CANPACK Reports Q1 2024 Results

Krakow, Poland, May 29, 2024 – 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, 2024 (“Q1 2024”).

During the three months ended March 31, 2024, beverage can body volumes increased by 24%, as compared to the corresponding period in 2023, driven by positive performance in all reported regions. This performance was primarily driven by Europe, incremental U.S. volumes as all 7 lines are now operational, and a strong demand rebound in Brazil.

Net sales increased by 10% for the three months ended March 31, 2024 as compared to the corresponding period in 2023. This performance was primarily driven by higher volumes sold in the Beverage Cans and Ends division in 2024 as compared to the corresponding period in 2023. This increase was partially offset primarily by lower contractual pass through of aluminum LME for the three months ended March 31, 2024 as compared to the same period in 2023.

Adjusted EBITDA increased to $136 million for the three months ended March 31, 2024 as compared to $109 million for the same period in 2023, an increase of 25%. This increase was primarily driven by higher incremental volumes and lower energy costs.

Capital expenditures decreased to $31 million for the three months ended March 31, 2024 as compared to $125 million in the corresponding period in 2023. Capital expenditure reductions in the current year were primarily related to a planned decrease in the United States.

Free cash flow decreased by $91 million from a $34 million cash outflow for the three months ended March 31, 2023 to a $125 million cash outflow for the three months ended March 31, 2024. This performance was primarily driven by an increase in Working Capital due to limited usage of factoring facilities in the current year, partially offset by lower CapEx and higher Adjusted EBITDA.

Chief Executive Officer, Marius Croitoru, Commented:
“We are delighted to report strong Q1 2024 results – key financial metrics improved as compared to Q1 2023 as a result of robust market conditions in all geographies in which CANPACK operates combined with improved utilization of current production capacity. We are proud to report that in Q1 2024, CANPACK became the second largest player in Europe in terms of Beverage Can Net Sales. I would like to use this opportunity to express my gratitude to all of our dedicated employees who contributed to CANPACK’s strong performance in Q1 2024.”

About CANPACK
CANPACK Group, part of the 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 Group employs nearly 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 Q1 2024 results on Wednesday, May 29, 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 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