SLGN - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the Silgan Holdings Third Quarter 2024 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Alex Hutter. Please go ahead.

Alexander Hutter

morning. good and you, Thank

Joining me and and Adam President today and the and Bob call CFO. CEO and Development Ulmer, are Lewis, Kim Greenlee, SVP on EVP, Administration; Corporate

events not certain we begin we to clear beliefs this statements. be the limited impacting XX-K and, but and involve and call risks, company's number today, the These a for other filings are future Form uncertainties statements Before upon those would the forward-looking management's on with and made expectations statements of call to, annual make the company therefore, like and on it in described Securities may forward-looking including, conference that made report concerning based Commission. Exchange XXXX

or differ company operations implied of Therefore, expressed or results financial materially the those the could forward-looking statements. in of the from condition actual

call of be Financial to and metrics press silgonholdings.com. the our cash commentary contain reconciliation substitutes at under A be income addition, the non-GAAP and In release net should free found in non-GAAP today's website not adjusted may today's similar portion EBIT, including flow Relations metrics, these can which on metrics section for Investor of share. of adjusted diluted references certain Information GAAP per considered

let turn With Adam. that, me it to over

Adam Greenlee

build the global technologies expansion excited most value generate for margin by will welcome organic accomplish recently as We logical who and the Silgan the Alex, help for by iconic partner can clear and create members team Packaging. the welcoming significant . The as call acquisition company existing that today's to you, the together to brings X,XXX Weener efficiencies Earnings our of the like leading growth, We're pipeline to Silgan's Silgan like our to our and continue brands. what to next manufacturing team of and begin end to the Call. through have to a solutions drive world's everyone the and join extension Thank we'd our believe Third range for year. cash I'd in back you Quarter XXXX acquisition integrate dispensing joined new and our shareholders Weener dispensing bolster we we market. we approximately and create as deleverage represents innovation financial of accretion will business, Silgan's advanced target product acquisition momentum capabilities

Turning our now to results.

growth successes The financial resilient and performance. continued businesses strategic of showcase initiatives the quarter operational our another quarter third some in success commercial to fantastic of long-term our with in

strong improvement delivered closures segments, growth programs. double-digit segment trends see We reduction global in benefit overall record adjusted of the and cost with quarter In third each record continue in and growth volume our EBIT margin dispensing our dispensing and our our volume products to products. driven in dispensing by and specialty

commitment to business our customer as and teams excellence capitalized innovation, winning drive operational success this Our service our strategy. continues on to

in now new care opportunities fragrance As we care in we traction and as a home gain high-end pharma customers continue well. core our and markets And seeing health are with and and markets. result, existing to beauty incremental

a Beverage European strong Our products In into our by remains and closures year-end for rapidly Consumer portion of volume high-value this demand dispensing we and quarter. execute remains the percentage grew Food mid-single-digit priorities our long-term momentum on in our in the near- growing and strong, segment, of our as business. the portion

as customers in beverages initially for was the activity in anticipated, anticipated. than However, will volumes more prolonged recovery impactful result, and promotional a had be less particularly North than America these isotonic our

more driving normal that inflation, these consumer comes remains not products, our on remain closely clear a as of volume it more are customers to levels. and back changed focused While consumers managing have their to preferences purchases result [indiscernible] sales

by below volumes who once supply teams position our us again the represents quarter extension. exclusive fourth our validated behind portion customer market our [indiscernible] we was leadership extending While a Silgan's XXXX. very in also metal relationship through enter are a our containers, successfully as and business. contract growing significant decade-long customer first with our customer long-term This of pet In largest food

markets levels for category During the expectations the year year we and remained show [indiscernible] strong grew containers which soup quarter, pet our single-digit percentage, but a market our trends recover represents fruit when continued volumes approximately destocking our we also and of prior to half entered fell vegetable as the in in and see from prior business by below to Demand volume below high quarter. food, for metal and these impacts, volumes growth products. volumes the continue accelerating

lower conclusion While early customer season large their expecting come to weather working are to result volumes the a in and we to capital. a of pack reducing quarter impacted cause this harvest pack in as the yields an negatively their Adverse plan manage pack year. pack disruptions XXXX

volumes result, a pack low As in were at XXXX historically levels. our

XXXX, positioned half weather recovery the events a these we the for results segment our While fruit strong have in XXXX. and that of believe vegetable in impacted second market is

result segment Our the new business X% of the primarily volume another results of growth, Custom quarter, as Container delivered in quarter awards. commercialization third strong with a of

in teams in market our will additional wins in this continue that beyond. our and the to segment the benefit advantage addition, business XXXX competitive validate In with

pack As of have fourth for to company and our XXXX. positioned we we growth the EPS volume to estimates volumes now profit the the range but to is in quarter, year, deliver the move of primarily the narrowed into impact believe lower continue reflect

For mix profitability to mix. growth specialty products, dispensing rate with low expect in to closures mid-single-digit and for driving the high a we volume through segment better by single-digit improved dispensing grow the fourth quarter,

the the remainder continued exciting and believe strategy, both the has throughout our expect to more growth the we teams XXXX represents In has severe market to volumes approximately recover business to on volume metal into our business to focus, weather the food, and with evolve containers, contribution profit for and are but impact and excellence now expected have with to and we which in mid-single-digit containers grow principles many to the Custom our uniquely and term presented of demand by year unwavering year. XXXX continues to winning levels. new incremental and significant low new company XXXX of pack in volume wins continue to commitment to in in the we comparable half mid-single-digit a be our as The opportunities provide our challenges, full and market our years positioned future. pet company of our growth founding of drive expect volumes, near volume percentage

long-term earnings initiatives move with begin our close and significant are well of the we year-end deliver line, full savings benefits acquisition the success flowing focus the strategic As we now to our to shifting XXXX. programs to bottom positioned and to continuing growth Weener cost of our the in XXXX, complete,

volumes will our In early recovery segment very planning experience. levels are stages of our know low should customers given still much for in from how too But container in to addition, pack in the a XXXX industry [indiscernible], that XXXX metal XXXX. the improve in it's historically early the of

volumes in will adjusted take for EPS EPS record that, and financials deliver fourth the year without even in exceed to XXXX, in through Kim $X.XX. we double-digit are the our estimates and quarter growth of With improvement well an for and XXXX you or Nonetheless, positioned factoring pack believe for the we quarter meet in prior full our XXXX.

Kimberly Ulmer

Thank you, Adam.

but range, strategic of our Adam impact initiatives, the pass-through to a success expected material X% of the growth as metal in mostly the we of result delivered approximately due As lower the of primarily raw in Net mostly discussed, costs, strong pack results EPS in million prior the our of our fell $X.X our the containers. from period business. below softer quarter third year adjusted sales by driven volumes container metal of declined midpoint

was segments. of adjusted segment, decreased in by for million containers, diluted offset interest Total the offset Container a metal Custom in basis Adjusted year-over-year year adjusted lower which specialty containers. higher the closures and and of EBIT quarter lower a Metal per X% pack lower dispensing by the $X.XX, partially our $X.XX rate, a tax income from with quarter increase in lower EBIT share in X% adjusted on and costs, Container specialty the custom due third net and to volumes impact EBIT higher EBIT adjusted dispensing prior in $XXX closures

in was to products, Dispensing of segments. in to in volume our and favorable material prior X% a by mix Turning lower X%, growth raw costs. pass-through offset as dispensing the versus increase the partially is of which our Sales double-digit primarily due Specialty primarily in mix segment The volume year mix. which resulted higher volume increased Closures of result quarter

impact dispensing period. prior by in impact our approximately double-digit the mix, Specialty year offset $X our was cost in the with and versus products partially volumes of The partially adjusted activity Closures the volume dispensing by of positive particularly $X.X customers' beverage quarter the in cost increased foreign in favorable mix EBIT limited us and versus prior America, hot-filled million beverages promotional unfavorable currency. price success million North offset which isotonic the and of period growth year Third

percentage versus was levels Container mix more XXXX. vegetable and third grew declined to Products pack higher for declined of [indiscernible]. products costs quarter of cans of and for with pet markets many trends in X%. [indiscernible] third pass-through soup Metal like high-value fruit quarter associated partially for sales the which Volumes favorable by food the destocking large products pack and the quarter, mix prior raw X% a offset our due lower high which a the to in reduction low segment, less year tomatoes material single-digit by products, in In following normal recovered by volumes volumes primarily were the the of of for

during to cost, expectations and adjusted $XX to million by in negative new driven sales approximately the EBIT a including by in Custom us in Containers, entering quarter, increased compared a X% XXXX, as the the In X% of million pack prior mix volumes. Containers and our year higher the quarter to compared third $X.X driven into mix volumes, awards quarter, favorable increased [indiscernible] commercialization the of volumes quarter. the the Custom result the of shortfall price cost more quarter. increase Relative primarily business associated as

$X.XX to by fourth strong in at primarily of earnings to and benefit of per to period. year the for range are of the as segment the prior reductions, XXXX, well The inclusion the Dispensing an Packaging. quarter is range adjusted performance small cost operating providing midpoint the and improvement the a diluted driven [indiscernible] quarter as ahead improvement in from as XX% estimate year-over-year $X.XX $X.XX share the Looking compared of earnings the closures we adjusted Specialty in of in fourth

to levels year cost prior adjusted is year the volumes food closures, inclusion be dispensing offset early EBIT mix in pet be prior single-digit approximately containers Fourth quarter pack end $XX high to above compared expected of and Fourth a the late in level XXXX. to with segment. and growth metal by strong the are volume in Packaging price of the more below improved in and expected the than specialty million quarter with pack Weener

the as Metals price/cost EBIT growth business as the improved a of of expected from range in wins. narrowing pack prior adjusted in segment X% to a Containers period per benefit of negative lower and of net end for to shortfall $X.XX single-digit the result diluted the to benefit continued the Container midpoint the earnings to be levels comparable the implications, new as to the XXXX. be Due prior share result adjusted estimate to mix cost of early of quarter Fourth increase quarter $X.XX, continues is the as to resulting are Custom reduction $X.XX from range year a adjusted EBIT our programs. volumes segment of expected full volume income low the we the from compared to at year year in third as is from above a a primarily result

rate shares. percentage tax grow perspective, XX% low by expense segment single-digit of $XX million of Container acquisition corporate segment. share $XXX XXX of and a in million, growth expected approximately XX% an and interest approximately double-digit Weener as approximately From expense the adjusted includes dispensing EBIT closing the count specialty Custom percentage the a date, in closures is of XXXX, estimate million, average increase of to by in a weighted to adjusted This and driven

mix below double-digit million be Container Adjusted $XX in volumes expected year to level XXXX, for of open in by Metal are EBIT with comments, and pack prepared outlook million, CapEx $XXX for record in the segment to volume is the confirming $XXX our approximately of up That Based decline due which XXXX. primarily and impacts we on in costs. $XX approximately XXXX, current to cash flow approximately estimate our negatively prior call free concludes million our earnings questions. -- million our the of a we'll

you Jennifer, for the session. kindly please provide would directions question-and-answer the

Operator

Bank [Operator Instructions] George Staphos And of to we'll America. with go first

Unknown Analyst

This that commentary is are recognize the customer of dispensing, is I through George. on telling trends? actually for would volume on [indiscernible] metal customers your appreciate to expect and be to you guess, for too terms discuss all point? what it for year next I may view give this But what a early at XXXX. you And possible at in it and

Adam Greenlee

Sure.

process mean I budget trends XXXX. early think we've -- I in we'll for with the seen our longer-term start in that in nothing's and own dispensing containers. changed both custom we're about really,

that we've on in specialty So volume, returning beverage volume and customers to our dispensing seen. and are forward the we've indications the some look we particularly side and XXXX. But closures, early focus as taken to of food of

awards So the with I range right containers line in buoyed success have range. we're market We've think new that been as closures and with more single-digit in probably our containers low in in to the both can longer-term and think wins DSC been specialty about that And custom you well. about business talking growing it's mid-single-digit in certainly custom with new somewhere expectations. and at in and dispensing continuing we've

Unknown Analyst

Got it.

guess your banner. priorities, capital around business have then needs of today from you've kind and guess, also it. terms now here? to will be guess, closing on arms focus had of that I got congrats your sit And integrating I perhaps base I and in done we what a what that? Okay. And be And that think here about as

Adam Greenlee

can we acquisition and finish ago. mean, Weener Bob close But on XX just did Sure. I'll days I then jump in the up.

as hard did line. underway. and And we and So the XX-month at as on the a activities integration time we are be synergies will say the [indiscernible] getting full just work and off kicked reminder, the more

which I pretty fair the quickly. will free So a as given that team that the delever down integration we along strategically an [indiscernible] we deleverage, experience flow about transaction can business spot that get the the getting efficient smoothly a to our allow Weener pretty will cash we allocate acquisition, on really is came sort and to that, will that should the generate think of go we basis, the of us close with benefit out right and M&A. the quickly, anyway. how the we'll here. of XXXX, team be to on that But feel of full thinking good puts quality But bit leveraging that back go-forward this of be continue in not with us we capital path an where overly . The

And in XX this and about said think I've that think and advantaged be the find given our are and our we to bring to And in well cost our as act of ability our our profile, attractive. swiftly and a to I funds opportunities table would advantage. I thinking I to market. there competitively will to certainly remain in opportunities believe the us still close leverage months. think before, be think I deal quickly next XX synergy really for and it, we I that as that that access

and fully think So integrated business to priority and next that quickly our turn the this but what's I from towards is first the foremost pretty operate barrel effectively get perspective.

Robert Lewis

for Weener. impact about we as think in then And XXXX

our ratios, And should we we On synergy. our in we accretion talked cash half XX% get XXXX, over then call, and kind accretion accretion have back to the of leverage of acquisition generation we'll the about targeted that. our just Weener with announcement once are beyond post full

Operator

to with Citi. Pettinari Next Anthony

Unknown Analyst

is on is This on question just -- Gregory for just first Anthony. metal on inventories. My

put would how So was you you if given around you've I'm seen early destocked, produce a to this poor context this season pack wondering large relative the packer year. season know can helpful. mentioned what to pack of the end some maybe market? really then that we end you low, numbers the but in of should be expect there how impact just I And pushing it some volumes kind historically? mentioned destock was historical long

Adam Greenlee

just a year. into Sure. pack reminder, we maybe this And as came the

customers our pack their of pack by large One XX%. reduced plan

about. think next more a the year has this in that We're I talking early that itself And market, So back Gregory -- that's pack. you're normal the through through be be believe, they And specific should destocking worked pack process. season. that with we they'll

So but these really is we consumer still preference, indications for from a don't have good demand consumer products. pack plan,

[indiscernible] think, saw, scanner working consumers increase vegetable pack. canned we fact, I the by indicating data through In consumption

excessive impacted then our also the pack led during the Midwest of the had dry season, up growing than early Coreveg poor to products pack the in shut very that day, and earlier the quality to poor yields, end delayed similar really And kind the down our heat and for of that decided summer You expected. of rains really months and situation yields the with weather through the quality yields. of just at customers middle reduced pack

seen kind long September, worst at the been a So far we've say myself, of bunch I'm at and all in month Silgan. the kind I'll then of say, it by here was since of looking just including folks, I've pack XX-year a time. that and been I've of

It last the very of negative So year, a It I the benefit think repeat in year. will in the last remember, went It that that pack of And the QX QX, opposite. had got impact did how QX. a in just and we played pack into full out. then XXXX. picture late not

Operator

Panjabi with Baird. Ghansham to next We'll go

Ghansham Panjabi

you that were want get about up? closures. to promotional uptake trying back are I across assumed to was promotional the your the the customers But the I did basically mishear that? activity, of I would think, just specific comment Adam, picking seeing go level Or the kind not to what with that activity have to of

Adam Greenlee

No, I results got message think the I more want is was you've mixed. the are think that send to And it right. -- Gastim, I

pet first. So actually, I'll in in activity. one We're start successful being in food. pet driving volume absolutely significant with favorable food. the seeing is promotional It

and growth happening to growth, we food. drive pet were in volume promotional utilization where and it's volume anticipating So activity

get it's different conversation when beverage you segment. Unfortunately, little a of and the isotonics bit hotfill a to

[indiscernible] QX. for of really, Ghansham, not couple our an sold we record I promotional passed it they our the about for last That reality isotonic segment the and think the the had through therefore, came the high customers. price drive were QX to not Unfortunately, as good all news, products the that's And activity in of is absolute anticipated in growth that on anticipated. all-time is had that is consumers total growth drive promotion. did the the with value the years, did over of inflation been point the customers

in were the So pet little successful segment food, that in the driving looking less volume successful isotonic a for. we

Ghansham Panjabi

you. your high low. done activity relates of et us and up about an to comments then planning period, then pretty double-digit promotional comments think bit I close to if EPS, you it know I watermark. up XXXX, you're you more give you of a associated to with Got closure the with -- could there's variances. relates as said and custom digits, Is growth but cetera, your just your are about dispensing that volumes And mid-single uptick it as that assuming more

Adam Greenlee

kind longer-term businesses. think delivered nothing in And just just back -- that the custom I our X that's over fairness, There's maybe changed. dispensing both. in we've and That about for of those to on comments And thesis Sure. XXXX. that's

now. momentum there. the So process good And we've just in really we're got planning

about dispensing then of container, growth. dispensing of products quarter we So dispensing larger in well. the commercialized the And and perspective. think had that business there's the as single then that growth really got we've double-digit the wins products. in high from to for good of QX has And also in the the annualization see market. products, next year in . we're obviously, kind early We're projecting year in you success we've QX nothing in another changed digits going custom

-- businesses to those program then XXXX. addition. got impact it good just for lot And we've kind a in big turning year savings and I of a the momentum the next of we So as XXXX, look quarter of the in at incremental part Weener particular, our confidence as gives is We've of well. cost X got us

dispensing products And growth, organic to we closures So before and double-digit organic what's that going on happen pack in containers. next total growth the is with and really year. opine specialty growth custom dispensing at

Operator

JPMorgan. go Jeff with to next We'll Zekaukas

Jeffrey Zekauskas

positive how different? if renewed long -- You there is, your previous is That your neutral your customer. with relative said contract to terms? in Were long-term your metal you it or it was contractual changes contract? largest contracts negative was any the container Or or different

Adam Greenlee

I'll And is entire of Container what doing our get Silgan. at the details say, customer specific with of the we been into is customer our the a Metal this about company. segment. for we've day I'd for It It's X any you tell What also largest won't since customer also contracts. one, business the it largest

So in a series that we've this had. is of renewals long another

So food going consistent the with our on contracts. growing Again, primarily prior business. pet contract very be to focused is

continuing their about growth. this Jeff, of support terms in to us So one, to really invest think

doing by so time. period over volume so, we a secure And long of need to the

And with think of say would have our relationships. X current So the think what very in container be about business metal just years, long side I extensions, the in between economics similar exclusive supply term to of will agreement. typical the very XX prior and we

Jeffrey Zekauskas

of quarter, been? And secondly, in tax the reversal have if what reserves rate the tax you would your have didn't

Kimberly Ulmer

in XX% It would have been range. normal the

Operator

Raymond with Roberts next James. go We'll Matt to

Matthew Roberts

pockets could are color I segment, in seen the how or segment, Prestige comps growth little outlook what mix and Or out of tracking XXXX? are DSC lower to give that fragrance think is tougher and would product proving inelastic? get just I greater there be in as there XQ any but there. relatively wondering a you've you your of still if maybe know on the that good you're particular volumes demand? really a seeing at Looking that on becomes

Adam Greenlee

our Yes, products products. still high-end of for Again, dispensing another kind strong very fragrance expecting our really as continues to demand that of in beauty and double-digit And for quarter and products. pleased with for segment we those [indiscernible], our meeting the said, staples QX market of rewarded customers performance, growth that the particularly the of and needs well the anybody being after unique and in as new fragrance better segment, year. more that in perform than we beauty frankly, year launches have that high-end product with else as just continue to be

anticipating we're So good continued growth.

have enhancements and that really much is focused We growth invested about start and with high-end in is you imagine, which, the on good support further indeed does again, very sprayer to the market as products. beauty fragrance experience, innovation feel And that consumer and our can it. to on one adding probably this

Matthew Roberts

you was still it. it Got know postVanner, I growing while I I as health Adam. $XXX a think noted, care, And And appreciate health much, I in think about of longer portfolio. combined small, term, that part the revenue. is very then million care

in? market are are you in win to there could certain that care? technologies help health So really think right health care you that or maybe a products higher end there from gain share specific aside that -- has could Or Silgan you markets growth,

Adam Greenlee

Yes.

business dispensing high-end their on that our grow a helping it's it's good fragrance markets. got innovation customers said It's I And really, pipeline question. back -- to and is we've address applications. and just and think an everything these other really I the demands consumer really beauty around

it us So we about you're good position in in position was a right, $XXX Europe. million revenue, in for business said the good Americas,

grow. the to have to continue we think I ability

base it's to pharma and have investment grow and today. this care where other take health and and knowledge organic our areas know-how applicable the We really areas technology business. think focus markets. We about platform think and market, very to of will part opportunities. we support of model on and serve I service can ophthalmic innovation opportunities, that we continue We'll nasal to of existing growth other the kind And as

So growth we're potential excited about opportunities. the

Unknown Executive

is very and would us health jump strategy. a around structured it growth way too the as M&A in of the care Yes, Matt, say, I in here business come for look, has our

found that over in to out to that the we similar it's care So hunting bring and dispensing longer closures market, side. term. way health on not niche that necessarily businesses the to that's [indiscernible]. businesses We grown Very would and continue the in that there elephant business the whole focus we're us specialty something has

So until a to multiples scale. of of basis paying a businesses get types way, relative on some reasonable can disciplined we kind for those

Operator

Next Hajde Fargo. Wells to with Gabe

Unknown Analyst

from your wondering it of across geographies about promos could what been for the relates more you've through customers? geographies on promos end Alex different if is for as your or where your the Gabe. This markets hearing you're different just seeing 'XX those I you consumer and was what expectations more to in are walk and kind maybe or across health about talk maybe talking

Unknown Executive

Sure.

in our segment. dispensing and in European nice we'll large geography, seen dispensing about the And and part As really, food as we segment. well. think we've Europe, beverage growth of is particular, in a closures that start specialty products

promotional a of whole seeing activity private trade markets. of we're What private lot Europe, a grow in label continuing to seeing bit not activity. a promotional as as far we're to label those As and expand in and is

got and seeing market good and it, about think success liked. et and home other we lawn food exception of personal of the We're would nice delivering much really in products, you isotonics, home about in talked care cetera broader call personal array traditional and fragrance, promotional as with our promotional and care care have well If QX. plus of specialty Certainly, bit isotonics activity, The growth a we specifically care care, activity and in a beverage as market closures, products. for the not you've dispensing U.S. markets. working

we customers activity. We have growth into our focus are going our include on volume specific for thinking then go to initiatives that do to as XXXX growth think to how market. will about and rotate I So promotional volume and believe customers continue

in the of thinking targeted into I to U.S. XXXX And consumer. So I'll again, And the well. that's the with really activity general promotional I behind will our garner as more think for more the say dollars all built interest be specific products. it think

Unknown Analyst

on And How thinking question that? just about guys another simply into pricing outlook are XXXX? you

Unknown Executive

Yes. in We're negotiations. say a and the market definitely the cost highest buyer still the we're U.S. globally, market market. of Europe. in template would large middle particularly anticipating were in U.S. It's we world. U.S. the I early. is deflation Obviously,

we just that little has thinking place. for Europe, And lessened market were for in in was still at European prices stable a bit that template. down thinking deflation to going take catch-up point there U.S. of the flat we're bit. Maybe the thinking a this So there We're was to

Unknown Analyst

Got question could squeeze and I last it. if I'll turn And it here, one over. just

I guys guys number. to cash a CapEx but you're little think you the raised flow guiding lower bit earnings and maybe slightly -- you reiterated free

just you through can offset those? walk us what is the So for

Kimberly Ulmer

Sure.

range. million range So our of cash the more flow. we midpoint our end guidance $XXX of higher did the We free the of the maintain obviously to reduced to

inventory as those be working needed primarily So that we . that the we in the in [indiscernible]. on. that have will inventory look offset levels coming do that we are [indiscernible] for additional benefits capital benefits to primarily at And container expect be will

Adam Greenlee

we of year. piece guidance And did the that, remainder CapEx forward the then as for CapEx our the of include the roll in we Weener now

Operator

Arun to RBC Markets. We'll with Capital go next Viswanathan

Arun Viswanathan

progress. congrats guess I the on

just little beauty. we've on bit to a it's continued in strength I could a surprising data. than -- what it's so scanner little that little bit different maybe we've on ask just a that seen see just So bit I the mean,

well? maybe . versus So you is customer you're clarify industry high mix closures. how doing your trends within of Or again, maybe it -- just really of can end your general and kind that function a performing

Adam Greenlee

might think we exactly I Arun, of Yes. it It that Again, high-end lot play of where you've part is we high really market the the got at don't right. end market our mass performance. whole market. in business, experiencing play. a prestige that be it's for different the level the

the for and us both innovation part and a we is it's reward that as continues line indeed and to the positive results, that strategy the deliver So to bottom service of and the very our a customers, does through provide volume well. winning on that levels market

Arun Viswanathan

as then And some course. But significant and you telling customers a last large destocking customer sounds yourselves run to pretty we're metal. kind consumption. you on sound folks of maybe sound communicating went for a they that of of deflation or that long maybe And volumes? renewed increased it optimism upside you about . Okay. you also return Are the year, bit question promote like term Are and bit positive your they that a little more. consumer within more and do guys now little And they potential the answered that see at continuing of this consumption? potentially lot a at-home year you that And the seeing obviously, are -- in earlier its through home correct? has to on Is 'XX?

Adam Greenlee

Yes.

end. think, Arun, would I So did for indeed business our what I destocking is say

and volume inflection quarters X with seen now positive that the were anticipating. we've we So

have we all So that and moved intents purposes. I for think past

far As consumption, cetera. at-home increased et as

think I little that still in a early process. we're

consumption actually the their where as products. consumer be The and And but quarter. bit have kind largest that bit you an food little has consumer one into little continued through beginning demand year, remained a to through for in-home a preference And third that's That demand, that We our all products, shows very up really XQ, of the activity, strong right? products the is mentioned, strong. destocking customer we the it's of came our happened that consumer destocking done. then data at the scanner in

we as sentiment levels good as we looking our well. were continued through always destocking at consumer here, that products the we're underlying positive really for think and sit demand So

how So pretty has see rest that it. about good year noticing customers are our plays strong feeling demand But entire process. We'll the through underlying of remained the but that out.

Operator

Truist to Next Securities. Michael with Roxland

Niccolo Piccini

Roxland. is additional maybe Piccini Niccolo I some first it like off, on sounded this quarter. for This Mike [indiscernible] you guess, containers had

cadence a might of you . maybe those or any on give provide can when can commercialize color other you if curious Just that?

Adam Greenlee

containers earlier smaller of we about combat What in a little I'd the much bit business. Sure. X were the the I in tell eclipsing just kind that is business. of we a flow elsewhere that see contractual the of category. day-to-day normal kind and the custom rate in the growth more would are you is But ebb of at the that kind in large ongoing about and the that Obviously, market of scale, tell business talked we winning year items. wins you the

earlier have were in we X XXXX. in smaller the just So XXXX. I'll than large in that work business say those commercialized contributions they positive scale will But

Niccolo Piccini

maybe do on the it. grown care Weener. health Maybe I we on then see CapEx. forward and XX appreciate Got in has customers How with as evolving. and focus past later CapEx just plus growing going And you color

Adam Greenlee

we're I ongoing continue support good Well, rolling to again, our requirements anything fundamentally process at that's their think to been clip, obviously, a we're portfolio growing and up. Weener growth. and changed there's that. going their CapEx the add of with we'll don't support to They've in

what and as that care specific think talk but health there's specialty as we're nothing we thinking I address they opportunities dispensing those about and we'll and about. come, brings,

perspective. And you I just in of scope, our of around revenue about segments, a containers and X% revenue. X% DSC the kind something think X% maybe metal broader and should X% of think X custom just revenue, probably that to X% containers like for of CapEx, to maybe in

Operator

no And are at questions. time, there this further

Adam Greenlee

later year and interest to Thank results Great. fourth appreciate full in January. quarter forward Jennifer. I the you, third and look quarter we everyone's our discussing results, in

Operator

does This thank participation. conference. you today's for We your conclude

Silgan (SLGN) 30 Oct 242024 Q3 Earnings call transcript