BALL - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Ball Corporation Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] As 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. everyone. morning, Good Corporation's XXXX Ball regarding company's the This conference quarter results. fourth is call provided will The this during information call contain statements. forward-looking expressed or results that outcomes differ or be materially implied. Actual from may may those to update We assume no any statements made forward-looking today. obligation

results Form cause described company's company well filings X-K XX-K, and Some Form to recent most as the outcomes releases. as the other that differ or company factors earnings latest our could are in release news and SEC

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

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

Daniel Fisher

Today, for metrics finish and Q&A. introductory Howard key comments will remarks. then call Thank by quarter I brief some performance up Howard and I'm and it our Brandon. joined on closing we CFO. discuss you, provide Yu, EVP with will and XXXX financial will fourth

X,XXX the to of across million employees live employees, more causes where our into time in teams and working invested more impact positive communities communities. our amazing $X create the dedicated than back employees with than In disaster volunteered than business the and XXXX, uplifting our different organizations, to who our causes relief to XX have Before all XX,XXX support to I we to and Foundation give results, to about communities. hours local more and Ball time partnership I I and highlight of and their want and to our countries devoted we thank our their want XXXX talk done work. In employees to work communities a the in efforts.

represent recordable Because the want valuable care, of work truly take You our we resource, improve incident work, done rates. we improve to our aggressive win. I values to our have are to teams to people minute total most targets safety we we our continue performance. highlight our our also a to set

be able rates to improvement to decrease year. continue well and incident outperformed mindset, below We industry and to we that us improve. Through for rates incident were versus XXXX XXXX continuous mindset our goal our our the constantly requires

they our just more our to health of well-being and For numbers, exemplify to and improve metrics we than us, year. employees, safety represent everything will power every in continue our the do

of by filling as as Paraguay softer-than-anticipated and consumer repurchasing pressure U.S. and we South of tightness beer across can ramp Argentina In in idle exposure by more well performance in In was of led our by business billion Turning $X.XX continued between And the execute other to persistent continues America, domestic outperform delivered to returned to end fourth EMEA, in 'XX. to the our customers capacity. and 'XX Aluminum the and results in Chile shareholders quarter our to We XXXX. across our on to softer-than-expected via repurchases growth share continue volume. on [ North caused solid performance. slower-than-expected ] dividends volume billion goal shares substrates by economic supply/demand investment in America, region. Brazil volume $X least quarter and at driven strong, volume offset fourth remained than globe. In packaging

global can in involves in XXXX. culminated low performance the up and being Our X% digits shipments down fourth regional single quarter year-over-year beverage

to our performance, and is volume excited productivity are gains. in growth system and lies about our operational focused place, the us teams and Ball ahead Business of drive XXXX, to Looking opportunity that

on exceeding XX% our of on comparable in share stated beyond. per We are diluted and laser-focused goal delivering growth earnings XXXX

we XX% As XXXX, continue X% and customer in movement begin our XXXX growing ability to to at we Investor or grow businesses confident in expect Day. In we laid feel in X% EPS to anticipate will global our XX% our volume the range in of growth. substrates comparable diluted above all deliver the other to We XXXX. cans EMEA, ranges out to from

ability bullish be growth on In long-term competitive the growth packaging base. with from expected to low line America our aluminum North South America, Chile, a of confidence to as faced continue sustainability Argentina in above long-term market. to opportunity to penetration EMEA growth is with volume increased our above coupled growth volume in while Brazil, business operating challenges across drive the and and earnings recovery or our in We drive advantages legislation range last in and year, deliver can have XXXX. And we slightly in volume

can nearly proactive decade. This with extending our the our under change plant end global customers includes contract. we will customers not of capacity investing. our our have an That of partner be been are in will market extension the and about volume signing have building will our This that contracts targets extension CapEx also us needed expected repurchase in with largest give also is XXXX share will We a our and of investment plans the Oregon. over that X-line where us take means one XX% effectively what to or

Additionally, Florida million can The agreement carried which in Winter beverage in transaction, can to facility an purchase a entered Haven, its the purchase this closed $XXX and Florida. morning. into manufacturing price company January,

U.S. our years, expect high will customers' business American coming growth and on deliver North the utilization part us the for rates capacity with Our fuel is we the growth need plans. of to we the running in this at provide in

sheet be no this will replacement well purchasing are impact with strong below balance share our there to our plans. asset We for repurchase position, And value.

Lastly, on cups.

strategic an business. During result Board form business. for the deconsolidation option for to pursue approved early in to of includes quarter, the fourth which company our partnership expected a XXXX, to the in is This alternatives the

complete the full key turn to process first with and over for XXXX. fourth to quarter metrics year as I'll to in expect Howard results We well the it quarter. And discuss that, XXXX as

Howard Yu

earnings operational Thank business. Fourth you, lower and of XXXX. softer offset and in operational than believe more which X.X%, $X.XX million end share earnings our our and sale quarter full able stretched team December stronger-than-expected and well XXXX expense, in or October serve comparable fourth diluted offset sale were performance versus and our earnings we respectively. Despite year earnings to to done in in North versus a our lower-than-expected was plants has by tax drive Dan. and profitably as effectively net lowering $X.XX $XXX comparable interest million improving of $XXX volume risk. will able Central more comparable strong were we category earnings consumer, of year more Full year-over-year, $X.XX system, share measuring than cost headwinds was year-over-year, of was Starting be slightly business. In expense, per performance, And which through to an the X.X% management operational quarter with in by our U.S. Business that our lower Aerospace return $X.XX XXXX initiatives XXXX than by and were results, as offset increase our will customers' continue market. Throughout headwinds job up volumes per earnings the Fourth Aerospace the initiatives November. XXXX, of XXXX, management growth were of America, Ball beer volume continue up diluted of mass net the line to quarter above the of a driven great the cost costs from interest more efficiencies, countering to and driven will improvement growth. to comparable from

While and matching fourth significant and supply-demand Recent track volume remain we first driven quarter throughout the were poor increased headwinds Paraguay. South comparable operating across trends favorable tough while the segment slightly, January, by to is volumes comp growth. In strong, have efficiencies weakness the on growth quarter. to Brazil, we XX.X%, our operating by tightness and volumes earnings expectations in and quarters, a operating weather in the leading volume in XXXX, as improving partially sequential segment growth due increased demand operational growth as and declined expect year-over-year earnings in for entering the the continued the Chile America, segment Argentina earnings U.S. offset from comparable improvement XXXX. In business EMEA, volume quarter segment well in comparable in in

economic dynamic to that Pouso gradual facility. results. To and monitor in situation the Argentina potential During volume our and we recovery, continue Argentina business, additional quarter, reopen signs Brazil of could continued some support to plan the we fourth conditions demonstrate in for impact provide Alegre consumer scenarios to

Looking at our the other. within businesses

Our which digit Personal above volumes Care well long-term volume quarter, in called the and Home XXXX. aerosol mid-single performed to previously in grow was we grew and our and expect business, fourth range

on what XXXX. million remain financial XXXX. billion is least $X.X we shares of $XXX on expected free aggressive expect in repurchasing net of least on range to end be shares fourth $XXX to $X be the We due repurchasing estimated million. to X.XXx equal repurchased we'll total of tax the billion sale, to of billion XXXX. portion comparable stock of goals remaining worth our XXXX target below $X.X to additional in as very to to Relative have the that payments XXXX, Moving be earnings Aerospace year-end of in comparable as able EBITDA of half We of in and will deliver today's pricing. Through believe D&A anticipate metrics of expect in we is on to key attractive call, shares now After repurchasing we our of slightly being goals the deliver work quarter XXXX between total XXXX. and be to CapEx $XXX at million debt paid and repurchase XXXX for flow We cash net in year-to-date. paid XXXX. stated $XXX adjusted at first we payments worth a anticipate million. shares And of the our to the the we

by its lower be million, income rate year to be costs of XXXX year Full of corporate quarterly recorded billion in cash XXXX Full $X lower tax reported the be range our the from full declared expected of Our Aerospace interest in year-over-year range is is the interest credits. $XXX adjusted largely repurchase end the nonreportable on year to XX%, expected driven board of XXXX in expense sale. And comparable company other slightly stock Ball's driven the effective common last above million. by expected cash earnings undistributed tax of as the dividend. higher authorized week, proceeds of the to $XXX well by XXXX as through is

cost focused Looking ahead hyper and excellence, business we our XXXX marketing emerging across on to volatility. management, productivity efficiency driving and are monitoring operational

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

we on and that, and I'll runway to results maturities. generate initiatives clear We compounding retirement, corporation the it turn deliver near-term consistently have debt derisking back minimal activate have to returns. With high-quality near-term us executed through for The to Dan. is shareholder

Daniel Fisher

comparable Thanks, and is shareholders contract and on confident of our adjusted we unwavering strength per diluted our will footprint promise operating free long-term cash repurchase through XXXX, value and of and we the we employees, with share. XXXX. In EPS cash record executing large-scale flow long-term dividends. XX% line portfolio was and comparable have renewals, have during deliver and goals adjusted business earnings well, the and earnings comparable on returning The financial Howard. in certainly the generating future-proofed share of focus our exceeding net our opportunity are optimization. growth, business our our our through deliver dedication diluted to The flow Through we display purpose on to free deleveraging

continue free beyond. to where lead creation will meet and focus, Shareholder continue to shareholder aluminum our from packaging can value a to customers We prioritize that world in XXXX and delivering are to returns innovative compounding they remains waste. our solutions we deliver affordable,

employees, dividends, consistent confident and shareholder results to that appreciate addition of delivery drive are to the you. stakeholders the We customers, with a And will future and significant being extend across well ready our organization suppliers, we wishes are for listening Christine, everyone share We repurchases creation. operational performance, coupled high-quality value that, our for done with work today. Thank questions. and the foreseeable in

Operator

[Operator Instructions].

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

George Staphos

what and to guidance providing, guys. of been Thank able that question, you if on guess, recognizing, determine chain for follow-ons. might and/or or what couple there tariffs have you Mexican had either delays. For I extent the might details, to there's I the is And in that be first that effect the of not? you're impact relative been To instance, up supply a shipments, on in America made some volume then North aluminum? of quick terms have

Daniel Fisher

George, call relative changing Yes, day and every on tariffs. to single great the question. obviously, a are I'm details,

I dollars. China, weeks issue. part start imminent and resolved to the a got million what what's started of we've in down the the that what mitigating maybe chain of with couple last spent is $XX aluminum millions $XX potential a better supply think is think to dollars, few to we have as million million And I happening

chain been actually America supply 'XX have our metal a So a the and time significantly we've going renegotiated in frames. -- deals elements supply lot of of 'XX with lot back contract, that altered base. was these metal South We've of chains into because enforced supply the

of risk one, border of in to we've if that aspect us. is of in would it the beer news depending The constant customers. that but as plans I versus of with different what it pressure stuff put across got can minimal than you vastly really you're on concerning be the from Mexico, a is concern be consumer. terms impact pretty size to additional of to more contact the bed think the some the a volume. our And But year-over-year those Mexico portfolio. Obviously, X.X%. XX% the comes XX% story your one there in been nominal in would help And -- that's this, the stressed border good me a XX%, So would be in some for highlighting having than piece place we've mitigate, that the is to growing it's coming from the across consumer

be every that big for about growth. the these more would aspect but on portfolio, the volume a that concerned I accumulating So us, of for tailwind counts days to relative is not which bit

stuff in lot a mitigated you the not detail. that So I of it. we've for detail We've worked, know

consumer it The our The number flight. to is dampen stuff be other concerning, in would more end demand, concerning outlook. be relative current would will more XX% still which and certainly

George Staphos

But not on these weren't a while, expected. making to covered call, you few the as sort years, would the of has has activity there? And having That's these painless. about very can you of talked folks comfortable little your clear, you other need make the these Dan. Or just, Can you And with then look, talk last it's for investments? earnings talk line, like and/or a Ball other company outlook do I'll bottom you if this and you been times, a X-parter. you lot Florida about Can affect have been the a busy. necessarily at business get to bit In the the including the it volumes? -- question, investments words, the how you might investments, would growth try gave, been about, to have getting

you so can same give you your line And can can plant, executing to another that goals. get and at would comfort investors investment to analysts bottom manage time, the what the you hit and manage

Daniel Fisher

Yes. Thanks.

North think I'm I of if earnings. over just say in that I I outperformed following [indiscernible] couple significantly guess, we've on the would last America, years that,

the in question, of of some terms I'm with the guess -- I I'll but answer So this struggling some parts of...

George Staphos

boom get years. and last where I'm But back going going came that's how great plant you definitely but Dan, in leverage operating the I of through the with from question. to with I that was that. that what's mean the sorry, clearly, couple terms did part of That's can of -- going earnings. additions the growth and

Daniel Fisher

for were Yes. restructuring that investments more less Well, have than productive. the paid themselves by aged assets

Northwest at all abandon want out that, of marketplace I've the have, I X pretty that actually we that, So to mean, repeatedly look we investments permanently. didn't you if worked one, said it's well. The that

come one that of with world. by line customer our investments in shouldn't part It's surprise. as in So that a the

moving should repositioning well more closely work that investments, footprint that so aligned So it's their forward. to to be

thought Tampa and that reduced great like up growing. lot in on a application then point plant We're price nearby So of an facility going a in to a of there beyond. picking significantly existing that's in market a investment and that's that really XXXX

Howard Yu

one to described. maybe investment George, think, that I our about, still just thing of be that is add CapEx talking Northwest that, Dan we've is that that would within envelope

that will our and in below D&A so despite the XXXX be Northwest. And CapEx in investment

And I to so wanted clear well. that make as

George Staphos

or you additive to goals do And the hit gave? Okay. have been would these need your goals to these you

Daniel Fisher

Additive 'XX. than in

Operator

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

Philip Ng

in Volumes than North you sounded it's will confident has America faster -- been been market faster good weaker. than target. Volumes in and North anything predictable, longer-term North but your day. America grow pretty But America

you the called out visibility any contract one think about I up should guess, the of your how for Did out out those gives So contracts is you pick North first seeing? you are in into renewal great, America, gate, And of what which customers pricing we renew? years. larger with that And guys volumes? you you then

Daniel Fisher

start piece. let Yes. say XXXX, would that I me with

I rate. kind industry think X%-ish expecting growth is that of the

beer For pretty then dislocation. partners. one obviously, last a we marketing we share year, were had sizable us, of significant reallocation And XXXX on our lapping major

the we're perspective? partners So health to going pickups, to believe from right Are some with are. right into customers So heading consumer. down stable end the with year, mix a incremental boil this of the it's we volume I and you

out customer years we will that why stable bullish up. north market relative that pricing, relative then the to how picked tick the that's performs. And a contract more large little the of I'm in So fairly to

offer value making those proposition. when a to you're different behalf of you're customers, investments on obviously Some able of that

for customer. and stabilization created some So some relative to structure us that's that

Philip Ng

Any picked in share of part up investment, gains customer? that as volumes that

Daniel Fisher

we -- We would believe up I way. that picked it this characterize

where it we at will secured the be growing portfolio pressure, than for think I antiplastic their some believe that instance, rate Northwest faster volume, sentiment. in on the have given some we a of

Philip Ng

brands, I America, brands then the on the have think been is of you certainly lot when from smaller aligned a and nature. And well, been when And about and and about, as Super. Okay. innovation think customers. entrepreneurs, you've stuff soda how Dan, and actually North ready-to-drink guys beverages big there's North been that with beers America it's frankly, actually historically nonalcoholic aligned I globally of in a functional industry. lot that ready-to-drink side whether coming cocktails, beverage And nonalcoholic that of big

big So my where muted can't some a strategy after question pretty grow way has is perhaps a just is pivoting dynamic an a So the and out marketplace structural how there's America Are to is in go-to-market of in going demand been, of? strategy go-to-market there? you of evolving? you out innovation these concern has lot how your customers North is, still in you been your evolving this bigger because

Daniel Fisher

comment, kind think that's I the with great Historically, Phil. we're marketplace. a in I of everybody No, mean,

exponentially competitors across We've is on and than terms in category you our any of everything. larger pretty interesting, portfolio balance healthy Our mix. of ready-to-drink It's cocktails. the the a commented got customer

ready-to-drink that bigger owns the customers So actually of one brand our cocktail. of XX% acquired the

generally, if launches, things, X get these successful they really typically they're So innovative acquired.

you are who to innovators. you who have -- the to got play are of you've candidly, kind the So play acquirers, have --

both then You kind launches. sides of equation to work the stimulate you your product with investors help and of anchor start there

the And portfolio. it's of in large world, they're Death, the so like our the Poppies Liquid

is have large and and are size we're startups they're you're and If the not So world grow. -- it's volume. going of all the of move you -- growing to growing, Coke the can needle ABI the to just growing, if growing in customers not on is the to going hard but

But time, helping that got in going you're think So the in to don't key we've and you brands to winning from same make at and innovation-driven are sure how your that's help there's definitely the win. customers the a really away driving innovation, balance. I moved the with sustainability and smaller partners market, marketplace. --

Operator

of next Panjabi Ghansham Our Baird. from question line with comes the

Ghansham Panjabi

that that Oregon put Analyst does the announced it spent have or time not a Florida, North reconfiguration of of going it's on unfold basis, going you a growing fair X your opportunity from to opportunity June that the America. Dan, largely year you and were Day done where bigger volumes back like relative to initiatives And productivity the in amount kind also faster those over to relates as of of reaccelerate that in industry the to a Because some the and productivity? footprint in last acquisition given just are what of multiyear -- with additions. to allow to you've

Daniel Fisher

are Northwest, you'll vacate pick instance, I up demand, in these demand. that once able for We shipping these -- think be so Ghansham, didn't place, in you're yes, efficiencies. to in the

more it's So can and terms acquiring that down within becoming can in running subregion. benefit, be -- an incredibly we're a efficient relative sizes in of do that cost. lines different some delivered will Florida things right, then then base that on asset And we efficient to

closed just today. deal we So the

we've well-run what and but size. efficient opportunity got that. that in on more assets, got our to we're But you've in some be will a do you yes, there flexible assets, gives any incredibly do, ideas have time to -- that of going to going system we're get to So

Ghansham Panjabi

thinking Europe year. it as Europe, about volume fact for Okay. the And would it Europe? industry tougher perspective surprise, Perfect. that to a to nice was XXXX How from the a as and are I very is it relates you then relates last comparisons say, obviously, growth, volume just

Daniel Fisher

got then to Yes, thought in everybody entering XXXX the took muted start quarter. first like fourth we'd as that was event today, pretty into good place, a we here be off the destocking volume, quarter, which there we sit

year, the of a versus challenging more we're to of off there. I that So bit events be would and little 'XX sequencing good because comp this really thought 'XX a start

in can as presents carbon into focus is of the got we've footprint, it to lowest It's evolves about on consumer great listen, because not and environment it's to glass able opportunity a set a through put balanced it's And think health talked I America. And penetration I that able the in a -- that for North think they're result Europe more terms of always as end being at product just a velocity as So in we've got little know. rich customers, that, you the necessarily to of rate a the that. Europe, the same our some extent, with price I same -- that think a continued we're place couple to really it's in stable of growth. we're environment grow And into assets fortunate put continuing and grow we for into, to large a there the those.

So at I guidance high year. again our Europe be the we'll of think end long-term this for

Operator

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

Stefan Diaz

going be North grow as of to Or in able and first, it guide? hit you if be to to to EPS X% single-digit Do to have a is like your down Maybe the just hit to guide? just simple you XXXX volume flat can back? you should Or your still shares growth as you're see grow low need buying sort considering maybe X% able back we America. to globally, earnings EPS environment

Daniel Fisher

probably are in a this environment, bit a associated rate. offset more I'd America. be growth done year, we're on it's recipe you're growth EPS a range hit a I volume heavy to yes, lift running with mix some think increase very to some you'll of volume of business. and the then where what but a right some growth good maybe in It's the aggressive be to looks not of point, environment North strength is Europe share North I'm we're you and steer an in need also to, point, really But America at bit important growth, a volume we on start America. to flattish challenged we're negative A level event a now relative North getting expand point Yes, volume starting going say for to certainly more where outlined. But a more tremendous we of hard margins. the think if of the have pointing good profitability materialize productivity and growth to deliver in not more at the profitability little yes, with year. North even going in lot heavier feeling At to necessary the buyback with it's offset some lifting right gains. a don't a target into that by the challenged other America, things things We've we'll Things did at Europe, print done the and negative some to profitability I direction in to like to COG, really that rely to you'll things there. But the only

Stefan Diaz

now, helpful. mismatch so Okay. the calls a Perfect. And noted No, last of that's really couple you then supply-demand in Brazil.

your so maybe to just demand in volumes Brazil easier us maybe could the guess, versus parse So it's Argentina competitors. out I And then And if so how also versus the how shaken for expectations quarter-to-date? are out your just far volumes, in region? your versus inventory levels quarter has you compare

Daniel Fisher

Sure.

the in certainly were into say has aggressively fourth we're doing cost downturn we third managing Argentina So Brazil grew entered thing same the soft the QX. in for Brazil second was or really it declined at X of there. And end growth got for were X of we first a kind much We And low would Chile, perspective hot and years. quarter. quarters. then network a didn't. tighter running in in been X from outlook And single-digit the our within last quarter, I which -- suddenly, also the the the we capacity then has and

inventory a Chile, on just curtailed Brazil. turning taking a the multiple we're that's started on curtailed running and we of positions were in -- in end than a plant, We curtailed at curtailed short longer entered but mines we as And anticipated. we we back in So said in on the QX. Argentina, tight turning mine opening, mine

Brazil, we'll and QX Chile. We're easier QX we're to QX, Argentina. 'XX versus in next return coming our recovery outlook be seeing So in obviously, a serve seeing to growth in and in off 'XX. because comp, in much we'll be of We'll year and excess recovery will grow long-term fit

Operator

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

Anthony Pettinari

the growth. any leverage? of curious In I -- wondering, kind much of anything quarters, volume I'm able Or without cost that mix? kind previous there don't EBIT any that know, I'm changed But guess year-over-year did And were pass-throughs lapped I plant if there drove was or kind you've Hill maybe that price just to closure. just you, been lap key in grow of I PPI in XQ. change guess saves? you Walk

Daniel Fisher

Yes.

think about North I you're specifically America. talking

Anthony Pettinari

Yes.

Daniel Fisher

done -- assay we're rates listen, we've to now. historical Yes, running utilization

So lifting couple heavy last years. of of kind done over we've the the

So that. we've lapped

in is, bit get of yes, have So to going to respects, you're growth. many little what we're describing a

making I create that to an new supply even the chain give us think particular. investment will an investments efficient opportunity more also Florida with can in the we're

And So there we question, products, are that the asset in yes, things have do into obviously earlier now can the an that Northwest. also to tight. that we're portfolio. we're we But I shipping indicated as

we That to up facility relative in that. will lap inefficiency get new the there's once So Oregon.

up to to be and curtailed on them there some gain and going margin-wise. running there's way the So more is most efficient lines to do lever opportunities turning productivity. But

Anthony Pettinari

CapEx Europe? can maybe talk been Got ahead I kind years. or I new there's then that? or but rates anything in growth 'XX probably it. think you plan if debottlenecking operating capacity Got like of sort of recent about in wondering just I'm utilization regions, opportunities for in don't volume 'XX, other Europe lines of or system it. guess you've And or for for of lot the a added has anything

Daniel Fisher

I X in to in facilities, and one -- the years, guess, one last added U.K. over X Yes, X we've the Czech Republic. we have huge the

So by end be both we've next the of those -- year. X-line will been plants

incremental done So to the getting been enhancements demand have to lack It's able a now. Over and lift tight capacity U.K. Europe throughout investments it's right in the -- quite line some there's we of all getting and us. meet that's actually --

X%. yes, rates there. looking mean, So we're big growing X%, I But -- growth X%, that market things a at continue, that's at these if

the of doing world. So think going other that's that require to that things in would -- 'XX, part 'XX to be about probably

Operator

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

Michael Roxland

There anyway, a to risk year, of Obviously, demand there competitive mentioned, them, could get for some looking the you when or big a gain wanted a to one come extend think to that recent sense decade next North as also got be out competitors been competitive the Midwest, being excuse given somewhat like, some Dan, say. But environment particularly the particular, you trying Just out I should to conference, this contracts next as me, from of you concerns you renewal. year what the in have pricing backdrop. as in addressed talk to you this in early decade, the to maybe softer later you the called up end just And share. America is some I challenged. about

helpful. you color can provide So be any would very

Daniel Fisher

Yes.

I this, think I've been pretty Michael. on consistent

demand the on Northern that the region. Kentucky the the in As built, quite when you number been was -- Texas. facilities know, in Midwest, there look Southeast of few you And has upper built at and there growth the were a coast really facilities

there builds. reasons those So are for

years that that long renewal. Relatively the than things pricing That to those in massively But I said, that that We've a minus lot but for a medium be them, we're marketplace. builds. forward. With and partners for better us positioned right make our the into XX contract way seeing that term. doing tight, base the not necessarily very we being think sure we're asset undersupplied went the rewarded demand they're speaking, moving structured of the in with that securing tight. has a during close enabled was is the to past were strategic were our there profile we're also pricing subsidies

think cash to and They what But I the differences. with based we meaningful securing grow manage. margins flow we not prices we're really be we what think at money flow not can and that expand really as and nice potentially incremental healthy margins we're were and they're and as happy securing, cash. ago. good So we're on about X I'm could at differences, talking make looking years

Michael Roxland

Got it. follow-up. the appreciate One color, I Dan. quick

category beer to We're How are sense I'll demand turn? process? the Any you still throw SKUs, expect do far out it both getting companies obviously, middle. in without is beer inflect the terms of to trying do stuck figure could think And there. in in how ultimately this still premium the and Just that you to When the higher? along beer, lagging. discount target out mix, when

Daniel Fisher

behavior is would -- very The know of non-alcohol the top enough see you Honestly, aggressive one don't I grow saw pricing a expect today would it in to range there. Starting inflection. coming up even not be in I peak our season in the North line. the customers to America.

hitting behavioral once I think top these start cannot where curves elasticity grow think change. they they I line, will price patterns the So

what of tariffs I how some think of out that I growth I've to have going dealing make I'm the that. be or matter. Obviously, seen, and plans they encouraged. with some had they're they're trajectory, what right customer think is folks nice sense with to do really of you partner it's the going dealing now really

relationship think population because There's those the see are them. That's When grow focused ones be folks going to we that between term to will of new we balance end a that long to weak. beer a win the is have the and being struck will great question. continue consumer and think, products. And comes nice I going have term. I some prefers they the think growth mean others, more get innovation company being portfolio. to believe going I their still beverage then I the it? that have And and and I out that to a medium those overweight obviously on are medium are company, a that long with

the dry January the of portion in year. You're

here that now, and the their the driver to softness then decisions. return patterns, surprises will heading behaviors here. into I Right Things that weather side break start up Bowl you with in economic think, see see hopefully, Super volume be to beer right a beyond spring no pick principal to week being growth and So that, important of now. all pricing

Operator

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

Michael Leithead

semi-related I have questions. X

a just Howard, First, quick housekeeping.

I think the release states you plan to deconsolidate cups XXXX. starting in

the in $XX about you've that being million about think past, I drag. a talked

that we a is tailwind So year-over-year? as about earnings 'XX think million $XX

Howard Yu

agreement when to full here relates Yes, it joint as think to depends the a structure. able it Mike, I to on get venture we're

with today, is still are associated right through losses the flowing cups now quarter. those it in As

talked go here. matters timing assume through $XX and million done, quarter, we around we improvement year-over-year. so had this about $XX And the If then we'd transaction we million get first the historically that that it's somewhere see probably

Michael Leithead

math, Okay. this is That's of believe, second, today the about And repurchase, do which X.X% I $X.X about the company. repurchases share year, of the I great. if then billion, it's on

'XX? cups is XX% the and should growth buybacks to we Or just EPS beverage of think core So growth? largest earnings the compared drivers about year-over-year how can

Howard Yu

growth improve. to see I certainly in North challenges mean talked little there. to some. feel macros our about the Dan seeing good to growth of leverage of is terms going When in the about and Argentina with shoots think well algo, the I America bit very bullish matter. and operating are we about We're South earnings green The EMEA and maybe -- as going on operating Obviously, piece But a we're both going associated in there. the we volume has profile, we're earnings as that talked America.

we're less think to be I we that the region as associated no not that reason in I mind with interest well. And achieve proceeds then are to year-over-year. going sale, healthy believe over that because said, that so to amount that with million repeat a we income had there's $XX the we like. have that to mean keep significant share income going buyback able won't in as to algo you see interest this is year And thing Aerospace of the One of and will

Operator

Rodriguez question next line the is Our from of Mizuho. Edlain with

Edlain Rodriguez

now have or -- for your question I bad be might questions mean, health. beer mean, -- picture that then. big drinks Quick I in alcoholic whether you terms of

somebody it's I for cancerous dangerous or said you. has think probably

So at twice make the think some about will people drinking beer margin, included. alcohol, this

be all that should there them? you one this at keeps you this would be of things that thoughts awake Like the night, Is So this of any think them? appreciated. of -- about is one

Daniel Fisher

asking You're guy I because enjoy wrong alcohol. probably the my

Edlain Rodriguez

and You both. me,

Daniel Fisher

this not go want to night. end to seem We you. right America. at down think at But known up everything. don't. is keeps night That's in consumer me I the of health the I -- at really don't probably North with I that now mean we've up the path I what me keeps thing moderation it's

customers as other is And our stuff from noise. All of well. that's this hearing what I'm

X This it's be, by this So the until going -- slightest. losing in is should to a I us a through time next some I on this. not is radar -- end it's -- in it to which can create consumers, sit as we're sleep but to, the return over years, patterns spending the stuff really the not for X not challenge normal

grow, in everywhere In fact, mean, we're world. can. on I the beer else growing beer -- you're the doesn't in not if growth counting beer then

So to a lot America. it a parts doesn't in other but it of of seem to conversation be focus seems be in of North the a concern world,

for answer So a in you, wish it's sense. better dislocated But had I I yes, that but...

Edlain Rodriguez

you more the the couple are like No, the the I the -- thinking price course, a year? quite weeks, terms you terms a we months. the down of come buyback. bit No. in in the past Are that's has more of going like or share share of in term to good enough. trying of buyback? what throughout near over And mean, just pace follow-up thinking just be be share of disciplined should aggressive systematic Like

Howard Yu

I you've earlier here, think I bought I think million back we Edlain, behavior in plus. $XXX that seen our of indicated month a shares and even worth

the here we're we'll So lean of shares us term, see certainly, as for here in the an overly yes. And billion going opportunity worth aggressive short value to be recognizing perhaps. into to We in exceed of exceed -- that the this answer $X.X to stock, is, your the that the with question XXXX. likely

Operator

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

Christopher Parkinson

Europe. just energy bit over on what particular, the us thesis been in to more X little went over of the XX a lot the you you're seeing noise beer Can U.S. months. last markets, There's a in in both you and since color

best to the hear updates kind there So just as hoping of well.

Daniel Fisher

Yes.

probably easy. is Europe pretty think I

digits. at is growing mid portfolio single energy Europe high Our

X, last continued has to that that and -- for way perform years. X So the X,

lot a change not of that front. So on

One I I larger the tied think Hispanic one to products, the of classification. industry. product, population, it's are energy there in America, North construction tiers drink to think the definitely

particular have that to product. different effects. consumer, The matter rates end interest so Others though matters. And

what gate is growth and the the segment. out Energy aggressive we're January through of we're pricing, more Now seeing of right in kind seeing

looks you're their baseline think I I So I volume to to which behavioral grow some and the same instances, growth XXXX they're products in return to a it see good. in have think energy much an you'll place think price, and seen beer. But where to is in think, area to a more grow have to relative where they a rates growth push in in going I lot be for competitive similar with pattern to have Europe. maintain and share, work I America, will a growth at in more that, North

Christopher Parkinson

versus on been put stance now, class Got stuff. going longer-term growth Brazil in 'XX, again Argentina for rate, a second, there heading into you do have rainy a Just post-COVID and it. customer comments the let's very any here that aluminum and you South few be take also carnivals, aside the all say, that be -- right When winner else? should putting at And in just would in confidence bankruptcies of your or in everything terms forecasting there's that let's terms substrate algo right to -- much industry American helpful. -- once lot least how a a primary of still

Daniel Fisher

inflecting -- and year. returned of digits, excess to double X% is we growth will the X% next growing returning for in be growth. believe Chile in range of X%, we'll Paraguay We're Argentina X%, because Yes. kind grow at It Brazil. there to X% has is the will growth, that us, But in

do our saw of this than to actually what And a more at where a had economies. we we've comps probably comps Christine. unfavorable you will we will rate we So slower muted one because little more some Brazil believe got grow those -- have But bit we'll year. We'll But will next grow. in question, it's favorable Brazil portfolio. year, than point, year your this

Operator

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

Arun Viswanathan

X Could your ROIC there's I could can thoughts X those first cash Maybe any your synergies? X payback an say, plant EBITDA or acquisitions. to kind kind to provide these just standpoint, on maybe if years, flow? add of can your from over get kind What free thoughts all, you the Great. X next, at of if outlook or period, beverage of maybe around

Daniel Fisher

Yes.

think so only I -- one. acquiring we're the

a other The one would just be new facility.

excuse we today that to in customer. the me, positioning be supply serve can't volume we Northwest So growth, the in closer in -- upper began growth we'd and the the then

million the a beginning a half 'XX, run EBITDA $XX additionally we'll So then acquisition. hit to can of million and 'XX, year probably $XX back million of of $XX beginning most 'XX the rate in likely for Florida

positive about a X-year So EVA.

Arun Viswanathan

beer just to And back then the great. That's question.

take be to in growing as if accelerate you throughout nice can large and not Because some earlier could -- growing But acquire like sounds you're is good going of what to what is especially I customers properties. beer? are difficult, to going mean, for beer going there globally, it the that yours the North I them it they to -- So America. said call appreciate it's really

as them Or the to new what you you development? it are as to from growth they within Is where So can energize beverage a profile? leadership position is that CSD? something it what going do ways and Was take require in category? that really some hearing done far think

Daniel Fisher

large there's I In beer writ there's beer and beer so beer, cans. Yes. in specifically, volume guess

and So beer substrate decade growing for needle I that's over in ability been baseline, a time move the our plus. in still -- we've like to the

do it brands efficient been too affordability disaggregation of So But you has moving going substrate. are a too believe look many on then when that of an of so a lens more from at to that. having there's win with portfolio, lot large to a certainly a really to they with portfolios, delivery

at the cocktail. have to domestic the the -- so in portfolio, mean, in helping look light supply they And a world, that have largest the have fast-growing brewer make They beer. I chain. But their we you the sure strategic if more we're largest ready-to-drink

think really they're do I matters. you you doing, these So are And within do? they're believe what play -- trajectory? in to can that? innovation role look I to that going portfolios, help what And how think in you So a there have

a own companies, they I at as own more a be they I lot get beverage think these non-alcohol traditional moving be an and see the extent. I -- that. But when to and I going distribution right the large surprise shelf see got investment It's look it players think not they've to find forward. that to patterns, space might -- you'll a because just -- look in you a winner, to beer

can on And likelihood are sell. that other And format. so they than to got a to that put to shelves greater things there's going a any it's going be in the

beer. Thanks, talking of And leave sort and the so thinking everybody the stays question, about to how safe the does but it. first it But end be right forward think Hope quarter. that's you it to and that's Christine. beer healthy. question, we're again here at I We'll of have there look to the

Operator

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

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

Ball (BALL) 4 Feb 252024 Q4 Earnings call transcript