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Smurfit WestRock plc(SW) - 2024 Q4 - Annual Results
SWSmurfit WestRock plc(SW)2025-02-12 11:37

Financial Performance - Fourth quarter Net Sales reached approximately 7.5billion,asignificantincreasefrom7.5 billion, a significant increase from 2.86 billion in the same period last year[2] - Fourth quarter Net Income was 146million,withaNetIncomeMarginof1.9146 million, with a Net Income Margin of 1.9%, compared to 50 million and a margin of 1.8% in the prior year[2] - Full year Net Income totaled 319million,downfrom319 million, down from 826 million in the previous year[9] - The company reported a net income of 146millionforthethreemonthsendedDecember31,2024,comparedto146 million for the three months ended December 31, 2024, compared to 50 million for the same period in 2023, representing a 192% increase[30] - For the three months ended December 31, 2024, Smurfit Westrock reported a net income of 146million,comparedto146 million, compared to 50 million for the same period in 2023, reflecting a significant increase[37] - The company reported a net income margin of 1.0% for the combined entity, indicating a need for improved profitability measures[39] EBITDA and Margins - Adjusted EBITDA for the fourth quarter was 1,166million,resultinginanAdjustedEBITDAMarginof15.51,166 million, resulting in an Adjusted EBITDA Margin of 15.5%, slightly down from 15.6% in the previous year[2] - For the full year, the company reported a Combined Adjusted EBITDA of 4.7 billion, aligning with previously stated guidance[3] - The total Adjusted EBITDA for the company was 1,202millionforthethreemonthsendedDecember31,2024,comparedto1,202 million for the three months ended December 31, 2024, compared to 483 million in the same period of 2023, reflecting an increase of about 148%[28] - Adjusted EBITDA for the twelve months ended December 31, 2024, was 3,386million,upfrom3,386 million, up from 2,128 million in 2023, indicating a strong year-over-year growth[37] - Combined Adjusted EBITDA for the twelve months ended December 31, 2024, reached 4,706million,withCombinedNetSalesof4,706 million, with Combined Net Sales of 30,904 million, resulting in a Combined Adjusted EBITDA Margin of 15.2%[39] - The Adjusted EBITDA margin for the North America segment was 15.4% for the three months ended December 31, 2024, compared to 18.7% for the same period in 2023[28] - The Adjusted EBITDA Margin for the three months ended December 31, 2024, was 15.5%, slightly down from 15.6% in the same period of 2023[37] Sales Growth - Total net sales for the company were 7,638millionforthethreemonthsendedDecember31,2024,upfrom7,638 million for the three months ended December 31, 2024, up from 2,874 million in the same period of 2023, representing a growth of approximately 165%[28] - North America segment net sales reached 4,593millionforthethreemonthsendedDecember31,2024,comparedto4,593 million for the three months ended December 31, 2024, compared to 384 million for the same period in 2023, marking a significant increase[28] - The LATAM segment net sales increased to 524millionforthethreemonthsendedDecember31,2024,from524 million for the three months ended December 31, 2024, from 343 million in the same period of 2023, reflecting a growth of approximately 53%[28] Operational Efficiency and Cost Management - The synergy program is on track to deliver 400millioninsavingsbytheendof2025,withadditionaloperationalandcommercialopportunitiesidentified[4]−Thecompanyincurredtransactionandintegration−relatedexpensesof400 million in savings by the end of 2025, with additional operational and commercial opportunities identified[4] - The company incurred transaction and integration-related expenses of 531 million for the twelve months ended December 31, 2024, as part of its Combination strategy[39] - Restructuring costs for the twelve months ended December 31, 2024, totaled 118million,reflectingongoingoperationaladjustments[39]CashFlowandLiquidity−AdjustedFreeCashFlowforthethreemonthsendedDecember31,2024,was118 million, reflecting ongoing operational adjustments[39] Cash Flow and Liquidity - Adjusted Free Cash Flow for the three months ended December 31, 2024, was 257 million, compared to 391millionforthesameperiodin2023[41]−NetcashprovidedbyoperatingactivitiesforthetwelvemonthsendedDecember31,2024,was391 million for the same period in 2023[41] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was 1,483 million, down from 1,559millionin2023[41]CompanyOverview−Thecompanyhasapproximately100,000employeesacross40countries,emphasizingitsglobalreachandscaleinthepaper−basedpackagingmarket[14]−Thecompanyisfocusedoncreatingaperformance−ledcultureandisoptimisticaboutfutureopportunities,subjecttomacroeconomicandclimaterisks[6]AssetsandLiabilities−Thecompany′stotalassetsincreasedto1,559 million in 2023[41] Company Overview - The company has approximately 100,000 employees across 40 countries, emphasizing its global reach and scale in the paper-based packaging market[14] - The company is focused on creating a performance-led culture and is optimistic about future opportunities, subject to macroeconomic and climate risks[6] Assets and Liabilities - The company's total assets increased to 43,759 million as of December 31, 2024, from 14,051millionasofDecember31,2023,showingagrowthofapproximately21114,051 million as of December 31, 2023, showing a growth of approximately 211%[29] - The company’s total liabilities rose to 26,372 million as of December 31, 2024, compared to $7,877 million as of December 31, 2023, indicating an increase of about 234%[29] Management Perspective - Smurfit Westrock's management emphasizes the importance of non-GAAP measures like Adjusted EBITDA and Adjusted Free Cash Flow for evaluating ongoing performance and liquidity[34]