Ardagh Metal Packaging (AMP) reports that shipments of its beverage cans in Europe were up in the second quarter, adding further evidence of a recovery in the region’s can market.

The Luxembourg-based canmaker said the volume of aluminium cans that came off its 12 production lines in Europe in the three months to the end of June jumped 5% after slipping 10% in the previous quarter. The canmaker attributed the turnaround to rising demand for beer and carbonated soft drinks during a busy summer of sporting events, which include the European soccer championships held in Germany, and this year’s Paris-hosted Olympics.

European beverage brands are boosting canmaker earnings this year after depleting stocks more sharply than expected last year. AMP competitor Crown also experienced a turnaround in Europe, and continues to benefit from an improving regional economy and regulatory measures to reduce the use of plastics in packaging.

Worldwide AMP operates 23 plants, from which production climbed 3% in the second quarter. That was dragged down by a 7% slide in Brazil where seasonal effects came into play, AMP said. In the Americas, which hosts eight plants, the amount of cans rolling off AMP’s lines climbed 1% amid a softening of sales to energy drink makers.

Sales in the three months to the end of June rose slightly to US$1.3 billion, driven mainly by a favourable volume/mix and foreign currency effects. While the top-line figure was undermined by the pass through to customers of lower raw material costs, that had the effect of reducing expenses and boosting profit to $2 million for the quarter, from a $10m loss in the same period last year.

First-half sales rose a little as well, to $2.4bn with the benefits of a fall in metal costs  contributing to a reduced net earnings loss of $10m against $11m in 2023.

The picture of growth was patchy across markets, however. Europe was the powerhouse behind AMP’s second quarter sales strength, rising 2% year-on-year to $566m compared with a 1% decline to $693m in the Americas, where the impact of passing through lower-costs was most marked.

Second quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), a measure of profitability before external costs are taken into account, rose 8% in Europe to $1.1bn and 1% in the Americas to $1.4bn.

The improved performance encouraged AMP to raise its expectations for the full year, during which it now expects to see EBITDA rise to at least $640m from $630m. Nevertheless it still expects gains to be pared by a weakening of its business with energy drinks  producers in the US.

AMP chief executive Oliver Graham hailed the “strong earnings performance” especially in Europe, which he said “underpinned our outperformance in the quarter and continued growth in the region gives us the confidence to improve our guidance range for Adjusted EBITDA growth in 2024”.