OI - Earnings call transcript Q1 2024

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Operator

Hello, everyone, and welcome to the O-I Glass First Quarter 2024 Earnings Conference Call. My name is Emily, and I'll be facilitating your call today. [Operator Instructions]. I will now turn the call over to our host, Chris Manuel, Vice President of Investor Relations, to begin. Please go ahead.

Christopher Manuel

Thank you, Emily, and welcome, everyone, to the O-I Glass First Quarter 2024 Conference Call.

be our Andres CFO. will and our today Haudrich, John discussion led Lopez, by CEO; Our Today, and results. review will our we discuss financial key business developments

Following use website. Please review session. safe harbor those a call will materials. disclosure available financial the prepared of measures and for in our are company's materials non-GAAP this Q&A the on comments remarks, we of Presentation host included

who to turn the will Andres, start like to on I'd Now over X. Slide call

Andres Lopez

O-I. and Last earnings everyone, Good thanks first share. interest in we for quarter night, morning, of your reported per $X.XX

net in were prior reflected As from the production lower expected, results price down due while balance demand period. historically market primarily was robust earnings down to performance and temporary with curtailments the slightly. Lower downturn to year supply softer shipments,

initiatives by off this the trends in Consumer consumption since particularly good expansion it's than and margin improving the of fourth encouraged gradually quarter a are we originally start lower to are progress patterns anticipated. last although year. year, shipment Our our are

margin we we gradually our slower we the of initiative results within factors control. our performance conditions on full the demand. as optimize amid are proud As excellent our year increased the target enterprise, I'm operating have seek across and to continued focused a expansion XXXX improve,

Bowling are in to for plant the to we advantage our Kentucky create we MAGMA MAGMA company, advance greenfield and excited Importantly, for start-up continue a this long-term the competitive first summer. of Green,

long-term earnings later. well will for the a bit markets as Nevertheless, as market full XXXX reflect year over balance time. a as we slower about remain demand stronger As confident glass our look John which outlook the year, future recover the we we adjusting potential of trajectory are to recovery, to review

market current to discuss turn Page X to trends. Let's

soft, the is environment still improving. commercial gradually While

of were XX% year-over-year XXXX. in As in the our quarter on down quarter a to the fourth decline basis shown top chart, compared a shipments first XX.X% on the

significant for in is Additionally, basis year shipments the about year. improvement longer a demand day as XXXX. stages inventory between in as chain spirits discussions while calls, a likely down April such past gradual adjusting and and products previous in was from the when continue holiday this for XX% NABs shift with for of across cycle lower couple driver and short been value shipments Destocking a activity has per cycle the for later XXXX Easter with Consistent beer, will prior quarters including a for show on products, wine. stocking the the food

at a of Additionally, improved consumer course lagged over bottom are patterns during choppy expectations. the XXXX, the first quarter Trends the were illustrated as this improving expected, and year but but consistently our slower than chart. rate in

brands. as promotional in value cost that hear consumer share factors challenges. higher every up tends as prepandemic limited such on attributed about the and we products, day, a interest seen consumption customers food some have confidence below we to and ramp inflation favor to which trade especially Software down, the price and Prolonged rates elasticity activity, levels. Furthermore, beverage remains our is news shift more driving

As improve will activity the of shipments stocking we drops we to the several off next year, look balance the as expect months. over the

rate as over originally than a XXXX more our demand revised have of slower in we flat sales digits in course to we the improvement project outlook of low the circle shown will mid-single-digit our chart. Overall, our we to However, outlook of single sales expect growth. recovery now up be is to volume prior now in consumption a reflect year volume gradual to the the low which compared lower XXXX anticipated,

sustainability. wellness as Overall, long-term from we mega premiumization, interest in key benefit demand trends demand over levels recover health to as anticipate time. such we as glass glass to improve, expect continue will and substantially markets increased As prepandemic will well

Importantly, well advantage unfolds. of take as the it rebound positioned to we are

to I'll more Now Page who review starting over performance X. and it XXXX detail updated turn will on quarter John, our outlook in first

John Haudrich

morning, $X.XX our per of of O-I last Thanks, $X.XX good Consistent reported were first earnings Andres, results from quarter everyone. expectations, per high and year. earnings with historically share down share.

As illustrated, was by slightly profit, decline reflected earnings nonoperating a operating favorable primarily in expense higher some offset while FX. segment mostly

Additional in included the nonoperating slide. items details are on

Americas Elevated Europe, The was costs JV profit partially benefits. curtailment from temporary and segment sales headwind modest not down with lower curtailments, down by from year Page did expansion offset $XXX balance operating turn million, headwind partially and profit production energy of recent price margin impact volume which These were reflected was $XXX temporary was operating operating our a million million, down million production to favorable that Americas, supply credits $XXX year. Like reflected our repeat. X from performance headwinds In Higher by XX%. the totaled to costs operating program. X benefits down significant $XXX offset last a sales margin was Let's the across initiative last and and posted discuss prior Net XX%. price elevated which segments. net were performance slight demand, volumes was initiative segment of year. expansion

discuss X turn updated Let's to Page XXXX our outlook. business to

for improvement growth yet left, have patterns stable, more anticipated. the than is gradual in earnings year adjusted consumption a reduced originally and factors. Net a have reflecting full process expectations, destocking guidance we few longer price our we on consumer a noted our As sales

Given to incremental check. inventories softer ensure intend to we demand, production take curtailments in remain

million. the help the slower increased our we second target growth, have our accelerating $XXX curtailment sales mitigate full benefit of softer initiative to at year start least Importantly, year. To the we in following quarter are activity

and has Finally, been change higher rates, interest our tax trends, higher in outlook unfavorable a by impacted curve the FX the forward given rate.

we reflecting quarterly $XXX cash million per should $XXX updated we now should share allocation. Free to adjusted and have range prior position result, leverage end sheet and a lower earnings by view volumes $X.XX intend including $X.XX both approximate offset million, as year and $X to between share, per of Xs, in recover. our cash to compared a with earnings CapEx. of flow to earnings, As levers, to expect to our We which outlook low $X.XX earnings the healthy moderately expect other decrease balance favorable partially lower naturally will maintain the

Andres As are current discussed, we market temporary. conditions believe

when While longer likely to levels. than rebound take should returned anticipated, it will originally earnings volumes pre-pandemic and substantially production sales

on back it our provide who turn an Page strategic I'll Now key update X. Andres, on objectives to will

Andres Lopez

Despite to strategy. long-term enable downturn, Thanks, execute this on market year we continue to established John. X our the priorities we key the

our are which the of off current offset helping We initiatives, are pressures. margin start market to a some with expansion good

have activities year we in noted, our that substantially includes As are which increased target, full planned complete. XXXX restructuring now

as requirements will trends are time, the to expanding future We market evaluate we continue our business to same growth. our unfold. At enable network profitable

and project we I on All customer packaging. R&D market first recently approved deployment page, remain we schedule, Gen our As attractive greenfield to MAGMA remains discuss for increasing pending our and others in on lighter next X ULTRA in to the further on MAGMA is expansion in hold advance support projects, while continue recovery. further X will weight lines remain Europe track on interest advancing well, new XXXX. Likewise, we

are XXXX up enable has includes projects selected the of ESG years few of key excited well, in the capital technologies. to our and receive all million to efforts Energy to sustainability Department funding that long-term next accelerate decarbonization Our that progressing O-I our Furthermore, road plan $XXX are U.S. we over deployment map. industrial

good discussed. a we start this Finally, as we sheet, are off as to maintain to long-term John intend we Overall, a advance our healthy balance year strategy.

More X. on MAGMA Page on

for great for into the that serve a decades will is have we Our Heritage the categories many continue network fit of and to future. served

warehouse, to rapidly product MAGMA to In proliferation which greater serve market. MAGMA can meet reimagines sustainability the requirements to and located be future. we will fit now logistics and However, It colocated capital deployed. costs up. costs. smaller into scalable industrial for is more and the is increased and evolved, today market more future markets a fragmentation. MAGMA or and and ground designed process entire and into short, intensity have near be an and can flexible MAGMA differentiated is the see from brand reduce glassmaking more the around is designed lowers operating Furthermore,

We whiskey markets. enable distillers XXX to either our or up start MAGMA plant July greenfield milestone, includes first new which profitable important an fragmented late in an expect nearly nearing MAGMA Kentucky, this in and example can we attractive early are how is August. Located in of growth

which create O-I's Let's and and create forward new look new XX%. We a will our right spend to facility at total demonstrate will We believe ULTRA the forward flexibility, greenfield In addressable investors ULTRA for the the increase win differentiated enable deployment Overall, majorly will in markets in represent over scalability and win and in a advantage by particular, Page and market and and attractive sure hosting technologies O-I across innovative categories. future, marketplace. customers that rapid O-I glass key will to increased our for marketplace. turn benefits O-I's to MAGMA all competitive together to XX. MAGMA

Page some results conditions continues O-I first Please shipment for navigate despite to move leverage. XX quarter softer-than-expected macro solid delivered to remarks. and well final challenging through

have company revised the market taking anticipated outlook for our steps the than success. we we slower future to a recovery, While position year current are reflect right to

short-term we rebound, for record have margin initiative aligning long-term properly already demand, Despite for are the we positioned confident trajectory well We expansion target and time. over significantly challenges, we glass are packaging, future which remain should lower improve and of benefits. earnings supply the in positive with increased high our the

first we business align Importantly, our future this MAGMA summer to the the start-up plant package. we glass of excited of Greenfield are for as our

like my a your time on take CEO. would we as reflections with Before to few end I questions,

our we capable years, execute, the now delivered noncore our We Americas much network, our team company, stabilizing Over consistently have agile more expanding on we past organization. After our we transformed are to a significantly disciplined, rebalanced assets. ability and divesting and the significantly enhanced have commitments. the our and footprint several and operations,

profile our We nearly have sheet resolution with best and decade. our flow fair final a legacy we improve of in a asbestos have and the and risk reduced balance cash liabilities,

what optimizing improving we'd will technologies developed for you like interest I in a thank for performance yet proud to and for create investment of we accomplished to family all advantage to O-I thank of the is While breakthrough structure, community our have would to The years. the best like and have we together. new years that O-I business core also over come. come. I'm new in each that the also accomplished the competitive we

the of beverage the behalf has O-I O-I and Gordon is meeting team in board mid-May CEO, and actively our food address well. forward and to on future. Gordon knows in community company and the Speaking questions. of on well lead Hardie, He is with company to we're experience served With now He engaged transition. working the including positioned looking the ready some X the is for you, years in the the incoming investment industry, of years joining to Thank our his the in into near your over future. customers.

Operator

[Operator Baird. line Instructions] Our of Ghansham from comes with today Panjabi question the first

Ghansham Panjabi

your behind. and legacy the retirement your future. well on you you're congrats also Andres, for Wish on very leaving impressive Yes.

I guess, notable off, point? any there are just the in relative sort the volume that of So to this terms it adjustments derating at will? Or driving are categories if first is you that of guidance, broad-based prior

Andres Lopez

is the for broad-based North is is is most tequila. part, Andean performing specifically, countries, invested in And it experiencing is spirits expansion, America quite of the well. which spirits in markets of place this the that think the But or Mexico in where other some is with in countries exception impact, growing market and fact, more example, it Every Andean the with everywhere in Colombia of mid-teens. for destocking I we specifically year-on-year having exception Colombia. because slowdown the the with the in

John Haudrich

category a different a the improvement take choppy category. the markets. Ghansham, is Andres said in consistent across with best basis, would we're you if recovery But the and beer that I add, seeing look is on it

overall, substantially consumer expectation a in which in down example, is of consumption improve. drag is to Yet kind bit is longer take that longer still seeing improvement areas area is we one again, the that doing well you're beer, a little spirits other and the seeing As bit. low category with on And digits. area down it still of still kind and for that markets, seen But might some Andres it's most and cycle destocking the a to we've that of mid-single in that might flattish on is softer it destock. that wine little bit in your little complete, we're for shorter Colombia, in given to mentioned quite mentioned the

Ghansham Panjabi

of it know to spirits, And that wine is the destocking specific given sort it. just also given seeing business, to for sort touch you lot the as the then terms time and regions, the longer weakness realistic Got line just activity you're component? competitive on contracted of but across dynamic. what in just the And board, a of different volume then maybe destocking I relates lower across a have of the

Andres Lopez

destocking, are in changing lately. regards some to trends interest with seeing we're speak. So as evolution we Demand

So we're seeing to in should way, half to improving regards some along half, the evolution. continue the overall. we second second the wine, this but and through With interesting the be spirits it expect recovering

John Haudrich

last over and can is so really As demand the that far comment maintain can't as managing we years. balance the our add To system. the the the be crisp balance really competitive on proper have we very, thing business think very inventory I too on we are really our environment, we several as competitors. that our levels I with within much supply only

Operator

The question from with Truist Mike next Securities. comes Roxland

Michael Roxland

Andres, luck of retirement. your and And in best congratulations

more mostly that specifically curtailment Just quarter. of little activity. the Is that because you is question, last something the on my Americas? occurring happened in And sound first there in terms accelerating a confident

You you where conference at reiterated guys. also late a your February, were in

and conference happened affect increase something backdrop are something if I become between happened your consumers volatile, cautiousness negatively to or your the but where is the outlook? understand that last quarter wondering volatile, that recently more I'm And really cautious? has more versus you the

Andres Lopez

curtailments So as pronounced been you in have Americas, the mentioned. more

year, to the well we as as an the of enter pace consumer the had with Now levels. we expectation regards destocking as consumption

have the comps we Now in QX, versus improvement us. and is April QX the showed improvement QX data point year-on-year QX. an with the showing was versus lowest all an for

so the a margin QX be that's we pretty slow low. Now had what may

longer mind Now anticipated. destocking is all taking with originally in little that we the see latest information a with and at hand, we than

we consumer are correcting a consumption recovering slower is that. at So And but recovering, pace. is

signs. some Now there encouraging are

when got we we the we Europe. see wine example. look beer continue of Italy to of then year-on-year example, Italy, positive year. There that to for wine inside There in performance data are the exports latest have, For growing the of this in some is at North improved the in for wine and out at balance point. Central But beer the evolution in Europe, that is

corrected we So information with all consumer latest well actual as and pace speak bit the as volume of is But a based we makes and this little that as destocking level we challenging. consumption. it unfolding the line more more that believe of we have in on now the

John Haudrich

the going actual was little that. first than the curtailment decline is a and period. the what which were I volume decline Mike, bigger sales X% Obviously, take look maybe the add expecting first quarter activity, into you the would had that than we in at the if Yes. curtailment in was a quarter kind we about a of line, higher the

up quarter. activity. beat probably the between It curtailment year probably curtailment peak anywhere we up stepping in here second the bit quarter being adjusting with over slowness XX% the our to first a of the XX% level are in we the of as of balance will catch So little for for the

curtailment will Europe our everything mentioned, and course As in be in Andres of more year. active to most the as the we we we been to over look as so have where, probably look incrementally curtailment in Americas the rebalance occurring

Michael Roxland

demand any mention my then follow-up, Got it. weakness. comment you MAGMA. you in this on additional Probably opportunities for additional just have And or offset can

sounds I But target achieve $XXX help thus of accomplished of what million like number You the disposal you've weakness. demand $XXX your raising beyond and persistent for the target the have -- the that $XXX else you about million to year. to far. a what projects total offset do million, It of mentioned above or mean, some

Andres Lopez

Yes.

its to given MAGMA. intensity, for many market, markets. many things, ability of multiple in has locate capital near opportunities see colocate cost we or lower ownership, lower total scalability, opportunities So time to MAGMA other flexibility, and the

in to we're to these what be capacity supply. their guarantee example, demand doing right available capacity distilleries, craft making for the able for is to is them right where put So now Kentucky for

map there United Like is across other to situations will -- able and there are larger that, enough markets. Gen the be to scale in already once similar deployment starting you is identified States concluded. And opportunities X support a

which this point. fragmented MAGMA for is market, value, here our it we So is at -- plans that's mentioned high and premium efforts focusing is that where good our we're and very

John Haudrich

in going benefits done. restructuring that And to fourth we All $XXX the SG&A additional Mike, related of initiatives margin is million in we're for facilities decisions in work made substantially your various of the that million. mind, to what's on million or reductions looking last Keep $XX driving to the $XXX on that question from is of expansion quarter year.

we rate so are the already. And of that benefit at run

the And the certainly and in it quarter first gives confidence. us us that helped so

So And at has we that at looking million these initiatives seeing the above look really to able historically at team, out best are that's a company that. to One a performance providing would regard. being I the on more add the thing us performed how you $XXX in operation drive in years, shout another our backdrop and we're in of big if is warehouse. that operations X benefits the in

the and into the little automation, expansion shifting margin bit towards less pipeline for That's that. of are our growth benefits sustaining projects, benefits capital some softness the more we because the build little but additional cost-related future. now this a continued market like a also in bit things of on And right spend really continued year, and

Operator

Viswanathan comes Capital Arun question Markets. from RBC with next The

Arun Viswanathan

to I volume the go to I just Great. wanted back front. guess, again,

easy we and QX, it's in that of that to, Or we you should additions a that or maybe where you been and half say, capacity And some now back your rate? revert year, revert is weakness this some glass there's X% a do think possible or kind MAGMA demand? do to QX in X% growth flattish growth you facing place build-out? of long-term maybe trajectory lower maybe think structural So especially the comps

Andres Lopez

we prepandemic perspective our So is to is go expectation back same the will customers. levels. the And of our that

prepandemic on is So depending or every to higher, are. industry customer we back go they in planning slightly to talk to which the

is So the up, of has be comes sales our should consumer Knowing as been largest start drop destocking to which of now that where and able driver performance. exactly finalizes, back we level seeing year that today. the is that to a going much will to to going but fall and our year we're pace difficult, is exiting when the in later compared expectation be different

John Haudrich

as The Arun, the that consumer Andres out mentioned. in pre-pandemic that we're build mode off right we starts as improve recovering would to I are that, to, gradually Yes. basis say where a as now, we said,

long-term it's a there. the right But whether in things that the kind think a a over change bit we just there's able as that. for call I more or long early of make driving our term. little be early look softness have because destocking business little it's to now, to it's It's the the what's whether drivers to too at macros and like So to see we trends call any

really So we that yet. changed perspective haven't

too. half the the back year, question to Now about your of

the X. to our year again, things up in were down it's your or to, you're materials expect last high do comps. be kind there We We included digits back what easier year. alluding mid-single single half Page digits, mid-teens So the on to are of of in

to overall to comping levels, be growth unfold. we'll time stronger trends in see be us longer-term prepandemic to will recovering the and then we able So those to give

Andres Lopez

-- we any of question, everything answering your MAGMA. deployment are doesn't And describing include

John Haudrich

Yes, correct.

Arun Viswanathan

And then on real cost. price Great. just quickly

that years. I cost given wanted side? couple place So in this Do you you to after raw your on for that especially may report. the still have of pricing with but last price on over we've say, think of how further some you that cadence, outlook hold you would addressed to, potentially comfortable feel of the this, put your kind Or X/X seen deflation characterize was

John Haudrich

price a it's call over Yes. stable some year, When $XXX say pressure of pressure. outlook our we first I of it, said, little price this cost of, so cost as million original or with

right? side, for to that. changed not softening energy What customers seen our price have materials. little bit And the the of adjusted because cost has of example, We bit energy most that's And been in a a North pretty bit, little through coming we've passed is get America quickly. on in little adjustments a raw in inflation, a primarily

we the bit mind, than agreements again, little look looking, of coming And half long-term we inflation, in of single-digit formula. is thinking. under overall our with to backdrop low As keep a were cost we're what inflation price of adjustment cost off business more

as of year, So recovery go natural a be next into continued that. should there component we

the year either talk history think about a a a we've little or back I the that's on over it's the price more if environment. or a -- little positive normalized of historically comes overall price so marketplace bit demand the net take been business a bit environment a into little in here, balanced believe more that look of exception to neutral at been early I But you of if this going forward. last with company

still believe fundamental that's the that, So our we backdrop business. for

to just here got the call. we as we're on bit through of little course, work transition referring to the Of a

Operator

question with from The Bank Staphos comes George next America. of

George Staphos

up being O-I retirement our everything Andres, bit ] and at guess to that again, a anticipated. this, than I support from little the your to and what a view view your extent that customers congratulations back on the I you come had was accomplished that reason weaker March [ want research. -- your in the wound on of

comfortable your a And alone on in a feel like for March into little XQ? trying You're things that seemed for customer in regard. regard? of than was when in to fact, that even softer expected that bit pick Not improve why days what It base companies, do, was not O-I. you adjusting saying lot our

some you the gives it question, related to look to what is are perhaps you volume most next to you degree, early outlook? worries what Saying it. and it's of second your most saying you out couple about call covered the The the already too customers confidence as What years, again, that volume recovery some There's the Destocking demand consumers consumer outlook? away taste. consumer discussion change been spirits. are the and/or from in outlook? destocking, in trade recovery, that taste, changing in from and customers traditional regard to with your its relative and/or moving down consumption about What in your saying trade

Andres Lopez

Okay.

So the -- taking what have in end. impacting end. or about it's before ending but the opportunity be things fiscal might numbers, exactly example, is year is to inventories to customers difficult thing was to the March, some other that -- that reduce the a of know for some the happened quarter are it And there customers drastically

that, So operation most and of more the we'll then related likely taking a year. have to second actions normal a going to half

wouldn't seasonal typical this the that product the we have that of expect see right to we because apply point, excess capacity at demand necessarily access away. Because customers

So need season. to in they advance be fill didn't in the for fill advance prepared or to and buy advance in

know but some has what's So reasons, better think and QX, for are of a those too. lot us than certainly April been encouraging is difficult than better the it's that to March I

improve. reassuring So path in to that the that's we are

trends, we but see the When materializing. and got defining there to the timing still out, changing little in difficult. is a X we years obviously, look pace some talk is exactly that about Now

away. to, before, fade up some then disappear As trends and come they we've seen

little it's to talk that. early a about So

the operationally horizon is very volume significant I in we operating is good a is think point, leverage our large. what's and are our upside during in company very this slowdown at while a good place in

positive. the come to be wave. to as So going back, volumes ride we're going It's

John Haudrich

thing very in pipeline The that is add this would is new for development I on point up strong. and brought product we last very, one call is, the our

that invigorate signal that address a consumer forward out that their from customers and there. whatever in our looking are and trends taste they us, brands to So and to is bring changes them are

very back volatile it's and amount. said, a drinking go you environment. pandemic people Andres the very like And And significant are into

bit to referenced what and difficult Now reaction environment. a of trend different out longer-term to the what very and there's little you a that a softness is find is it's

So time will tell.

Andres Lopez

And than years. is all that activity segments, in is we've on seen and in in lot higher all a geographies NPV

-- So the it's both customers. and initiated O-I initiated by by and

Operator

next Anthony Citi. comes question The from Pettinari with

Bryan Burgmeier

flat question. about this in If sitting O-I maybe for I XX% having think Burgmeier year-end for just on following Arun's just positive year. thinking curtailments And Europe. about guess, pricing of curtailments Bryan sidelines usually that to level negotiations capacity does this Maybe I about between Anthony. create relationship does the When for of on in the of Actually, historical risk some up price. and I'm sort to price support O-I? start

John Haudrich

market that it O-I, broader do to that position. in What a future is managing can we, for we is for down the day, a end speak inventories is at that company at And conditions marketplace, sure company, important that's but for position reasonably inventory make snug situation the the I the are that, your success. right place the to most to of would whatever say in thing in the making are. our the comes balancing inventories and as what sure that I And to can't believe the year we is the

Bryan Burgmeier

Got end it. a to to flagged dig Is a to lower-end you from beer? just touched I'm from referring it to -- higher a Got glass think bottle in bottle you people a to wine Makes moving from it. to moving if George, And moving trying are but that I maybe and on sense. this, downs prepared it's different the the bit. trade little just just into maybe wanted remarks substrate.

Just any detail there.

Andres Lopez

Yes.

markets. is activity in some concentrated down trade the So

everywhere. it's not it's So And activity. part, linked to the for most promotional

customers a start some and trade in that consumption of presented significant also happens. with time positive markets and April forward year-on-year lower-cost a in package of a are seen in glass, that's markets, the every move the those where typically those promotions, in rebound we've But down So before. that example, was of for

John Haudrich

trends, we've seen too. mixed think I some

that there like is very we market effect in was glass Colombia seeing in with flagged other token, in quarter, beer that. position share Eastern for too, So this and By Netherlands for strong same the we're some example, the trade marketplaces down one Europe. in and last

So we've universal there. think going I got no -- out there's what's answer one on about

category by see category. You it market, market by

Operator

Instructions]. [Operator

Fargo question next the Hajde with Wells Gabe of Securities. comes from Our line

Gabe Hajde

congratulations. terms near it sort of if day-adjusted in all kind more Andres, all volumes, start wasn't you otherwise It the looks on just maybe shipments Maybe focusing April from the like be term much on Maybe of the are second controllable, for clear the like in were whether quarter outlook. And or chart, shipments. focusing confidence on a positive basis near-term flattish. you we'll level view then there. just will that of

John Haudrich

Gabe, April X%, from that benefited up Yes. actual timing Easter. clarity, in for okay? the Yes, also Now of shipments were our

normalize for to compares period, on things XX% you quarter down a was the the If it that first when were XX.X%. about day down and Easter per about basis,

some seen we in but have than positive. trend anticipated. an what the we a slower So improvement -- That's originally of little had that's obviously

data -- slower bit Andres improving, a slower softer, bit was of as mentioned, but with with little backdrop also April anticipated at the of a we than looking consumer. is little Nielsen March a a the So maybe the

lower revised of at that and of growth right-hand pattern. expectations take it look year view quarter have our But as see that you consumer the the softer in we for a on each Page X a corner, recovery we for a calibrated

recovery should being of or and that volume year more normalized be second see on April the half an minus balance the narrow easier but the things reported a X% stronger breakeven on of also prior in range the a plus We up fairly quarter the against as then out then in we that kind we believe volumes playing absolute comp so over numbers. in -- basis gradual an of back with And basis month. and

Gabe Hajde

costs we year maybe and up. seems just like sourcing more is aluminum that like it cheaper things this hedged maybe that Okay. standpoint One on as a hear happens talked and better country what of lot substrate, about Andean much and you from region the but a a we're hearing guys Colombia, we there competing about, terms Brazil. in get sanctions Again, move and or from going didn't

curious with mix And you're of have maybe pack in Just customers just your long in a on seeing? of terms discussions commentary done then time how maybe for Brazil? lead you what

Andres Lopez

Yes.

economy the stable. has quite been a in performing Brazil So

So been it other through what It's go didn't going through. the okay. are economies

the -- solid. in premium. substrates. is which is idea, in growth beer And first to an ahead X.X%, give just quarter glass performance very performance well by our you growth the Now is one-way is year-to-date other driven of year-on-year of It our

a is in that carbonated when which they soft trades it in much. consideration soft which one their is take we talk participate way, to that don't Now include other in drinks segment important demand, about

are So that's well. they a beer lot quite driving country's is beer for and very experiencing. But of category what us, doing important the in a

after reportability over the before, time improved said we As the pandemic.

increased, up. percentage in of pack the beer returnable total So of glass and volume it the remains

Christopher Manuel

event glass. make concludes second That our scheduled sustainable Thank thank as you, Emily. our XX. Wednesday, that call by our earnings safe, it memorable That concludes note is a a I call quarter reminder, -- call. choosing would And you. for July

Operator

joining everyone, you, your now our for disconnect today. This Thank and you concludes lines. call, may us

O-I Glass (OI) 1 May 242024 Q1 Earnings call transcript