SEE - Earnings call 3 2023 | Sealed Air Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Q3 2023 Sealed Air Earnings Conference Call. [Operator Instructions] Please be advised today's conference is being recorded. I would now like to hand our conference over to our first speaker today, Brian Sullivan, Investor Relations. Please go ahead.

Brian Sullivan

morning, good and you, everyone. Thank are With COO; Interim and Chammas, well me as CFO. today as and Dustin Co-CEO Co-CEO Emile Semach, Interim

have Investor where today's I note and presentation to begin, like downloaded webcast call. provided from be we our the sealedair.com we presentation page. a visit Before Please can slide Relations would that to

to are Forward-looking made applies us. the is are forward-looking periods during for estimates future that to you this Statements encourage our presentation, call. section information These We call release based statements review or now in which on stating slide this and available Statements, management's outlook information earnings solely statements. to the in entitled,

are future due our recent may differ most and our XX-K of annual X-K. to report on on factors. on as reports performance current on in these updated listed reports revised and Form Form our number Additionally, XX-Q factors Form and quarterly a Many of

You financial on can GAAP. also find website. to that not measures We U.S. or conform SEC's the do on our website discuss

will our these reconciliation and the in use U.S. release. important on GAAP You measures to our of earnings information find

Included in find correspond GAAP we Emile? and Emile will turn the Slide presentation, the please today's to that now measures presentation. results X. reference call appendix non-U.S. GAAP the I over to you to throughout financial will U.S. the of turn Dustin. Operator,

Emile Chammas

discuss and around we on SEE's our and our third this trends about capital provide in through Brian, allocation. the you results, serve, XXXX how call. our for transition, Thank I will for leadership will questions. thank environment. operate and will update our call dynamic we open you, updates seeing talk markets that, take on joining your provide an Dustin are you we we After the outcome and Today, plans progress quarter

Moving Slide to X.

co-CEOs are Dustin announced, previously myself our and to in interim addition As roles.

our co-CEO like I work. operating move how talk and model business to the through market Before update, will to would we

expect we this deliver to am teams driving to the our model intelligence, time bringing on commercial overall innovate, that turnaround specifically improve execution. execution. results results. accelerate evolve Together, of commercial strategy, will the we connect these supply our and overall cost teams, closer chain and focused to to First, SEE business our I deliver and market improve to innovation, and strategy

on will driving to our take-out strengthening program, be and Grow portfolio focused more optimizing Cost Dustin our balance our sheet.

sustainability long-term market and While digital continue current are enablers focus we shifting dynamics. automation, key growth, our the be of to address to

our focus needs strategies As core portfolio result, our we our Protective customers' an go-to-market reevaluating solutions with and intense packaging are a on markets. meeting in evolving

market the business update. to and turning Now

Our and visibility end markets challenged limited. remain

demand We is capital a retail U.S. across down to are that year. multiple earlier trade-downs the compounded and recovery the consumer due Asia facing cycle soft slower and the markets, been global in we expected headwinds, by initially in remains food Europe than firmly has the in recession, including net the

reduced flat Protective as is customers EMEA capital continues put react to America, historical and but Pricing spending. down. to below uncertainty the consumers output and customers inflation. driving is increased increasing, industrial have North inventory remains levels APAC. side, On pressures in Destocking moderating to and Economic with

new businesses year, beginning customers environment this Fluids Cryovac, our flat taking business In Liquids well. economic on our performed acquiring since these the existing in Despite and our challenged are grow customers and headwinds the the have are sequential largely And and share where of Automation performance. marketplace. Protective delivered focused very to packaging and

and markets are are sales operate new lead closer redeploying this first towards We the that and to in. actioning by resources investing customers marketing our in roles generation,

serve across certain by rationalizing Second, the and Food of portfolio. both within improving to solutions Protective positioning cost the competitive our

higher long-term, reward between our Third, risk more shorter-term needs. innovation projects and customers' address that our immediate efforts financing

provides and sustainable have solutions drive Lastly, contact take-out annualized lead to customers a single actioned rate of Grow, Automation, their operations. packaging point approximately both $XXX for we our million $XXX challenges efficiencies with These within XX% Cost of and which solve in equipment. longer-term million our savings, their On continuing with approximately to materials to program. most critical million $XX run

was related of portfolio over September have solutions X. business. of was in competitive decided exited optimization, we optimization. to previously quarter On offering and market. we plant-based we consumer-ready our volume closure with a reductions As completed year-to-date, Separately, workforce This displaced that exit in business in rollstock Kevothermal positions XXX more temperature the assurance to network by our our vertical the sustainable within both announced

maintaining Moving bring while an emphasis new enhanced to forward, continue competitiveness. market we solutions on sustainable will

are Cost and progress in future Grow optimization, need portfolio ahead to on we to we take-out While accelerate market good to of impacts. get

to I it to Before over I'm wanted to SEE Dustin, I turn say with him. that excited

short on business come a speed has to trusted we only every quickly business, partner. period, challenge While to of has pushed the he and aspect he up here a became for us how been operate

will looking turn entire Dustin for key ensure and drive review an results. you to opportunities is grow company it we to are like ongoing efficiencies in updated over Dustin? to through Now we world-class our are as financial do. we further This Together, to way, process, decisions and I'd in everything keep the a cost-effective we that

Dustin Semach

Thank by and can all has years to with done the his and innovation XX to wait our supply across excited good been commercial with I industry Emile for Emile. tremendous would well can't saying we SEE impact is start SEE really efforts, He's a everyone. and co-lead to job our it's you, and SEE has I'm about accomplish all of that proven privilege Emile, morning, transforming a a who and chain. like across within leader, I SEE. together. respected

to moving results. quarter Now third

operating million, down X. and M&A last have the to FX, X%, $XXX sequentially, by volumes In was adjusted were $X.XX, by constant the excluding sales to share a and to year. improved and driven compared EBITDA second Volumes down improved billion, improved better about beginning EBITDA ago quarter basis, turn million earnings were XX% of quarter, currency adjusted on mainly net the since from quarter, a on X% net compared Let's and costs. in year adjusted lower Slide $XXX excluding the currency EBITDA a of $X.XX primarily interest in Sequentially, Adjusted driven basis, currency year. per constant flat the higher expense.

destocking Turning markets. but sales to as by X. driven retail organic approximately Liquibox $XX continued continued customer million, weakness X% Protective as company end by was to Slide well total and food or market in in pressures offset declines contributed

$XXX $XX year contribution compared million decreased with Liquibox, included $X EBITDA XX adjusted XX.X%, million or of million, of from basis quarter X% margins which down points. Third to last

volumes driven by within Protective. mainly This performance was lower

it As the to same XX.X% in We in year. to did last compared the earnings the of diluted adjusted third quarter our $X.XX, repurchase per XX.X% in was any relates period adjusted quarter. shares not rate share tax third

Our the in XXXX weighted million. average quarter XXX.X outstanding third shares diluted was of

the quarter at Slide XX.X%, Food year-over-year with quarter, volume on points. our automation in constant by to X%, solutions. compared sales decreased XX continued X% in million to Food X. weakness in last up Food third with organic In favorability down basis retail Volume $XXX decline. flat of was margins Moving net the partially offset by growth dollars demand, of third adjusted approximately $XXX price offsetting driven EBITDA basis by an million, organic were in year,

sales adjusted business. The $XXX regions third all $X customer increase driven by declines million, APS Protective contributions offset volume net to million. pressures Liquibox, continued markets volume price in of within was continued in of EBITDA net activities quarter and industrial, due from partially down mainly unfavorable organically, were market in XX% fulfillment with lower destocking and our realization by

was down net of decrease third $XX driven quarter, control quarter, was control. adjusted favorable dollars the million $X driven million, XX% the of points. favorable with at basis realization by the adjusted basis primarily second constant XX.X%, by by XX improved offset partially compared EBITDA in in Protective lower price adjusted to volume, EBITDA margin points cost cost activities. The up in Protective margins XX in EBITDA

On Food, in quarter grew Protective down by a by decline In offset XX%. and review and region. by net EMEA we flat. flat region, Asia with sales By our segment were Americas net third our of X% Slide constant [indiscernible] X%, was with in growth X, we sales by XX% Pac

and source of to ago, $XXX an Slide Through Now on period the free X. to flow cash IRS year-over-year. of the leverage same increase million cash flow representing $XXX third year quarter, was of $XXX excluding let's impact XX% million, free source positive turn compared of cash million to a the of the in cash a

total ratio interest lower debt costs. improvement QX primary significant was The with X.Xx. offset of and we have approximately QX, net of reduced peak inventory leverage million, this earnings $XXX the approximately of a Since higher exiting by reduction, by driver partially

total of cash over $X.X X undrawn revolver. [indiscernible] the adjusted focused the net to to remaining EBITDA on Our remain capital below debt debt position laser we liquidity in and next in including targeting million reduction, billion, amount drive our $XXX X.Xx years. allocation, committed

December plan the over notes also We our to XXXX months. refinance coming

X to to turn Let's our Slide review XXXX outlook.

QX EBITDA has year pricing line in reaffirmed and cost performance guidance, week, our better full and adjusted remains right due unchanged. was exceeded control expectations XXXX line last top which activities. with Our we expectations, to original

by midpoint slightly target into million $XX approximately estimates. headwinds have the impact in FX, and volume going QX, driven now we of full with However, be greater-than-expected projections original range, our with FX line sales still year to from below

Adjusted free end adjusted lower the discipline higher deployment. expect guidance amortization ranges. expense, midpoint capital improved cash reflecting at flow and line around EPS in the range, to in be and will be driven respective continue by with the EBITDA depreciation of We to

Reaffirming continue cycle fourth limited despite to environment Protective. the both in seasonal guidance and strength will of our expectations depend quarter tailwinds visibility on we QX, in. related our holiday operate reflects the ranges, the exceeding to of The outcome Food our in current

a macroeconomic L-shape continue XXXX, XXXX reflecting through weakening increasingly into environment. longer rate and expect uncertain recovery for We environment and consumer an to by driven demand lingering destocking, higher an

single-digit point XXXX, by growth, negative are fiscal time, for in pricing. year growth At offset flattish we revenue this targeting low volume

the reduction and to of acceleration position initiatives us to EBITDA expect adjusted operational to deliver cost excellence next our We growth year. continue

market While and clear. have I navigate support the intend we in let full questions maximize what me our value to to raise a exactly shareholders, Emile action current necessary do. and disruption, can and be any take for to that's transition the about Board leadership

solving begin XX,XXX-plus like team the each for Operator, I'd to out. Q&A would thanking we for With to Emile I in critical other and to day that, their packaging and like questions. by commitment Lastly, your to SEE and close our day customers' most the session. look forward challenges

Operator

Securities. George our from from of [Operator Bank comes Staphos question first Instructions] And America

George Staphos

resources examples more closer changing Emile congratulations the and more Can that? you that what question your transition. best and, like market you of talk luck had, and to sounds the means putting on it a commercial in to The strategies. talked specific gain hope with Europe, that from bit you you transformation what I both if to will, about

to to your be you now And customers focused. relatedly, Any in are you out in to with scheduling everybody frequently? transition, and it's of way terms what the out with more doing you're you closer your the want way visiting keep mentioned, being changes a employees? sites As directly to the market, you're the

Emile Chammas

Thank you, George. for your you Thank question.

we talked about in two So remarks, prepared again, items. the

capabilities closer at to ops One that into level, the a to is, on also and essentially we're faster fronts. projects to company, the more markets global from going the [indiscernible] we're but operate markets we're we is resources way get and closer two the investing customers better longer-term working into on So revenue moving the

efforts more the needs this around doing projects reward the risk tough higher shorter same technical to resources immediate those our around in term we're the by customers projects and Similarly, the environment. address longer-term balancing

Dustin Semach

just talk of where of in broader now, efforts, we've CTOXGrow allocation placing the as in Street think the that particularly example, reinvest feet it's shift it marketing, to of of our at we operations our and on investing we as regional some had our you level, you that some from resource program. about in a more points, part George, couple resources the And but And about revenue that more of as It's as capabilities. think efficiency an about more getting leadership that. in about the when investing follow-up cost drive we're sure general, making we

I and been The start, your customers. with an visits to we've piece question are Emile our customers weeks meeting already X around with first set specifically second beginning with plants, of obviously, to going plant meeting example, and in and as

we're that been fronts, we're making both dividing on than think while I [Indiscernible] have in the out we sure more So we're field historically.

Operator

Goldman comes from next from Our question Samuelson Sachs. Adam

Adam Samuelson

Is maybe bit a just remarks, think kind kind more of Street? of I been the growth company, of growth off offering. in a opportunities solutions more, hunting Emile, has think those big outgrowth less near that Maybe whale to automation Air drive trying about the feet of or the projects longer-term over there and guess, discussion and a the kind keying market from intention, kind to mention of short-term wins resources opportunities? time. for And to as that business while was continue on we of term the we Sealed digital longer-term of some pursue reallocating how kind driver but still help of bridge a drivers and for big discussion reevaluating and and automation prepared little I longer key solutions, of Maybe

Emile Chammas

Yes.

and more and capabilities key which lead the enablers with drive winning customers These continuing in automation, drive abandoning which our in And entire continue And into portfolio automation, execution just we of in to clear we're automation we're our for contact a sustainability, are strategy our So parts those. the digital to lacking. with of solution. terms again, not point of and single are provides of our marketplace.

that and working more there by that's while on and But and to And effort are we resources. we enablers. continues So with key some we're the those in what marketplace. need win longer-term of shifting said, mean allocating execute capabilities, the

Operator

comes question Ghansham Baird. from Panjabi from next Our

Ghansham Panjabi

the suggests sort longer-term a And so and so designation time, mean, right? of of talking short you're I question, things interim and very the George's of to back period about Going some are forth. on improvements

to the it designation, of the So I'm line on prioritization. are there take versus priority side? commercial to just at outs else cost this over interim the about anything you see think trying time, going as time that is

Dustin Semach

a great Ghansham, it's question.

statement interim is really I already we're important is both I together that take-out think efforts well have driving it's think to while cost what's as partnering already which and takeout been with an within Emile Cost run Grow, about that to designation, encapsulating as commercial. to the

have were X already and then that you it that program with the leaders driving continuity So today.

on, spending commercial was already both cases, than the balanced. Emile where the in more we're is being We're time of so that's And it's Co-CEO of in -- now discussion terms part model even and the teams. he focused in

Cost myself You overall take-out now focused program. as more dedicated to Grow an to have still

that -- and So it's overall move really in and balancing our then of both. But heart how message as execution, the ahead and the that is day-to-day middle kind execute improve can go continuum right, we focused improving we profile. on of that we're results and of and

Operator

comes question Matt next from Roberts Raymond from Our James.

Matthew Roberts

bit markets has referring And long-term like more taking. look near-term markets, seems is your want versus just commentary. you're Are specific at I down, automation to? trended consistent dig to prior if little specific with end on end there a product decisions rollouts I which the it you're or

that to losses -- mix. Or of down market like trending potentially continue? where of to expect Just trying end share your being e-commerce percent another related? we as deceleration one market or is allocated. see a that are Is decisions should those some So more

Emile Chammas

Thank that for question. you

of is terms it the automation environment. current in this economic of driven terms trending in down, So of mostly terms the in

there of in many by uncertainty, piece. what's driving is the in and customers rates that driven interest of That's It's the focus. driving the terms not timing With hesitation reduction CapEx. by the

portfolio. we and and many create solutions, driving solutions are parts In have other fact, don't pieces. In to capabilities of have very parts, actively through we we other partnerships those in our strong automation automation

go we forward. as that on tuned stay So

marketplace. amount and the of have, the winning about and the resources projects really long-term balancing that many -- innovation it's it's whether today on how winning of are within our it's versus focused on focused in driving that are we teams allocation solutions teams, those resources commercial very So our today

Operator

Zekauskas from Jeff question comes next Our from JPMorgan.

Jeffrey Zekauskas

two-part A question.

as when lower The are part would they've behind growth you assess show since as expected its acquired you've strong or after you been XX, initiatives your it, it? prices is how Protective growth what's discuss Liquibox Can -- at That weaker? initiatives second, or you and on first positive. that? Slide you And X% the is look stronger you

Emile Chammas

right. All

Let the one. question me second the first over then take first will head off and on Dustin

So of first all, the talk just general let's in fluids, Liquibox. about what's including driving

been solution. terms a The been -- now first stores both globally the inroads, and fluid by Cryovac FlexPrep in piece driving good U.S., was of very into our is the solution it's this and than more we've side, expanded. present mostly making We're in automation XX,XXX

So portfolio growth. to we have drive continuing of our that part that's

Liquibox, there shared in the were many was as quarter, the issues. On last operational

accelerated can addressed set the to integration We've was of address so we've markets, broader and in not from solutions. limited also the reexpanded attack that. We've those. the So the portfolio the company resources brought portfolio of accepting broader more actually which we a that

into we've put our those QX into and behind next we've us and growth So accelerated year.

Dustin Semach

point a the this general, two, Jeff, it's the commentary in And shift. follow-on is on In your beginning the environment to XX. pricing Slide point prepared on remarks to number references

have prices you resin If Protective perspective. where affected spot more think by about from we a is and

down then of sideways. The middle the and it about to of it's first kind year, half, the trended came

going Now into it's the actually ticking a up fourth bit little quarter.

potentially volumes playing And talked leading that's intensifying of the see of And year. is intensification so is the that thinking now our into really following -- of down, what's so impact. trend can reflected competition That's that's right what's the because we some what's now about impacts the XXXX. in into with -- overall are that coupled we to commentary, of

Operator

from question Josh Spector comes UBS. next from Our

Joshua Spector

of this the you reiterated year, midpoint So just for EBITDA. regarding the guidance

from math about could million be which down down it's seasonality. you XQ, in If an XQ incredible -- $XXX do abnormal the

I that the reflecting wondering, you that the all conservative pieces be to need scenario? your conversations view be are understand on and get end, stage? conservative to what this that Just to at customer want moving but are And at

Dustin Semach

the appreciate I question. Josh,

limited just commentary mentioned in about now this half you press through in the right that back of and reflect half the some the came the think cautious. visibility we're Again, the does you and made kind of we time I now. at right first environment in second in point As quarter fourth It the being of how remarks our year. around

second talked about which the back primarily so that is on quarter, is if we our fourth to impact, the our line, also prepared bottom And by piece, piece operational. you in is remarks, driven of corresponding go business not impact the having a FX obviously which Europe GDP

could as it whether differences the really in terms business, our what can of affect fourth cycle by that business of prior to -- our Now lead Food in cycle we of the seasonality the or driven it's e-commerce can about how and the business. affect remarks, in in talked of relative the we our talk think that it's Protective Food the holidays about kind our quarter, strength

of are and strength those month could October areas. what really two far but to the so there. track that of And we've outcome seen on The in we're more determine obviously, the that -- come that and so

in variability the of kind that's outcomes. So

Operator

Pettinari Our from next from question comes Citi. Anthony

Anthony Pettinari

rationalizing cost portfolio lines about talked rollstock some across like to business. and that exiting serve You've the product

maybe approach, Or that? and that accelerate those have kind those moves? larger new might the mandate would deleveraging? interim owner kinds or Would logical of designation? given kind of there business or sales components could we the outside the management more the about be larger how of might help and think Or dispositions of should asset portfolio be Just with wondering, are a

Dustin Semach

Great question. is Dustin This speaking.

right, back any the create we've whether from today, mandate this to action as business QX, beforehand as that rollstock to optimization, going already into it's As and and accelerating, off is here. mentioned kicked value, effort right? go plant-based take necessary So of about effort we've announced is now portfolio in we and continuing Kevothermal The really large was small. now we announced, kind really we talked

trying forward. the focus. is entire primary the And best So then portfolio, what's deleveraging purpose moving we're at obviously, fit understand to looking for

We deleverage. talked opportunity within to in about -- less the below getting of X.Xx years or and to terms trying certainly next that get X

overall, into the bottom Now many come to factors of right we believe sit we where of in now and nearing that cycle. other be an perspective terms overall

within cetera. factoring operating timing, the we're environment we're et a factoring environment, rate of debt again, kind So overall from markets,

all -- decelerate things. And or but of that or into the -- is But of whether finalize those factored large. about those of this it small just again, just how actions, point, is type they're kind accelerate are to thinking intended to not things we're

Operator

Our Maria from next question comes from Lawrence Blair. De William

Lawrence De Maria

things Two here. quick

more the amended maybe bylaws, directors. you I difficult to So nominate guess,

whether the related the And you've then assuming to to thinking really that's potential that, you're question is So any some doing Protective or and preemptive looked about portfolio, secondly, activists? pairing. at

if So are updates be where still curious looking any considered how and preparing might in much of that on at process? you're And we that? that portfolio

Dustin Semach

this Larry, Dustin is speaking.

ability our that to So and get of bylaws, on -- and rule to universal amendments our but for combining on form aspect point SEC the to we technical all whether the the improving really the of companies the the ability doing and of or related an just of the ourselves to governance. kind won't raise shareholder which some common It's proxy. very for it, the is the overall to is corporate of voting first around details, of updated part for to a process filed improve in that, really nominees X-K consolidates to that's on card I kind continuing related

viability looking at talk update status the And to value forward the effort going relative market is when in of and in example the the we're I today, and that. to then now optimize. question, can portfolio through, really where dissecting the different going pieces, line last piece which right process obviously, give their the disposition areas of in won't the each we timing. own relative an prior portfolio, understand, a way, you Protective about absolutely then Kevothermal we're Protective, of energy level the because to to get and in with the that of many an take

So in than versus terms there's we're other and of progress underway, no pace. a accelerating like update the it's

Operator

Our comes Arun RBC from Markets. next Capital question from Viswanathan

Arun Viswanathan

there of on roles both Congrats to you. the new

that understand between businesses continuing overlap? understand the on us to and X maybe to synergies portfolio? just initiatives makes automation wanted think we've seen to theme, on the you do these the take the Protective? necessary and Just you declines important really as where double-digit and in just it's volume is? decisive keep huge the thinking maybe action more help I'm And -- last you yes, within Protective maybe portfolio some of other separate What the it have can

Dustin Semach

question create is answer parts. business really within two of used in that I'll So there's are a materials raw similarity Obviously, businesses. resins terms lot the both overall in -- of that obviously

particular could of we one any key so that purchasing how the right? company of X advantages kind that would and the space, of at of so scale in that And that form the And have operate you structure like thinking kind to our of the between about that level power disposition dyssynergy we action is businesses. of

important in about point of sitting point we The what where should into overall kind remind, of to we're is is I to from be towards are the thinking timing more our want second from comment piece consideration is you an is a at. take Protective bottom everybody about view. really of the of view And decisive right, about which cycle, of terms

the around that to taking that. an you action play like market are action when could chose dynamics if in and make an like that, timing broader Second, effectuate that

aspects value single by equipment a it's around they're a for and drawing pull-through business, the the perspective, they're And the overall points around overall some that relative bigger and same each the earlier and right, advantages strategies, combination us outcome, of point to effectuating the of for it, these independent about customers service made relationship whether very having for of piece second from holistically to a automation, Protective relative their but underneath huge a from contact perspective shared comment together, creation. materials having Emile

So that's where at. we're

Operator

from Gabe comes Fargo. question next Wells Our from

Gabe Hajde

thanks Two-part the Emile crisp this morning. for question. messaging

put based. had they're to The XXX% one locations here first large saying I out customer release migrating, first is, actually in think, press a that you of paper a Ohio, their

what does this I'm in specifically So curious with your closely CapEx require you side? P&L if working referencing either investment, this and/or more sort the terms were of customers? is in of And additional

guess, that of impact, be relatedly, Grow? million to Cost of missed is your achieve And incorporated would take-out there I if still being it. apologize or million some I And sort to P&L sort in I if $XXX $XXX of able included to

relates us bracket $X it with you then your can I think, that $XX the was So is 'XX second we've fourth What the part in as a is, $XX you a that know in to give Dustin, I mentioned quarter guys are well, a timing, to commentary associated million fourth -- talked $XX And seen being or about or that QX quarter? item. million you there polyethylene revenue in discrete million as with? in into going that the cost specifically specifically but incurring moves headwind, so price you

Dustin Semach

Yes. question. Great

So around item, the we're around it back first you I'm have to to Emile, then he'll headed. and and question kind hit through where walk the discrete solutions the bring going of your I'll paper-based points

issue the for out called one a nonoperational FX. the with for fourth what on So quarter, we first

fourth an So where of think to and the creating that's $XX euro in July impact the we're GBP we at if the where in million, where about then right? tune you about moved, the now and today quarter FX and were

it made head point still right, to going to are And secondary for the we that question. And the businesses. made intact, turn to on estimates that underlying that volume both then I'm Emile was to we

Emile Chammas

question, and on both around that that's the it's and bring mean, I first It's Food or really on plastic. just marketplace, the Protective offerings the on than sustainable paper the broader side. the to we Yes,

we've yes, closer our at of customers can light, our -- in choose to impact customers parts solution. we our loss. share of in getting some and in we're So that our of that seen terms you right the portfolio, so And see helping that the table were

solution on on continues paper as well piece automation side, our both make on as Protective to progress material Protective side. the the the But of

On push sustainability usable. are to on pledge our side, recyclable we solutions our Food XXX% continuing the to or around being bringing

around Just around bring our perspective, portfolio about unfortunately, We call. that the next announcing we're sustainable that be we'll try to And on rollstock. today. in to into market as the plant-based in will shortly But did of bring not was markets interesting, the talk give that solution market you XX% solution. a But shifted. successful away let's

Operator

Our next Roxland Securities. question Mike Truist from comes from

Michael Roxland

maybe accelerated volumes if In take that again has any to facing started you preference quickly ex you drive in talk customer about Can out you Food, of grown past the to Food you U.S. and kind better obviously, cycle cattle a then your slowdown. initiatives in growth? question, have headwinds, the the meat to Liquibox you And reverse mentioned in company have of Food in you just mentioned growth shift what declined XQ, automation the mentioned on second would pursue the Liquibox? or

Dustin Semach

automation we're from to orders. pressure really XXXX, that's for referencing well to to the to indicative What performing just under which great on very And make. commentary some well this -- of it's and make of is a sales is right? comment points year, clear, So pressure, questions. automation, and clarify the forward just is in One in going terms couple is this of related that the really of quarter very full in and want still perspective, that I a

a When future it time delivered, about very decent but continues the an be which automation kind into strong. someone a purchased there lead is statement before is XXXX, to solution, it's of

focused we're continue be very and bring both those still very platforms businesses on and them to market. to relevant, in offerings Our

competitive impacts back certain the and back then We're going in I we're to a business, to we bags on some overall focused rollstock bags going the We're positioning food that Cost going around focused well as market cattle that concept considering are kind at business. the negative relative business to Emile's of in it, year, performing around rollstock you, this and competitive business to very the general, and the commentary plant-based to market Protective. our of products And our Food back this the quarter, have ahead Grow in within Food and bags of, of business Okay. that take-out to tell automation within disposing we part trends. positioning our cycle and specifically of things actually doing we're in accelerate would doing right, within

our one by rollstock go in you resin impacted specialty into if beforehand, back XXXX really is had the we which last commentary that prices had year, In this the was XXXX. we to business,

competitiveness, around business continued And so pricing. pressure intensifying as that specifically, there's

produce drive on we're into serve, and reducing so cost the the marketplace and that area, growth in relevant working be And we to cost deliver in competitive going to more what the and can more including is XXXX. so

Operator

next Our from Ng question Jefferies. from comes Phil

Philip Ng

early kind outlook. through of XXXX you your breeze Dustin,

make So sure I just want to correctly. I you heard

the cross just between a don't know You're volume about up growth. you're the point? effectively because been if then with you Protective EBITDA price you flat for Can mid-single-digit last going especially of more growth X FX progress on XXXX. quarter, I you're efforts? particularly this the how pressure, a I that's thinking seeing sales, still headwinds kind the think at and unpack were restructuring under help in for between volumes calling segments, achievable, components little it's EBITDA up and

Dustin Semach

it. question. November, we're now in. right visibility comments. Great couple that talked Keep we A in Thank limited of Yes. sitting environment we're this operating you mind about for in raising

think our up So XXXX. very about we much firming we're how of still of process in kind

going market. the when prior. Food a keep cycle still still But cattle this than believe headwind. a we in about year be general And of business, the beef think trough are to of is XXXX we're in And we mind, cycle, ahead the being share We continue more in so year. to cycle the gained

We going into next continue share last to and year gain into year. this going year

of will volume Emile get some newer bringing with what our We alluded concern. believe combination competitive business. give Food coupled of plan gain the be So in in alleviate is the some to these, And of there. our some to sustainable rollstock the market we lift portfolio, us to going then think to low in offerings, help to Food within in share make positioning that will business, our us our single-digit

year markets you're roughly seeing to now as the obviously, price. conditional downside it be again, you're quarter, if at couple of fourth you of to XXXX, is on about beginning volume think Protective, XXXX go XX us. move and and down, in with looking see the based about a And the down, you hit going mid-single-digit by getting

that, since the year. beginning throughout a Emile it had but XXXX, this positive of -- So statement really is stabilization volume about within the bit a anil news earlier, little

The right? as and very head statement perspective, to our are how quarter our we of about about inflect a we year. begin seasonal quarter is indicative really seeing we So into are strength as cycle. is soon markets the that, be next it fourth And a fourth from going to stronger

is we're of on. so that's And that kind -- what

et Again, competitive overall improve that broadly within [indiscernible] to cetera, take-out continue to Cost intended Grow, to positioning is Protective. our

Operator

George Staphos from of comes question Bank next from America. Our

George Staphos

a in Just think. detail. again, your on the how and And as you you on businesses? cleaner other if CTOXGrow for discussion and curve about Protective, the talk versus much now need competition? is again, basically Can the Food of be you think much do within -- I right disadvantaged the catch up roughly and thanks much broadly those how And portfolio percentage cost within imperatives would all presentation, a your

this of have small though really the we Relatedly, happening peers some your past. don't recently, in they're highlighted remember even wins,

some talk Can markets. you're protein share gaining headwinds? you of the in you wins with why even small Some these to think

Dustin Semach

for thank Yes. on the the Thank you, you commentary George, and slides.

markets broadly and real any comments relative terms and just automation aware broadly. threat clear couple who's And a performing share, Food to performing competition beef business competitive making in form relative that this meat And specifically, of of we're of as red we see I'm actually how think within be we're not higher taking our as make of how market so serve, referencing we what protein offer. there, you're particularly of to we well overall share Food. in to do the of back So to more have from pork, solutions business as points markets would competition, around going where our more I the bags

or We equipment we look and near combination continue materials the look at provide you whether perspective, provide, we competitive my from to that the in see no the the is you or -- at the bags of you we're say, a don't will automation, would be remain I there themselves look at advantage term. and in a

you the large go which back customers, share and back customers will then share large the to that us they're plants from continue next they're question QX, point that's of so away from but and over, we're to end were your go not gains, they're that competition tailwind, small to this the when about market back better to specific very this and than going yield coming perform give gains we're to kind year in into continue So taking us of, going that just confident year, that gave will market a year. taking in tailwind tailwind a that sense

and areas on that more I of a XX% think -- than sensitivity, probably but it have that specifically the talk differentiation cost portfolio holistically, rollstock There's are focused less the So you -- business where more more there's, we areas is where where becomes right, in there's specifically less about pieces to that rationalizing factor of we say, about estimate, really you're at of produce, so those this price a to looking it's competitive the business. rough we that pricing, areas when in because XX% is maybe materials particular competitive at themselves. would of area of differentiation can the when about the subsegments so in competitive differentiation, and compete Food, we're

our are with or tend the that And be automation. areas not sensitive in then Protective, more areas we where to beforehand coupled we've business price of talked about

And to there process, the processes serve that different the on. focused so that portfolio about there's and news manufacturing good but XX% And to similar. you're the overall though roughly that, -- very even we're XX% thinking of is products innovation is, cost than

to problem So of while them solving the relative sound portfolio when because larger the piece is of ways a rollstock that some it less like -- are versus you're offering in may that business. applications our overall there's portfolio, more, simpler

Emile Chammas

just it Yes. well. said very And George, would I

downgrading to to the to broader that markets. our of also into up Just of the the now, to in have very ourselves And the rollstock add opportunities. open business, to go corner after a niche stay intend with on portfolio, the aperture we consumers pigeon the different just part products, right fact rollstock market premium set of not we but

Operator

I further like Emile turn remarks. am back I at for would to this time. showing closing no to it now questions

Emile Chammas

about speaking thank I and for ahead for the you. to everyone like I'd in to we see, excited again today. and February. Dustin look are their time opportunities forward Thank

Operator

participation in does the Thank you conference. for This conclude your today's program.

You may now disconnect.

Sealed Air (SEE) 2 Nov 232023 Q3 Earnings call transcript