Can shipments at Canpack increased in the third quarter, buoyed by rising demand in Europe and by the Poland-based beverage can manufacturer’s newest plant in the US becoming fully operational.
Worldwide volumes in the three months to the end of September rose almost 8% year-on-year to 7.7 billion, and increased again in October, the Krakow-based canmaker said. That helped make up for a 2% slide in shipments in the first quarter and flat volumes in the second.
Growth in Europe was up 4% and the US saw shipments climb 28% as the Muncie plant in Pennsylvania came online. Weakness in South America, where the Brazilian market remains “challenging”, and the United Arab Emirates pared global advances.
Third-quarter sales were up 11% to US$983 million and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) almost doubled to $125m. European sales rose 12% to $654m and in the US they increased 33% to $212m, again thanks to production at the new plant.
Canpack said its top-line growth was attributable to higher prices charged to its customers and the falling costs of aluminium on the London Metal Exchange.
The company also said its investment plans had been more than halved to $55m as a result of the Muncie plant being fully operational and with no other major capacity expansions planned.
The past nine months have been busy for the canmaker, which extended its roster of facilities with the addition of the three-line Muncie factory, its second in the US. The year also saw interim chief executive Marius Croitoru take on the role on a permanent basis in June.
He took over the reins as the global canmaking industry was gripped by a decline in demand following two bumper years of growth during the Covid pandemic. The contraction saw beverage can manufacturer Ball, Crown and Ardagh Metal Packaging (AMP) mothball existing plants and put new construction on hold.
Canpack’s year-to-date volumes climbed 2.1%, sales increased 1.1% and EBITDA rose 2.6%.
Canpack, the world’s fourth-largest beverage can manufacturer with 18 plants worldwide, also announced that it had sold its CP Glass business in Poland to BA Glass. The deal is expected to be completed in the first-half of the new year. The company said it had decided to offload the glass unit to “focus on its core packaging businesses”.