Ball Corp fell short of Wall Street estimates for second-quarter revenue on Thursday as the world's largest supplier of beer cans was hit by sales disruption at a major brewer.
Anheuser-Busch Inbev, which accounted for 13% of Ball's consolidated net sales in 2022, has seen a drop in U.S. sales of its Bud Light beer following a conservative backlash over a promotion involving a transgender influencer.
Revenues in the U.S. declined by 10.5% in the second quarter, the Bud Light maker said earlier on Thursday.
The aluminum packaging company is also navigating slowing demand as companies struggle with consumers cutting down on discretionary spending in the face of higher prices, interest rates and rentals.
Global beverage can shipments fell about 5% during the quarter, Ball said, while volumes declined 8.5% in its North and Central America segment.
The company's second-quarter revenue tumbled 13.7% to $3.57 billion, compared with estimates of $3.83 billion, according to IBES data from Refinitiv.
However, cost reduction initiatives helped it post an adjusted profit of 61 cents per share, compared with expectations of 59 cents.
In June, the packaging company said it was considering options for its aerospace business, which provides sensors and antennas for defense, days after Reuters reported that it was looking to sell the unit for more than $5 billion.
Ball also expects to achieve the low end of its long-term comparable diluted earnings per share growth of 10% to 15% in 2023.
(Reporting by Granth Vanaik in Bengaluru; Editing by Sriraj Kalluvila)
