SON

Sonoco Products Company

HALAL

Score: 80/100

stock

Is SON Halal?

Packaging manufacturer — a permissible materials business, with acquisition debt to screen.

What You Should Know

Sonoco Products Company is a diversified global packaging manufacturer producing consumer packaging, industrial paperboard and tubes, protective packaging, and related products. Manufacturing packaging is a clearly permissible activity with no haram revenue line of its own. Sonoco carries debt from its acquisitions and capacity investments, so its total-debt-to-market-cap ratio is the primary screening item and should be confirmed against the 33% threshold using the latest filings. As with other packaging makers, some output is sold to food and beverage customers, but Sonoco sells neutral packaging rather than the product inside it. Interest income on cash is incidental and should be checked against the 5% threshold and purified.

⚠️ Concerns

•Carries acquisition- and capacity-related debt — confirm total debt / market cap stays under the 33% threshold against the latest filings
•Some packaging is sold to beverage customers that may include alcohol producers — an indirect end-use stricter investors may weigh, though Sonoco sells neutral packaging rather than the beverage itself
•Incidental interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified
•Re-screen the financial ratios periodically