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Investing in Automation, Digital, and Sustainability
Tuesday, August 3, 2021

  • Net sales of $1.3 billion, up 15% as reported; up 11% constant currency
    • Increasing full year sales outlook to $5.4 to $5.5 billion
  • Net earnings of $109 million, up 8%; EPS of $0.71, up 11%
    • Adjusted EBITDA of $263 million, up 1%; Adjusted EPS of $0.79, up 4%
    • Increasing full year EPS outlook to $3.45 to $3.60
  • Cash flow from Operations year to date of $200 million, down 6%
  • Authorized new $1 billion Share Repurchase Program

CHARLOTTE, N.C. — Sealed Air Corporation (NYSE: SEE) today announced financial results for the second quarter 2021.

“Demand for our automated and sustainable packaging solutions drove a net sales increase of 15%, supported by a 9% volume growth. Adjusted EBITDA increased 1% as higher sales and productivity improvements were offset by widespread supply challenges and dramatic inflationary pressure. Despite this adverse environment, our SEE Operating Engine is delivering,” said Ted Doheny, SEE’s President and CEO.

“We are raising our 2021 sales and EPS outlook and reaffirming Adjusted EBITDA and Free Cash Flow guidance.

We are accelerating our journey to world-class by increasing our investment in 'touchless' automation, digital and sustainability, while returning capital to shareholders, as demonstrated by our announced 25% dividend increase and share repurchases,” continued Doheny.

Unless otherwise stated, all results compare second quarter 2021 to second quarter 2020 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported. Year-over-year comparisons are also made on a constant dollar basis, which is a non-U.S. GAAP measure. Constant dollar refers to changes in net sales and earnings, including changes in unit volume and price performance, but excluding the impact of currency translation. Additionally, non-U.S. GAAP adjusted financial measures, such as Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"), Adjusted Net Earnings, Adjusted Diluted Earnings Per Share ("Adjusted EPS") and Adjusted Tax Rate, exclude the impact of specified items ("Special Items"), such as restructuring charges, restructuring associated costs, gains and losses related to acquisition and divestiture of businesses, special tax items ("Tax Special Items") and certain infrequent or one-time items. Please refer to the supplemental information included with this press release for a reconciliation of U.S. GAAP to Non-U.S. GAAP financial measures.

Business Highlights

Second quarter net sales in Food were $737 million, an increase of 9% as reported. Currency had a favorable impact of $26 million. On a constant dollar basis, net sales increased $37 million, or 6%, with volumes up $28 million, or 4%. Strength in automation, combined with higher food service demand as compared to last year, contributed to a constant dollar growth of 8% in the Americas and 3% in EMEA, while APAC saw a decline of 2%. Adjusted EBITDA of $158 million, or 21.5% of net sales, compares to $169 million, or 25.1% of net sales, in the prior year. Volume growth and productivity improvements were more than offset by negative price/cost spread related to higher input costs, combined with the delayed timing of formula-based price increases. Food also incurred higher freight costs in an effort to meet increased customer demand while managing global supply disruptions.

Second quarter net sales in Protective were $592 million, an increase of 24% as reported. Currency had a favorable impact of $20 million, or 4%. On a constant dollar basis, net sales increased $94 million, or 20%, driven by a 15% increase in volumes. Continued strength in eCommerce and automation, combined with higher industrial demand as compared to last year, contributed to constant dollar growth of 38% in EMEA and 19% in the Americas. Adjusted EBITDA increased 17% to $107 million, or 18.1% of sales, as compared to $92 million, or 19.1% of net sales, in the prior year. The increase in Adjusted EBITDA was primarily attributable to sales growth, partially offset by negative price/cost spread related to higher input costs to help meet customer demand.

Second Quarter 2021 U.S. GAAP Summary

Net sales of $1.3 billion increased 15% as reported. Currency contributed $46 million, or approximately 4%, to net sales growth, as compared to second quarter 2020.

Net earnings in second quarter 2021 were $109 million, or $0.71 per diluted share, as compared to net earnings of $100 million, or $0.64 per diluted share, in second quarter 2020.

The effective tax rate in second quarter 2021 was 29.7%, as compared to 30.8% in second quarter 2020.

Second Quarter 2021 Non-U.S. GAAP Summary

Net sales increased $131 million, or 11%, on a constant dollar basis. Volumes increased $101 million, or approximately 9%, and price had a favorable impact of $30 million, or approximately 3%. By region, in constant dollars, EMEA and the Americas increased 16% and 13%, respectively, and APAC was essentially flat.

Adjusted EBITDA was $263 million, or 19.8% of net sales in second quarter 2021, as compared to $260 million, or 22.6% in second quarter 2020. Currency fluctuations had a favorable impact of $9 million, or 3%, in second quarter 2021.

The Adjusted Tax Rate was 25.6% in second quarter 2021, as compared to 27.5% in second quarter 2020.

Adjusted earnings per diluted share were $0.79 in second quarter 2021, as compared to $0.76 in second quarter 2020.

Cash Flow and Net Debt

Cash flow provided by operating activities in the first six months of 2021 was a source of $200 million, as compared to a source of $213 million during the same period in the prior year.

Capital expenditures in the first six months of 2021 were $97 million, as compared to $84 million during the same period last year. Free Cash Flow, defined as net cash provided by operating activities less capital expenditures, was a source of $102 million during the six months ended June 30, 2021, as compared to a source of $129 million during the same period last year.

Total debt was $3.7 billion as of June 30, 2021, as compared to $3.8 billion as of December 31, 2020. Net Debt, defined as total debt less cash and cash equivalents, was $3.5 billion as of June 30, 2021, as compared to $3.2 billion as of December 31, 2020. As of June 30, 2021, SEE had approximately $1.4 billion of available liquidity, comprised of $273 million of cash and $1,144 million of undrawn, committed credit facilities.

Share Repurchases and Dividends

During the first six months of 2021, the Company repurchased $299 million, or 6.1 million shares. On August 2, 2021, the Board of Directors authorized a new share repurchase program of $1 billion, continuing its commitment to return value to shareholders. This new program has no expiration date and replaces the previous authorization which had approximately $375 million remaining.

During the second quarter, SEE increased its quarterly cash dividend by 25% to $0.20 per common share. The Company paid cash dividends of $56 million during the first six months of 2021.

Updated 2021 Full Year Outlook

For the full year 2021, SEE now expects net sales in the range of $5.4 billion to $5.5 billion, which represents an increase of 10% to 12% as reported and 8% to 10% in constant dollars. This compares to the Company's previous net sales outlook in the range of $5.25 billion to $5.35 billion. The Company now expects a favorable currency impact of approximately 2%, as compared to 1.5% in the prior outlook.

The Company continues to expect full year Adjusted EBITDA to be in the range of $1.12 billion to $1.15 billion.

SEE now forecasts full year Adjusted EPS to be in the range of $3.45 to $3.60, which is based on approximately 153 million weighted average shares outstanding and an Adjusted Tax Rate of approximately 26%. This compares to our previous outlook of $3.40 to $3.55 per share based on 154 million shares outstanding and an Adjusted Tax Rate of 26% to 27%.

The Company continues to expect Free Cash Flow in 2021 to be in the range of $520 million to $570 million.

Conference Call Information

Sealed Air Corporation will host a conference call and webcast on Tuesday, August 3, 2021 at 10:00 a.m. (ET) to discuss our Second Quarter 2021 Results. The conference call will be webcast live on the Investors homepage at A replay of the webcast will also be available thereafter.

About Sealed Air

SEE (NYSE: SEE) is in business to protect, to solve critical packaging challenges, and to make our world better than we found it. Our packaging technology, solutions and systems create a safer, more resilient and less wasteful global food supply chain, enable eCommerce, and protect goods transported worldwide.

Our globally recognized brands include CRYOVAC® brand food packaging, SEALED AIR® brand protective packaging, AUTOBAG® brand automated systems, BUBBLE WRAP® brand packaging, and SEE Automation solutions.

SEE's Operating Model, along with industry-leading experts in materials, engineering, technology, and science, are driving our innovative solution systems to be more sustainable, automated, and digitally connected.

SEE is leading the packaging industry to create a more environmentally, socially, and economically sustainable future and has pledged to design or advance 100% of its packaging materials to be recyclable or reusable by 2025, and a bolder goal to reach net-zero carbon emissions in its global operations by 2040. The Company is also committed to a diverse workforce and inclusive culture through its 2025 Diversity, Equity and Inclusion pledge.

SEE generated $4.9 billion in sales in 2020 and has approximately 16,500 employees who serve customers in 117 countries/territories. To learn more, visit

Website Information

We routinely post important information for investors on our website,, in the Investors section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Non-U.S. GAAP Information

In this press release and supplement, we have included several non-U.S. GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an "organic" and a “constant dollar” basis, Free Cash Flow, Adjusted EBITDA and Adjusted Tax Rate, as our management believes these measures are useful to investors. We present results and guidance, adjusted to exclude the effects of Special Items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods or prior guidance. In addition, non-U.S. GAAP measures are used by management to review and analyze our operating performance and, along with other data, as internal measures for setting annual budgets and forecasts, assessing financial performance, providing guidance and comparing our financial performance with our peers and may also be used for purposes of determining incentive compensation. The non-U.S. GAAP information has limitations as an analytical tool and should not be considered in isolation from or as a substitute for U.S. GAAP information. It does not purport to represent any similarly titled U.S. GAAP information and is not an indicator of our performance under U.S. GAAP. Non-U.S. GAAP financial measures that we present may not be comparable with similarly titled measures used by others. Investors are cautioned against placing undue reliance on these non-U.S. GAAP measures. For a reconciliation of these U.S. GAAP measures to non-U.S. GAAP measures and other important information on our use of non-U.S. GAAP financial measures, see the attached supplementary information entitled “Condensed Consolidated Statements of Cash Flows” (under the section entitled “Non-U.S. GAAP Free Cash Flow”), “Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-U.S. GAAP Adjusted Net Earnings and Non-U.S. GAAP Adjusted Net Earnings Per Common Share,” “Reconciliation of Net Earnings to Non-U.S. GAAP Total Company Adjusted EBITDA,” “Components of Change in Net Sales by Segment” and “Components of Change in Net Sales by Region.” Information reconciling forward-looking U.S. GAAP measures to non-U.S. GAAP measures is not available without unreasonable effort.

We have not provided guidance for the most directly comparable U.S. GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity, and low visibility with respect to certain Special Items, including restructuring charges, gains and losses related to acquisition and divestiture of businesses, the ultimate outcome of certain legal or tax proceedings, and other unusual gains and losses. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with U.S. GAAP.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 concerning our business, consolidated financial condition, results of operations or cash flows. Forward-looking statements are subject to risks and uncertainties, many of which are outside our control, which could cause actual results to differ materially from these statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements can be identified by such words as “anticipate,” “believe,” “plan,” “assume,” “could,” “should,” “estimate,” “expect,” “intend,” “potential,” “seek,” “predict,” “may,” “will” and similar references to future periods. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results, expectations regarding the results of restructuring and other programs, anticipated levels of capital expenditures and expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings.

The following are important factors that we believe could cause actual results to differ materially from those in our forward-looking statements: global economic and political conditions, currency translation and devaluation effects, changes in raw material pricing and availability, competitive conditions, the success of new product offerings, consumer preferences, the effects of animal and food-related health issues, the effects of epidemics or pandemics, including the Coronavirus Disease 2019 (COVID-19), changes in energy costs, environmental matters, the success of our restructuring activities, the success of our merger, acquisition and equity investment strategies, the success of our financial growth, profitability, cash generation and manufacturing strategies and our cost reduction and productivity efforts, changes in our credit ratings, the tax benefit associated with the Settlement agreement (as defined in our 2020 Annual Report on Form 10-K), regulatory actions and legal matters and the other information referenced in the “Risk Factors” section appearing in our most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement made by us is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether because of new information, future developments or otherwise.

Christina Griffin