Crown capitalises on recovery in demand for beverage cans

Shipments at Crown Holdings were up in the first quarter, underlining a recovery in global demand for beverage cans.

The US-based global canmaker sold more cans in the Americas and halted declines in Europe. Last year the firm also began operations at two new plants, in the UK and the US, which the canmaker said will help its response to anticipated further growth in demand.

Crown’s global shipments of aluminium drinks cans in the three months to the end of March rose 2.5% year-on-year after sliding throughout 2023. Gains were highest in the Americas region, where 7% more cans were sold. European volumes increased by 5%. 

But sales dropped 7% to US$2.8 billion, reflecting a decline in the cost of raw materials – mostly aluminium – since last year which are contractually passed on to customers. A 10% drop in operating profit to $245 million was attributed to weaker performance in Crown’s transit packaging and its tinplate food and aerosol can businesses. The canmaker also booked an $8m loss resulting from a fire at its plant in Toledo, Ohio, late last year.

Chief executive Tim Donahue said that the opening of plants at Peterborough in the UK, and at Mesquite in Nevada, meant Crown is poised for growth.

“The company remains well positioned to service current and future demand from its expanded industrial base,” Donahue said.

Demand for beverage cans has turned a corner after a year in which high inflation and interest rate fluctuations suppressed consumer spending on food and drinks. That came on the heels of two years of rocketing sales during the coronavirus pandemic. Competitors Ball, Ardagh Metal Packaging and Canpack also reported volume growth at the start of 2024.

Crown said operating profit from its beverage can business rose 31% in Europe, 17% in Asia and 6% in the Americas. Profit from operations that include the company’s tinplate food can business in North America and equipment operations at CarnaudMetalBox Engineering in the UK and the US, slumped by 70%. Its global transit packaging operations experienced a 13% drop.