CANPACK Reports Q1 2023 Results

Krakow, Poland, May 30, 2023 – 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 months ended March 31, 2023 (“Q1 2023”).

Q1 2023 Highlights

• During the three months ended March 31, 2023, beverage can bodies volumes decreased by 3%, as compared to the corresponding period in 2022, driven by lower performance in Brazil, UAE (due to lack of exports to the U.S.) and Western Europe, partially offset by improved performance in the U.S. and Ukraine.
  
  
• Net sales increased by 2% for the three months ended March 31, 2023 as compared to the corresponding period in 2022. This performance was mainly driven by higher average conversion prices in our Beverage Cans and Ends, Glass Packaging and other divisions in 2023 as compared to 2022. This increase was partially offset by lower volumes delivered, lower LME levels and unfavorable impact from the depreciation of the euro against the U.S. dollar in the three months ended March 31, 2023 as compared to the same period in 2022.
  
  
• Adjusted EBITDA decreased to $109 million for the three months ended March 31, 2023 as compared to $132 million for the same period in 2022, a decline of 17%, driven mainly by $13 million of lower volumes (excluding U.S.), $6 million of cost increases not yet fully transferred in selling prices combined with a $2 million LME time lag impact and a $2 million unfavorable impact from the depreciation of the euro against the U.S. dollar.
  
  
• Capital expenditures increased to $125 million for the three months ended March 31, 2023 as compared to $91 million in the corresponding period in 2022. Capital expenditures in both periods were mainly related to the spending for our U.S. greenfield projects in Olyphant, Pennsylvania and Muncie, Indiana.
  
  
• Free cash flow decreased by $78 million from a $44 million cash inflow for the three months ended March 31, 2022 to a $34 million cash outflow for the three months ended March 31, 2023. This performance was mainly driven by higher capital expenditures and lower adjusted EBITDA during the three months ended March 31, 2023 as compared to the corresponding period in 2022.
  
  

Interim Chief Executive Officer, Marius Croitoru, Commented:

“We are encouraged by Q1 2023 performance as EBITDA more than doubled relative to the level realized in Q4 2022. CANPACK is both financially and operationally stable, and we are optimistic that the overall environment for our products will improve throughout 2023 as demonstrated by performance in Europe during April and May 2023. While the short-term environment is expected to remain challenging, we continue to focus on activities that will enhance our long-term success, including working capital management and cost controls.”

About CANPACK

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. Headquartered in Krakow (Poland), CANPACK employs over 9,000 people worldwide and has operations in 16 countries. For more information, visit www.canpack.com.

Conference Call Details

CANPACK Group will announce its Q1 2023 results on Tuesday, May 30, 2023. 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 bodies volume 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

Li Zhao – Maitland/AMO
Phone: +44 (0) 207 379 5151
Email: canpack@maitland.co.uk