NYSE:SLGN Silgan Q2 2024 Earnings Report GBX 1,696 -12.00 (-0.70%) As of 11:55 AM Eastern Earnings HistoryForecast Hill & Smith EPS ResultsActual EPSGBX 0.88Consensus EPS GBX 0.87Beat/MissBeat by +GBX 0.01One Year Ago EPSGBX 0.83Hill & Smith Revenue ResultsActual Revenue$1.38 billionExpected Revenue$1.43 billionBeat/MissMissed by -$48.60 millionYoY Revenue Growth-3.20%Hill & Smith Announcement DetailsQuarterQ2 2024Date7/31/2024TimeBefore Market OpensConference Call DateWednesday, July 31, 2024Conference Call Time11:00AM ETUpcoming EarningsSilgan's Q1 2025 earnings is scheduled for Wednesday, April 30, 2025, with a conference call scheduled at 11:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Silgan Q2 2024 Earnings Call TranscriptProvided by QuartrJuly 31, 2024 ShareLink copied to clipboard.There are 12 speakers on the call. Operator00:00:00Good day, and welcome to the Siljan Holdings Second Quarter 2024 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Alex Hutter. Please go ahead. Speaker 100:00:12Thank you, and good morning. Joining me on the call today are Adam Greenlee, President and CEO Bob Lewis, EVP of Corporate Development and Administration and Kim Ulmer, SVP and CFO. Speaker 200:00:23Before we Speaker 100:00:24begin the call today, we would like to make it clear that certain statements made on this conference call may be forward looking statements. These forward looking statements are made based upon management's expectations and beliefs concerning future events impacting the company and therefore involve a number of uncertainties and risks, including, but not limited to, those described in the company's annual report on Form 10 ks for 2023 and other filings with the Securities and Exchange Commission. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in the forward looking statements. In addition, commentary on today's call may contain references to certain non GAAP financial metrics, including adjusted EBIT, free cash flow and adjusted net income or diluted share. Reconciliation of these metrics which should not be considered substitutes for similar GAAP metrics can be found in today's press release under non GAAP financial information in the Investor Relations section of our website atsiliconholdings.com. Speaker 100:01:21With that, let me turn it over to Adam. Speaker 300:01:23Thank you, Alex, and we'd like to welcome everyone to Silgan's Q2 2024 Earnings Call. The Q2 continued to display the strength of our portfolio with another quarter of strong financial performance in our businesses and significant progress towards our long term strategic objectives. We delivered 2nd quarter adjusted EPS above the midpoint of our estimated range with improving volume trends across all of our segments and strong operational and cost performance driving our results as the Silgan team remains focused on executing our plans for 2024 and beyond. After several quarters of destocking trends for our food and beverage products, we have we are particularly encouraged that our customers' order patterns appear to be returning to more normal levels and as expected have led to the positive inflection in our volume trends in the Q2. As demand for our product continues to recouple with what had been resilient end market demand, we expect this momentum to carry into the second half of the year. Speaker 300:02:23Additionally, we are pleased to have recently announced an agreement acquire Vayner Packaging, a best in class differentiated dispensing business with very attractive margins and strong organic growth that has all the hallmarks of our highly successful dispensing acquisitions in the past, including WestRock's dispensing business, Albea Dispensing, Gateway and UNICEF. Our capital deployment model is a key component of the Silgan value creation story and we're encouraged that after several years of M and A market challenges and macro uncertainty, during which time we were able to create value with outstanding performance and by returning capital to our shareholders, it now appears that value, earnings and return accretive transactions are becoming more actionable. We continue to believe that Silgan is advantageously positioned to win in this M and A market backdrop and create value for our shareholders as a result of our ability to act with speed and certainty, our long track record of achieving value enhancing synergies, our access to capital and our ability to rapidly deleverage as a result of our strong free cash flow. We're excited that Vayner represents such a clear cultural fit with our company and expect the combination to help drive incremental organic growth well into the future. Speaker 300:03:40Turning now to the 2nd quarter results for our segments. Our Dispensing and Specialty Closure segment delivered another quarter of strong results as demand for our global dispensing products remains at a high level with double digit volume growth driven by continued success in the marketplace. Our market leading innovation, manufacturing and service capabilities continue to drive demand for our products that outpaces market growth and in some cases currently exceeds our own ability to supply certain portions of the market. Consumer demand for our food and beverage products improved sequentially and year over trends also improved from the Q1 as our customers destocking activities appear to have come to an end and promotional activity has been more pervasive in the market for many of our beverage customers' products during the seasonal peak demand of the summer months. We are on track for stronger year over year trends in the food and beverage closures in the second half of the year as demand for our products more accurately resembles end market demand. Speaker 300:04:40In metal containers, our year over year volume showed growth driven by pet food and soup and we anticipate continued growth in these and other products for the remainder of 2024. We continue to make progress on our cost reduction initiatives during the quarter, but as expected, the impact of lower production and less inventory build in the 2nd quarter due to the previously discussed reduction in a large pack customer's plan for 2024 led to under absorbed fixed costs in the quarter that impacted our financial results. Our Custom Containers segment delivered strong results in the 2nd quarter with 7% volume growth as a result of improving market demand, the successful commercialization of new business in the 1st quarter and the early commercialization of the 2nd new business award in the Q2. Turning now to our outlook for the full year of 2024. We continue to believe the business is positioned to deliver volume and profit growth and are pleased to confirm our estimates for the year, which includes EPS growth of 7% at the midpoint of our guidance range. Speaker 300:05:44We continue to expect dispensing and specialty closures volumes to grow by a mid single digit rate with high single digit growth in our dispensing products and low single digit growth in our closure products, driving better profitability for the segment through an improved mix. In metal containers, we continue to expect volume growth with mid single digit growth in pet food, which represents approximately half of our total volume, offset by lower fruit and vegetable volumes as a result of the previously discussed decision by a pack customer to reduce their volumes in 2024 to reduce their working capital. In addition to the unfavorable fixed cost absorption in our system we experienced in the 2nd quarter, the impact of growth in pet food and fewer than normal vegetable can sales will drive a less favorable mix in the 3rd quarter. Custom containers volumes are expected to grow by lowtomidsingledigit percentage as destocking trends appear to have concluded. Market demand remains solid and new commercial awards continue to provide incremental volume and profit contribution through the year. Speaker 300:06:52We are encouraged we are on track to deliver another year of strong financial results for the company with success in our strategic growth initiatives driving tangible improvements in our results. Additionally, we're pleased that our capital deployment model continues to yield opportunities to grow our company at attractive returns and drive organic growth and margin improvement. With that, Kim will take you through the financials for the quarter and our estimates for the Q3 and full year of 2024. Speaker 400:07:18Thank you, Adam. As Adam discussed, we delivered strong results in the Q2 that were consistent with our expectations with adjusted EPS above the midpoint of our expected range. Net sales of approximately $1,400,000,000 declined 3% from the prior year period, driven primarily by the pass through of lower raw material costs, mostly in our metal containers business. Total adjusted EBIT for the quarter of $165,000,000 increased by 3% on a year over year basis, primarily due to higher volume in each of the segments. Higher adjusted EBIT in dispensing and specialty closures and custom containers offset expected lower adjusted EBIT in the metal container segment. Speaker 400:07:57Adjusted net income per diluted share was $0.88 a 6% increase from $0.83 in the prior year quarter with higher adjusted EBIT and lower interest costs partially offset by a higher tax rate. Turning to our segments. Sales in our dispensing and specialty closures segment increased 1% versus the prior year quarter, primarily as a result of higher volume mix of 3%, which was partially offset by the pass through of lower raw material costs and unfavorable foreign currency. The increase in volume mix was driven primarily by double digit growth in dispensing products and favorable mix. 2nd quarter dispensing and specialty closures adjusted EBIT increased $16,000,000 versus the prior year period driven by favorable price cost, partially as a result of the prior year impact from labor challenges that limited output at a U. Speaker 400:08:43S. Food and beverage closures facility and improved volume and mix. In our metal container segment, sales declined 8% versus the prior year quarter, primarily due to the pass through of lower raw material costs, which was partially offset by higher volumes of 1%. As expected, metal containers adjusted EBIT was below the prior year quarter due to the impact of unfavorable price cost including mix as a result of lower fixed cost absorption from a significantly lower inventory build for the fruit and vegetable pack due to the previously discussed reduction in pack plans of a large fruit and vegetable customer to reduce its working capital. In custom containers, sales increased 6% compared to the prior year quarter, driven by a 7% increase in volumes as a result of stronger market demand and the early commercialization of the 2nd new business award during the quarter. Speaker 400:09:32Custom Containers adjusted EBIT increased $4,000,000 as compared to the Q2 of 2023 driven by higher volumes. Looking ahead to 2024, we are confirming our estimate of adjusted net income per diluted share in the range of $3.55 to 3 point 7% increase at the midpoint of the range as compared to $3.40 in 2023. This estimate includes corporate expense of approximately $30,000,000 excluding costs for announced acquisitions, which is above our prior year our prior estimate of $25,000,000 due to higher legal and corporate development costs. Also included in the adjusted EPS range for 2024 are interest expense of approximately $165,000,000 an adjusted tax rate of 24% to 25% and a weighted average share count of approximately 107,000,000 shares. From a segment perspective, mid single digit percentage total adjusted EBIT growth in 2024 is expected to be driven primarily by the dispensing and specialty closures and custom container segments, with the metal container segment adjusted EBIT below the prior year record level, primarily due to the previously discussed reduction of pack plans by a large fruit and vegetable customer. Speaker 400:10:41Based on our current earnings outlook for 2024, we are confirming our estimate of free cash flow of approximately $375,000,000 with CapEx of approximately $240,000,000 in 2024. Turning to our outlook for the Q3 of 2024, we are providing an estimate of adjusted earnings in the range of $1.20 to $1.30 per diluted share as compared to $1.16 in the prior year period. The 8% year over year improvement in adjusted earnings in the 3rd quarter at the midpoint of the range is driven primarily by improving volume trends, cost reductions and strong operating performance in each of the segments, partly offset by a less favorable mix in our metal container segment. 3rd quarter adjusted EBIT is expected to be above prior year levels in dispensing and specialty closures with improved volumemix and price cost. 3rd quarter metal container volumes are expected to be above the prior year level, while adjusted EBIT is expected to be below Q3 2023. Speaker 400:11:38The year over year decline in metal containers adjusted EBIT is driven by a less favorable mix predominantly due to lower than normal vegetable can sales with the previously expected to be above prior year levels as a result of low to mid single digit volume growth. That concludes our prepared comments and we'll open the call for questions. Jennifer, would you kindly provide the directions for the question and answer session? Operator00:12:10Thank We'll go first to Ghansham Panjabi with Baird. Speaker 200:12:40Yes. Hey, guys. Good morning. I guess on dispensing and specialty closures, I know you sell into a bunch of different end markets and so on. But a lot of the companies that have reported on the consumer discretionary side, Health and Beauty and Fragrance, etcetera, they're pointing towards some level of a slowdown just given tougher comparisons and obviously mixed consumer spending. Speaker 200:13:01And I know you're lapping the destocking comps and so the optics are favorable, etcetera. But can you give us a better sense as to what's going on in the market from your vantage point at this point? Speaker 300:13:12Sure. And I think we see a lot of the same reports and trends out in the marketplace. I think you really have to focus on where we choose to compete and win in the markets that we're serving. So I think fragrance and beauty is a great place to start. And we really don't participate in the mass market fragrance and beauty. Speaker 300:13:32I know we've talked about that over time. But where we are very successful and where we continue to win new business in the fragrance and beauty side is at the very high end of that market. And that market continues to perform and do well, has new product launches. And I do think Ghansham, we're winning probably a disproportionate amount of the new product launches just given our performance over the last, call it, 4 or 5 years. So we feel really good about that. Speaker 300:13:59And I think we talk about the power of our portfolio that it is a broad I mean, you said it yourself, it's a broad base of markets and products that we take the market and we serve the markets with. So I think over time, if you go back over, call it, the last 5 years, you've seen continued strength from Silgan, but maybe strength in different markets as we have worked through the last 5 years. So lawn and garden is really good right now. We've got aerosol business that has, I'd say, more than fully recovered from what we were dealing with in destocking days. Our trigger sprayers are doing exceptionally well right now and have fully recovered. Speaker 300:14:38So I just maybe to try to give you a couple of examples there. And in all fairness, that's more than offsetting sort of the continued, I think, challenged market that we're seeing in our food and beverage products. Again, they're recovering, but they have not recovered to the same level as some of the other markets that I just described. Speaker 200:15:00Got it. And then in terms of consumer promotional activity, I mean, obviously, there's been many levels of theorization and it's we're seeing some initial signs just based on some of the other reports. But as you think about your end markets between North America and Europe, are you seeing a sustainable trend there? Or is it still just a minor relative to last year? Speaker 300:15:19Well, I think it's a positive to last year. I'll give you a couple of examples. I think the targeted promotional activity in our food business has been very successful, but it's on a targeted basis. So it hasn't lifted the entire category. I'll give you another example. Speaker 300:15:36In our aerosol business on dispensing and specialty closures, there was a lot of activity on the promotional side for aerosol and this is for kind of air care and home care products, etcetera. And we saw it drive growth and I think the market saw growth in that category as well. So I think we're still optimistic. As we think about the remainder of this year, I think promotional activity is going to be important. I think the success of that promotional activity will be important as well. Speaker 300:16:07But for us and our business, I think we're seeing more of it and we're seeing it be very effective when it's targeted. I'd also finish Ghansham with the fact that we're in the middle of the summer months and our beverage business typically does well when there's warm weather and we need to see that promotional activity driving growth through the summer months as well. Speaker 200:16:29Okay, fantastic. Thank you, Adam. Speaker 300:16:31Thank you. Operator00:16:34We'll go next to George Staphos with Bank of America. Speaker 500:16:39Hi, everyone. Good morning. Thanks for the details and for taking the question. I guess first question, maybe I'll switch gears and we'll talk about metal a bit. And the commentary that you had in the Q1 was matched with performance in 2Q. Speaker 500:16:56But in terms of what your EBIT expectations were and volume expectations, did the quarter go pretty much as planned in metal as you'd expected? Was it better? Was it worse? And if you could fill in some of the gaps here, that'd be great. Secondly, and you've touched on this in the past. Speaker 500:17:13To the extent that the metal container business in North America continues to evolve and pet keeps getting bigger, broadly can sizes keep getting smaller as a result. We've seen the fruit market shrink significantly. What's next in terms of how you optimize that business relative to the way it's going to evolve in the next 2 to 4 years? Whatever you can share there would be great. Speaker 300:17:45Okay. Well, thanks, George. The quarter and the second quarter just maybe slightly below our expectations just in the metal container segment. And really, the impact on our network of the volume decline due to the one pack customer that's reduced their volumes for 2024 was significant. It basically accounts for most of the entirety of the year over year change in the business. Speaker 300:18:16So think about our business and we sorry, George, we are fully utilized between Q2 and Q3 and where our additional capacity exists is really in Q1 and Q4. So the utilization rates are always very, very high in Q2 and Q3 And that's where we took the volume out as again, you think about the pack volume. Basically, those cans need to be ready at the end of Q2 to sell in Q3 when our customers need them. So it was an outsized impact. And in fairness, we probably underestimated what that impact was just by a few $1,000,000 as we came into the quarter. Speaker 300:18:59So then I think about when you move forward and kind of what's next, you mentioned fruit as a product that moved away from the can into an alternative package. And what we've consistently said, George, is that the products that are essentially processed in the can are really what's left in the can these days. So we think there's dry products have moved because it didn't require a can for processing fruit was a very similar example. But what's left in a food can and particularly wet pet food, which as you mentioned, is over half of our volume is growing. I look back over the last 5 years as an example and our pet food volumes are up about 20%. Speaker 300:19:46So call it right in that mid single digit kind of range. And that's how I would talk about metal containers. Speaker 500:19:56Right. So with that, does that maybe not tomorrow, but over the next few years mean that you'll look to adjust the network again? I'm not necessarily saying plant closures, but just what do you need to do from a converting standpoint and network as that market evolves? And just quickly on Q3 and I'll turn it over. Yes, it will be lower, I think you said, but we're still talking about triple digits in terms of dollars for EBIT, right? Speaker 500:20:27We're not going back to some of the few years ago where we had some weaker quarters there. Thanks and good luck in 3Q. Speaker 300:20:37Thanks, George. And yes, you're right on Q3. I think as you think about what our next steps are in metal containers, I mean, look, we've got half of the business that's growing, half of the business that we are investing to support our customers' growth in pet food. So we've got a very optimized platform and I think a very low cost platform, certainly on that side of the business. And I think when you think about the balance of the business, the other, call it, less than 50%, we do have the announced cost reduction initiative. Speaker 300:21:09That's not just about closing plans. That's also about just driving cost out of the business. And I think one thing I will absolutely say, particularly about our metal containers business, is they've been terrific at driving cost out of their business. And that's absolutely what we're going to continue to do on that part of the business that's not pet food. Speaker 500:21:31Okay. Thanks. I'll turn it over. Operator00:21:36We'll go next to Anthony Pettinari with Citi. Speaker 600:21:42Good morning. This is actually Brian Bergmeier on for Anthony. Thanks for taking the question. Adam, in the prepared remarks, you sounded maybe quite a bit more optimistic on M and A opportunities than you had previously. I guess, can you remind us where your pro form a leverage is going to be by the end of this year? Speaker 600:22:04And is it accurate to say that heading into 2025, Silgan could have a pretty full pipeline of accretive deals? Speaker 100:22:16Yes. This is Bob. I'll jump in on that one. I think you read it pretty well. Our balance sheet right now is as we come through the pack season and into the end of the year, we should be just below the high end of our range. Speaker 100:22:32And I'll remind you that that range is 2.5 times to 3.5 times on a net debt basis. So comfortably within what our normal operating range is, right now we're focused on completing the acquisition of Vayner and then the integration. But that does not at all mean that we're slowing down in terms of paying attention and looking at investment opportunities in the particularly in the dispensing space. So I think you got it right that the balance sheet allows us the opportunity to look. I think we think the market is to our benefit right now, given our access to capital, given our ability to move swiftly and with certainty. Speaker 100:23:19So I think all those things coupled with a market backdrop that may not be so favorable for some of the other institutions that we might be competing with for potential targets. So I do think that now we're in a pretty good period from a structural perspective as well as the backdrop of the market. And again, our focus will be largely around continuing to build out the tip of the spear around the dispensing and specialty closure side of the business. Speaker 300:23:49I think the only thing I would add to that is that the pro form a EBITDA with Vayner, we're talking about over $1,000,000,000 Just the capacity to do more is greater today at Silgan than it was, call it, 5 or 10 years ago. Speaker 600:24:07Got it. Got it. Thanks for that detail. And then maybe just kind of switching to custom containers. Are we looking for more quarter over quarter EBIT growth in 3Q and into 4Q? Speaker 600:24:22I guess, can you remind us how the business wins are going to be kind of layering on in the second half of the year and maybe any change in assumptions for price cost? Thanks. I'll turn it over. Speaker 300:24:35Sure. Look, the business has done a nice job. We've continued to win new awards. The story for this year in Custom Containers was really about the 2 large awards. The first one was commercialized in the Q1 and we had identified the second one to be commercialized, call it, mid year. Speaker 300:24:53So we had it in our business, call it, Q3. The team did a great job, worked with the customer. We're able to commercialize that early and we saw the benefits of that in Q2. So being disciplined and thoughtful about how many big pieces of businesses that we take on, those were the 2 big items this year. We're continuing to win other new business awards all the time. Speaker 300:25:18I think as you look at the sequential quarter, so going from Q2 to Q3, I think it's actually more important to look at the prior year. So I think we'll see nice growth versus the prior year, both from a volume perspective and from a profit perspective. But I think that the seasonality of our custom container business is definitely more weighted to the first half and you'll see that again in 2024. Operator00:25:53We'll go next to Gabe Hajde with Wells Fargo. Speaker 700:25:58Adam, Kim, good morning. Adam, I think in your prepared remarks, you talked about bumping up against maybe some capacity constraints in DSC. I know some of it might require some new molds, maybe pieces of equipment and then maybe some assembly lines if it's for more of the true dispensing components. I'm just curious, is that true? And then would you have to expand brick and mortar or is it within the wallet of call it $250,000,000 of base CapEx for legacy Silgan? Speaker 300:26:40Sure, Gabe. I would say the last part of that's the easy part. So that's absolutely considered in our total CapEx. We're not talking about new facilities or anything at this point. This really is more to your first point. Speaker 300:26:53This is it's more about the molding side. So assembly and other parts were just fine. This is about getting the right molds into the right machines that we already have in place. And frankly, it's just the output of customers being surprised, I think, at the demand levels that they're seeing for some of their products. And that's what we're reacting to. Speaker 300:27:15So I think unfortunately some orders came in late as there was a surprise element for our customers. And we're doing all we can to support their growth and get those additional products into the market. So much more about the molding side and really specific to kind of tooling at this point. Speaker 700:27:36Okay. That's it for me. Thank you. Speaker 300:27:38Thank you. Operator00:27:41We'll go next to Matt Roberts with Raymond James. Speaker 500:27:45Hey, good morning everybody. Thank you for the time. Speaker 600:27:49On the DSC segment, so the margin came in strong in the quarter with destocking ending. I think that the mix shift would have to move a little bit towards lower margin items later in the year. So could you discuss how you expect volume and mix shift in the category to evolve between 3Q and 4Q? I mean, double digit growth in dispensing is impressive, but I imagine as a function of math that just has to taper at some point. So trying to see how you're planning for 3Q and 4Q there? Speaker 300:28:23Yes, it's a really good question, Matt. And look, you're right, we've got the double digit growth in dispensing products. So that obviously is going to drive the margin for the segment. But when you think about kind of the food and beverage side of the business, number 1, we've got the cost out. So that's an important element. Speaker 300:28:40Number 2, you've got kind of a year over year comp versus last year as well when we had a challenge in kind of the Q2 through Q4 period for one of our food and beverage facilities in the U. S. Market. So we solved that one before the end of last year. You've got the cost outs on the food and beverage side. Speaker 300:28:59So I think margins actually should continue to move up as we kind of work our way through the second half of the year in the DSC segment. Speaker 600:29:10Okay. That's helpful. Thank you. And then maybe along the same lines, but looking a little farther out. So given the growth in that business plus the incremental margins you have coming from Vayner next year, is there an appropriate margin target to shoot for longer term within that segment or any brackets that you kind of internally think about? Speaker 600:29:32Thanks again for taking the questions. Speaker 300:29:34Sure. Yes, we talked about on the when we announced the Vayner acquisition that we thought Vayner came through and added roughly 100 basis points of margin expansion to the segment. So I think as we think about continuing growth in the dispenser side of the business, that's more like a 25% EBITDA margin rate. So as we continue to grow out dispensers, it will impact the overall margin for the segment. Speaker 600:30:08Thanks again, Adam. Speaker 300:30:10Thank you. Operator00:30:12We'll go next to Mike Roxlund with Truist Securities. Speaker 800:30:19Yes. Thanks, Adam, Kim, Bob and Alex for taking my questions and congrats on a great quarter. Right. Just want to follow-up on the food and beverage volumes improving. How does your comments on food and bev relate to the metal European closures and how that's going? Speaker 800:30:38That was a headwind for you last year. Has demand improved there as well as European inflation has moderated? And you're seeing some more growth from some of the bev can guys in Europe as consumers have come back. So I'm wondering that's parlayed also into food can into those metal quarters. Speaker 300:31:00Yes. Actually, it has, Mike. So we've seen stability really more from our food and beverage business and the European market. And just to be very candid, that it was a very difficult year last year for the business. So we've seen improvement off of an easy comp, if you will, but we've also seen stability. Speaker 300:31:21So I think that's the important part. And we're seeing some nice volume growth year over year just because we're getting back to a more stable environment in the European market. Speaker 800:31:35Got it. And then just in terms of metal containers, EBIT for 2025, I know you haven't brought any guidance yet, but I believe the same customer you keep referencing expects to continue bringing down their working capital next year to drive leverage lower. So how should we think about EBIT MELTACANES EBIT next year as well? Speaker 300:31:56Well, I think just on a larger scale, I mean nothing's changed about our long term thesis as it relates to metal containers. So as you try to get a little more detail about 2025, we're not even close to a budget cycle yet. So I wouldn't really want to offer anything from that perspective. We're working very closely with that customer to help them achieve their working capital goals this year. And our understanding is that it was going to be a 1 year program and discrete. Speaker 300:32:26But props are in the ground right now. We don't have a pack plan yet for next year. So we'll be happy to talk about that as we get closer to the end of the year. Speaker 800:32:38Thanks very much and good luck in the second half. Speaker 300:32:42Thank you. Operator00:32:45We'll go next to Daniel Rizzo with Jefferies. Speaker 900:32:49Hi, guys. Thanks for taking my questions. But just to follow-up on that last point, that customer is going to be destocking or reducing their working capital going into 2025. That is the plan that they the idea they relate to you guys? Speaker 300:33:04Well, I think it's their fiscal 2025, just for clarity. So we're already in fiscal 2025 for them right now. So we're talking about a calendar year 'twenty four for Silgan. Speaker 900:33:18Okay. That's helpful. And then have you ever I mean is there a large margin difference between soup and pet food versus food and beverage in metal containers like in terms of product mix? Speaker 300:33:31No, not really. I think it's pretty consistent across the board. I mean from a margin rate perspective, I mean we talk a lot about mix now as pet food continues to grow. And you think about the smaller can size supporting the pet food market versus kind of our standard vegetable and maybe even institutional vegetable can sizes. There it's just the margin dollars that are delivered to Silgan are less just but the margin rate is very consistent across the business. Speaker 900:34:01Okay. And then final question. You mentioned something in the prepared remarks about the strength of sales in dispensing products. I mean, you talked a lot about that, but dispensing products around the world. I was wondering if you're running into a situation where you're kind of sold out of certain products you may need more capacity. Speaker 900:34:18Is that the case anywhere? Speaker 300:34:21Yes. It's I'm going to start with the end of your comment. So yes, we are adding capacity in our dispensing business and have been for several years to support the growth in that business. And I'll go all the way back to when we acquired the WestRock dispensing business. We've been allocating quite a bit of capital to that business to support their growth and I think you can see that not only in their volume numbers, but in the bottom line of the segment as well. Speaker 300:34:47So yes, backing up into your question, there are certain categories where we are very tight on capacity in some cases as we mentioned that we've got orders exceeding capacity for certain products and we are working hard to address that. This is a global business for us. So the first thing we do is we look at our own network for potential solutions from other geographies. And in some cases, we've executed upon that. We've also just, again, tried to add short term capacity on the molding side to get customers the products that they need to support the markets that they're serving. Speaker 300:35:25So it's a really good problem to have, Dan. And I think we're working very closely with our customers to address those needs. And most of that is covered under our long term contracts. So these are really good investments for our company and we'll continue to make them. Speaker 900:35:41Thank you very much. Operator00:35:46We'll go next to Jeff Zekauskas with JPMorgan. Speaker 1000:35:52Thanks very much. Was price cost favorable in the quarter? And if so, by how much? And what's price cost been for the first two quarters? Speaker 300:36:06And Jeff, are you to a specific segment with the question on price cost? Speaker 1000:36:11No, for the whole company. Speaker 300:36:14Okay. Speaker 1000:36:14For the consolidated results. But if you want to go through the individual segments, that's great. Speaker 300:36:20Okay. Well, how about this? I think price cost, we've talked a lot about the metal container segment with the under absorption of the fixed cost base there. So that was negative for us in the quarter. You think about the resin based businesses both in dispensing and specialty closures and in custom containers, really there wasn't a whole lot of variance on the price cost line, so not much of an impact. Speaker 300:36:46But for the total company, the significance of the metal containers item drove entirely for the business kind of a slight negative in the quarter. Speaker 1000:36:58Maybe if I can ask it differently. Why did your cost of goods sold go down faster than your sales change? Speaker 300:37:09Well, we have raw material on the metal side in particular that is declining year over year. That's getting passed through to our customer. So it might just be the timing of when those costs hit our P and L versus when the product is sold. Again, think of a more seasonal side of our business like the metal container side on the fruit and vegetable pack is just one example. Speaker 1000:37:36If you exclude the inventory readjustment, how was price cost in the metals business? Speaker 300:37:46I would say it's relatively neutral. The single largest item on the P and L is this item of under absorbed fixed costs. Operator00:38:03We'll go next to Arun Viswanathan with RBC Capital Markets. Speaker 1100:38:10Great. Thanks for taking my question. I just wanted to clarify maybe I misheard your earlier comments. Food Bev, obviously the destocking has ended, but we're kind of seeing some mixed signals in the scanner data. What are you guys seeing, I guess? Speaker 1100:38:29We have seen some improvement in private label. We've seen some improvement in some at home categories, but others are still a little sluggish. Did you say earlier that you're not seeing that improvement yet? And I guess, what's your outlook as you look into the back half of the year? Do you think promotional spending should continue to increase and that maybe would drive some improvement in food beverage markets? Speaker 1100:38:53Or how are you thinking about underlying demand trends there? Speaker 300:38:57Yes. I think our underlying demand has been very resilient for those products and not just in 2024 and prior periods as well. And the destocking activity was much more related to the activity that our customers level, not necessarily the market. So for our Food and Beverage business, I would just say we've seen nice year over year recovery, again, off of the destocking periods of the prior year. But as we then turn to the back half of the year, we're expecting more of that. Speaker 300:39:28So we are expecting volume growth year over year in our food and beverage businesses, plural, for the second half of the year. That's both metal containers and on the closure side for our food and beverage business. And then to your last question Speaker 1100:39:43And then thanks for that. Speaker 300:39:45Yes, just in quickly around the promotional activity. We do think that's an important part. We do think the targeted activity has been successful and are looking for more of that with our customers as we head through the remainder of 2024. Speaker 1100:40:02Great. Thanks. And there's been a lot of volatility over the last 2 years between destocking and customer actions. So I guess maybe would 25 be a more normal environment? And when Speaker 500:40:18you think Speaker 1100:40:18about that, maybe we could just get some initial thoughts of how you're thinking about that business. It looks like Wehner will definitely improve your overall growth profile with more contribution from closures. And so do you think kind of low to mid single digit, and I think that's kind of what you were laying out, top line growth is really possible. And then what kind of leverage would you get on that as you walk down into the EBIT line? Speaker 300:40:52Thanks. Sure. Well, I do think it's a little bit too early to start talking about 25%. But I think from a normalized perspective, we can probably help with maybe some of the building blocks as far as maybe the earnings power of the business going forward. So I think I'd start with, first off, Arun, nothing has changed about the thesis that we have as far as our 3 segments and their growth profiles going forward. Speaker 300:41:17So I think that's an important point. On the Vayner call last week, we did point to 10% EPS accretion and that's once we achieve the full synergies and I think we said something like 18 months is when we would get the synergies in. So those are the 2 important points as we go in. I would also say this large vegetable fruit and vegetable customer that's impacting 2024, that should normalize. We think that's a discrete item, but we don't have a pack plan for next year. Speaker 300:41:51So I think on top of Vayner, I would just point you to kind of the longer term thesis that we have on top of the cost savings initiatives that we've implemented that we think we've got not only clear line of sight, but great confidence in delivering not only in 'twenty four, but in 'twenty five as well. Speaker 1100:42:13Great. Thanks. Speaker 800:42:15Thank you. Operator00:42:17We'll go next to George Staphos with Bank of America. Speaker 500:42:22Hi, everyone. Thanks for taking the follow on. Adam, can you talk at all to whether customers are maybe using perhaps let me say differently, let me start differently. How are customers evaluating performance in metal packaging from what you can see from the suppliers? Have the KPIs changed in terms of how you're being evaluated now versus say 2, 3 years ago? Speaker 500:42:51And relatedly, are you sensing any change? Because again, you've seen some of the assets change hands in recent years. Has there been any kind of move in that regard because it's become more competitive recognizing it's always a competitive business? So how are customers evaluating performance here perhaps differently, perhaps the same versus a couple of years ago, any change in the competitive footing? Speaker 300:43:16Yes, it's interesting. I think on the metal container side, obviously, when you think about Silgan's business, so much of it's under long term contract. So call it 90%. We're deep in those relationships. We're with our customers and their production planning meetings. Speaker 300:43:34And really none of that's changed. We're near site in many cases. We're on-site in many cases. So I just I think our metrics, George, really haven't changed a whole lot. So I am trying to think about broadly if the market has changed. Speaker 300:43:49And I'm not really aware of anything that I would say has impacted how our customers or the market value suppliers at this point. So I'll just say maybe we were advanced in our relationships and our metrics because we are on-site and near site and maybe others are catching up to that now, I don't really know. But I think our relationships are as good, as strong as they've ever been. And I think that also helps answer the second part of your question on the competitive front. Again, really we're not seeing any change in competitive activity on the Silgan side of the equation. Speaker 300:44:25Again, long term contracts, protecting the vast majority of our business with very, very deep relationships. I think that we're really secured through the pandemic and just completely enhanced as we've moved out of the pandemic, helps our customers work through some destocking activities and we're now sort of back to a normal business relationship at this point with order books more, I guess, relatable to the end consumer demand for those products. Speaker 100:44:58Yes, George, the only other thing I would add to that is, yes, assets have changed hands, but I think the market capacity is relatively well balanced. And in our particular case, we've talked about some of the cost outs that we're doing as well. So I think that with the backdrop of the long term contracts keeps the market pretty well organized and stable. Speaker 500:45:24Yes. No, good points. I mean, I wasn't suggesting people are adding capacity, but as assets change hands, relative return thresholds can change. And certainly the long term relationships you've had and the way you've gone about with near site and on sites has served you well. I think I know what you're going to say and certainly it's been a success story over the last few years. Speaker 500:45:50But with Vayner now, custom winds up being relatively well, all the businesses do, right? But custom winds up being 10% of the portfolio, I think, from an EBITDA standpoint. And correct me if I'm wrong in that rough number, I think, it's from your slides. How do you see the long term strategic fit of Custom Now, if at all differently versus where it was prior to Vayner? And is it just as simple as, hey, listen, it's a great franchise, it's doing well and nothing changes, then it's relative importance? Speaker 500:46:26And then my last question and I'll turn it over. We spent the last year and a half plus probably talking about destocking and the consumer being weak and alike and promotion is finally starting to have an effect, as we would have expected. Do you sense maybe now the scale is tipping other way where customers are having a restock? How would you answer that? Thanks guys. Speaker 500:46:50Good luck in the quarter. Speaker 100:46:52Yes, George, maybe I'll take the first part of that question relative to custom container and I'll leave the destocking commentary with Adam. But yes, look, I don't think there's anything that's changed about our view of the custom container business, right? I mean, 1st and foremost, right now we're focused on getting the Vayner deal closed and integrated. So that's where our time and attention is being spent at the moment. But I think if you look at the performance of the business, the custom container business, it's doing pretty well. Speaker 100:47:23Operationally, they're hitting on all cylinders. We've gotten to the commercialization activities that we were talking about. And as Adam pointed out, in the second case, got to it faster than what we were originally anticipating. So the business is performing and so we're happy about that. I think what we've said in the past and it still holds true that as long as we're not putting the business in a competitively disadvantaged position by constraining capital to it, which we're obviously not by taking on new business awards, then we like the business for what it is. Speaker 100:48:03And from that perspective, happy to have it as part of the portfolio. Speaker 300:48:08And then George, thinking about kind of destocking and any shifts there, I think we loosely commented in the Q1 that some of the volume gains we had seen particularly in custom containers, we thought might have been sort of related to the restocking activity and that's just where customers cut inventory too far and weren't able to support the market. So we saw a little bit of that in the Q1. I think there's a little bit of that in Q2. And I think in our dispensing and specialty closures segment, part of the capacity constraint we're seeing is our customers, I'll just say, challenge of forecasting that demand. So I think they got caught a little short on their inventory and that's now backing up to us trying to actually manufacture and mold parts in order to support their market. Speaker 300:48:58So we'll get through all of that, but sure there's a little bit of restocking and we'll just continue to watch that very closely as we kind of navigate through the remainder of 'twenty four and cycle against those destocking comps from last year. Speaker 500:49:14Thanks, Bob. Thanks, Adam. Good luck in the quarter. Speaker 300:49:18Thanks, George. Operator00:49:21At this time, I'd like to hand the call back to Adam Greenlee for any additional or closing remarks. Speaker 300:49:27Great. Thank you, Jennifer, and thanks, everyone, for your interest in Silgan, and we look forward to sharing our Q3 results later in the year.Read moreRemove AdsPowered by Conference Call Audio Live Call not available Earnings Conference CallSilgan Q2 202400:00 / 00:00Speed:1x1.25x1.5x2xRemove Ads Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Hill & Smith Earnings HeadlinesSilgan to Release First Quarter 2025 Earnings Results on April 30, 2025April 11, 2025 | gurufocus.comSilgan Holdings Inc (SLGN) Announces First Quarter 2025 Earnings Release Date | SLGN stock newsApril 11, 2025 | gurufocus.comIs it CRAZY to still want reliable profits, despite this market?Larry Benedict, the acclaimed "Market Wizard," is calling an emergency briefing now... The same Larry who – while everyone else watched their retirement get cut in half in 2008... Performed 103% better than the market. And the one who crushed the market by 4X during the COVID meltdown.April 16, 2025 | Brownstone Research (Ad)Silgan to Release First Quarter 2025 Earnings Results on April 30, 2025April 11, 2025 | businesswire.comBrokerages Set Silgan Holdings Inc. (NYSE:SLGN) Price Target at $64.22April 10, 2025 | americanbankingnews.comRBC Capital Sticks to Their Buy Rating for Silgan Holdings (SLGN)April 5, 2025 | markets.businessinsider.comSee More Silgan Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Hill & Smith? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Hill & Smith and other key companies, straight to your email. Email Address About Hill & SmithOur purpose is to create sustainable infrastructure and safe transport through innovation. Hill & Smith (LON:HILS) is an international group with leading positions in the supply of infrastructure products and galvanizing services to global markets. Through a focus on leading positions in niche markets we aim to consistently deliver strong returns and shareholder value. Supplying to, and located in, global markets the Group serves customers from facilities in Australia, India, Sweden, the UK and the USA, building a presence in international markets, where countries are upgrading or improving their infrastructure as their economies grow. A key feature of the Group’s chosen markets is the influence of heightened levels of regulation and health and safety considerations on development and growth. 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There are 12 speakers on the call. Operator00:00:00Good day, and welcome to the Siljan Holdings Second Quarter 2024 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Alex Hutter. Please go ahead. Speaker 100:00:12Thank you, and good morning. Joining me on the call today are Adam Greenlee, President and CEO Bob Lewis, EVP of Corporate Development and Administration and Kim Ulmer, SVP and CFO. Speaker 200:00:23Before we Speaker 100:00:24begin the call today, we would like to make it clear that certain statements made on this conference call may be forward looking statements. These forward looking statements are made based upon management's expectations and beliefs concerning future events impacting the company and therefore involve a number of uncertainties and risks, including, but not limited to, those described in the company's annual report on Form 10 ks for 2023 and other filings with the Securities and Exchange Commission. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in the forward looking statements. In addition, commentary on today's call may contain references to certain non GAAP financial metrics, including adjusted EBIT, free cash flow and adjusted net income or diluted share. Reconciliation of these metrics which should not be considered substitutes for similar GAAP metrics can be found in today's press release under non GAAP financial information in the Investor Relations section of our website atsiliconholdings.com. Speaker 100:01:21With that, let me turn it over to Adam. Speaker 300:01:23Thank you, Alex, and we'd like to welcome everyone to Silgan's Q2 2024 Earnings Call. The Q2 continued to display the strength of our portfolio with another quarter of strong financial performance in our businesses and significant progress towards our long term strategic objectives. We delivered 2nd quarter adjusted EPS above the midpoint of our estimated range with improving volume trends across all of our segments and strong operational and cost performance driving our results as the Silgan team remains focused on executing our plans for 2024 and beyond. After several quarters of destocking trends for our food and beverage products, we have we are particularly encouraged that our customers' order patterns appear to be returning to more normal levels and as expected have led to the positive inflection in our volume trends in the Q2. As demand for our product continues to recouple with what had been resilient end market demand, we expect this momentum to carry into the second half of the year. Speaker 300:02:23Additionally, we are pleased to have recently announced an agreement acquire Vayner Packaging, a best in class differentiated dispensing business with very attractive margins and strong organic growth that has all the hallmarks of our highly successful dispensing acquisitions in the past, including WestRock's dispensing business, Albea Dispensing, Gateway and UNICEF. Our capital deployment model is a key component of the Silgan value creation story and we're encouraged that after several years of M and A market challenges and macro uncertainty, during which time we were able to create value with outstanding performance and by returning capital to our shareholders, it now appears that value, earnings and return accretive transactions are becoming more actionable. We continue to believe that Silgan is advantageously positioned to win in this M and A market backdrop and create value for our shareholders as a result of our ability to act with speed and certainty, our long track record of achieving value enhancing synergies, our access to capital and our ability to rapidly deleverage as a result of our strong free cash flow. We're excited that Vayner represents such a clear cultural fit with our company and expect the combination to help drive incremental organic growth well into the future. Speaker 300:03:40Turning now to the 2nd quarter results for our segments. Our Dispensing and Specialty Closure segment delivered another quarter of strong results as demand for our global dispensing products remains at a high level with double digit volume growth driven by continued success in the marketplace. Our market leading innovation, manufacturing and service capabilities continue to drive demand for our products that outpaces market growth and in some cases currently exceeds our own ability to supply certain portions of the market. Consumer demand for our food and beverage products improved sequentially and year over trends also improved from the Q1 as our customers destocking activities appear to have come to an end and promotional activity has been more pervasive in the market for many of our beverage customers' products during the seasonal peak demand of the summer months. We are on track for stronger year over year trends in the food and beverage closures in the second half of the year as demand for our products more accurately resembles end market demand. Speaker 300:04:40In metal containers, our year over year volume showed growth driven by pet food and soup and we anticipate continued growth in these and other products for the remainder of 2024. We continue to make progress on our cost reduction initiatives during the quarter, but as expected, the impact of lower production and less inventory build in the 2nd quarter due to the previously discussed reduction in a large pack customer's plan for 2024 led to under absorbed fixed costs in the quarter that impacted our financial results. Our Custom Containers segment delivered strong results in the 2nd quarter with 7% volume growth as a result of improving market demand, the successful commercialization of new business in the 1st quarter and the early commercialization of the 2nd new business award in the Q2. Turning now to our outlook for the full year of 2024. We continue to believe the business is positioned to deliver volume and profit growth and are pleased to confirm our estimates for the year, which includes EPS growth of 7% at the midpoint of our guidance range. Speaker 300:05:44We continue to expect dispensing and specialty closures volumes to grow by a mid single digit rate with high single digit growth in our dispensing products and low single digit growth in our closure products, driving better profitability for the segment through an improved mix. In metal containers, we continue to expect volume growth with mid single digit growth in pet food, which represents approximately half of our total volume, offset by lower fruit and vegetable volumes as a result of the previously discussed decision by a pack customer to reduce their volumes in 2024 to reduce their working capital. In addition to the unfavorable fixed cost absorption in our system we experienced in the 2nd quarter, the impact of growth in pet food and fewer than normal vegetable can sales will drive a less favorable mix in the 3rd quarter. Custom containers volumes are expected to grow by lowtomidsingledigit percentage as destocking trends appear to have concluded. Market demand remains solid and new commercial awards continue to provide incremental volume and profit contribution through the year. Speaker 300:06:52We are encouraged we are on track to deliver another year of strong financial results for the company with success in our strategic growth initiatives driving tangible improvements in our results. Additionally, we're pleased that our capital deployment model continues to yield opportunities to grow our company at attractive returns and drive organic growth and margin improvement. With that, Kim will take you through the financials for the quarter and our estimates for the Q3 and full year of 2024. Speaker 400:07:18Thank you, Adam. As Adam discussed, we delivered strong results in the Q2 that were consistent with our expectations with adjusted EPS above the midpoint of our expected range. Net sales of approximately $1,400,000,000 declined 3% from the prior year period, driven primarily by the pass through of lower raw material costs, mostly in our metal containers business. Total adjusted EBIT for the quarter of $165,000,000 increased by 3% on a year over year basis, primarily due to higher volume in each of the segments. Higher adjusted EBIT in dispensing and specialty closures and custom containers offset expected lower adjusted EBIT in the metal container segment. Speaker 400:07:57Adjusted net income per diluted share was $0.88 a 6% increase from $0.83 in the prior year quarter with higher adjusted EBIT and lower interest costs partially offset by a higher tax rate. Turning to our segments. Sales in our dispensing and specialty closures segment increased 1% versus the prior year quarter, primarily as a result of higher volume mix of 3%, which was partially offset by the pass through of lower raw material costs and unfavorable foreign currency. The increase in volume mix was driven primarily by double digit growth in dispensing products and favorable mix. 2nd quarter dispensing and specialty closures adjusted EBIT increased $16,000,000 versus the prior year period driven by favorable price cost, partially as a result of the prior year impact from labor challenges that limited output at a U. Speaker 400:08:43S. Food and beverage closures facility and improved volume and mix. In our metal container segment, sales declined 8% versus the prior year quarter, primarily due to the pass through of lower raw material costs, which was partially offset by higher volumes of 1%. As expected, metal containers adjusted EBIT was below the prior year quarter due to the impact of unfavorable price cost including mix as a result of lower fixed cost absorption from a significantly lower inventory build for the fruit and vegetable pack due to the previously discussed reduction in pack plans of a large fruit and vegetable customer to reduce its working capital. In custom containers, sales increased 6% compared to the prior year quarter, driven by a 7% increase in volumes as a result of stronger market demand and the early commercialization of the 2nd new business award during the quarter. Speaker 400:09:32Custom Containers adjusted EBIT increased $4,000,000 as compared to the Q2 of 2023 driven by higher volumes. Looking ahead to 2024, we are confirming our estimate of adjusted net income per diluted share in the range of $3.55 to 3 point 7% increase at the midpoint of the range as compared to $3.40 in 2023. This estimate includes corporate expense of approximately $30,000,000 excluding costs for announced acquisitions, which is above our prior year our prior estimate of $25,000,000 due to higher legal and corporate development costs. Also included in the adjusted EPS range for 2024 are interest expense of approximately $165,000,000 an adjusted tax rate of 24% to 25% and a weighted average share count of approximately 107,000,000 shares. From a segment perspective, mid single digit percentage total adjusted EBIT growth in 2024 is expected to be driven primarily by the dispensing and specialty closures and custom container segments, with the metal container segment adjusted EBIT below the prior year record level, primarily due to the previously discussed reduction of pack plans by a large fruit and vegetable customer. Speaker 400:10:41Based on our current earnings outlook for 2024, we are confirming our estimate of free cash flow of approximately $375,000,000 with CapEx of approximately $240,000,000 in 2024. Turning to our outlook for the Q3 of 2024, we are providing an estimate of adjusted earnings in the range of $1.20 to $1.30 per diluted share as compared to $1.16 in the prior year period. The 8% year over year improvement in adjusted earnings in the 3rd quarter at the midpoint of the range is driven primarily by improving volume trends, cost reductions and strong operating performance in each of the segments, partly offset by a less favorable mix in our metal container segment. 3rd quarter adjusted EBIT is expected to be above prior year levels in dispensing and specialty closures with improved volumemix and price cost. 3rd quarter metal container volumes are expected to be above the prior year level, while adjusted EBIT is expected to be below Q3 2023. Speaker 400:11:38The year over year decline in metal containers adjusted EBIT is driven by a less favorable mix predominantly due to lower than normal vegetable can sales with the previously expected to be above prior year levels as a result of low to mid single digit volume growth. That concludes our prepared comments and we'll open the call for questions. Jennifer, would you kindly provide the directions for the question and answer session? Operator00:12:10Thank We'll go first to Ghansham Panjabi with Baird. Speaker 200:12:40Yes. Hey, guys. Good morning. I guess on dispensing and specialty closures, I know you sell into a bunch of different end markets and so on. But a lot of the companies that have reported on the consumer discretionary side, Health and Beauty and Fragrance, etcetera, they're pointing towards some level of a slowdown just given tougher comparisons and obviously mixed consumer spending. Speaker 200:13:01And I know you're lapping the destocking comps and so the optics are favorable, etcetera. But can you give us a better sense as to what's going on in the market from your vantage point at this point? Speaker 300:13:12Sure. And I think we see a lot of the same reports and trends out in the marketplace. I think you really have to focus on where we choose to compete and win in the markets that we're serving. So I think fragrance and beauty is a great place to start. And we really don't participate in the mass market fragrance and beauty. Speaker 300:13:32I know we've talked about that over time. But where we are very successful and where we continue to win new business in the fragrance and beauty side is at the very high end of that market. And that market continues to perform and do well, has new product launches. And I do think Ghansham, we're winning probably a disproportionate amount of the new product launches just given our performance over the last, call it, 4 or 5 years. So we feel really good about that. Speaker 300:13:59And I think we talk about the power of our portfolio that it is a broad I mean, you said it yourself, it's a broad base of markets and products that we take the market and we serve the markets with. So I think over time, if you go back over, call it, the last 5 years, you've seen continued strength from Silgan, but maybe strength in different markets as we have worked through the last 5 years. So lawn and garden is really good right now. We've got aerosol business that has, I'd say, more than fully recovered from what we were dealing with in destocking days. Our trigger sprayers are doing exceptionally well right now and have fully recovered. Speaker 300:14:38So I just maybe to try to give you a couple of examples there. And in all fairness, that's more than offsetting sort of the continued, I think, challenged market that we're seeing in our food and beverage products. Again, they're recovering, but they have not recovered to the same level as some of the other markets that I just described. Speaker 200:15:00Got it. And then in terms of consumer promotional activity, I mean, obviously, there's been many levels of theorization and it's we're seeing some initial signs just based on some of the other reports. But as you think about your end markets between North America and Europe, are you seeing a sustainable trend there? Or is it still just a minor relative to last year? Speaker 300:15:19Well, I think it's a positive to last year. I'll give you a couple of examples. I think the targeted promotional activity in our food business has been very successful, but it's on a targeted basis. So it hasn't lifted the entire category. I'll give you another example. Speaker 300:15:36In our aerosol business on dispensing and specialty closures, there was a lot of activity on the promotional side for aerosol and this is for kind of air care and home care products, etcetera. And we saw it drive growth and I think the market saw growth in that category as well. So I think we're still optimistic. As we think about the remainder of this year, I think promotional activity is going to be important. I think the success of that promotional activity will be important as well. Speaker 300:16:07But for us and our business, I think we're seeing more of it and we're seeing it be very effective when it's targeted. I'd also finish Ghansham with the fact that we're in the middle of the summer months and our beverage business typically does well when there's warm weather and we need to see that promotional activity driving growth through the summer months as well. Speaker 200:16:29Okay, fantastic. Thank you, Adam. Speaker 300:16:31Thank you. Operator00:16:34We'll go next to George Staphos with Bank of America. Speaker 500:16:39Hi, everyone. Good morning. Thanks for the details and for taking the question. I guess first question, maybe I'll switch gears and we'll talk about metal a bit. And the commentary that you had in the Q1 was matched with performance in 2Q. Speaker 500:16:56But in terms of what your EBIT expectations were and volume expectations, did the quarter go pretty much as planned in metal as you'd expected? Was it better? Was it worse? And if you could fill in some of the gaps here, that'd be great. Secondly, and you've touched on this in the past. Speaker 500:17:13To the extent that the metal container business in North America continues to evolve and pet keeps getting bigger, broadly can sizes keep getting smaller as a result. We've seen the fruit market shrink significantly. What's next in terms of how you optimize that business relative to the way it's going to evolve in the next 2 to 4 years? Whatever you can share there would be great. Speaker 300:17:45Okay. Well, thanks, George. The quarter and the second quarter just maybe slightly below our expectations just in the metal container segment. And really, the impact on our network of the volume decline due to the one pack customer that's reduced their volumes for 2024 was significant. It basically accounts for most of the entirety of the year over year change in the business. Speaker 300:18:16So think about our business and we sorry, George, we are fully utilized between Q2 and Q3 and where our additional capacity exists is really in Q1 and Q4. So the utilization rates are always very, very high in Q2 and Q3 And that's where we took the volume out as again, you think about the pack volume. Basically, those cans need to be ready at the end of Q2 to sell in Q3 when our customers need them. So it was an outsized impact. And in fairness, we probably underestimated what that impact was just by a few $1,000,000 as we came into the quarter. Speaker 300:18:59So then I think about when you move forward and kind of what's next, you mentioned fruit as a product that moved away from the can into an alternative package. And what we've consistently said, George, is that the products that are essentially processed in the can are really what's left in the can these days. So we think there's dry products have moved because it didn't require a can for processing fruit was a very similar example. But what's left in a food can and particularly wet pet food, which as you mentioned, is over half of our volume is growing. I look back over the last 5 years as an example and our pet food volumes are up about 20%. Speaker 300:19:46So call it right in that mid single digit kind of range. And that's how I would talk about metal containers. Speaker 500:19:56Right. So with that, does that maybe not tomorrow, but over the next few years mean that you'll look to adjust the network again? I'm not necessarily saying plant closures, but just what do you need to do from a converting standpoint and network as that market evolves? And just quickly on Q3 and I'll turn it over. Yes, it will be lower, I think you said, but we're still talking about triple digits in terms of dollars for EBIT, right? Speaker 500:20:27We're not going back to some of the few years ago where we had some weaker quarters there. Thanks and good luck in 3Q. Speaker 300:20:37Thanks, George. And yes, you're right on Q3. I think as you think about what our next steps are in metal containers, I mean, look, we've got half of the business that's growing, half of the business that we are investing to support our customers' growth in pet food. So we've got a very optimized platform and I think a very low cost platform, certainly on that side of the business. And I think when you think about the balance of the business, the other, call it, less than 50%, we do have the announced cost reduction initiative. Speaker 300:21:09That's not just about closing plans. That's also about just driving cost out of the business. And I think one thing I will absolutely say, particularly about our metal containers business, is they've been terrific at driving cost out of their business. And that's absolutely what we're going to continue to do on that part of the business that's not pet food. Speaker 500:21:31Okay. Thanks. I'll turn it over. Operator00:21:36We'll go next to Anthony Pettinari with Citi. Speaker 600:21:42Good morning. This is actually Brian Bergmeier on for Anthony. Thanks for taking the question. Adam, in the prepared remarks, you sounded maybe quite a bit more optimistic on M and A opportunities than you had previously. I guess, can you remind us where your pro form a leverage is going to be by the end of this year? Speaker 600:22:04And is it accurate to say that heading into 2025, Silgan could have a pretty full pipeline of accretive deals? Speaker 100:22:16Yes. This is Bob. I'll jump in on that one. I think you read it pretty well. Our balance sheet right now is as we come through the pack season and into the end of the year, we should be just below the high end of our range. Speaker 100:22:32And I'll remind you that that range is 2.5 times to 3.5 times on a net debt basis. So comfortably within what our normal operating range is, right now we're focused on completing the acquisition of Vayner and then the integration. But that does not at all mean that we're slowing down in terms of paying attention and looking at investment opportunities in the particularly in the dispensing space. So I think you got it right that the balance sheet allows us the opportunity to look. I think we think the market is to our benefit right now, given our access to capital, given our ability to move swiftly and with certainty. Speaker 100:23:19So I think all those things coupled with a market backdrop that may not be so favorable for some of the other institutions that we might be competing with for potential targets. So I do think that now we're in a pretty good period from a structural perspective as well as the backdrop of the market. And again, our focus will be largely around continuing to build out the tip of the spear around the dispensing and specialty closure side of the business. Speaker 300:23:49I think the only thing I would add to that is that the pro form a EBITDA with Vayner, we're talking about over $1,000,000,000 Just the capacity to do more is greater today at Silgan than it was, call it, 5 or 10 years ago. Speaker 600:24:07Got it. Got it. Thanks for that detail. And then maybe just kind of switching to custom containers. Are we looking for more quarter over quarter EBIT growth in 3Q and into 4Q? Speaker 600:24:22I guess, can you remind us how the business wins are going to be kind of layering on in the second half of the year and maybe any change in assumptions for price cost? Thanks. I'll turn it over. Speaker 300:24:35Sure. Look, the business has done a nice job. We've continued to win new awards. The story for this year in Custom Containers was really about the 2 large awards. The first one was commercialized in the Q1 and we had identified the second one to be commercialized, call it, mid year. Speaker 300:24:53So we had it in our business, call it, Q3. The team did a great job, worked with the customer. We're able to commercialize that early and we saw the benefits of that in Q2. So being disciplined and thoughtful about how many big pieces of businesses that we take on, those were the 2 big items this year. We're continuing to win other new business awards all the time. Speaker 300:25:18I think as you look at the sequential quarter, so going from Q2 to Q3, I think it's actually more important to look at the prior year. So I think we'll see nice growth versus the prior year, both from a volume perspective and from a profit perspective. But I think that the seasonality of our custom container business is definitely more weighted to the first half and you'll see that again in 2024. Operator00:25:53We'll go next to Gabe Hajde with Wells Fargo. Speaker 700:25:58Adam, Kim, good morning. Adam, I think in your prepared remarks, you talked about bumping up against maybe some capacity constraints in DSC. I know some of it might require some new molds, maybe pieces of equipment and then maybe some assembly lines if it's for more of the true dispensing components. I'm just curious, is that true? And then would you have to expand brick and mortar or is it within the wallet of call it $250,000,000 of base CapEx for legacy Silgan? Speaker 300:26:40Sure, Gabe. I would say the last part of that's the easy part. So that's absolutely considered in our total CapEx. We're not talking about new facilities or anything at this point. This really is more to your first point. Speaker 300:26:53This is it's more about the molding side. So assembly and other parts were just fine. This is about getting the right molds into the right machines that we already have in place. And frankly, it's just the output of customers being surprised, I think, at the demand levels that they're seeing for some of their products. And that's what we're reacting to. Speaker 300:27:15So I think unfortunately some orders came in late as there was a surprise element for our customers. And we're doing all we can to support their growth and get those additional products into the market. So much more about the molding side and really specific to kind of tooling at this point. Speaker 700:27:36Okay. That's it for me. Thank you. Speaker 300:27:38Thank you. Operator00:27:41We'll go next to Matt Roberts with Raymond James. Speaker 500:27:45Hey, good morning everybody. Thank you for the time. Speaker 600:27:49On the DSC segment, so the margin came in strong in the quarter with destocking ending. I think that the mix shift would have to move a little bit towards lower margin items later in the year. So could you discuss how you expect volume and mix shift in the category to evolve between 3Q and 4Q? I mean, double digit growth in dispensing is impressive, but I imagine as a function of math that just has to taper at some point. So trying to see how you're planning for 3Q and 4Q there? Speaker 300:28:23Yes, it's a really good question, Matt. And look, you're right, we've got the double digit growth in dispensing products. So that obviously is going to drive the margin for the segment. But when you think about kind of the food and beverage side of the business, number 1, we've got the cost out. So that's an important element. Speaker 300:28:40Number 2, you've got kind of a year over year comp versus last year as well when we had a challenge in kind of the Q2 through Q4 period for one of our food and beverage facilities in the U. S. Market. So we solved that one before the end of last year. You've got the cost outs on the food and beverage side. Speaker 300:28:59So I think margins actually should continue to move up as we kind of work our way through the second half of the year in the DSC segment. Speaker 600:29:10Okay. That's helpful. Thank you. And then maybe along the same lines, but looking a little farther out. So given the growth in that business plus the incremental margins you have coming from Vayner next year, is there an appropriate margin target to shoot for longer term within that segment or any brackets that you kind of internally think about? Speaker 600:29:32Thanks again for taking the questions. Speaker 300:29:34Sure. Yes, we talked about on the when we announced the Vayner acquisition that we thought Vayner came through and added roughly 100 basis points of margin expansion to the segment. So I think as we think about continuing growth in the dispenser side of the business, that's more like a 25% EBITDA margin rate. So as we continue to grow out dispensers, it will impact the overall margin for the segment. Speaker 600:30:08Thanks again, Adam. Speaker 300:30:10Thank you. Operator00:30:12We'll go next to Mike Roxlund with Truist Securities. Speaker 800:30:19Yes. Thanks, Adam, Kim, Bob and Alex for taking my questions and congrats on a great quarter. Right. Just want to follow-up on the food and beverage volumes improving. How does your comments on food and bev relate to the metal European closures and how that's going? Speaker 800:30:38That was a headwind for you last year. Has demand improved there as well as European inflation has moderated? And you're seeing some more growth from some of the bev can guys in Europe as consumers have come back. So I'm wondering that's parlayed also into food can into those metal quarters. Speaker 300:31:00Yes. Actually, it has, Mike. So we've seen stability really more from our food and beverage business and the European market. And just to be very candid, that it was a very difficult year last year for the business. So we've seen improvement off of an easy comp, if you will, but we've also seen stability. Speaker 300:31:21So I think that's the important part. And we're seeing some nice volume growth year over year just because we're getting back to a more stable environment in the European market. Speaker 800:31:35Got it. And then just in terms of metal containers, EBIT for 2025, I know you haven't brought any guidance yet, but I believe the same customer you keep referencing expects to continue bringing down their working capital next year to drive leverage lower. So how should we think about EBIT MELTACANES EBIT next year as well? Speaker 300:31:56Well, I think just on a larger scale, I mean nothing's changed about our long term thesis as it relates to metal containers. So as you try to get a little more detail about 2025, we're not even close to a budget cycle yet. So I wouldn't really want to offer anything from that perspective. We're working very closely with that customer to help them achieve their working capital goals this year. And our understanding is that it was going to be a 1 year program and discrete. Speaker 300:32:26But props are in the ground right now. We don't have a pack plan yet for next year. So we'll be happy to talk about that as we get closer to the end of the year. Speaker 800:32:38Thanks very much and good luck in the second half. Speaker 300:32:42Thank you. Operator00:32:45We'll go next to Daniel Rizzo with Jefferies. Speaker 900:32:49Hi, guys. Thanks for taking my questions. But just to follow-up on that last point, that customer is going to be destocking or reducing their working capital going into 2025. That is the plan that they the idea they relate to you guys? Speaker 300:33:04Well, I think it's their fiscal 2025, just for clarity. So we're already in fiscal 2025 for them right now. So we're talking about a calendar year 'twenty four for Silgan. Speaker 900:33:18Okay. That's helpful. And then have you ever I mean is there a large margin difference between soup and pet food versus food and beverage in metal containers like in terms of product mix? Speaker 300:33:31No, not really. I think it's pretty consistent across the board. I mean from a margin rate perspective, I mean we talk a lot about mix now as pet food continues to grow. And you think about the smaller can size supporting the pet food market versus kind of our standard vegetable and maybe even institutional vegetable can sizes. There it's just the margin dollars that are delivered to Silgan are less just but the margin rate is very consistent across the business. Speaker 900:34:01Okay. And then final question. You mentioned something in the prepared remarks about the strength of sales in dispensing products. I mean, you talked a lot about that, but dispensing products around the world. I was wondering if you're running into a situation where you're kind of sold out of certain products you may need more capacity. Speaker 900:34:18Is that the case anywhere? Speaker 300:34:21Yes. It's I'm going to start with the end of your comment. So yes, we are adding capacity in our dispensing business and have been for several years to support the growth in that business. And I'll go all the way back to when we acquired the WestRock dispensing business. We've been allocating quite a bit of capital to that business to support their growth and I think you can see that not only in their volume numbers, but in the bottom line of the segment as well. Speaker 300:34:47So yes, backing up into your question, there are certain categories where we are very tight on capacity in some cases as we mentioned that we've got orders exceeding capacity for certain products and we are working hard to address that. This is a global business for us. So the first thing we do is we look at our own network for potential solutions from other geographies. And in some cases, we've executed upon that. We've also just, again, tried to add short term capacity on the molding side to get customers the products that they need to support the markets that they're serving. Speaker 300:35:25So it's a really good problem to have, Dan. And I think we're working very closely with our customers to address those needs. And most of that is covered under our long term contracts. So these are really good investments for our company and we'll continue to make them. Speaker 900:35:41Thank you very much. Operator00:35:46We'll go next to Jeff Zekauskas with JPMorgan. Speaker 1000:35:52Thanks very much. Was price cost favorable in the quarter? And if so, by how much? And what's price cost been for the first two quarters? Speaker 300:36:06And Jeff, are you to a specific segment with the question on price cost? Speaker 1000:36:11No, for the whole company. Speaker 300:36:14Okay. Speaker 1000:36:14For the consolidated results. But if you want to go through the individual segments, that's great. Speaker 300:36:20Okay. Well, how about this? I think price cost, we've talked a lot about the metal container segment with the under absorption of the fixed cost base there. So that was negative for us in the quarter. You think about the resin based businesses both in dispensing and specialty closures and in custom containers, really there wasn't a whole lot of variance on the price cost line, so not much of an impact. Speaker 300:36:46But for the total company, the significance of the metal containers item drove entirely for the business kind of a slight negative in the quarter. Speaker 1000:36:58Maybe if I can ask it differently. Why did your cost of goods sold go down faster than your sales change? Speaker 300:37:09Well, we have raw material on the metal side in particular that is declining year over year. That's getting passed through to our customer. So it might just be the timing of when those costs hit our P and L versus when the product is sold. Again, think of a more seasonal side of our business like the metal container side on the fruit and vegetable pack is just one example. Speaker 1000:37:36If you exclude the inventory readjustment, how was price cost in the metals business? Speaker 300:37:46I would say it's relatively neutral. The single largest item on the P and L is this item of under absorbed fixed costs. Operator00:38:03We'll go next to Arun Viswanathan with RBC Capital Markets. Speaker 1100:38:10Great. Thanks for taking my question. I just wanted to clarify maybe I misheard your earlier comments. Food Bev, obviously the destocking has ended, but we're kind of seeing some mixed signals in the scanner data. What are you guys seeing, I guess? Speaker 1100:38:29We have seen some improvement in private label. We've seen some improvement in some at home categories, but others are still a little sluggish. Did you say earlier that you're not seeing that improvement yet? And I guess, what's your outlook as you look into the back half of the year? Do you think promotional spending should continue to increase and that maybe would drive some improvement in food beverage markets? Speaker 1100:38:53Or how are you thinking about underlying demand trends there? Speaker 300:38:57Yes. I think our underlying demand has been very resilient for those products and not just in 2024 and prior periods as well. And the destocking activity was much more related to the activity that our customers level, not necessarily the market. So for our Food and Beverage business, I would just say we've seen nice year over year recovery, again, off of the destocking periods of the prior year. But as we then turn to the back half of the year, we're expecting more of that. Speaker 300:39:28So we are expecting volume growth year over year in our food and beverage businesses, plural, for the second half of the year. That's both metal containers and on the closure side for our food and beverage business. And then to your last question Speaker 1100:39:43And then thanks for that. Speaker 300:39:45Yes, just in quickly around the promotional activity. We do think that's an important part. We do think the targeted activity has been successful and are looking for more of that with our customers as we head through the remainder of 2024. Speaker 1100:40:02Great. Thanks. And there's been a lot of volatility over the last 2 years between destocking and customer actions. So I guess maybe would 25 be a more normal environment? And when Speaker 500:40:18you think Speaker 1100:40:18about that, maybe we could just get some initial thoughts of how you're thinking about that business. It looks like Wehner will definitely improve your overall growth profile with more contribution from closures. And so do you think kind of low to mid single digit, and I think that's kind of what you were laying out, top line growth is really possible. And then what kind of leverage would you get on that as you walk down into the EBIT line? Speaker 300:40:52Thanks. Sure. Well, I do think it's a little bit too early to start talking about 25%. But I think from a normalized perspective, we can probably help with maybe some of the building blocks as far as maybe the earnings power of the business going forward. So I think I'd start with, first off, Arun, nothing has changed about the thesis that we have as far as our 3 segments and their growth profiles going forward. Speaker 300:41:17So I think that's an important point. On the Vayner call last week, we did point to 10% EPS accretion and that's once we achieve the full synergies and I think we said something like 18 months is when we would get the synergies in. So those are the 2 important points as we go in. I would also say this large vegetable fruit and vegetable customer that's impacting 2024, that should normalize. We think that's a discrete item, but we don't have a pack plan for next year. Speaker 300:41:51So I think on top of Vayner, I would just point you to kind of the longer term thesis that we have on top of the cost savings initiatives that we've implemented that we think we've got not only clear line of sight, but great confidence in delivering not only in 'twenty four, but in 'twenty five as well. Speaker 1100:42:13Great. Thanks. Speaker 800:42:15Thank you. Operator00:42:17We'll go next to George Staphos with Bank of America. Speaker 500:42:22Hi, everyone. Thanks for taking the follow on. Adam, can you talk at all to whether customers are maybe using perhaps let me say differently, let me start differently. How are customers evaluating performance in metal packaging from what you can see from the suppliers? Have the KPIs changed in terms of how you're being evaluated now versus say 2, 3 years ago? Speaker 500:42:51And relatedly, are you sensing any change? Because again, you've seen some of the assets change hands in recent years. Has there been any kind of move in that regard because it's become more competitive recognizing it's always a competitive business? So how are customers evaluating performance here perhaps differently, perhaps the same versus a couple of years ago, any change in the competitive footing? Speaker 300:43:16Yes, it's interesting. I think on the metal container side, obviously, when you think about Silgan's business, so much of it's under long term contract. So call it 90%. We're deep in those relationships. We're with our customers and their production planning meetings. Speaker 300:43:34And really none of that's changed. We're near site in many cases. We're on-site in many cases. So I just I think our metrics, George, really haven't changed a whole lot. So I am trying to think about broadly if the market has changed. Speaker 300:43:49And I'm not really aware of anything that I would say has impacted how our customers or the market value suppliers at this point. So I'll just say maybe we were advanced in our relationships and our metrics because we are on-site and near site and maybe others are catching up to that now, I don't really know. But I think our relationships are as good, as strong as they've ever been. And I think that also helps answer the second part of your question on the competitive front. Again, really we're not seeing any change in competitive activity on the Silgan side of the equation. Speaker 300:44:25Again, long term contracts, protecting the vast majority of our business with very, very deep relationships. I think that we're really secured through the pandemic and just completely enhanced as we've moved out of the pandemic, helps our customers work through some destocking activities and we're now sort of back to a normal business relationship at this point with order books more, I guess, relatable to the end consumer demand for those products. Speaker 100:44:58Yes, George, the only other thing I would add to that is, yes, assets have changed hands, but I think the market capacity is relatively well balanced. And in our particular case, we've talked about some of the cost outs that we're doing as well. So I think that with the backdrop of the long term contracts keeps the market pretty well organized and stable. Speaker 500:45:24Yes. No, good points. I mean, I wasn't suggesting people are adding capacity, but as assets change hands, relative return thresholds can change. And certainly the long term relationships you've had and the way you've gone about with near site and on sites has served you well. I think I know what you're going to say and certainly it's been a success story over the last few years. Speaker 500:45:50But with Vayner now, custom winds up being relatively well, all the businesses do, right? But custom winds up being 10% of the portfolio, I think, from an EBITDA standpoint. And correct me if I'm wrong in that rough number, I think, it's from your slides. How do you see the long term strategic fit of Custom Now, if at all differently versus where it was prior to Vayner? And is it just as simple as, hey, listen, it's a great franchise, it's doing well and nothing changes, then it's relative importance? Speaker 500:46:26And then my last question and I'll turn it over. We spent the last year and a half plus probably talking about destocking and the consumer being weak and alike and promotion is finally starting to have an effect, as we would have expected. Do you sense maybe now the scale is tipping other way where customers are having a restock? How would you answer that? Thanks guys. Speaker 500:46:50Good luck in the quarter. Speaker 100:46:52Yes, George, maybe I'll take the first part of that question relative to custom container and I'll leave the destocking commentary with Adam. But yes, look, I don't think there's anything that's changed about our view of the custom container business, right? I mean, 1st and foremost, right now we're focused on getting the Vayner deal closed and integrated. So that's where our time and attention is being spent at the moment. But I think if you look at the performance of the business, the custom container business, it's doing pretty well. Speaker 100:47:23Operationally, they're hitting on all cylinders. We've gotten to the commercialization activities that we were talking about. And as Adam pointed out, in the second case, got to it faster than what we were originally anticipating. So the business is performing and so we're happy about that. I think what we've said in the past and it still holds true that as long as we're not putting the business in a competitively disadvantaged position by constraining capital to it, which we're obviously not by taking on new business awards, then we like the business for what it is. Speaker 100:48:03And from that perspective, happy to have it as part of the portfolio. Speaker 300:48:08And then George, thinking about kind of destocking and any shifts there, I think we loosely commented in the Q1 that some of the volume gains we had seen particularly in custom containers, we thought might have been sort of related to the restocking activity and that's just where customers cut inventory too far and weren't able to support the market. So we saw a little bit of that in the Q1. I think there's a little bit of that in Q2. And I think in our dispensing and specialty closures segment, part of the capacity constraint we're seeing is our customers, I'll just say, challenge of forecasting that demand. So I think they got caught a little short on their inventory and that's now backing up to us trying to actually manufacture and mold parts in order to support their market. Speaker 300:48:58So we'll get through all of that, but sure there's a little bit of restocking and we'll just continue to watch that very closely as we kind of navigate through the remainder of 'twenty four and cycle against those destocking comps from last year. Speaker 500:49:14Thanks, Bob. Thanks, Adam. Good luck in the quarter. Speaker 300:49:18Thanks, George. Operator00:49:21At this time, I'd like to hand the call back to Adam Greenlee for any additional or closing remarks. Speaker 300:49:27Great. Thank you, Jennifer, and thanks, everyone, for your interest in Silgan, and we look forward to sharing our Q3 results later in the year.Read moreRemove AdsPowered by