CANPACK Group Reports Q3 2024 Results

Wayne, Pennsylvania and Krakow, Poland, November 26, 2024 – CANPACK Group (“CANPACK, the “Company” or the “Group”), a global manufacturer of aluminum beverage cans and packaging solutions for the beverage and food industries, is hereby providing, on a U.S. GAAP basis, with U.S. dollars (defined as “$”) as the reporting currency, its results for the three and nine months ended September 30, 2024 (“Q3 2024”) and its trading update for Q3 and 9M 2024.

During the three months ended September 30, 2024, beverage can body volume increased by 14% while during the nine months ended September 30, 2024, beverage can body volume increased by 18% as compared to the corresponding periods in 2023. The positive volume development during the three and nine months ended September 30, 2024, was related to positive performance in all regions served by CANPACK, primarily driven by incremental U.S. volumes, continued demand rebound in Brazil, and strong demand in India and Europe.

Net Sales¹ increased by 14% for the three months ended September 30, 2024, as compared to the corresponding period in 2023. This positive performance was primarily driven by higher volumes sold in the Beverage Cans and Ends division. Net Sales increased by 13% for the nine months ended September 30, 2024, as compared to the corresponding period in 2023. This positive performance was primarily driven by higher volumes sold in the Beverage Cans and Ends division, partially offset by negative mix impact.

Adjusted EBITDA¹ increased to $160 million and $469 million for the three and nine months ended September 30, 2024, respectively, as compared to $119 million and $321 million in the corresponding periods in 2023, driven mainly by higher volumes, better operational performance in the U.S., and lower energy costs.

Capital expenditures¹ decreased to $38 million and $97 million for the three and nine months ended September 30, 2024, respectively, as compared to $53 million and $241 million in the corresponding periods in 2023. Capital expenditure reductions in the current year were primarily related to lower planned spending in the U.S.

Free cash flow increased by $14 million from a $137 million cash inflow for the three months ended September 30, 2023, to a $151 million cash inflow for the three months ended September 30, 2024. Free cash flow decreased by $251 million from a $240 million cash inflow for the nine  months ended September 30, 2023, to a $11 million cash outflow for the nine months ended September 30, 2024. This performance was primarily driven by an increase in Working Capital due to limited utilization of factoring facilities, and a higher level of accounts receivables generated by volume growth, partially offset by lower CapEx and higher Adjusted EBITDA.

Chief Executive Officer, Marius Croitoru, Commented:

“I am pleased to report another strong quarter and year to date September 2024 results. We continue to be encouraged by our  can body volume growth of 18% during the nine months ended September 30, 2024, combined with a 46% increase in Adjusted EBITDA as compared to the corresponding period of the prior year. I would like to extend my gratitude to all of our employees for their unwavering commitment and exceptional efforts making  CANPACK’s strong performance in 2024 possible.”

About CANPACK Group

CANPACK Group, part of Giorgi Global Holdings, Inc, is a global manufacturer of aluminum beverage cans and packaging solutions for the food and beverage industries, as well as glass bottles and metal closures. CANPACK employs approximately 8,500 people worldwide and has operations in 16 countries. For more information, visit www.canpack.com.

Conference Call Details

CANPACK Group will announce its Q3 2024 results on Tuesday, November 26, 2024. The company will host a conference call at 14:00 BST / 15:00 CEST / 09:00 EDT to discuss its financial results with the investment community. Investors and analysts wishing to attend this event can request for registration via email at IR@canpack.com or click on the following link.

More detailed financial information can be found on the Company’s IR website at the Financial Results and Bondholder Downloads section (click here to gain access).

Forward-Looking Statements Disclaimer

These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate,” “assume,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “forecasts,” “should,” “could,” “would,” “may,” “will” and other similar expressions or, in each case, their negative or other variations or comparable terminology.

All statements other than statements of historical facts included in this document, including, without limitation, statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, may be deemed to be forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties.

We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods.

Any forward-looking statement that we make in this document speaks only as of the date on which it is made, and we do not intend to update such statements. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may not be within our control.

Moreover, the Company operates in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results.

Non-GAAP Measures

The above press release contains certain financial measures and ratios, including adjusted EBITDA, free cash flow, net leverage, changes in working capital, beverage can body volumes and capital expenditures, that are not required by, or presented in accordance with, U.S. GAAP (the “Non-GAAP Measures”).

We present these Non-GAAP Measures because they are measures that our management uses to assess operating performance and liquidity, and we believe that they and similar measures are widely used in our industry as supplemental measures of performance and liquidity. These measures may not be comparable to other similarly titled measures of other companies and are not measurements under U.S. GAAP or other generally accepted accounting principles.

Non-GAAP Measures and ratios are not measurements of our performance or liquidity under U.S. GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating, investing or financing activities.

Contacts:

CANPACK IR team

Lorenzo Ruffatti
Group Treasury & Investor Relations Director

Marta Kopcik
Group Communications Manager

Email: IR@canpack.com

CANPACK IR Advisor

Daisy Padovan – H/Advisors Maitland
Phone: +44 (0) 207 379 5151
Email: canpack@maitland.co.uk

¹Presented on comparable basis from continuing businesses, excluding results of the Poland Glass Business which was sold on April 2, 2024.