CANPACK Reports Q2 2024 Results

Wayne, Pennsylvania and Krakow, Poland, August 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 June 30, 2024 (“Q2 2024”) and six months ended June 30, 2024 (“H1 2024”) and its trading update for Q2 and H1 2024.

During the three months ended June 30, 2024, beverage can body volumes increased by 18% while during the six months ended June 30, 2024, beverage can body volumes increased by 20% as compared to the corresponding periods in 2023. The positive volume development during the three and six months ended June 30, 2024, was related to positive performance in all regions served by CANPACK, primarily driven by Europe, incremental U.S. volumes and continued demand rebound in Brazil.

Net Sales¹ increased by 14% for the three months ended June 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. Net Sales increased by 12% for the six months ended June 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 and contractual pass-through of lower aluminium LME and other costs.

Adjusted EBITDA¹ increased to $175 million and $309 million for the three and six months ended June 30, 2024, respectively, as compared to $105 million and $202 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 $29 million and $59 million for the three and six months ended June 30, 2024, respectively, as compared to $73 million and $188 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 decreased by $172 million from a $136 million cash inflow for the three months ended June 30, 2023, to a $36 million cash outflow for the three months ended June 30, 2024. Free cash flow decreased by $263 million from a $102 million cash inflow for the six months ended June 30, 2023, to a $162 million cash outflow for the six months ended June 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.

New Capacity Announcement

We are pleased to announce that, as a result of strong performance in Europe and continued demand growth, CANPACK has decided to increase European production capacities of aluminum beverage cans by 1.0 billion units in 2025, with 0.5 billion units coming online in Q2 2025 and 0.5 billion units coming online by the end of 2025. These increases will be achieved by adding additional production equipment in various existing European plants.

In addition, considering the strong performance over the last several years in India and the growth potential of our customers, CANPACK is actively considering increasing its manufacturing capacity by investing in a new greenfield manufacturing plant in India.

Chief Executive Officer, Marius Croitoru, Commented:

“I am pleased to report strong Q2 and H1 2024 results. We are encouraged by the 20% can body volume growth during the six months ended June 30, 2024, combined with a 53% increase in Adjusted EBITDA as compared to the corresponding period of the prior year. I would like to use this opportunity to express my gratitude to all our dedicated employees who contributed to CANPACK’s strong performance in the first six months of 2024.”

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. CANPACK 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 Q2 2024 results on Thursday, August 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 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

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

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