Canpack profit doubles and rising US can shipments drive growth

Canpack, which operates plants in Europe, the US, South America, Asia and Africa, posted strong performance figures.

Canpack bucked the trend in Europe, managing to increase volumes by 2% in the fourth quarter after boosting capacity by a billion cans a year through “certain adjustments” to its facilities in Romania, Czechia and the Netherlands, chief executive Marius Croitoru said. Volumes also increased in the US as it benefited from the start-up of the new three-line facility in Muncie, Indiana, and a fourth line at its Olyphant plant in Pennsylvania. It is estimated that the two plants now have a combined capacity of more than 8 billion cans a year. An end-making line in Olyphant also became operational.

Croitoru said he was “proud” of Canpack’s performance and claimed it was now the number-two canmaker in Europe after posting sales that matched those of Ardagh Metal Packaging. 

“Canpack is both financially and operationally stable,” he said. “And we are optimistic seeing also the 24% volume performance in Q1 2024. We have and we are continuing to take decisive action to maintain stability of our business and to position Canpack for profitable growth.” 

With headquarters in Krakow, Canpack, which is part of the US-based Giorgi Global Holdings food group, said sales in 2023 had been boosted by a net positive impact of $30m from higher selling prices and favourable mix partially offset by cost increases. A lower impact from aluminium LME prices and improved US performance benefited the company to the tune of $20m and $10m, respectively. It also gained a $3m advantage from favourable shifts in the euro-dollar exchange rate.

Canpack was also able to lower its capital investment plans after the Olyphant and Muncie projects had begun full operations, boosting 2023 free cash flow to $341m. Croitoru wouldn’t divulge the proceeds from the sale of Canpack’s glass business in Poland, which was completed last week (ending 5 April), but said the cash would be funnelled into general corporate uses. 

Croitoru, who replaced Roberto Villaquiran in mid-2023, said he was upbeat about the next 12 months, with new chief financial officer Jason Longley in place. He said that the early 2024 surge in sales in Europe was largely due to customers restocking their can supplies after running them down at the end of 2023. While he expects this to ease as customers replenish stocks, Croitoru said in order to continue volume to grow in 2024 “we will need to see a real sell-out in the stores during the busy season, in Europe and US”.