Ball (BALL) 1 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Brandon Potthoff	executive
Daniel Fisher	executive
Howard Yu	executive
Ghansham Panjabi	analyst
George Staphos	analyst
Jeffrey Zekauskas	analyst
Joshua Spector	analyst
Arun Viswanathan	analyst
Michael Roxland	analyst
Michael Leithead	analyst
Philip Ng	analyst
Christopher Parkinson	analyst
Stefan Diaz	analyst

Call transcript

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Operator

Greetings, and welcome to the Ball Corporation Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brandon Potthoff, Director of Investor Relations. Thank you, sir.

You may begin.

Brandon Potthoff

Thank you, Christine. Good morning, everyone. conference the Corporation's XXXX second Ball results. is call company's regarding quarter This during contain call information this The provided will forward-looking statements. Actual from those implied. may differ be outcomes or results expressed that or may materially

company's results Some that to in other as as could SEC the company latest factors or news and XX-K releases. cause differ outcomes are filings well company the

financial be Information release, on our available in you not regarding use section earnings If the is of do also already release. it have measures of notes the non-GAAP at found our ball.com. may earnings today's website

Aerospace of In of through addition, not attributable include the business. and former release noncomparable to diluted References release Dan over items to former earnings comparable earnings company's do the the sale net Fisher, the the XXXX. I sales CEO. the well includes comparable call now earnings the reconciliation Aerospace today's a XX, date net corporation operating company's year-to-date a performance February would net call share in of calculations. summary to earnings and include as do business turn and per to as net comparable like and of earnings

Daniel Fisher

Q&A. We on we CFO. will by second finish up brief then our laser-focused I'm Yu, world. closing EVP performance creating Howard remain and and and on more financial quarter sustainable Thank Brandon. Today, remarks. Howard you, XXXX for I and and joined some provide a discuss will call introductory will key better, comments metrics with

as demonstrating our areas towards and employees global in evidenced social governance our by demonstrate global recycling, the month more Index of recent to preparedness disaster FTSEX impact. the Series environmental, Good Ball which organization, STEM education and Across of to in volunteer companies relief values designed continue included and highlights and measure future. our circular our a unwavering our manufacturing the the This During is performance practices. commitment quarter, was strong

volunteer themes aerosol Under contributed our strong to can Thank aluminum X.X% to hours global and across care. of win, work you second that over we XX our month X,XXX increased our results. the in April, XX,XXX that the and extruded the X.X% delivered During shipments quarter we and shipments, Global beverage employees continue quarter, that team respectively. we colleagues countries. demonstrate

addition, as to repurchase globe. by and of on year-to-date executed In we and plans repurchases volume continues expectations. exceeded returned packaging aluminum to our dividends XXXX further have quarter call. Reflecting $XXX In our the via share today's approximately driven share volumes shareholders outperform million internal other performance, EMEA, to performance substrates our was Argentina. exposure softer-than-anticipated and America, South across second America North In on

EPS positioned of the XXXX trends EPS dividends strengthened that, turn in of and of return global demand mentioned comparable benefits expect a and year and Key our digits current of improving the across to XXXX sustainable repurchasing grow mid-single plant and to shipments quarter leveraging for the on deleveraging, Based free our complete diluted with excess balance second our $X.XX channels, we our in drivers, digits plus use categories mid-single and aluminum venues. XXXX. With continue efficiencies second low and of to customer previous over today's of to shareholders operational of via quarter, mix innovative, be volume are well-capitalized year-to-date previously range. anticipate in share shares, grow now to company's packaging release. performance, we Generates our our reported drivers to the repurchases performance grow and sheet assets summary to regional the diluted comparable strong cash Howard. shipments continue and I'll to per in for incorporating earnings commentary billion value to regional flow, it share. Consistent given refer and full please For $X.X adjusted

Howard Yu

you, Thank Dan.

results. Turning to our

Second $X.XX versus XXXX. in quarter second the $X.XX, earnings quarter diluted of and was XXXX share comparable per

pass-through prices in influenced as North South favorable EMEA aluminum as in sales America Second and were the volumes South quarter as offset well America, of by in as lower increased well America. price/mix by volumes lower

of effective associated cost segment the comparable and year-over-year disruption. Benefits offset Second our will lower quarter brand performance, plant plant lower growth. expectations undistributed due million comparable incremental were exceeded America, across improved and to continue operational beer our net network efficiencies North performance South up costs expense. In with earnings North including $XXX America, well-capitalized management headwinds EMEA strong operating earnings to and primarily year-over-year, support year-over-year in corporate and America, volume interest U.S. of

managing to second were the America, We trends Recent growth volumes poised driven of growth. be efficiencies, of cost XXXX, improving efficiencies during favorable, strong continue risk. In our anticipate following up effectively a decreased lowering to volumes EMEA, and and year-over-year by continues where anticipated. increased segment than XXXX, operational remainder volumes the demand throughout business year-over-year half first for stronger South earnings XX.X%. and volume overall operating remain comparable segment by the quarter operational earnings improving X.X%, In driven improvement

deteriorated continue demand business. quarter, beyond to mid-single-digit appear volume most our the challenges, these to timing be the customer Brazil though During second drive Despite and the Argentina's consumer conditions in slowdown. further, in mix difficult growth strong our comparisons XXXX of Argentina we given of

monitor optimistic situation sequential as deliver improvement could the the South that and and earnings America. Argentina and in season dynamic summer ability in Brazil scenarios to about We to we enter potential We volume continue results. our selling impact economic remain

provided June first consistent Day figures on Moving those commentary. call Investor metrics and financial additional to and XXXX. key our quarter earnings for goals during Very to

targeted to Net by year net X.Xx be below year-over-year of at CapEx debt be million the as not carrying -- the while anticipate may company capital are and $XXX we a continue second projects. currently We by EBITDA to of X.Xx, XXXX year-end the of comparable debt end to gain on EBITDA related XXXX to the end slightly comparable the driven range of payments in to at the largely is higher the the to below quarter to continues of $XXX sale prior year's reduction of the aerospace. due taxes from million,

are achieve to cash excess have Through in adjusted our $X.X we approximately be target million are in by repurchases today's We of to call, $XXX expected free year-to-date. repurchased year-end. share track billion flow and shares on

on business. Our will of the interest is estimated XXXX. Full expected by second company's XXXX sale driven the throughout the $X of range expected expense tax full credit paid to half year tax approximately of R&D the the tax associated with remainder year be effective quarter $XXX payments the to to first billion comparable due rate second is approximately during was the the XXXX aerospace earnings payment largely the aerospace Relative of and sale, XX%, on the lower be taxes made due in in million. year-over-year be

corporate Excluding reported of quarterly are declared in the the noncomparable full be other million. costs $XX range to year expected aerospace adjusted non-reportable Board cash And undistributed dividend. Ball's disposition recorded week, XXXX a compensation costs, in last

the XXXX, excellence, across our we to on driving operational monitoring of management market rest ahead remain business, volatility. efficiency emerging and laser-focused Looking cost and productivity

of the maximizing to are committed long full We potential term. our over company the

no the turn share it return significant through generate that, us initiatives we consistently near-term high-quality corporation shareholder to recent I'll and We deliver to have debt derisking -- returns. With to for executed compounding have back clear runway near-term activate is results Dan. on maturities. The retirements, and

Daniel Fisher

And is The we operating as our second Howard. continue diluted comparable business forward look of to plus. EPS half growing Thanks, we mid-single the the well. to anticipate year, XXXX digits

our the guidance unwavering XXXX portfolio long-term and backdrop due commitments the strength to our consumer dedication Investor we remains volatile employees, our our of the laid While deliver confident at we June on out are will of Day. and

solutions we compounding XXXX global carbon advance by Together, that process packaging and the our scale deliver from we executing improvement on to ahead, a returns innovative a beyond. pathway neutral waste enterprise-wide focused shareholder packaging aluminum in lead on additional on strategy to embark unlocking are organization and deliver aluminum can a through solutions from will path by free strive operational Looking to world to and continuous to driving value accelerating within our sustainable excellence.

our Day, creation communicated our we is shareholder Investor As June at value focus.

consistent repurchases anticipate with forward, coupled and future. performance, we diluted delivery annum high-quality Going share foreseeable plus EPS growth, the of operational XX% for significant results per

to drive value shareholder creation. wishes that, appreciate shareholders listening employees, our to addition suppliers, to Christine, work everyone the today. with will returning the questions. across done via organization customers, value our ready we and for well being stakeholders dividends, We In extend you. And are Thank and

Operator

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

Ghansham Panjabi

] guess XQ. first X.X% EMEA off for segment on growth in [ I the

above expectations. mentioned internal think your came I you it in

evolving that If what give specifically? year? you back could that. half bit that into on us do And more you color of the a drove then also the how just see

Daniel Fisher

Yes.

some it QX of were were QX bit relief. some relief, we little inflation to I starting think a out of we see transitioning into as

the was with relationship. strengthening some of a consider little relationship just more bit customer-supplier that So I the a we're than consumer would that end aggressive a that pockets a couple in in more of pricing and partnership customers by

mix. benefited from we bit so And a

below, heavier I in which opposite region here mix the if a and where it energy heavier CSP does think America, the ahead do on respects. have portfolio that we this is or it there. mix has [Indiscernible] or now. year, when and beer like region of side. now, in a little the winning contracts heavier that with losing little it's a then many it with you is And by North have our saying something we you're on market, going consistently do to all Europe contrast the to than more right probably U.S., over we winners in losers

in you ahead benefited and euro was so the Nordics, really interesting. ahead some the We in more the Europe, anticipated pretty It's Ireland of weather a which And holiday crummy tailwind. in and there season, the pull-through actually of a and can good were We bit we Europe. places that, in it's and some give U.K. like it competition. on from

a it not So was incremental significant on surprised, a surprise. multiple surprise fronts

say long of balance and to there in that the the in America, the very we the are runway and can to mix on benefited some Europe probably think North folks and this, signs bullish there. of continue the well nice you've But some year maybe places expect term there because to doing even and they're so just foreseeable over to a from us like and continue -- there for for We future. than I continue volume -- be lot we do has more heard medium fighting

Ghansham Panjabi

about And versus, how say, sort U.S., as point it. between of to other America, context introduced cetera, then, let's has holistically, then beverage, just consumer Canada Central out regions Got down there? North Mexico of Okay. the break America, for did some and that industry the affordability. that and your then in higher products you think et new portfolio And price the items, of

So permeate Or the as seeing the it about the you in portions still How American kind as weakness low the think is is towards of end Is starting end? North to that you're propagating? still at of middle high well? the consumer and business. it

Daniel Fisher

U.S. is the in of the No, stark a the U.S., a I is It world. think great different I It's pretty than question. contrast. mean -- the rest

even doing the They're at the from. now growing been that's why You It's folks been the growing like kind major our adjusting see the this they're of -- we've at XX brewers. been the high-end we've this, months. candidly, down we've structure, in with and that Ghansham, one trading That's of different cost light seen model. the kind It's it low-end for beer we've of one operating But segment. that's things brand. like living premium brand, are and

of that consumer. the kind You of of see in touching drink the past. at these growth like see you growth the you This end things bottom things when end kind This the this points health and -- is signs you're like energy is level. in recessionary see slower slower of the

So in We're still that making environment. more we're growing. We're money. operating

all feels good. that So

months. cut, of on are If don't things you lot downside into our Based all a and those see a on clarity We've interest us get potentially get living I from the you're more translate point, probably bit you for though, a if to a bit in because where tend it -- been little -- optimism the end an more little to election we XX your competitors. and about rate consumer. on more September

our the then seen and think result customers purchases. going to pricing also hearing we've the from a that categories to frequent have different I address mechanisms And trade from of So certain you're segments, that as certain drive in via what less to is they're seen volume. we've and downs

it believe we're -- in we're to not, been or operating XX relative of months spot an the So a as kind I good industry. in versus think that, we've how last

pessimistic. encouraged So bit more a I'm than

Operator

Staphos Bank comes question of line next from Our of America. with the George

George Staphos

okay? me hear you Can

Daniel Fisher

Yes.

George Staphos

just topic my on up I taking and back want first raise. pick to once question,

net juncture, customers out this end kind reduction, are the of grow if a but doing talking market? especially least this back the wrong alcohol, about not at post growth, drive see ago, on volume juncture, time to and at your promotion price, in Rexam, context, a cetera, So a was we kind growth At next Or innovation really years do real innovation more price part. in a of comes sort to and innovation drove et variable incremental was is it innovation. XX the this of quite higher there go that of they lack this in way at of

with promotion? price to them are to your drop this thinking about you really evaluation? to How what doing only So in are help customers deal that? raise way and that the And

Daniel Fisher

question, George. Great Yes.

are this phenomenon, the look any at region the a more So is that particular, if going that's are put. At advertising breaks other So innovation on brands people low U.S., end, the this okay? beer, in a more the the -- spending probably is value willing it in high where and more end, down see. U.S. there you At they're it. they're than I end is for of innovating the to folks pay high because

rest. one end brands One they so are end on low proportional in on at the the and This brewer consumer the of you squarely end the the have look the squarely largest to is And X end America, is North you'll growing. if higher see consumer. that of

that light middle have one that the the beer, be premium differently. priced portion, Now big will sort that the is of is to

And It the maybe And and get playing shows side get competitive CSD doing So the it exist. get pushed then brand in innovation into you've so categories are got that's on the will already will low to folks in historically. than new even be will the higher-end middle, many continue whether alcohol marketplace, and pushed. playing after end the more that that pushed on the and in well. They to those ranges, covering side, where game now, are the to of the well starts it's value as or the up. they of branding playing well really The models They're well superiority very discount of brand and CPI the the the show on brand the game really are revenue you real integrity know, brand for years. up this well. categories,

assets and So I how with the looking can chain help to we layer you fleet help and at, can of lower and in use we're we're in we really of in helping them costs deliver. supply listen, think innovation, to terms the you our agility -- that's every

customer that than have we in for value that what figure the to So the work coming going there drive we will play left equation. they're can these And is to to is scale how then how the they economies some months. are sides that ways be of think here both and of of that the price I what's and use anything And volume. that's to major what next more around brands so X brand out

slight enough will in then and a My Some the that to more under, position end at it around it is, consumer volume. backdrop And be belief is be the of we've growth and oriented. maintain that, the uptick. been with will thinking stable could the that operating it drive least

you hopefully that will different than Rexam. Rexam. -- post tell than helpful. It that. different is I Sorry, was is yes It

fight supply focused Yes, you've be even high-end efficiencies with the You're end. innovation to low the but you've to on that. got different diligent conversations, got and incredibly on and brands, it's to definitely on on chain

both that ends is with it. -- So just on intentionality more of

George Staphos

So the of customers for as do do trends are what or them. as your you those And those X mean about what levers or to exists into overall of that year, your terms trends layer see those does it are the X the X to you you seeing as half start X XQ? or plant volume in pull how back relative mix you network feel

Daniel Fisher

there's Thanks mix the an where aspect term. very much. will Yes, I matter here short think in

typically won't and you'll Super a that's but happens around there Bowl, North more there's where about more introductions October be some the be what America. around it thinking in be February February reset, some -- So retail that in and reset, minor see will innovation and January, in the you more

of fleet terms benefits footprint new laser a benefits. operational We're operating cost we lot on We're the efficiency our we're plans. in warehousing our and freight decisions smaller. average excellence. running of Our focused cost cost in better, is seeing model, the We're those fixed is the of made our lowering seeing

efficiencies So lot that there's of a we're from. supply benefiting chain

of more grow. see You'll it as volumes

like our our with feel seeing conversations right we're I rise. So Net Score continues we're having to Promoter customers. the They're that

are so having And efforts our from benefited term, matters customer the and are America. that the short customers. base this we've immediate in we're benefits any and year that resonating the making the customers some in in conversations North particular But we're time, that. seeing your who more We're now of with here know than I

Operator

of from the Zekauskas, comes line Jeff JPMorgan. question next Our

Jeffrey Zekauskas

what Ball it capacity efficient. increased the did few reduced it North become And in has years, Over past is, its America? then more to it

much? today was you it very to your Has compare it in North If XXXX. capacity what American changed

Daniel Fisher

more -- it's selling more. we Yes, capacity. have We're

additional there's to and envelope for room us and capacity, further. more have We grow capacity

Jeffrey Zekauskas

up? you in you volume down terms the market in soft the the market beer experienced of second the was and quarter for that Americas And in drink the consumer

Daniel Fisher

correct. That's

to portfolio the a CSD us. benefit on customer Our was side

Operator

comes next Spector Josh line from of the question with UBS. Our

Joshua Spector

your And square second in view just you're backdrop that? high could it, more the starting of drive really you or of do some long-term versus you start of call outperformance to view. to your here EPS given the growth if do around you here kind to of wondering plus considering to in single XQ, kind digit half, was growth you face a think could short-term in see, comps, need easier favorable I more XX% some

Daniel Fisher

question. Great Yes.

Just your -- an for fairly Howard and describe would you. QX. say, I'll there's him QX, forward, would QX did let say I moving correct. let have I'll I significant we a comment anomaly, is one describe it thing,

Howard Yu

-- right, QX the meaningful have had in last That's business. side, was right. on impact This a R&D of associated year. credit did We that's we Yes, Josh. tax pretty aerospace the with

nearly And of so the those tune to $XX million.

so And comps in said, for a achieved XX-plus that. in the after that be beyond, each the in I fourth obviously, said will to that EPS Dan make into more think QX challenging. going certainly But percent quarter and year bit XXXX we'd we've as

Daniel Fisher

forward. in if reiterate, And out operating the then percent moving we're EPS take just at benefit, to you QX, yes, XX-plus onetime

Howard Yu

think I think despite to even that be tax relates just as up the third And I it quarter we credit, will EPS.

$XX And still year-over-year. will impact. million nearly despite that meaningful $XX pretty so be or But million a that is up

Joshua Spector

really just wanted America. And of is is inventory terms you things forward at leaner North specifically if of beer do big that days inventories pull in you more you, visibility customer any probably stay levels think around for on promotional or for in or where a up longer? activity, cases? follow I That's don't I your are in helpful. to have know if there

Daniel Fisher

They're to a too will inventories be our low. moving think I a little. stronger lift a bit bit going are forward,

partners and our you As helped beer to QX, back this one ever we in recall, QX. significantly of

levels. and overshipped now lower at we inventory of operating in kind So we're one,

the on of then in the out rebalancing of will kind the a settle trajectory of us, flight year. it's of particular. And couple because that encouraged a brands for that So beer about I'm of end by the

be But uplift of So this. negotiations half some yes, particular, were for first second of with unique no, yet in I'd to we it's like the low union some so will say because half year things us, and in anomalies in because we determined. operating the have still the

Operator

of line the from Arun with comes question Viswanathan next RBC. Our

Arun Viswanathan

the to see Good results.

questions America. guess South a just I So couple of on

any very Argentina, South business, volatility visibility? volatility you America what in obviously, lot there. some challenging there some Do robust you'd a mean, gives is your is And down second again, point expect guess, drivers to? in a are on -- conditions half that there, I specific QX? of there that but especially So you still I

Daniel Fisher

We've good got really ones.

you. X hope I doing First thing you're out forest or we've here got Denver in is of The all, well. only thank fires X happening.

if hear you from. all that's coming us So coughing Yes.

just second let So the and stage the second what Brazil particularly. and quarter, quarter for in let happened us me -- set the

they quarter. second market. the largest and filed participate bankruptcy, So in had much brewery the in second didn't showing third They in the a XXXX good quarter, this for

we we're comps didn't disproportionately year percent partners year-over-year, But up so they winning the you're last year in were and XX-plus than a were we plus. at entrant because overall And have stronger are when looking this year market, been because year-to-date, our that for participate.

much share. returnable now X glass, that. so inflationary environment. but talked and happens back our ago, of couple we about of of years to I a We've About X a saw back share, which right? gain surely. lot believe, And can with, who the have business coming points, to couple conversations of we There's an quick is share solely, of That's in repositioning to substrate themes, of gain always underlying a continuing a X about we're tied folks encouraged

points second And up the coldest get you in share picked then record. a couple winter of the the once a season, period, can least. Chile one Brazil quarter which to meaningful market, of is we peak is course, rough had So of on which,

So rebound. that will

Our doing it And to Peru is Argentina. well. is then down boils business just very Paraguay doing well.

volumes margins Argentina we're this about a ago fiscal degradation volumes a over a back the of monetary in lot and and the because half time there perspective was trajectory. over, overall to policy period So regulatory from back Argentina, for year little of half And quarter. But our sight encouraged a the a the bit the eating I into a longer in slow still are think the have this and line of going that is we what of of holding into didn't majority comp down until what our happened quarter business, of like was really show to to taxes on receivables year first time. start

comparability will a in but the Argentina bit there, margin show year-over-year. a the volumes decline some And for the be pretty a still rough will volume until for order So magnitude, little X% you conditions year-over-year of is flat see decline. Argentina roughly decline Ball improved of

on meaningful and not it's we're as on meaningful come which the back bit end line. It's the early the as we'll line signs earnings of nicely. strength So see volume start lever that consumer down moving up gain it, starting forward. then of a And to starts to will to there,

to central So second our said, to you feeling of South monitor of discipline, as a to participate fundamentals continuing proposing. on what the fiscal in biggest that country good lower be in, good but about inflation in really we macro by the the that banks lots the going America, buoyed in the environment are end half region, continues even

So Chile we're feeling like good of less environments in off coming we're about that, we and feel Argentina. favorable some and

see X of those on, how improved should in XX let's the get areas. we So next both to be but months

Arun Viswanathan

maybe And ask then all if Appreciate I a the just could details. follow-up.

the it is rest interest growth. better our or from comment digit the in lower appreciate and coming I on we're or models, share modeling XX% mid-single kind greater long-term or 'XX of like and EPS So buyback. better expense than growth EBIT seems in XX%

level you beyond. growth are beyond to that you're that correct, maintain of in able 'XX and saying that's Assuming and

elaborate are you the on Maybe that gives feedback So maintain than of will continue in to some other order XX% to rate? and back just to EPS kind the implying that you level stock you than that confidence other growth continue of you pull what buy growth. just levers EPS can you'll on volume greater

Daniel Fisher

I'll I'll in. make just then high-level Howard one have comment, and Yes. chime

degree plus, so a and confidence what probably have in if the to do back you Investor this we operating from is out, and of exactly and out, described pointing XX% earnings probably expanding our I by of XX% didn't to focus. closer XX% cash the $XXX flow working and of we diet our a to our And intention our and a real job capital great high with range you go laid Day, million to opposed coming as somewhere it's within capital and staying but steady envelope managing a what managing

much whole next I And repeatable lot encouraged probably upside the a that. Howard, trajectory we're growth consumer of It's And not, need months. do more to miss? by what so here, hopefully the more model. end a growth than the rebound we in There's think don't XX the in of happening with I

Howard Yu

In Yes, I think that's right. the room.

to We the it back are committed that of billion I year. we'll much the this about We've through we're buying $X.X sale essentially how over buying context even back since shares. mean increasing we're get talked of Aerospace. in and since mid-February

on the to year, well. next obviously, that meaningful share and into we'll have will continue count a going do impact that so as And

I cost be Investor out, cost about savings other great that savings think during the We've point to seen to traction. The Day gross is thing we the going talked and we're undertaking.

that some quarter. this the seeing of in You're numbers even readout

XXXX first quarter see continue into as the in that well to into you'll that of some And and saw well. You XXXX.

that percent on going to no to side. we're less And so the that years, for EPS deliver and next there's for of reason anything than couple expect the probably of XX-plus ahead sure,

Operator

Mike line question of comes Truist. from the next with Roxland Our

Michael Roxland

standardization best Brendan, standardizing and recent plant congrats another. centralizing your quarter. and do documenting right from to in What that business now, and dollars Howard also some years profit? the you takeout efficiency? what you you with in good And now. facilities we mentioned if improving of efficiency, and add processes, are in How call far think practices, on to process are the you Investor Dan ensuring one can them, Day, on this all on along sort On think terms prior that think focus X cost X calls do the of benchmarked you this

Daniel Fisher

productivity Yes, assets big a percentage Xx innings. in into efficiency and capital consistently gaining is against the from been to which preventer think historically we're the will grow into do what not early required more the plants and less us has early allow I'd that, on growth of X:X. algorithm that deliver I this our And say us pretty translating to by achieving

So I doing. thus X% if fill to to we're that's of -- what the magnitude in, translating to a versus X tell I the that next years that that's the X X and roughly it seeing And strength into off X.X:X, of dollars, helps, mean gap for meaningful. that the X% that growth far. over We're we're theory, in that's should be you fairly can order Mike. trying

Michael Roxland

Yes. No, then just terms... it does. really in question quick one And

Daniel Fisher

It's number a meaningful. our cent can thousand deliver that X:X or have higher to I per is $X in but of it range. meaningful end terms per organically number, of don't ability

Howard Yu

and I said, we're 'XX as And have laid million we putting Yes. we're continue gross 'XX, we're aspire will of into innings, Dan I but the here in going of see $XXX beyond, we XXXX. to be early front-end think that out loaded a efficiencies to going be up there. will mean, as part a certainly, savings, runs. that to I mean, we've best-in-class But manufacturer XXXX and meaningful of

and thing good what a operationally. the that's it we're to to relates corporation so doing see And as

Daniel Fisher

you cut Sorry, off. we

Michael Roxland

no, That's very it's No, -- no. helpful.

you got on years, par should years, everything of you're one having still in do your with means standardized. that terms when early time another? that particular you -- I what's X if in So be X innings, everything In think frame mean this

Daniel Fisher

new business in XX-year-old you be what I X- got to I us we'll somewhere range talking reason would [Indiscernible] X-year we know about. XXX% And brand that Yes, We've And this won't is the it standardized, that, is plant. got say plants. XX%. but -- give

to walking feel that like recapitalize a SOPs, meeting going But and to of all cadence standardize not performance, should we're the the So ball in plant everything. world. look everywhere the you're into the

Michael Roxland

Got it. and product #X question. That now problem it But Light seems you've a Obviously, Especiala then just of sense. X Ultra. the makes lot And at Bud point. like after Michelob now this is lapped child quick [Indiscernible]

can So a I function space a function for lease, tell, that more be as reset. really of seems to shelf a

some been offset by the winners noted decline comment, two, Bud Michelob you any it space early gains ultimately think extent So occurs? One, Light Ultra. that that in X-part when regain will has the fall And the question. or do shelf to in you you can of

Daniel Fisher

question. Great

growing portfolio. are So X brands their within

You one, Bud the other mentioned really Light. one is

growing nicely. of so those both And are

of are those of and excuse promotional they is think the some portfolio recovers in Light got brands me, that's yes, -- that the I'm the real into. encouraged so activity route the back ends and well. they've portfolio leaning but both end I probably comes that by within of hold. different as more speaks And And wins, brands that to that And that Bud consumer spectrum I X on heavily also it filling great. winners sort anything think the brands. they're

Operator

line Mike with the from Barclays. Leithead comes of question next Our

Michael Leithead

my The aerosol. on guess just a growth. understanding volume this was soft. bit overall I a First, business market X% saw I still think, nice, is

be there is share your with a bottles? it that that you bit, help helpful. So extruded if Just some competitive mix would a could unpack gains? Is

Daniel Fisher

half bottles probably than higher content, produce the recycled bit have that growing plants that recycled to and Yes. that. got content market able are the strategically is No, with that in more alloys rate we advantage industry. the highest is globally, a the is our The also we've make little

message the issue. and they a sustainability or to environmental Unilever big somebody packaging the a so like store, buyer have a carbon And

of and disproportionately we content, recycled price. So if substrates, highest of we because into have move on could other are Not they the that. aluminum winning out

versus a more. steel aluminum on continues In But positive fact, the of costs to the the it lightweighting probably alloys, be a bottle bit less trend.

strategic there's that created sustainability that leads it. going and moving forward area. we've moat because lot And partners we're positioned So the bullish of the innovative business partners And we're into in about and there. that in well a very

Michael Leithead

overall the And category helpful. to lot want I a the not I dynamics. wanted how really segment U.S. back perform sure your then circle say, But the on. Dan, I Ball to super if question That's Ghansham's Great. helpful business I'm back. circle different product for you've relative in to to earlier. up answer in around the did to, color given XQ, of heard But U.S.

Daniel Fisher

Yes.

flat in -- shake in less line. it's would our participated did a and net-net-net, in major go energy great, do probably decline of was U.S. we it one categories we beer but those you It's it little in -- is actually favorable driving imported some it's that in was business, our brewer, CSD, and more line, did That's in better. than domestic didn't how so more uplift north. anything. and it's beer, I everything out. the certain it category it And that did a Mexican or the within did products all customers XX% they but mind, little a better, think if of they Keep well. so well,

Operator

from Citi. Our Anthony the next of line comes Pettinari question with

Unknown Analyst

actually Burgmeier and EPS a on Maybe on just I question Anthony. this. Brad missed I is This for apologize XX if guidance,

about your reiterated magnitude interest you strong America reiterating tailwinds lower outlook. upside know right feel XQ more It expense volume I repurchases. South Argentina full Is modest year from makes of to versus seems prudent like there's most previous it and now, thinking maybe you a of tiny like is guide that kind some the bit expectations. so share Just of the growth results,

I'm rectify of X trying kind to So points. the different just

Daniel Fisher

I to we saying going looking at of then bit will. we been are you things bit doing America. cetera. Does hear customer that the suspect were plus same we're by this And landscape, when have landscape and mix performance a constructive all business year things our more are. a More those delivered entire of encouraged in it the benefited our entire continue? every commitment continue. et North to the that control, second to that I similar Honestly, month in can election, thing half the I've the on our going And the from little guide. volatile the despite be competitive side given

to for side yes, we're So lending that plus sure. of algorithm the

Unknown Analyst

question for me, it. Got last can And it. Got and I over. it turn then

shipments bit maybe this Just summer. growth European the the you ahead region? ordering or brewers underlying a that you are in for the did can Do industry versus consumption restocking of year comment little think maybe maybe can

Good any Just in quarter. color on Europe. maybe luck shipments the versus consumption in

Daniel Fisher

Yes, February. January that sort happened December and then of event the destocking and restocking and

So QX more consumption it. that's a little some favorability pricing actual seen in But we've aggressive in of happening, instances. a this that bit is is had environment what

to talk getting you if close in our to anybody industry, everybody We're think can very is I allocation scenarios. tight.

this value from point, at the consumption from the return by benefit a XXX% benefit is benefit euro, more from maybe Olympics, a this just equation but to customers of of differently. needing So inflation price our dissipating in different

in have crossed So the for fingers We can that's in the and share here all healthy been foreseeable to dynamic more helping of been specifically do They future. that continue of also some the move cans. a EU that's continues Europe pockets into U.K.

and performance and unique really dynamics So there's in each pleased our that yes, are some each geography. Europe each on right now. Europe large at I'm country to different overall, But in category with constructive

Operator

Phil question Our next comes the from with Jefferies. Ng line of

Philip Ng

see Brazil mix the still fourth would been a And in last the the outsized to mid-single you to you encouraging Brazil digits. in quarter. from think How movement. Pretty has dynamics some back pragmatic, all earnings had us noise up in little general like Argentina certainly, half? about year

Argentina enough the as in America half little So of your the you weakness your South levers back earnings to more kind South and give do just of color in to volumes a then given be ability have well. America for up drive in kind us in on

Daniel Fisher

-- be there's opportunity. we'll Yes, an

have to in put place. Brazil on, being especially earnings Argentina a being the because of QX were Phil, in already metal But from dollars of into the controls volume still some decrement of Argentina. Argentina in some were of going think I will growth. coming currency QX out. because taxes return lot There in levied was QX will that impacted,

volumes So and our fairly then hit hit margins took held further but our our margins in, a -- significant a in QX.

the to with see volumes fairly of the think I in standpoint, cans. a in slightly margin neighborhood should still year a So of be million flattish QX Argentina, will from up tailwind and growth half negative the in second from you significant $XXX

Philip Ng

Okay.

might on at budget. on Argentina is how about it of So earnings balance should I think margins is for kind better muted be

Daniel Fisher

right. You're

muted. You're what's right. in From Argentina point this going too. forward, on And here's it's

in a consumer been spend, consumer. fixing, price all So range, the X% for months, the the lessening has got inflation. goals the also of their there's X inflation target. there's that accomplished week but and last is is happened in and down monetary their was What financial This they've they've of end weakest

an to happen a see it's to they now we're country, be so here. and they've And October us and at to going last a of stable where in there. it's easing overnight, return and I'd some sort consumer do employment-based they move but more then But that that gotten year. and were economist, say not to up I'm a least kind of wanted that in thing I'm to starting to won't that place this It encouraged in driven but we attempting from November they've of

Philip Ng

side really in volume If you you there Okay. put some sound X% It the That's like a on certainly, Dan, of are ABI right? a upbeat more because America. little lapping promoting Or you up that back up quarter lot concerns that just is that more are pick of correctly, North heard helpful. enthusiasm I growth. drag, sounds little perhaps from still of in that North customers bit. that growth come the North the would And mass America? your a U.S. results Is you plus be it America? you're I segment in And little you to volumes comp, the XQ. your Europe, mean, Does expecting more half? other strong are on up a then mid-single-digit type segments coming the and put into I some bit tough in obviously a think in beer

Daniel Fisher

No, it's a great question.

our units, money of business of every regions one more will every year-over-year quarter. think I one third in the make our

been premium that it's quarters. encouraged beer, the may got America weighting mix and we've have But that some list beer, in low to this QX absorption North third leaning a likely the on about as little your there. of is light inventory in tape, on a domestic know, see -- there pickup in a several be they're is portion right, going I'm such more quarter. more And be it's just similar plus, -- a you do representative this in there you'll levels and pretty point. to to Actually, tight to of the QX. and lift, QX more yes, pricing wins who going So bit think you -- last on to light something It's a really I big

so will have at point. think some And different I behavioral to kick in patterns

Operator

comes question next Our from of the Wolfe Chris with Parkinson Research. line

Christopher Parkinson

Great.

consumer couple the little more last choppy, bit You you just market. on have especially obviously COVID. not but of Can changing this I'd be bit, your coming there been just talk years us but dive a evolving 'XX where about are you well you half, out ultimately competitive for behaviors. for on in give only positioning? the to an little some think update -- we you of back on as obviously and of kind shifts, been 'XX, a market where think will Brazilian pretty as substrate hit the like And have Can

Daniel Fisher

Yes.

COVID almost out you're point the can a for I where say So at -- take equation. -- would you of

the in third the a blowout had for what In largest Brazil. right, 'XX we through a with. 'XX Xst so walk comparative, just year, you bankruptcy Xst They XXXX which filed think brewery participate in QX for don't -- I happened XXXX. 'XX half of of me quarter, let to Brazil,

So that quarter. they did virtually nothing in

and who one, So in we with the that X. trajectory XX% portfolio, was when were who's you're looking category that there at up volatility comps, on depending in in mix

much We 'XX benefited in the QX X. 'XX, well with that didn't as and from comp X. from the and market. we're of benefit we behemoth QX, it that So did in But QX

as market positioning. long-term will entire have doing their We in on the share, #X continue on innovation, the based South They well the to based do been well. think that America. player well in on they We're based

question encouraged and 'XX. follow-on I'm is GDP the I'm to what 'XX So half, really the at this the and economy Brazil in answer encouraged your second for most matters by and point

substrate moderate-to-low sudden of and going have that to they all the from innings positive a monetary really be early the in that of things think fiscal the And that. right then improve, no I only comes employment has out cans, COVID thing we're in of would shift direction, or policy, on movements continuing tailwind. into inflation, terms glass

points abrupt Argentina that of expect into were will to the meaningful we lost, -- be our in for 'XX picked exposure in to XXX% up 'XX back of there's Argentina the pick And that obviously, we in probably 'XX, continue So get we'll will half of of X points up X to us, if recovery that and more and 'XX. that. and then

our So be at I think, a the to starts will less mix, longer-term saw And conditions. Brazil, it about I'm so it mix outlook will you QX what based constructive in be higher the I growth of than end normalize but think bit more. on underlying on algorithm It and then the be about will QX.

Christopher Parkinson

in twice. a to aluminum to but I lot. York, handing Got get beer it. quite time. golf and discussing pop and a one, a Ball round And cup quick really but just not up some they're a after to was for tried once been I of starting people haven't it's a real something New

a of curious and in thought So it's strides. seems front. making But greatest that that of it I of what's terms I trajectory? the kind now and thing just clear kind like curious kind was it just on was there wasn't. mean it then additional I'm your of of latest you're some

Daniel Fisher

thanks for Well, that.

it find do You at that. places like

the it's and the going got if consumer, I project that. a think you've on backdrop, weakened volume impact ultimately, a like to

would traction, it X we gain continue And years be so thought not X or but we what ago. it's near to

more question, so And Christine. about X that do probably now. And that's say we'll for all I'll

Operator

question final Morgan with Stefan Diaz Stanley. of line the from comes Our

Stefan Diaz

latest question, potential Brian's quarter. sort XXXX? like following worried in is you for of considering you volume well. for about this were seems and any saw should doing mentioned improve like scanner we favorable? comps demand ahead expecting In maybe Are everybody mid-single-digit release of the year. Does seasonal half mean trends look the they And you're sustainability then up second destocking on hope late can shipments throughout the growth Europe, as the I for

Daniel Fisher

competitor seen what of you on in customer-centric, right, -- destocking destocking issues, 'XX all us. this or stocking near I It's have nowhere don't anticipate for stuff the and and 'XX. is would like

throes to Europe. up half yes, if America might We're inventory then hand the We're over less manage significantly, to we're we've off don't low in incredibly the in need concerned. we've the I'm year. we'll volume we levels and have of were foresee that in levels. said, in So not at comment. fall inventory our got increasing which Obviously, stacking like anticipating, second of that where I that But mouth point, South I or historically to this America, to low revisit got, North

not question. not for that particular. I'm us, the I concerned So topic it's encouraged in about But as and get meaningful.

Stefan Diaz

maybe have in network. just then if of so, comment I curtailed given you online? quickly within need to then us any past maybe wondering see you was back Great. you think And what results to that volume on quarters, if And if do your couple you by could still bring capacity also remind if strong you And just what region. could are utilizations the

Daniel Fisher

Okay. Great.

this in You of time always America the year. South have curtailments

be if be at in we very Europe the would Europe, have We can thing that America only few, none size fits curtailments in times. any, right America or now. would curtailing X absolutely North And in North

at XXs XXs high The means seasons, and in have the any low good. you then low peak I industry if in capacity shoulder is that's healthy the high don't of in in in you in got Brazil, position, which mid-XXs season. U.S., all really look annual a So XXs Europe in probably to -- excess projection,

And so good spot. a in it's

Operator

the comments. like management turn over now would for I floor closing to back to

Daniel Fisher

We quarter. XX,XXX going we've forward end our of appreciate the third employees. take really one to the and Again, fires care and here on all another talking and safe remains had and Thanks. got look you some at a of everybody with flood, hope

thank So you.

Operator

and today's teleconference. does Ladies conclude gentlemen, this

disconnect you have participation, at a lines day. may Thank time. You this and wonderful your for your

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