Ardagh saw revenue decline by 11% in its glass operations in the first three months of the year.

In its latest financial note it said its glass packaging business sales were seasonal in nature with demand typically always lower after the Christmas period.

For Ardagh Glass Packaging Europe & Africa, revenue decreased by $47 million, or 7%, to $644 million in the three months ended March 31, 2024, compared with $691 million in the same period last year.

For Ardagh Glass Packaging North America, revenue decreased by $48 million, or 11%, to $386 million in the three months ended March 31, 2024, compared with $434 million in the same period last year.

The container glass manufacturer blamed pass through of lower input costs to customers, as well as slightly unfavourable volume/mix effects.

In its Quarter 1 2024 financial statement it reported exceptional costs of $2 million at Ardagh Glass Packaging North America related to fire and storm damage during the quarter and $1 million of other costs in Ardagh Glass Packaging Europe & Africa.

Ardagh Glass Packaging North America reported a gain of $6 million related to the disposal of a former production facility, while it also reported $3 million of costs, primarily in respect of trade matters.

In the note it said: “Beverage and food end market sales within our glass packaging business are seasonal in nature, with strongest demand for beverage market sales during the summer and during periods of warm weather, as well as the period leading up to holidays in December.

“Accordingly, Ardagh Glass Packaging’s shipment volumes of glass containers is typically lower in the first quarter.

“Ardagh Glass Packaging builds inventory in the first quarter in anticipation of these seasonal demands.

“In addition, Ardagh Glass Packaging generally schedules shutdowns of its production facilities for furnace rebuilding and repairs of machinery in the first quarter (for Europe and North America) and in the second quarter (for Africa).

“These shutdowns and seasonal sales patterns adversely affect profitability in Ardagh Glass Packaging’s glass manufacturing operations during the first quarter of the year.

"The timing and extent of production facility shutdowns may also affect the comparability of results from period to period.

“Ardagh Glass Packaging’s working capital requirements are typically greatest at the end of the first quarter of the year.”