Beer can maker Ball Corp lags sales estimates on slowing demand

Ball

26/04/2024 11:34

April 26 (Reuters) - Beer can maker Ball Corp  BALL.N 
missed quarterly sales expectations on Friday, 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 prioritize 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 U.S. 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. Analysts
had expected $3.23 billion, according to LSEG data.
    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 March 31, exceeding LSEG
estimates of 56 cents per share.

 (Reporting by Annett Mary Manoj in Bengaluru; Editing by Milla
Nissi)
 ((AnnettMary.Manoj@thomsonreuters.com))