SEE Ramps Up CTO2GROW Initiatives, Searches for New CEO

Flexible and sustainable packaging converter and equipment supplier SEE announced $125 million in net earnings for Q4 of 2023 as part of its Q4 and full-year results report. While the company reported a 2% decline in net sales for the quarter ($1.5 billion), SEE realized a 32% jump in net earnings.

“Our fourth quarter results were in line with our expectations,” said Emile Chammas, SEE’s Interim Co-CEO and COO, in a written statement issued by the company. “We ramped our CTO2Grow initiatives to improve the competitiveness of our businesses and help offset continued weakness in our end-markets.”

The Cost Take-Out to Grow (CTO2Grow) program is a three-year plan launched in 2023 to drive annualized savings. CTO2GROW is part of Reinvent SEE 2.0, which aims to restore volume and earnings growth in 2024 and reduce SEE’s cost structure by $140 to $160 million annually by the end of 2025.

When SEE, aka Sealed Air Corp., announced CTO2GROW as part of its Q2 2023 Results report, SEE also announced an acceleration of its growth strategy Reinvent SEE 2.0, which is driven by automation, digital, and sustainable packaging solutions.

Reinvent SEE 2.0 focus priorities include:

• Accelerating Growth Platforms with a Customer First Solutions Approach: Expand and grow SEE’s portfolio of automated solutions, advance its Prismiq digital printing and services, develop new innovative sustainable solutions, and expand its digital e-commerce platform.
• Expanding the Fluids and Liquids Business, synergizing the competitive strengths of Cryovac and Liquibox: Combining highly complementary solutions within SEE’s fast-growing fluids & liquids business while generating strong synergies and accelerating innovation.
• Drive SEE Operational Excellence, Automating and Digitizing the Global Network with SEE Touchless Automation: Heightened focus on world-class operations, operating leverage, productivity, zero harm, and flawless quality in everything SEE does, to make every customer a reference.
• SEE Operating Model and Engine: Deliver high-quality growth faster than the markets SEE serves as the company seeks to simplify and digitize its organizational structure to withstand global slowdowns and offset inflation.
• Turnaround of Automated Protective Solutions Business: Expanding SEE Automation and fiber-based solutions, reducing customer friction, and widening its customer reach through its MySEE digital platform. Continue to evaluate the portfolio and operations to optimize and unlock value.
• Executing the CTO2Grow Restructuring Program: Transforming SEE’s go-to-market team into an efficient and effective solutions-focused organization, optimizing its portfolio with a focus on automation, digital and sustainable solutions, streamlining its supply chain footprint, and driving SG&A productivity.

The interim co-CEO added, “Our transformation will continue in 2024 with an enhanced focus on restoring underlying fundamentals in our core businesses so we are well positioned to capitalize on growth when our end markets fully recover.”

Currently, Chammas shares CEO duties with Dustin Semach. Both Chammas and Semach continue to serve as COO and CFO, respectively. The company emphasizes the current leadership situation is temporary, and progress is being made to enable Chammas and Semach to return their full focus to their roles as COO and CFO.

In the same written statement, Henry Keizer, SEE’s board chairman, noted, “The Board has tremendous confidence in Emile and Dustin and fully supports the transformation they are driving at SEE.” Keizer also said, “The CEO search process is well underway, and we are targeting to complete over the coming months.”