LUXEMBOURG, April 25,
2024 /PRNewswire/ -- Ardagh Metal Packaging S.A.
(NYSE: AMBP) today announced results for the first quarter ended
March 31, 2024.
|
|
March 31,
2024
|
|
March 31,
2023
|
|
Change
|
|
Constant
Currency
|
|
|
($'m except per
share data)
|
|
|
|
|
Revenue
|
|
1,141
|
|
1,131
|
|
1 %
|
|
(1 %)
|
Loss for the
period
|
|
(12)
|
|
(1)
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
134
|
|
130
|
|
3 %
|
|
2 %
|
Loss per
share
|
|
(0.03)
|
|
(0.01)
|
|
|
|
|
Adjusted earnings per
share (1)
|
|
0.01
|
|
0.01
|
|
|
|
|
Dividend per ordinary
share
|
|
0.10
|
|
0.10
|
|
|
|
|
Oliver Graham, CEO of Ardagh
Metal Packaging (AMP), said:
"Our performance in the first quarter was encouraging, with
volume growth across each of our markets and Adjusted EBITDA growth
that was marginally ahead of expectations, due to favorable
volume/mix. We saw continued strong shipment growth in the
Americas, and Europe is showing
welcome signs of a recovery post customer destocking, supporting
our expectation for Adjusted EBITDA growth in both regions this
year. Our disciplined permanent capacity actions have taken effect
and our expectation for continued volume growth and increased
manufacturing activity will drive improved fixed cost absorption.
This gives us confidence to reaffirm our full year guidance and we
expect higher Adjusted EBITDA growth for the remaining
quarters."
- Global beverage can shipments grew by 7% in the quarter, driven
by strong growth of 11% in the Americas and 3% in Europe. North
America grew by 13%, underpinned by its attractive portfolio
mix and contracted new volumes. Brazil grew by 4% as the industry continues to
benefit from an improving macro environment.
- Adjusted EBITDA of $134 million
for the quarter was marginally ahead of our guidance and
represented a 3% increase versus the prior year quarter.
- Americas Adjusted EBITDA for the quarter increased by 12% to
$91 million driven by favorable
volume/mix effects, partly offset by higher operating costs.
- In Europe Adjusted EBITDA for the quarter decreased by 12% to
$43 million, as anticipated,
principally due to higher input and operating costs, partly offset
by positive volume/mix and currency effects. Expect a return to
Adjusted EBITDA growth in the second quarter.
- Total liquidity of $329 million
at March 31, 2024 was ahead of
expectations principally through inventory management. Cash outflow
in the period reflects seasonality. Reiterate expectation for a
modest net working capital inflow in 2024 and for growth capex to
reduce to approximately $100 million,
with a further reduction anticipated in 2025.
- Modest deleveraging anticipated in 2024 through Adjusted EBITDA
growth and lease principal repayments, with a more meaningful
reduction thereafter.
- Regular quarterly ordinary dividend of 10c announced. No change
to capital allocation priorities.
- 2024 outlook reaffirmed: shipments growth approaching
mid-single digits % and full year 2024 Adjusted EBITDA in the range
of $630-660 million.
- Second quarter Adjusted EBITDA expected to be of the order of
$170 million (Q2 2023: $151 million reported and constant currency
basis).
Financial
Performance Review
Bridge of 2023 to
2024 Revenue and Adjusted EBITDA
|
|
Three months ended
March 31, 2024
|
|
|
|
|
|
|
|
Revenue
|
|
Europe
|
|
Americas
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
2023
|
|
486
|
|
645
|
|
1,131
|
Organic
|
|
(22)
|
|
15
|
|
(7)
|
FX
translation
|
|
17
|
|
—
|
|
17
|
Revenue
2024
|
|
481
|
|
660
|
|
1,141
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
Europe
|
|
Americas
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Adjusted EBITDA
2023
|
|
49
|
|
81
|
|
130
|
Organic
|
|
(8)
|
|
10
|
|
2
|
FX
translation
|
|
2
|
|
—
|
|
2
|
Adjusted EBITDA
2024
|
|
43
|
|
91
|
|
134
|
|
|
|
|
|
|
|
2024 margin
%
|
|
8.9 %
|
|
13.8 %
|
|
11.7 %
|
2023 margin
%
|
|
10.1 %
|
|
12.6 %
|
|
11.5 %
|
Group Performance
Group
Revenue of $1,141 million in the
three months ended March 31, 2024
increased by $10 million, or 1%,
compared with $1,131 million in the
same period last year. On a constant currency basis, revenue
decreased by 1%, mainly reflecting the pass through to customers of
lower input costs, partly offset by favorable volume/mix
effects.
Adjusted EBITDA increased by $4
million, or 3%, to $134
million in the three months ended March 31, 2024, compared with $130 million in the same period last year. On a
constant currency basis, Adjusted EBITDA increased by 2%,
principally due to favorable volume/mix effects, partly offset by
higher input and operating costs.
Americas
Revenue increased by 2% to $660
million in the three months ended March 31, 2024, compared with $645 million in the same period last year,
principally reflecting favorable volume/mix impacts, partly offset
by the pass through of lower input costs to customers.
Adjusted EBITDA for the quarter of $91
million increased by 12%, compared with $81 million in the same period last year,
primarily driven by favorable volume/mix effects, partly offset by
higher operating costs.
Europe
Revenue of $481 million decreased
by 1% in the three months ended March 31,
2024, compared with $486
million in the same period last year. On a constant currency
basis, revenue decreased by 4%, principally due to the pass through
of lower costs to customers.
Adjusted EBITDA for the quarter of $43
million decreased by $6
million, or 12%, at actual exchange rates, and by 16% at
constant currency, compared with $49
million in the same period last year. The decrease in
Adjusted EBITDA was principally due to higher input and operating
costs, partly offset by positive volume/mix.
Earnings Webcast and Conference Call Details
Ardagh Metal Packaging S.A. (NYSE: AMBP) will hold its first
quarter 2024 earnings webcast and conference call for investors at
9.00 a.m. EDT (2.00 p.m. BST) on April
25, 2024. Please use the following webcast link to register
for this call:
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1662740&tp_key=c9ddd7fc2f
Conference call dial in:
United States/Canada: +1 800 289 0438
International: +44 330 165 4027
Participant pin code: 9558782
An investor earnings presentation to accompany this release is
available at https://www.ardaghmetalpackaging.com/investors
About Ardagh Metal Packaging
Ardagh Metal Packaging
(AMP) is a leading global supplier of infinitely recyclable,
sustainable, metal beverage cans and ends to brand owners. A
subsidiary of sustainable packaging business Ardagh Group, AMP is a
leading industry player across Europe and the Americas with innovative
production capabilities. AMP operates 23 production facilities in
Europe and the Americas, has
approximately 6,300 employees and recorded revenues of $4.8 billion in 2023.
For more information, visit
https://www.ardaghmetalpackaging.com/investors
Forward-Looking Statements
This release contains
"forward-looking statements" within the meaning of Section 27A of
the U.S. Securities Act of 1933, as amended and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. Forward-looking
statements are not historical facts and are inherently subject to
known and unknown risks and uncertainties, many of which may be
beyond our control. We caution you that the forward-looking
information presented in this press release is not a guarantee of
future events, and that actual events may differ materially from
those made in or suggested by the forward-looking information
contained in this release. Certain factors that could cause actual
events to differ materially from those discussed in any
forward-looking statements include the risk factors described in
Ardagh Metal Packaging S.A.'s Annual Report on Form 20-F for the
year ended December 31, 2023 filed
with the U.S. Securities and Exchange Commission (the "SEC") and
any other public filings made by Ardagh Metal Packaging S.A. with
the SEC. In addition, new risk factors and uncertainties emerge
from time to time, and it is not possible for us to predict all
risk factors and uncertainties, nor can we assess the impact of all
factors on our business or the extent to which any factor, or
combination of factors, may cause actual events to differ
materially from those contained in any forward-looking statements.
Under no circumstances should the inclusion of such forward-looking
statements in this release be regarded as a representation or
warranty by us or any other person with respect to the achievement
of results set out in such statements or that the underlying
assumptions used will in fact be the case. Therefore, you are
cautioned not to place undue reliance on these forward-looking
statements. Any forward-looking information presented herein is
made only as of the date of this release, and we do not undertake
any obligation to update or revise any forward-looking information
to reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise. This announcement contains inside information
for the purposes of Article 7 of Regulation (EU) No 596/2014. The
person responsible for the release of this information on behalf of
Ardagh Metal Packaging Finance plc and Ardagh Metal Packaging
Finance USA LLC is Stephen Lyons, Investor Relations Director.
Non-IFRS Financial Measures
This release may contain certain financial measures such as
Adjusted EBITDA, Adjusted operating cash flow, Adjusted free cash
flow, net debt and ratios relating thereto that are not calculated
in accordance with IFRS. Non-IFRS financial measures may be
considered in addition to IFRS financial information, but should
not be used as substitutes for the corresponding IFRS measures. The
non-IFRS financial measures used by Ardagh Metal Packaging S.A. may
differ from, and not be comparable to, similarly titled measures
used by other companies.
Unaudited
Consolidated Condensed Income Statement for the three months ended
March 31, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2024
|
|
Three months ended
March 31, 2023
|
|
|
Before
exceptional
items
|
|
Exceptional
items
|
|
Total
|
|
Before
exceptional
items
|
|
Exceptional
items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
1,141
|
|
—
|
|
1,141
|
|
1,131
|
|
—
|
|
1,131
|
Cost of
sales
|
|
(1,010)
|
|
(8)
|
|
(1,018)
|
|
(1,008)
|
|
(10)
|
|
(1,018)
|
Gross
profit
|
|
131
|
|
(8)
|
|
123
|
|
123
|
|
(10)
|
|
113
|
Sales, general and
administration expenses
|
|
(70)
|
|
(3)
|
|
(73)
|
|
(56)
|
|
(9)
|
|
(65)
|
Intangible
amortization
|
|
(36)
|
|
—
|
|
(36)
|
|
(35)
|
|
—
|
|
(35)
|
Operating
profit
|
|
25
|
|
(11)
|
|
14
|
|
32
|
|
(19)
|
|
13
|
Net finance
expense
|
|
(52)
|
|
17
|
|
(35)
|
|
(50)
|
|
27
|
|
(23)
|
Loss before
tax
|
|
(27)
|
|
6
|
|
(21)
|
|
(18)
|
|
8
|
|
(10)
|
Income tax
credit
|
|
8
|
|
1
|
|
9
|
|
5
|
|
4
|
|
9
|
Loss for the
period
|
|
(19)
|
|
7
|
|
(12)
|
|
(13)
|
|
12
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share
|
|
|
|
|
|
(0.03)
|
|
|
|
|
|
(0.01)
|
Unaudited
Consolidated Condensed Statement of Financial
Position
|
|
|
At March 31,
2024
|
|
At December 31,
2023
|
|
$'m
|
|
$'m
|
Non-current
assets
|
|
|
|
Intangible
assets
|
1,333
|
|
1,382
|
Property, plant and
equipment
|
2,586
|
|
2,628
|
Other non-current
assets
|
150
|
|
154
|
|
4,069
|
|
4,164
|
Current
assets
|
|
|
|
Inventories
|
468
|
|
469
|
Trade and other
receivables
|
368
|
|
278
|
Contract
assets
|
269
|
|
259
|
Income tax
receivable
|
37
|
|
44
|
Derivative financial
instruments
|
11
|
|
12
|
Cash, cash equivalents
and restricted cash
|
155
|
|
443
|
|
1,308
|
|
1,505
|
TOTAL
ASSETS
|
5,377
|
|
5,669
|
|
|
|
|
TOTAL
EQUITY
|
29
|
|
106
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
3,602
|
|
3,640
|
Other non-current
liabilities*
|
362
|
|
401
|
|
3,964
|
|
4,041
|
Current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
305
|
|
94
|
Payables and other
current liabilities
|
1,079
|
|
1,428
|
|
1,384
|
|
1,522
|
TOTAL
LIABILITIES
|
5,348
|
|
5,563
|
TOTAL EQUITY and
LIABILITIES
|
5,377
|
|
5,669
|
|
* Other non-current
liabilities include liabilities for earnout shares of $7 million at
March 31, 2024 (December 31, 2023: $23 million) and warrants of $1
million at March 31, 2024 (December 31, 2023: $2
million).
|
Unaudited
Consolidated Condensed Statement of Cash Flows
|
|
|
|
Three months ended
March 31,
|
|
|
2024
|
|
2023
|
|
|
$'m
|
|
$'m
|
Cash flows used in
operating activities
|
|
|
|
|
Cash used in operations
(2)
|
|
(316)
|
|
(228)
|
Net interest
paid
|
|
(15)
|
|
(8)
|
Settlement of foreign
currency derivative financial instruments
|
|
(5)
|
|
(12)
|
Income tax
paid
|
|
(2)
|
|
(9)
|
Cash flows used
in operating activities
|
|
(338)
|
|
(257)
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
Net capital
expenditure
|
|
(62)
|
|
(126)
|
Cash flows used
in investing activities
|
|
(62)
|
|
(126)
|
|
|
|
|
|
Cash flows received
from/(used in) financing activities
|
|
|
|
|
Changes in
borrowings
|
|
204
|
|
34
|
Deferred debt issue
costs paid
|
|
–
|
|
(1)
|
Lease
payments
|
|
(21)
|
|
(16)
|
Dividends
paid
|
|
(66)
|
|
(66)
|
Cash flows
received from/(used in) financing
activities
|
|
117
|
|
(49)
|
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(283)
|
|
(432)
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
443
|
|
555
|
Foreign exchange
(losses)/gains on cash, cash equivalents and restricted
cash
|
|
(5)
|
|
1
|
Cash, cash
equivalents and restricted cash at end of period
|
|
155
|
|
124
|
Financial assets and
liabilities
|
|
At March 31, 2024, the
Group's net debt and available liquidity was as follows:
|
|
|
|
Drawn
amount
|
|
Available
liquidity
|
|
|
$'m
|
|
$'m
|
Senior Secured Green
and Senior Green Notes
|
|
3,277
|
|
—
|
Global Asset Based Loan
Facility
|
|
213
|
|
174
|
Lease
obligations
|
|
398
|
|
—
|
Other
borrowings
|
|
46
|
|
—
|
Total borrowings /
undrawn facilities
|
|
3,934
|
|
174
|
Deferred debt issue
costs
|
|
(27)
|
|
—
|
Net borrowings /
undrawn facilities
|
|
3,907
|
|
174
|
Cash, cash equivalents
and restricted cash
|
|
(155)
|
|
155
|
Derivative financial
instruments used to hedge foreign currency and interest rate
risk
|
|
19
|
|
—
|
Net debt / available
liquidity
|
|
3,771
|
|
329
|
Reconciliation of
loss for the period to Adjusted profit
|
|
|
|
|
|
Three months ended
March 31,
|
|
2024
|
|
2023
|
|
$'m
|
|
$'m
|
Loss for the period
as presented in the income statement
|
(12)
|
|
(1)
|
Less: Dividend on
preferred shares
|
(6)
|
|
(6)
|
Loss for the period
used in calculating earnings per share
|
(18)
|
|
(7)
|
Exceptional items, net
of tax
|
(7)
|
|
(12)
|
Intangible
amortization, net of tax
|
28
|
|
27
|
Adjusted profit for
the period
|
3
|
|
8
|
|
|
|
|
Weighted average number
of ordinary shares
|
597.6
|
|
597.6
|
|
|
|
|
Loss per
share
|
(0.03)
|
|
(0.01)
|
|
|
|
|
Adjusted earnings
per share
|
0.01
|
|
0.01
|
Reconciliation of
loss for the period to Adjusted EBITDA
|
|
|
|
|
|
Three months ended
March 31,
|
|
2024
|
|
2023
|
|
$'m
|
|
$'m
|
Loss for the
period
|
(12)
|
|
(1)
|
Income tax
credit
|
(9)
|
|
(9)
|
Net finance
expense
|
35
|
|
23
|
Depreciation and
amortization
|
109
|
|
98
|
Exceptional operating
items
|
11
|
|
19
|
Adjusted
EBITDA
|
134
|
|
130
|
Reconciliation of
Adjusted EBITDA to Adjusted operating cash flow and Adjusted free
cash flow
|
|
|
|
|
|
Three months ended
March 31,
|
|
2024
|
|
2023
|
|
$'m
|
|
$'m
|
Adjusted
EBITDA
|
134
|
|
130
|
Movement in working
capital
|
(423)
|
|
(346)
|
Maintenance capital
expenditure
|
(24)
|
|
(36)
|
Lease
payments
|
(21)
|
|
(16)
|
Exceptional
restructuring costs
|
(14)
|
|
—
|
Adjusted operating
cash flow
|
(348)
|
|
(268)
|
Interest
paid
|
(15)
|
|
(8)
|
Settlement of foreign
currency derivative financial instruments
|
(5)
|
|
(12)
|
Income tax
paid
|
(2)
|
|
(9)
|
Adjusted free cash
flow - pre Growth Investment capital expenditure
|
(370)
|
|
(297)
|
Growth investment
capital expenditure
|
(38)
|
|
(90)
|
Adjusted free cash
flow - post Growth Investment capital expenditure
|
(408)
|
|
(387)
|
|
|
|
|
|
|
|
|
|
Related
Footnotes
|
(1) For a
reconciliation to the most comparable IFRS measures, see Page
7.
|
(2) Cash used in
operations for the three months ended March 31, 2024, is derived
from the aggregate of Adjusted EBITDA as presented on Page 7,
working capital outflows of $423 million and exceptional cash
outflows of $27 million. Cash used in operations for the three
months ended March 31, 2023, is derived from the aggregate of
Adjusted EBITDA as presented on Page 7, working capital outflows of
$346 million and exceptional cash outflows of $12
million.
|
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SOURCE Ardagh Metal Packaging S.A.