Beer can maker, Ball Corp, missed quarterly sales expectations on Friday as it was hit with slowing demand for its cans.
Demand slowed as customers become more frugal with their spending in the face of inflation and high living costs.
Ball Corp – the world’s largest supplier of beer cans – is navigating a complex economic landscape.
Shoppers have adjusted spending habits, focusing on essentials over discretionary goods such as beer.
The combination of inflationary pressures on consumers and companies’ shifting price actions have led to significant volatility within the market.
In the company’s key markets such as the US and Europe, increased retail prices have led to decreased consumer spending, presenting significant challenges for Ball Corp.
Its quarterly net sales fell by 3.5% to $2.87 billion, below the $3.23 billion expected by analysts according to data from the London Stock Exchange Group (LSEG).
The drinks sector remains under pressure as budget-constrained customers have reduced their consumption of specialty beverages.
Bottled beer and other drinks, which tend to be more packaging intensive, have struggled as shoppers remain cautious of spending.
However, Ball Corp earned comparable profit of 68c per diluted share in the three months ending 31 March.
This exceeded LSEG estimates of 56c per share.
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