SLGN - Earnings call transcript Q4 2024

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Operator

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

Alexander Hutter

Thank you and good morning.

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

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

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

Adam Greenlee

we'd everyone XXXX Quarter and Earnings Thank like Full to you, to Alex, Year Call. and welcome Silgan's Fourth

most to organically team value showcased double-digit EPS strategy, flow in end-market Our invest set half achieving of competition and disciplined team our to winning while our shareholders. we from the strategic for $XX adjusted organic our towards free despite of power to future. our the activities cost-savings businesses in the delivered multiyear deployment our the that of organic growth and potential our and Normalizing XXXX first initiatives, our another capital year of of into growth our our drive delivered of the made in the strong apart as continuing performance in drive year. We businesses approach conditions progress the our success XXXX destocking us continued customer growth portfolio, to significant million cash impacted mid-single-digit growth of initiative and strength

capital Packaging acquisition create year. model the announced our for the Weener of and we continued deployment Our closed during disciplined value shareholders to as

are our another growth and organic our and of the in of the years the Silgan a year. perform the the manufacturing technologies our believe high-margin, continued add in attractive pleased to mix we evolution We well to the portfolio. to logical double-digit the to product advanced the organic to step business in Specialty as and Dispensing out Its Closures products strong for growth to dispensing organic growth this enhance to evolve of in pipeline innovation portfolio continue markets next be and strong close profile delivered dispensing X segment will consecutive exceptionally quarters and company come. At bolster segment XXXX level, capabilities and

make the in growth customer the decades-long trends growth once EBITDA half normalized. our food of and leadership a the extending as again improving in year with throughout double-digit of market fourth with partnership largest customer. to expanded which represents year the rate new our our continued improvement the of of by our markets, products quarter dispensing our and Metal higher the adjusted operational We the bottom the relationships the XX category during our upside strength meaningful the our line. and pet in segment as growth volumes points basis validated Our levels our supply second We segment record in showed single-digit reached strategic almost margin-enhancing margins continues and growth approximately mix half and year volume, segment progress Containers, deliver to to drove cost-savings our high initiative. In in and multiyear against

conditions delivered success severe the to volume that commercialization of over our operating the of drive dynamic compounded market navigated market in performance business volume years. In wins capital working as growth drove drove more Custom margin pack a by the their reducing marketplace and continued during experienced Our inventories and year, EBIT improvement. the the business weather and fruit of and points conditions mid-single-digit strong vegetable new large Containers, basis team XXX many with the customer normalized impact and contractual in fruit in adjusted vegetable worst

by of in closure another grow high awards annualization with of by our strong exits fruit XXXX first by XXXX, cost-savings business to dispensing in contribution and yielding both improved XXXX new organic our As the well to grow vegetable Metal full growth in XXXX turn in our and a expecting ramped partial that increases level, benefit synergies, partial and flow. At a mid-single-digit volumes the is recovery strategic percentage in cash resulting an Containers strong single-digit new double-digit Closures positioned we momentum by and Containers food growth, in Custom deliver earned in of and rate program additional XXXX expected are by low organic Weener to are acquisition with fruit primarily vegetable driven the Dispensing to year segment and as wins grow a growth in recovery our business we volumes performance pet the mid-single-digit growth driven are with volumes. products now mid-single-digit by mid-single-digit mix. our free Specialty the the focus to and volumes in a and single-digit products, record driven our as in business of and up a to the year initiatives the XXXX. market, expected percentage

company excited the for our lie them. about opportunities that ahead we As and we to XXXX, upon the ability execute enter are

customer our unique remain needs Our meeting partnerships and the our remain teams focused of strong, customers. on

compete we to in continue the We win markets and serve.

for initiatives disciplined shareholders. shape value continues to significant growth model continue strategic and create company's our the deployment Our future, capital to

we this forward turn Stanford. in management as Before Operating Chief founding proven to of that part Philippe participating and to successful team so also Philippe our Vice in process collaborative it has fully announced I'd to President be join like Chevrier We will Kim, to I will first our relationships, year and Executive look our that be and office He the a company. strong since capabilities broad significant as of the our you leadership over additional financials executive that Silgan. With which XXXX. the highlight and of full the team, operational Officer successful understanding week, for brings that, of experience commercial the deep a to quarter help our the for through skill will importance set, of international estimates at quarter Kim take him all earlier

Kimberly Ulmer

Thank you, Adam.

business the deliver highlighted, results financed free loan, cash EUR credit our term XXX and fourth we Adam acquisition a October, cash which XXXX. strong extended we and in successfully the hand, As closed million on amended quarter. double-digit profits new and into continued We on our and in Weener growth to during our using financial converted revolver our flow agreement

within and capital the transaction, And is leverage net very at Our after which we forma to strong. balance sheet ended remain Weener completing markets debt EBITDA, target to access year range. our X.Xx the pro

year as XXXX $X.X expected. Total Containers period billion business, mix on quarter fourth less favorable approximately October results. prior X% of which sales the which Weener from increased partially the million EBIT in of $X.XX the a segments. XX% increased increased basis quarter EBIT the segment Closures for adjusted Net and adjusted offset XX, closed EPS and Metal addition of by was EBIT the driven to the primarily by Dispensing by $X.XX on Containers in with year. or Metal adjusted the adjusted of and Record $XXX.X Containers year-over-year Specialty record higher in from prior XX% Custom Turning

Turning the as versus by to the a $XX.X Total reduce program, to by optimal comparable the compared quarter, new the to volume Containers XXXX mix. cans our year year volume SG&A the The quarter larger fruit increase mix as X% prior and acquisition, and contribution result the quarter adjusted mix price/mix further a flow in relative EBIT volume working X% double-digit favorable products sales restructuring year. In quarter the XX% record favorable for increased from our pet adjusted as which entering commercialization increased levels, vegetable the in a to result mix our as price/mix. sales favorable the opportunity by and of million cost in of less inventory. increased the approximately $XX year due of mix dispensing to for the an prior driven quarter. Record Closures period. to volumes. million our million compared XX% which including announced of as Fourth of as we a in contributed XXXX Closures double-digit free in from price/cost Dispensing as volume higher in and and and Specialty smaller increased Packaging during higher-cost the fourth as to improved EBIT the and more result to quarter were driver period Weener volumes versus the of reduction business was more through Custom a the the declined Weener segments. result of the million, Custom cans prior year a capital food X%. adjusted increase year Dispensing organic the sales $XX of quarter achieved contribution acquisition, Containers, or a segment estimate for increase EBIT in quarter in and for Late Metal the the Containers inventories was of due volumes favorable sold during approximately inventory mix, EBIT lower Metal approximately versus added the some to awards primarily X% result added management. In result our higher XX% X% which products driven in company, of had volumes cash the reduction the primary prior sold a quarter for primarily and of $XXX in a fourth XX% improvement the increased which adjusted to prior lower or primarily Specialty cost expectations Containers Packaging us driven primarily we This segment, exceeding of markets. the prior

a expense in and we to approximately corporate XX%, increase a to the growth expense interest decline estimate at Custom the in Looking XXXX. From of year, support in estimate range be XX% approximately prior million and expected of current weighted $XXX will record in million, the million increase percentage. driven count segment, of expected tax shares. and higher grow This range $XX to growth and million XXXX by flow $X.XX percentage our million the adjusted $XXX approximately $X.XX, achieved partly in than a CapEx and we approximately adjusted levels the share XXXX, midpoint million. our be to $XX adjusted expected a XXXX. Based of EBIT by to will includes to on estimate to compared basis perspective, adjusted interest for $X cost be This a prior average from we a At outlook ahead a of to Metal approximately XXXX earnings the of of Specialty the that rate XX% is EBITDA we EPS to midpoint tax half a the exceed primarily year-over-year Containers EBIT in program. adjusted by EBIT, adjusted as range is XXXX, $XXX EPS XX% of $XXX are cash segment of includes of segment million, mid-teen approximately approximately increase of in million EPS of million. experienced with Closures of increase $XX on total approximately estimating our of adjusted XXX in Depreciation is XXXX. to million recover are Containers $XXX range, free the $XX an cost-reduction adjusted providing offset also cash EBIT. million earnings as we Dispensing And in EBIT expect greater mid-teen adjusted $XX

XXXX. quarter to our the outlook first of Turning for

operational $X.XX to The the improvement compared interest earnings corporate improvements, in the inclusion a in quarter period. in offset the primarily of year-over-year Packaging, $X.XX We our EPS the by earnings share, of higher program, adjusted per the of to is are diluted year volumes prior in benefits XX% partially Weener estimate higher increase first from in an expense. adjusted segment and and $X.XX driven adjusted of as including range cost-savings by each providing

above for be concludes First adjusted X in expected quarter comments, levels our and volume EBIT all prepared to is and questions. open we'll prior the year segments. That call

Justin, would the provide for question-and-answer you kindly directions the session?

Operator

Bank with question Instructions] Staphos George today come [Operator from Our of first will America.

George Staphos

question, Can What follow-on. matter, you've talk with additive or you expected you ones to initiatives And Weener reduction cost bit learn within then and is the relative earnings deal from are I far? the owned maybe relative it what can for the of ever closing years? a and/or follow-on. were you anything as quick this did for little than me of for a the guidance quick and little built-in said, the discrete Two that gains, since been about not more you model? Second a your that learnings have about had bit a then, what challenging year, couple to is talk deal as so I that last sort you guaranteed,

Adam Greenlee

And would point, more think really with similar acquisitions future some are given I is contractual approve closed to portfolio, addition growth. that always close the opportunity the we are capital what In than our advantage done Sure, And we customers George. and the customers you capital prior conversation we've through business. there for the of was in we it. took bring and other mid-October. I both acquisition credit some them primarily organizations tell initially actually you together. of well. opportunities take fairness, it's Weener Silgan business that that there, this it's the Look, a gone as did process think the that customers. To Weener can process. And that is opportunity for about One to But learnings as has these probably We your good. we've in very in commercial they that to had you our diligent had had that maybe been X

learning So deliver is one projected. even to think confidence the confidence the profile that I we're and ability in gaining we've combined more growth entities'

So it. feeling really good about

I exactly a strong anticipated we that's think outside talented team, over, team and we've of coming got. that, a what again,

about So future. the we're excited

secondly, into year synergies together X, cost-reduction with delivering really now program. cost-reduction then the kind well million $XX think portfolio, we second full a we of on the on working I savings the in million quarter. And the all that of cost 'XX. teams side our the the of get did deliver and other of activities $XX are Year the the and integration process

which -- I'm an $XX million of So the I second be against about feel really for to the EBIT we $XX executing program. that million job good did And improvement about that. cost-reduction established. out it's the Teams portion then excellent the of 'XX, programs improvement, $XX will really round million sorry,

George Staphos

Adam, Okay. follow-on. just a just on quick Weener,

where have So there's always tax curve? been going then And the to expecting. that? a were be things that than able don't go bit opportunities so What been bit lower as well. then little those invest of drove little just a you've And been, we ahead What commercial to was be the the have where rate far? may

Adam Greenlee

Sure.

back not Just George. clearly, seashells is balloons, to right, Weener, and everything

it's I an I'd just important XXst And as stuff tell you done it, when and So the organization. think there's and organizations that a integrate organization this it's I through just sure this size, to our communicating a through. making stuff. lot have the acquisition forth back think And is X,XXX call work a lot There's employees, same is we've effectively of let's speaking you and you also, you're as X really of language communication company. communication, just that together you're of good bringing but

question. pretty tax in those sometimes I'll we've not. let for through that's just the it And of but rate And it. a that's just standard issues. I'll Kim So easier say lot working was than answer got us, experience

Kimberly Ulmer

Sure.

restructuring that fourth for repeat to from the do that a was was in tax operations. quarter, tax in expect rate We we did and So not foreign XXXX. benefit it the X.X%, for about

back go average next year. we'll as XX% our year the rate to So be through we

Robert Lewis

question markets come George, as operating business this very terms the investments -- back typical that Yes, well. asked just is have the to they Dispensing in, In our come around Bob the were. plays been back to question -- in where of to similar around where to markets you

They X afield very are far markets. combined capable what nothing from good are at So organizations growthy doing.

not these think a lines, those So launch with them grow to opportunity but to go-forward continue product to on there's basis. customers only with we good

Adam Greenlee

are as is capital with longer-term to just mid- George, of you those contracts investment. can kind us, typical the that And assume support that

Operator

Ghansham will Baird. The come question from next with Panjabi

Ghansham Panjabi

sort from in sort 'XX, at like a as standpoint, metric increase expecting characterization it a of you're Adam, 'XX. terms just 'XX, on in little looking based our were volume your a volume. just down, bit mid-single-digit 'XX of model and sounds in up volumes of of well And

achieve of it in muted have more bridge seem to So can much just many so help off-cycle to the volumes? and confidence your in us reported for customers relates context able that differential reporters outlook as that especially you far, being the on your the that of

Adam Greenlee

some our what -- indicative highlighted I challenging with to Yes. of much those on consumer activities. And what 'XX is with, Ghansham, we're with quarter through cases, on back market would sort of volumes moving lot normal dealing through are in what certainly years there between we of lot was of of you 'XX the more is we're going you parts seeing, all with just Sure. there. products. or our at was business demand into a environment noise see the our many the the destocking customers for of what customer with the kind It's a fourth as our and that -- what and more half of base. a I 'XX years, going came around tell think consumers And you, was But

customers remains around noise I'll what's continue our process. disruption with through was So with commercial what the time strong just for doing and their with activities the their what's our you lot going to what outlined, Ghansham, they say, turn on page were inventory, like they of more that through we promotional and demand activities window as to now products consumer that there's the And And on our that doing entire less going with market. were we and customers a in pricing feel fairly really, consumers. 'XX, with and

today, 'XX So They're value initiatives the we're good last against got our year as for value the we years. the degree going much that we've that normal creating we And outlined a to I we've outlined. really of think think more strategic sit what them. and than executing seen I delivering that several had we've is a confidence that shareholders here be

Ghansham Panjabi

Okay. you And the $XXX earnings bridge operating Understood. leverage And of in on XXXX the your you then can also it between acquisition? midpoint the what of sort businesses in you us legacy Weener? is the from silicon help are generated the much guidance? of How excluding million assuming

Adam Greenlee

Yes. question. good A very

EBIT So big numbers. numbers to gate, some you just a things. just of some of the right of couple adjusted out One, going the I'm give

it, year got we're the of things. $XX of million mentioned that's call million cost-savings then cycling program $XX I acquisition over So improvement adjusted driving X. of from organic growth the the then Weener And the you've year-over-year. And really the remainder additional EBIT. for

of headwinds we that incremental the expense. Some some see, interest we've got additional

FX of growth said some cash as got earlier, growth, 'XX. gets was and And place. adjusted all EPS free than in well. You've then to that taking is our adjusted more as line double-digit Kim next year, in a been expensive EBIT, But 'XX little that adjusted us have double-digit flow changes corporate it

Operator

James. the And Matt from with Raymond next Roberts comes question

Matthew Roberts

metal, on color about It by like continues seems you're gave any growth look as there. EBITDA XXXX? could I there there expectations, value. additional thinking mean, high food considerations a higher pet margin a that pass-through? you we DSC into any as maybe any or if but you to segment. continues how be But steel total as is to you're impacts bridge drive the the Appreciate In mix expecting on just provide

Adam Greenlee

quickly Good I for Yes. mean through segments maybe question. just the going you.

well. for straight with only products, but company dispensing growth mix-enhancing So portfolio with obviously, quarter for digit a in fourth in volumes, segment as That's the the again, Dispensing quarter very expected the growth for high first double-digit growth, kind not double-digit DSC, single of year. our

through It's that's see low- closures. And our recovery partial kind we've then right? all that some the Closures the XXXX. And mid-single-digit segment the mid-single-digit pet really, to We'll in kind got 'XX, for story you of then really in talking course growth driver of And and of So in for is lastly, that us DSC. for get growth Custom over single-digit food growth containers. of the of business, year non-Dispensing fruit to to the Specialty driving You've you about, low been go vegetable. Container.

at of mid-single-digit the win probably continue to market. We're driving I came think one got we back question, expectations. we've in 'XX market that's behind is that's normalized think We into momentum And maybe really off of in growth this looking a 'XX Ghansham's that good most kind I volume good to really 'XX. year in that the confidence clearly heading growth the the as through 'XX. And

Matthew Roberts

Certainly color there. appreciate the additional

Secondly, undertook M&A through going strategy, of your so if acquisition, think recently, some the deleveraging. I Weener now

it but line you seems integration believe on you March. for And talk portfolio. relatedly or competitors I are parts so, know kind what you somewhere, comfortable be the or potential in don't those? technology in time in following some for any if missed size of I mean, the markets still with? to their Eurobonds specifically And this look all But Silgan, end XXXX, of of XXXX? interested considerations that Any certain there are due saw if areas I into addressing I cash, like you'd there Weener sell As is

Robert Lewis

Yes, first October, Matt, question. part Weener feeling that we're about as Yes. suggested, teams. Adam having good, the the this closed is collective Look, Bob. in I'll of take

of the capturing synergies to to integrating the and identifying there's we're on our there. the well be While operations, work way done,

actively at in market what's are from out perspective. M&A we the there looking So an

that. support sheet would balance Our certainly

end there. about, of range free the into flow As the forward our right we're profile the low range kind we're looking time within with Kim that talked of 'XX by will cash to be

from in there's we potential So that that and perspective. that of very out there, specifically, a think exactly an things there's good our actionable sort term our think has way We be where investment M&A thesis the getting and fit of in been late. would opportunities pipeline near nothing of would

we're and us. at try front hard and identify out those next optimistic in to So opportunities get to of work

Kimberly Ulmer

around the as have we on under X.XX% so opportunistic But And well. be those do revolver. capacity markets notes, the our we'll in

So we're not feeling forced do we're like to or constrained something.

Operator

The next come from Pettinari with question Citi. Anthony

Bryan Burgmeier

actually This is for Burgmeier Bryan Anthony. in sitting

one, in of maybe or Any from First just that? these you million inventory of types December. just the reduction does beverage Dispensing, actions? on beauty? of on out inventory called line broadly, that And have kind within Was $XX impact then of sprayers caps kind how or within Silgan customer trigger to much detail usually sight

Adam Greenlee

Maybe things. initiated of Closures couple Dispensing Closure restructuring segment, so a kind and just in our flat of business. off, part a a in cap that program of this Specialty actually was had our we Bryan, first Specialty

in to decision we facilities moved So efficient more to efficient we streamline to to QX. drove that than the in it had fairness, as actually lines. And and got a what anticipated, us is more our down allowed inventory. done conscious manufacturing got make process, operations we earlier volume we really that And through it

That that. kind the this we forward realize the our there with working But we've there. have and programs go to cash opportunity wasn't was benefit do operational of than the this move management, lower from can anything inventory improved have we was to we really to this. did been took be free inventory This flow. why footprint and benefits that a and our on, in us saying, optimize customers. we really levels what an our Obviously, initiated that of was much had restructuring we anticipated." didn't So do "Geez, of full ahead optimal So fairness, the opportunity

of of So already closures initiated. part really restructuring programs it we'd was a the that our business result flat cap as

Bryan Burgmeier

lapped business Got in, lot of for kind more then a -- products may that growth is your there there benefit new high the layered growth. That market sense. on volume from this Are just being is And new of I'm of wins Silgan of in a about that thinking yet? the business just of haven't kind it. the XXXX? there single-digit it. XXXX dispensing in be Or guidance Got question. up following sort makes Just growth year. wins for underlying Matt's are versus seeing sort on you

Adam Greenlee

Great. Good question.

products Dispensing to portion have and the a of and in our continuing success, segment. particularly dispensing Specialty are Closures of portfolio lot the We with

So of many which previously, we've the in really, some many here new XXXX, talked we're in about, new this as we've talked advantaged XXXX. marketplace. more wins is wins in And competitively thesis

our a from and in teams space. unique needs tremendous variety are customers very innovation, Our markets meeting design we're success. of the have to And continuing

serve. And broad is our focused Specialty XXXX, in up award So on we've of we'll be new have additional many Closures but business many, more ramping enough, segment in a wins interestingly year be that in 'XX. we'll yes, we And across that significant the that's markets then base a we'll preparing late 'XX. -- recently had

that of we're really, in the products. certain included forward innovation, for where guidance. taking going, But think our that's as So about look we lightweighting design, we're

market, say through let's that. many many, growth are those markets. the in or our of of elements And driving we're -- All ideas thesis winning

Operator

will Securities. The Wells Hajde next with question come from Fargo Gabe

Gabe Hajde

working imply and a a cash to $XXX would I what saying billion for of $XXX do use to the to $X.XX crux on of a is If going that for a the which midpoint I we the maybe today: baseline learned that I'm I be with other the heard the should at free cash million you sort to will capital benefit. I taxes, think then of there sort question should thinking cookie, I $XX "Give there components understand there. Are and like integration about? about million down of cash $XX And have And EBITDA and start side. in all in of savings look what mouse spend just I build enables M&A million million really, some maybe of he trying ask flow, milk." the

Adam Greenlee

about talking interesting I question, mean, Gabe. are about of we're the talked of higher we Yes. interest some that expense, XXXX. free cash kind cash that tax. It's in flow higher think an I working against Again, things

most had you think correct. I of other components the

there the think else already on know I if you line don't can So And anything provide I have. was you're of didn't right there thought. that that we

Kimberly Ulmer

our Some benefits as programs well. rationalization from

cash on lowered have we year-over-year programs. the rationalization So

Robert Lewis

CapEx. higher And

Gabe Hajde

million there. like $XXX looks $X.XX that's And walking Yes. -- was million the of was had from year. I've working $XXX I really of billion there cetera. like interest, capital it of of in I a to I benefit said, there's et -- the kind And $XXX where this bit EBITDA got a a million. little

Adam Greenlee

And maybe as as there capital XXXX, will in be, not in quite but will XXXX. benefit working big had there a be we and

Gabe Hajde

Got it.

dispensing systems. year the expenses frictional the and And some then should this in capacity be thinking of it's parts bit, But we capacity-constrained feel answered But in for how have I'm to costs higher about or of back start-up sort the in explains ramp other you think to talked the half little being Okay. this CapEx. year you're guys like the XXXX? and of question, adding what you would any incurring that? Or last high I a Anthony value-add I missed you part of one, Adam, DSC,

Adam Greenlee

Yes.

and every adding I we our literally been So capacity year we've through since business mean segment. systems the working dispensing have DSC been

I of would outside really nothing So say, norm. it's the

programs. segment because So you're capacity them the have don't on costs always these in lot talk a this projects incremental whole are side. start-up addition really they more Gabe, about much We we with and and right,

talking the and commercialize products those and about spend start-up the absorb and we the those we costs, commercialization time more cost. product of So

tell program significant implementing same. last we've So and success you, and having in and the several we're And that for having market really, it's it's the years, us. the of more strategy just over kind out we're of laid success would I the value driving

Operator

Moving to with Securities. on Truist Roxland Mike

Michael Roxland

First, congrats on the the year as outlook well. and

of represents, EBITDA health on question evolve, roughly. I XX% you perfumes, think, understand the a job portfolio, with like, say, Where business this Weener last years? done you're that tremendous headed? us First the the focusing transforming recently XX% was, you more next do Can and help fragrances care. company see in Currently, the over and had let's obviously, DSC seeing growth has high-end X dispensing, DSC, to I how obviously, over the decade

Adam Greenlee

Mike, I call. mean, yes, we've talked if the maybe you about I quickly. mean, look let's back -- on just go maybe think I last back this

DSC XX back, pro with XX go is years than the forma it, ago, of you bigger the segment years If Weener entirety today call Silgan just ago.

you're So taken evolution and and segment. Dispensing place Closures of has we've we this as growth invested heavily our Specialty right, moved talked about in sort that

to generate lot that We're does of we cash exist Now look to of forward? does. fast Sure, forward, sort a continue opportunity as flow. it going same

there's business efficient at job care opportunities here as find means health capital. is It's Our business. also million talked, think $XXX I executive we that acquisition organically And is segment. to a most segments. of lot through and now opportunity and I growing a growing. health think care office our to deploy other our It's the than both to And our faster in grow the

Michael Roxland

primary your in to DSC? be say grow fair as look focus it to is Got you that it. Would

Robert Lewis

Mike, I it's Yes, say our Look, business. obviously is what fastest-growing Bob. highest-margin, would this is

we is to continue remainder we the capital grow that So segments exactly well. That continue customers. of pretty necessarily some already our as what we've other which what are going doesn't our we starve customers, business strong relationships develop our to with to that And business. the to done mean in of will we're toward with look as allocate

tend We those growth continue nature, slightly business. good less capital than of to businesses, Dispensing very to grow to The by just access have businesses as those to profile be well. their the

So for is priority the sure. for that capital,

Adam Greenlee

would add side excited about the are time. health we And the we'll about to some been holds go of care, we in with here talk what for investing, the we throughout future the those where have where us, and other that year. customers those I same customers over opportunities we're customers. more organic investing probably forward, have the investment with course business, successes with is of the partnerships have sharing we long-term on of as those we to existing have do And thing And

Michael Roxland

Can both in some competitive cans? last X on follow-up. in years, the just you of Obviously, And one here Europe. it's fluid landscape then just and Perfect. quick metal comment the been

and challenging, to food you players conditions some up. seen -- more concerns maybe maybe try mix companies try new become markets You over -- share? as pet partially have gain Any to have more some as

you're sense of what things. a get metal of to side want seeing the on can Just

Adam Greenlee

X Yes. well. this about And as talked we've I mean over time

our a reminder, XX% Just about of Mike, as business. under in contracts the business is long-term covered Metal Containers

press I'd single extend So release, in we you contract. note, maybe that of as out customer of a long-term the highlight year some activities. fray for also historically, another is saw did of been largest of significant Silgan the those sort has And our the market

time helping our business. And that and much really investments time, support food that grow further for marketplace where Silgan. spend is our have food over customers, investments our So pet shareholders contracts long-term made in off with say pet that's and those than you to for working paid don't the look to we've have those we our our them customers, their volumes

of we're look, market So in And lot a Metal anyway. see we outside point the bit the activity normal don't little Containers. difference a in frankly, whole fray of at this

Operator

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

Arun Viswanathan

on good trends, they you Metal And especially a on year. new point know year a us from promotional first go strong any outlook as understand help maybe customers. and less as year of what maybe feeling But Container for are I they guess, how it's far have your the seen can Congrats hearing just the strong as I here. demand DSC? maybe off, just part seasonally inflection you activity? you're a into and potentially,

Adam Greenlee

the TAP organic targeted we think happened really, targeted of successes promotional demand one investment that Maybe that news successes and Yes, very the the drove QX start for talked very cycling think us for the the about in wet that of -- strong, bit Containers. 'XX. were particularly the And of that. and the quarter. real will QX. in a segment, for volume was activity is we in in double-digit activity. that into talked continue Sure. seen 'XX. we of a level we've couple promotional business, And But Really, destocking growth about we've activity we'll just good over in with customers by our pet real been Metal I food promotional And -- has it's successful. And our

that And that with so we customer. spent a time specific lot understanding of

tell I you that market in was saw the we very activity it cans early Another in in was the food really, success promotional would in soup market. And process.

were soup 'XX hold in activity and earlier over through as promotional really, because we maybe some easier take year the late in So did market. in 'XX cycling the comps

good Specialty feel be side, Closures customers can understand really we maybe food does it more in worked, Dispensing activity that where then promotional So the our market. markets where could has vary by targeted. And it on the and

You fabric effective think of promotional care, very very had lawn like kinds those have and about targeted very care, activity. successful things care, air products activity; promotional

is more growth we and of lot quite I wasn't we've planning and think the And focused with talked XXXX one promotional customers forward we drive beverage targeted a a to spent kind objectives activity putting XXXX. that have are on our what about of programs our are as effective as that the volume time together in isotonic is products. customers our now

what There were So to could question. far learnings in George's success what challenged I'll as modifications I we on and as made their was our what maybe move first that definitely ensure be successful, activities, customers with working think have back promotional to was XXXX.

Arun Viswanathan

Obviously, bigger corporate you Great. you company a elevated And potentially costs in mentioned 'XX. then, I guess, now. have

about greater from So that? there much increase free you maybe Do can kind grow range? now to of a X address free And flow just full flow say, stronger in performing continue rate at at obviously, XX% of a a rate you're cash driving corporate a increase a flow what similarly, in with your Or than, expect EBITDA? as kind those should cash cash issues. 'XX. year much to you we Is an standpoint, then conversion that's think

Kimberly Ulmer

Sure.

So that the about we year-over-year corporate to and corporate increase for on million $XX out activity. side, year, called is development related this primarily

ratio bit see lower well really that. And the the be opportunities in we good see as have, earnings earnings working of as -- a years. capital point, to $X.X we the you market, offset go as be or on come strong at we benefit. expect through We leverage continue, flow, would working as some opportunistic of improvement we at to then around as So year-over-year from billion by cash can the and cash continue free mentioned, those free that improvements a we we'll in our flow and down see

Operator

JPMorgan. Jeff with to Zekauskas on Moving

Jeffrey Zekauskas

spending in you on? in money took are You million $XX.X restructuring What charges the Containers. Custom

Adam Greenlee

Well, $XX Jeff, our cost-savings program. multiyear it's part million of

portfolio. and capital we to cash So putting the in in Silgan broader fairness, work are that back

we year growth it's as of that initiatives, the CapEx and we is continuing -- supporting -- talk So to in that look million Containers invest, at conversation. primarily portion one $XXX Custom of about

or in accrued the did announced particular, really, profile. X in The plants driving plants. be Containers, So all will close Silgan. And we across of in the Custom X -- of what's benefits closure XXXX that's cost

Jeffrey Zekauskas

Okay.

fourth In look basis, in perform pro quarter? business the you did on terms a when it Weener, the at of forma how

Adam Greenlee

Actually, it did really well.

So we our standpoint It consistent delivered they volume model. was and a had expected both and a upon versus in from them to portfolio, have acquisition that. year-over-year their profit very of kind growth

it. So above fairness, actually, in it was slightly

of more delivering feeling the gate. we're So the I with pleased about out we the that well as growth the we're right XXXX performance very in think profile business of projected. And confident

Robert Lewis

Yes, closing entirely we due and were in one approve. had at what case, the investment less some come add to anticipating. us closing was that Jeff, you that business the to is prior particular outset the fact that able of the Adam only maybe And would to what to that we cash even gave is slightly were to flow just opportunities right other thing I free that we than of

So a leads fundamental positive that the for forward. of I to outlook think all going very business

Operator

from We'll Rizzo take a Jefferies. with Daniel question

Daniel Rizzo

to I kind commercial too all? just Weener. was mean, the you overlap if sales particular not synergies, that, mentioned because a opportunities side revenue with Or that's if I also. specifically of Kind give flip cross-selling of you're referring customer? with a of to have up much you will So problem some at wondering of

Adam Greenlee

are not does. is that revenue that we that really mean, opportunities in between field. amongst Silgan out there Dan, not any the synergies I our groups model the and we are something in Clearly, so cross-sell businesses, can no. did that fairness, really

are opportunities businesses, come part wasn't between of model. but acquisition So up our seeing that we the

Daniel Rizzo

-- in and fruit mentioned business to that you wrong, metal If Containers, vegetable think that in expect back I the lost then just half of I'm business, was within Metal And XXXX. Okay. meaningful historically the you correct me is was it's this there and is there. speaking, what point. But even I soup also than still kind to if that, better in the at wondering outlook doing if of addition get for

Adam Greenlee

for very market us. It's meaningful. an It's important

the last had the challenges that working of good to what our X repeat through soup and of for continued course the you, customers said demand I again, of over be I'll would in with years, we've earlier, variety volumes the news, strong. kind So I what tell underlying

and finalizing I'd what So We're customers our vegetable what remained pack kind we with a part QX. of had XXXX, normalized to for we're expecting it has good still soup in on important do. Over volumes their still quarter and of Dan, very working an tell and you the strong. business that the We plans. is markets, is fruit it quickly,

would we change at say really clarify less the business to about year-over-year, certainly back just clarity we the like, than a information we that the I move half lot point we discuss but million a what financial of so $XX as saw comment. we'll as I what little come have more first together I would a impact we're say have April. And back anticipating this to Containers recovering results quarter it's we Metal So that -- half, 'XX. in in When want And getting to 'XX. think

Operator

Staphos from question with George a take of America. Bank We'll

George Staphos

of couple ones. A quick

to as in to the corporate we that operating Should skill having So Or be States international read overthinking are of maybe some strong outside a this these maybe is degree set, strong juncture? you're development past? brings of into he additional Chevrier, larger experience. sort of going you at mentioned in leadership, opportunities that that, the than Philippe this that we

Adam Greenlee

thought, it's George. a bad not Well,

we that markets, we've shy mature think that. I like about been saying mean never I -- and

there's have acquisitions particularly if you flare, So the European several to international well. I look last think flare, where a acquisitions been been, as those at definitely an

much it. too So into I wouldn't read

all And with executive model in office. our they right is successful our has that generated room us so portraits it's at that for this now and sitting so staring from wall. the our that office been long. me, their Greg Phil with For founders' collaborative We're on about here

leadership additional our to to skill So experience we're in just here excited thought Stamford office. our that and and adding excited here talent team our we're his set bring to

George Staphos

pet on and an update. food, then up And just Understood. and it comes periodically want just

As maybe I'm reliance certainly, has the of it to it's profile aluminum maybe become it that supply operations? greater But know? large Has some any factors chain some guessing manage does you've degree. time, changed the over growth case? risks there's metal it got be to used increasingly on changed or an we bring piece perhaps differently to the than

a us how with the it's bring how Yes, And Yes, some could you maybe the anything manage share been you grown, So But change does road. additional it lower risks business? there. got it's sure, down mix. in it's helpful.

Adam Greenlee

sort mean, just question, unit is, it, a of over And in George. aluminum. look, aluminum as It's grown vast the pet volume good in of time, perspective, you majority is And now over our has significantly side outlined. call half XXXX, of volume. Yes. a from that business the I our food of

for than we what chain I'm a proactive we is from sure contractual it's which have raw our aluminum on diversify statement long the have requirements-based make, elected do, that So we to a so do have to we in can for customers support to we're supply that continue to, significantly the term. about past. And arrangements more we a buying the aluminum material standpoint make

can So our you supply chain think being about diverse.

that as customers we continued for think You along of to being market we it food covered have our delivered, about in pet not the supporting forward but and long-term really can contracts growth. with anticipate under kind we've invest to the continue going growth only

George Staphos

given sorry flat at you quarters the digits XXXX? in point almost that at don't high here, comps necessarily a all turn Do where have double during X Or during and single quick digits to 'XX, reach a one now? right guys, see we growing that you're

Adam Greenlee

growth Yes. George, deliver the the of I still going for year. think course we're to

comp highlight I would delivered in right I QX. think just the maybe we the that is now one

in of a expecting capabilities drive QX what in that think we've kind delivering continued food doing So our are we for a tough feel very their invested again, comp growth this long but capacity horizon. we us, collectively years of pet mid-single-digit have as the that you 'XX, will customers growth are over the is from kind XX-plus about food collectively growth. And been feel for pet marketplace. what of I that market for knowing very this that -- through and rates to 'XX, in knowing volume the in That be standpoint, our we've strongly

Operator

that question-and-answer conclude call the And session. over I'll remarks. does to closing Adam Greenlee back the for or turn additional now any

Adam Greenlee

Look Great. Thank to you, April in today. results. support your to catching quarter in Justin. Appreciate our And everyone, up forward review for interest thanks, again your Silgan. first

Operator

does today's conference. do excellent We Thank your you thank conclude day. you. That for an Have participation.

Silgan (SLGN) 29 Jan 252024 Q4 Earnings call transcript