Beer can maker Ball Corp missed quarterly sales expectations, hit by lagging demand for its beverage cans as customers become more frugal in their spending.
The world's largest supplier of beer cans is navigating a complex economic landscape, as shoppers adjust their spending habits and prioritise essentials over discretionary goods.
The convergence of inflationary pressures on consumers and companies' shifting pricing actions have led to significant volatility in the market.
In key markets such as the US and Europe, elevated retail prices have resulted in decreased consumer spending, posing significant challenges for Ball Corp.
Its quarterly net sales fell 3.5% to $2.87 billion (€2.7 billion). Analysts had expected $3.23 billion (€3 billion), according to LSEG data.
Beverage Sector Under Pressure
The beverage sector remains under pressure as budget-constrained consumers have reduced consumption of specialty beverages and bottled beer, which tend to be more packaging intensive.
However, Ball Corp earned comparable profit of 68 cents per diluted share in the three months ended 31 March, exceeding LSEG estimates of 56 cents per share.
Commenting on the company's performance, chair and chief executive officer, Daniel W Fisher stated, "We delivered strong first quarter results. Following the successful sale of the aerospace business in mid-February, we have executed on our plans to immediately deleverage, initiate a large multi-year share repurchase programme and position the company to enable our purpose of advancing the greater use of sustainable aluminium packaging.
"We continue to complement our purpose by driving innovation and sustainability on a global scale, unlocking additional manufacturing efficiencies and activating an operating model to enable high-quality, long-term shareholder value creation."
News by Reuters, additional reporting by ESM.
