Diversey Care’s positive contribution to Sealed Air financial result

The Diversey Care division has been performing strongly according to financial results just posted (10 February) by parent Sealed Air Corporation.

Diversey-OxivirAd_ICT_r11The Diversey Care division has been performing strongly according to financial results just posted (10 February) by parent Sealed Air Corporation.  Diversey generated fourth quarter (of 2014) net sales of US$536 million, an increase of 4.1% in constant currency, and 2014 net sales of US$2.2 billion, an increase of 3.0% in constant currency.

“2014 was a very strong year for Sealed Air – we generated over $600 million of free cash flow, expanded adjusted EBITDA margins by 90 basis points to 14.4% compared to 2013 and delivered margin expansion across our three divisions,” stated Sealed Air’s CEO Jerome Peribere.

“Despite currency headwinds in the fourth quarter, we exceeded our expectations across all key metrics in the quarter and for the year.”

This year Sealed Air is expecting lower input costs combined with its continued focus on earnings quality improvements to offset unfavourable currency translation. The outlook for adjusted EBITDA is expected to be in the range of US$1.15 billion to US$1.18 billion as compared to 2014 adjusted EBITDA of $1.12 billion.

“We will continue to stay disciplined on our value-added selling approach and ‘Get Fit and Change the Game’ initiatives, both of which are expected to contribute to margin expansion. Additionally, we expect to generate approximately US$600 million in free cash flow in 2015,” Peribere noted.

According to Sealed Air’s report, ‘Diversey Care delivered positive volume and favourable price/mix trends in the fourth quarter and for the full year. Volume and price/mix trends combined with continued strength in emerging markets resulted in fourth quarter net sales of US$536 million, an increase of 4.1% in constant currency, and 2014 net sales of US$2.2 billion, an increase of 3.0% in constant currency.

‘Currency had a negative impact on Diversey Care net sales of 5.9%, or US$33 million, in the quarter and 2.4%, or US$53 million, in 2014. Diversey Care delivered adjusted EBITDA margins of 10.9% in the fourth quarter and 11.3% in 2014.

‘Throughout the year, Diversey Care’s focus on eliminating low margin business and implementing cost savings initiatives was offset by investments in sales and marketing and non-material inflation. Specifically related to the fourth quarter, adjusted EBITDA margins were negatively impacted by unfavorable currency translation and supply chain costs.’

www.sealedair.com

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