paper Protective to side. it the We ties wrap in

get COVID quite of that During and that you've We've surge back, business the How market. with pulling the out? our was retail do soften strong. we in mailer the seen that year, e-commerce the last that seen

bubble. is the paper demand for So significant just the shift this

three Now probably be the over us a a half? of second will a fix the just for for we next couple that's mailer, million, but $XXX million paper now opportunity believe bubble years. that That's

shift. kind that a of So definitely,

the the which seen the from that. on -- driving shortage side, has seen issue the Automation really shift get first is food we on especially pork. been are the strong we cattle meat, half, So really where with been red We've has we've shift where with the -- cycle. fresh in the the

a the in pork, see see to though the poultry, kind shift going forward. we It's year. going of demand marketplace on different still second look we strong. of But a the that the right lot So of little going half now,

Philip Ng

Thank you. Great guys. color,

Edward Doheny

Next question. please. Operator, can go we question, to next

Operator

And next with line Goldman Anthony our from comes of question the Pettinari Sachs.

Your go line is open, ahead. please

Adam Samuelson

morning, Yeah, everyone. thanks. Good

Edward Doheny

Good morning, Adam.

Adam Samuelson

morning. Good

So headwinds about and of any trying the that that just to normalizes consumers further some goods categories some you through broadly the Ted, spending think using pandemic going other is and is hoping will the that to less I environment. a has was for their to in about Just kind about be and lines, at this seven extent be consumer e-commerce still protective before from Auto packaging? how of made do in look comp you And I e-commerce purchases maybe of precipitously by think guess orders, high. chart through Protective pretty is, that comments have and the which on equipment orders more as on which slide dollars activity maybe I durable I so you to LTM e-commerce business might fallen along believe, kind in those Box, slower --

present of orders into those does next trying just shipments? that think as converted have headwind kind to about equipment would I'm an year into So

Edward Doheny

Good Adam. question,

see on e-commerce. do the of what As the we question, first as part far shifting

that we down. strong. The I'll lot A year to a medical business use six that I'll of last we use the is had within actually COVID. doing surge lot were that. That So highlight of on slide slides. two packaging again, side big side, the was for very Protective

in and up, to online volume put have the Instapak Where where connected we was seen to industrial it years we the in and taking though, the we it Instapak. that's a the been to is in even that up seen have trying of line last our quarter couple do margins. as going down, transportation Instapak and in up quarter pick product So actually to pandemic shift for how industrial. has was in especially anticipating this the

the So Protective portfolio. in actually, probably profitable the piece most of side, our Protective

your second at automation term we're been more equipment we've and it's business more The we're understand the for had has micro, and those, and which getting is large as you automation question, -- you orders. part as we entire And get driving portfolio. us used in lumpy. the looking the of because lumpy in Auto the Box,

being AUTOBAG being even of packaging continuously. especially though into automated with quarter, The very our well business, supply bit to amount system. right a business that get we In Box how strong. up on taken Auto and in Auto doing was we're have huge indicator now, where is we that significant AUTOBAG of. doubling that great little CapEx because care a So of just we're Anticipate our just that's got CapEx a constraints Box the

lead long times that's are Our too hurting actually the bookings. so

through sides to those they business. is But got So the strong we that. on quite as get both serve as far markets of that

that answers. hope I So

operator? question, Next

Operator

question of comes from And with our Anthony line Pettinari the next Citi.

please open, ahead. line Your go is

Anthony Pettinari

Good morning.

Can in you've you and the kind cadence. $X.XX you $X.XX, to XQ. say any from remind And year XQ? guidance, of quarterly of XQ? the two to thoughts full outlook, On XQ on step-up of comps a of XQ can the I give cadence kind anything historically, that kind seen a from just that but businesses us understanding the little or the on think bit between split XQ you the don't

Chris Stephens

Anthony. Sure,

when when quarterly we for But we As look preparing the QX necessarily recent in business. for we tell look or can second that guidance. seasonality fourth I provide the the stronger the you specifically most outlook at the line of don't call, mentioned, half with are at because pretty two, side with of mainly much kind of performance quarter expected consistent being we being as of QX our you

to guidance. we So it when what is earlier, assumed quarter. point comment stronger usually year on That's quarter is your full anticipate our the that's in you and fourth what

question. next Operator, Okay.

Operator

Staphos America. question with comes the next of George from Our Bank line of

Your ahead. line go is open, please

George Staphos

in Sealed the Air conditions. indicators can morning. trends drought has In to outlook. everyone. driven you details. future said cycle faster hope hear a by me, the better wanted past, the one Hi, that cattle near-term okay. Thanks and for of question Good on I production ask the was years for growth I the and

and with weakened is has automation book-to-bill you whether to is about volume to recent So whether outlook current sales I accelerating luck bit trends? a that what's about Thank the condition over anyway couple year? Ted, in one, lead the to at from years, revenue cycle, there to the us if could that talk been between little parse you on in or decelerating was that may and the very in believe, price, and view double-digit the production quarter. much, next good moderating a saw will, which -- this you for Relatedly, your way Protective seven, back an of whether cattle and last you slide

Edward Doheny

George. that. I'll to Thanks, And unpack try

applying in that, various what's they're that First, Latin had COVID, it's back we let's talk Australia, the and going peaking and US, if trough big where early going in We about in with then what's in XXXX. it herd XXXX, during going. where pulling droughts, at with various But did we going to on. cattle the what's the definitely on on cycle had at happened three cattle the seeing We issues the and past, at down, of out et looking compare from all America been We're we XXXX, markets, past and the we're cetera. our analyzed a the the issues. looking from We cycles. did looked strategy recently interesting happening our what and can it

was steady So and went also had coming where cattle to then to and happening well, then back cycle, to, And we our leading are peak saw to when and are underlying our trough -- then then And trough through pull what what's we to peak that we from we growth, with doing automation. business. satisfying the on products protein that it's said, we we where you doing back the are what and market.

in call supermarket fresh new and is you automation do see case-ready, significant you doing dominance bags, case-ready with for doing in moved, fresh the see products. we there. our that's red now can roll we're meat products, in red But in with meat, really being Our in we're stock, still doing what driven and and really, our well what new what well bags. that's can which Taking growth we in through the our out us

because we cycles, right beef into forward That's be where areas on excited, past, it big short, that we the and we're on some it customers had was we've take that asked we have can was operators So solutions now are then big customers, where automation were the from we what We where the actually we to operators. can ties we're smaller in, significant can we digital Well, grow constraints, highlighted, gain. has pork the the of to through seeing of but have because for first been we spending you actually strong. can And us bringing going think some share really see able care the side earlier. with growth is these how on I smaller we're cattle also as where help where cycle, for now see that the we solutions in some our the in those deployed supply Chris also links protein enabled us half automation poultry. but is the some question time those

really that's can our is why the place, about major we on we're equipment satisfy the in times our aggressively of automation even our an but working to M&A the down, I it's So investing see could side mean, products that That's with on more of here equipment too and talk in get we capital comment, mentioned we the that the supply right suppliers CapEx, the thing. because there. business, lead bill even I demand. was why out is of opportunity working you constraints. you believe our our to orders, you going there on the are We why far book get the the

the and share, moving digital get automated down, cattle up and new cycle sustainable into So with offer proteins, the solution. real take excitement is an can we

to do, some out the got grow we cycle, we through but the plays So we matter think on pretty cattle cycle. what aggressively no can work

Next question, operator?

Operator

Josephson our And comes of from with line KeyBanc. the Adam next question

open, is line ahead. please Your go

Adam Josephson

I Hope expecting know second Thanks about you growth, just very X% comps, started Chris, thinking of and you're half Chris. half X.X% the your about up guidance. the the comps, about flat. much, well. now at second in last the you're Ted you're When year and year. on volume I look

in half. -- pretty a volume flat imply second Correct would would for me I'm the wrong growth substantial year that if volume the So there.

be Food I think in you half. would And in that about think, Protective would that expect if you heard flattish said would I quite substantially. that up, mean volumes I volumes the second correctly,

help me comp full what by confidence what understand difficult to in as what's that expectation So and can volume seems gives well can year overcome half? you as segment second you a the that be pretty in embedded you

Chris Stephens

good. Very Sure.

the down year, X%, volume digits. year. So expect half digits, let the call full side X% Protective volumes versus we comps guidance, this we so challenging me X%, it second year low look of And growth, half of for but just down to we -- as maybe flat is single single be to Protective about more to last low We a protective for, first first roughly talk more the right? faced year-over-year on half of it, the

move Food constraints challenges in of on side, work only the it, also supply to talked the material and through not the side, supply we to you confidence about. we the Food the If is the have hoping on piece equipment but

the Food year. volumes a Food which the for low in for quarter, growth the plays itself the single-digit assumption growth, the then third fourth and both out on roughly to year half of full second So is side that for X% approximately the

here to reasons supply from on through a the the half. We that team. constraints second the through supply segments the for We bit kind concern reasons always out opportunities. slower start, working either our we're through there's point the us And just of it. July but in with the than discussions a go and that triggers little of performance disruptions. to of for So there's circle back even the We nothing risks expected view go those we point

how nutshell. a in of Operator, it question, through that's the kind year. of we're That's next second So the managing please. half

Operator

And question Angel from Morgan the Stanley. with our comes line next Castillo of

line open, please Your go ahead. is

Angel Castillo

for Thanks question. my Hi. taking

the one, there So on volume just in maybe quick about to your just the growth comments half. up follow a second

that constraints on the having. Just supply been you've curious

growth tell us visibility that when have, that kind second seeing was line you're can this of mentioned more a time of You you what so price also I easing. broadly perhaps of in in growth of maybe bit little more you And that that I could has wondering And again, far. that see how if normalize the that of half? could, little pricing, if into cost the terms bit on in so second been given kind just is the how kind a contributor half? of to you continuing a that can strong

customer trends is cetera? there? How So how activity, et are

Edward Doheny

Chris, I'll first Speakers] with about to go talk pricing care. [Multiple

said, visibility two constraints, the and Chris the story the side, We've the on automation have do where that, the of them on low we building have looking comes off but that's got of we We in So what volume side. half at second Food supply single backlog. again, the digits in. have

of sustainable That's on and we gotten question but working haven't supply As resins we our -- what's to specialty, fix. hurting we're resins seen solution, now I seen have that's right constraints. yet, is we've us the our our XX% need on the that what --

So we in first half the half. better getting second the see that than

So it's on because that's a side volume important. with positive the very Food, vibe very,

the automation. The is second

issues, get backlog, can have orders, have line have but that. We we still we to go the of sight we have we how the

the helping the the food. us growth positive volumes what's Food So that's single-digit to volume confidence on that on get with

with I'll So turn that, it Chris. to

Chris Stephens

positive is X%, just a the the be to we kind it in of we're on as is just quarter first more price more versus to volume Sure. opportunity the I plus anticipating that of side first growth equation, given realization, Yes, maybe bridge about of bridge kind $XXX seeing use what on the an maybe to price side, on we're think, price expectation number our today. call, last the And EBITDA to our I'll was the a what we flattish get side X% what after talked it time. our realization volume, expected million -- of

were and they material side, nonmaterial both cost expectations. our the prior up versus on However, both

year. the So million $XXX nonmaterial expect to be for from that the we're time we where materials this more million full then we range, million, $XXX inflation, $XXX side, last guided on And million. about $XXX about in more

we the But bit that now, realization as headwind FX top that. still with that's hitting rates in on transparency more FX, this a the and kind and the that provide us guidance. through European-based of has softer favorable guidance. everyone line this, of of the with higher little we're the as clearly, the headline we months have volume, we're keep tighten to offset year allowed confidence and companies the maintain after those price puts year six Yes, as help But to seen, much manage a to that, full price us trying is broader seeing both from as actions presence, year, terms and lot offset range have right we third we're gave productivity through quarter. to well we'll costs So driving full those that the takes

Edward Doheny

And because make comment our to the -- here. pricing on the listening we're talking I want we just have customers

with them that getting personally totally share, these So the orders, I'm major we save we especially automation pricing many are how with our focused of on the can on involved and money. care side to in gain customers

help We are passionate and about with how labor help their can sustainability. automation disruptions, issues, with an them them

to how And what getting. we're that we is realization realizing language cost, our cost. that's open with can want price issue. that we're we to the that how is our where what not it's them. price share And solutions use I very So customers that much just And to really want much over our it's the be our save

to money have the opportunity, have this we share process. get To can hard. price, in work that we have more do our more taking to but we still also So customers think want in and to save we we

unless go truly the we have to are our we we still the this to very earn money. to one we them we won't opportunity want I it. hard, very, and highlight, have we pricing We think So save on show customers just more working can get help But price side.

question? Next

Operator

of Our next Parkinson Mizuho. the line comes with from Christopher question

line is go Your ahead. open. Please

Kieran De Brun

course of wondering any Good if I'm about of margins we can cost initiatives half? we for about it second morning. can of volume, Chris. think the And then the kind kind all Kieran you together, trending the price, we discuss ongoing? have how over productivity on just think put year you productivity This when is and and equation, the

Chris Stephens

Sure.

So talked just a inefficiencies our is what's by lower approximately the bit full my labor gross the how in disruptions, remarks, I to with on maintain the in about full productivity. guidance year the In well some our driven as -- given XX% of it supply as year assumed little productivity on just side prepared faced EBITDA margin. challenges the we're

million. roughly in guide. million we're expected now, We our expecting $XX $XX roughly previous Right

we that. to continue work So through

hit back, approximately bit some through. just engine Unfortunately, offset opportunities are there. we're to given of constraints we the EBITDA supply being the of off this I'd margin little to the had drive what go and the have year past full continue the success year, unfortunately, initiatives great to they're over that. to those out ourselves to SEE just much very Reinvent work are and in the we've with several have committed is But the again, built deliver a created operating that productivity years for inefficiencies we our However, is profile XX%,

Edward Doheny

especially Yes. that Mizuho Mizuho, time Japanese with in because productivity, Japanese we if did us some our at the to just to operating I in that, future. had we model productivity the at you look ties as my shout-out a hosting investors. because to our add And visit productivity sharing into maybe And it if can past, we're

of last this that that operating near attention what got and was lot our out well that? ourselves the operating than of outlook. to the of holding where year, investors, questions they especially that if from been and few our EPS. a We've Driving of the challenges of the look XX% this of to over are So how was do and north on of if looked at course, half now and got to doing operating we'll do do highlighted hopefully, four operating drive our our we've we that's Japanese and you So leverage leverage. confidence greater talking a courage at we we're that excellence consistency and that you there. at Japanese a that performance, on a the And first came having get question in XX% the look what target we future what slide their five detailed on their how okay. leverage our model, CAGR we said mean But of a years going in lot operational for years

a have XX% We leverage operating business. the on

target. north a But got have it's digital. in recession coming? the et in cetera, that were questions of because the So of We bringing et future are again hey, inflation, our are That's the with issues cetera. doing going you on asking, where other piece what if we we're

these can that our actually it digitally, us have we're through we pretty the and can challenges, them to happen. digital company then two they we're the some right So we largest all that of met we're them? online, how of in whole the talked customer efficient be more and quarter in capability they going how excited at with what remotely? productivity with doing about And products on we customers, have give putting Can with design cost? in our and that actually can so We their digital, make printing meetings my unique working products

with so operator, down we're that, And the hour. on

to I sustainability is we speaking being everybody we're call SEE thank heard, of want all ESG look all excited SEE, performance the close in we you've for to I And do to who -- you can as So a really we and and critical appreciate really We if to of forward are, as about our finish. with quarter. company. our interest want on And -- the today. success. you and next

for that's close call thank operator, today. and you, So our the

Operator

for you Thank call. conference today's concludes This participating.

Everyone, great disconnect. day. a now have may You

Sealed Air (SEE) 3 Aug 222022 Q2 Earnings call transcript