LUXEMBOURG, April 27,
2023 /PRNewswire/ -- Ardagh Metal Packaging S.A.
(NYSE: AMBP) today announced results for the first quarter ended
March 31, 2023.
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March 31,
2023
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March 31,
2022
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Change
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Constant
Currency
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($'m except per
share data)
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Revenue
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1,131
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1,137
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(1 %)
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2 %
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(Loss)/profit for the
period
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(1)
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57
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Adjusted EBITDA
(1)
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130
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145
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(10 %)
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(8 %)
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(Loss)/earnings per
share
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(0.01)
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0.09
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Adjusted earnings per
share (1)
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0.01
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0.08
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Dividend per ordinary
share
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0.10
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0.10
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Oliver Graham, CEO of Ardagh
Metal Packaging, said:
"We delivered a solid performance in the first quarter meeting
our market guidance, due to disciplined cost stewardship, actions
to improve manufacturing efficiency and stronger input cost
recovery. Our performance in North
America, with good volume growth, and Europe with improved cost passthroughs were
both ahead of expectations. This offset softer performance in
Brazil where industry demand is
slowly recovering. Global demand remains restrained by retail price
inflation, but we are encouraged by signs of a return of
promotional activity, and the easing of customer inflationary
pressures. This supports our expectation for a stronger second half
demand outlook. We remain disciplined in our capacity management
and with our growth investments completing in 2023, the business is
well positioned both to capture the positive secular growth
opportunity for the sustainable beverage can and drive a meaningful
uplift in cash generation. Our resilient start to the year allows
us to reaffirm our full year guidance."
- Global beverage can shipments grew by 3% in the quarter, driven
by growth of 4% in Americas and 2% in Europe. North
America grew by 5%, and more than offset marginally softer
shipments in Brazil.
- Adjusted EBITDA of $130 million
for the quarter was in line with our guidance and represented an 8%
decrease on a constant currency basis.
- In the Americas, Adjusted EBITDA declined by 9% to $81 million as volume/mix contribution was more
than offset by a fixed cost absorption drag as expected and
favourable input cost recovery in the prior period.
- In Europe Adjusted EBITDA declined by 8% to $49 million as a strong contribution from input
cost recovery was more than offset by higher operating costs and
the seasonal rebalancing of the contract asset margin.
- Total liquidity of $495 million
at March 31, 2023. Cash outflow in
the period – which reflects seasonality and a first half weighting
of unchanged planned growth capex – was marginally ahead of
expectations. Reiterate expectation for positive Adjusted Free Cash
Flow generation in 2023 and, with growth plans to substantially
complete, a significant reduction in capex in 2024.
- Regular quarterly ordinary dividend of 10c announced, in line
with guidance for an annual dividend of 40c per share.
- Commitment alongside our global supply chain partners to the
Aluminium Forward 2030 coalition and the endorsement of the Mission
Possible Partnership's net zero strategy, supporting actions to
achieve the industry's net zero carbon footprint ambition.
- 2023 outlook reaffirmed: shipment growth of mid to high single
digits and full year 2023 Adjusted EBITDA growth of the order of
10%, weighted towards the second half of the year. Second quarter
Adjusted EBITDA expected to be of the order of $170 million (Q2 2022: $181 million reported; $180 million at constant currency).
Financial
Performance Review
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Bridge of 2022 to
2023 Revenue and Adjusted EBITDA
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Three months ended
March 31, 2023
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Revenue
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Europe
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Americas
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Group
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$'m
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$'m
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$'m
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Revenue
2022
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499
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638
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1,137
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Organic
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16
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7
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23
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FX
translation
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(29)
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—
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(29)
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Revenue
2023
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486
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645
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1,131
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Adjusted
EBITDA
|
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Europe
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Americas
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Group
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$'m
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$'m
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|
$'m
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Adjusted EBITDA
2022
|
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56
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|
89
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145
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Organic
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(4)
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(8)
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(12)
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FX
translation
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(3)
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—
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(3)
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Adjusted EBITDA
2023
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49
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81
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130
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2023 margin
%
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10.1 %
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12.6 %
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11.5 %
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2022 margin
%
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11.2 %
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13.9 %
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12.8 %
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Group Performance
Group
Revenue of $1,131 million in the
three months ended March 31, 2023
decreased by $6 million, or 1%,
compared with $1,137 million in the
same period last year. On a constant currency basis, revenue
increased by 2%, mainly reflecting favorable volume/mix effects and
the pass through to customers of higher input costs.
Adjusted EBITDA decreased by $15
million, or 10%, to $130
million in the three months ended March 31, 2023, compared with $145 million in the same period last year. On a
constant currency basis, Adjusted EBITDA decreased by 8%,
principally due to negative volume/mix effects (including the
seasonal rebalancing of the contract asset margin) and higher
operating costs, partly offset by the pass through to customers of
higher input costs.
Americas
Revenue increased by 1% to $645
million in the three months ended March 31, 2023, compared with $638 million in the same period last year,
principally reflecting favorable volume/mix impacts, partly offset
by lower metal cost pass through.
Adjusted EBITDA for the quarter of $81
million decreased by 9%, compared with $89 million in the same period last year,
primarily driven by input cost headwinds and higher operating
costs, partly offset by favorable volume/mix effects.
Europe
Revenue of $486 million decreased
by 3% in the three months ended March 31,
2023, compared with $499
million in the same period last year. On a constant currency
basis, revenue increased by 3%, principally due to the pass through
of higher input costs, partly offset by negative volume/mix effects
(including the seasonal rebalancing of the contract asset
margin).
Adjusted EBITDA for the quarter of $49
million decreased by $7
million, or 13%, at actual exchange rates, and by 8% at
constant currency, compared with $56
million in the same period last year. The decrease in
Adjusted EBITDA was principally due to negative volume/mix effects
(including the seasonal rebalancing of the contract asset margin),
partly offset by the pass through to customers of higher input
costs.
Earnings Webcast and Conference Call Details
Ardagh Metal Packaging S.A. (NYSE: AMBP) will hold its first
quarter 2023 earnings webcast and conference call for investors at
9.00 a.m. EDT (2.00 p.m. BST) on April
27, 2023. Please use the following webcast link to register
for this call:
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1606643&tp_key=ceef72e355
Conference call dial in:
United States/Canada: +1 800 239 9838
International: +44 330 165 4027
Participant pin code: 6230856
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 24 production facilities in
nine countries, employing more than 6,300 employees and had sales
of $4.7 billion in 2022.
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,
2022 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.
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, 2023 and 2022
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Three months ended
March 31, 2023
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Three months ended
March 31, 2022
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Before exceptional
items
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Exceptional
items
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Total
|
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Before exceptional
items
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Exceptional
items
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|
Total
|
|
|
$'m
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|
$'m
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|
$'m
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|
$'m
|
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$'m
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$'m
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Revenue
|
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1,131
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|
—
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1,131
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1,137
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—
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1,137
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Cost of
sales
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(1,008)
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(10)
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(1,018)
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(986)
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(14)
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(1,000)
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Gross
profit
|
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123
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(10)
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113
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151
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(14)
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137
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Sales, general and
administration expenses
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(56)
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(9)
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(65)
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(56)
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(4)
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(60)
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Intangible
amortization
|
|
(35)
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|
—
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|
(35)
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|
(36)
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—
|
|
(36)
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Operating
profit
|
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32
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|
(19)
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13
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59
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(18)
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41
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Net finance
(expense)/income
|
|
(50)
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27
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|
(23)
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|
(28)
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51
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|
23
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(Loss)/profit before
tax
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(18)
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|
8
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|
(10)
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|
31
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|
33
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|
64
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Income tax
credit/(charge)
|
|
5
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4
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|
9
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(9)
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|
2
|
|
(7)
|
(Loss)/profit for
the period
|
|
(13)
|
|
12
|
|
(1)
|
|
22
|
|
35
|
|
57
|
Unaudited
Consolidated Condensed Statement of Financial
Position
|
|
|
|
|
|
At March 31,
2023
|
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At December 31,
2022
|
|
$'m
|
|
$'m
|
Non-current
assets
|
|
|
|
Intangible
assets
|
1,463
|
|
1,473
|
Property, plant and
equipment
|
2,497
|
|
2,390
|
Other non-current
assets
|
90
|
|
94
|
|
4,050
|
|
3,957
|
Current
assets
|
|
|
|
Inventories
|
587
|
|
567
|
Trade and other
receivables
|
589
|
|
509
|
Contract
assets
|
290
|
|
239
|
Derivative financial
instruments
|
21
|
|
38
|
Cash and cash
equivalents
|
124
|
|
555
|
|
1,611
|
|
1,908
|
TOTAL
ASSETS
|
5,661
|
|
5,865
|
|
|
|
|
TOTAL
EQUITY
|
376
|
|
455
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
3,559
|
|
3,524
|
Other non-current
liabilities*
|
420
|
|
422
|
|
3,979
|
|
3,946
|
Current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
109
|
|
68
|
Payables and other
current liabilities
|
1,197
|
|
1,396
|
|
1,306
|
|
1,464
|
TOTAL
LIABILITIES
|
5,285
|
|
5,410
|
TOTAL EQUITY and
LIABILITIES
|
5,661
|
|
5,865
|
|
* Other non-current
liabilities include liabilities for earnout shares of $52 million
at March 31, 2023 (December 2022: $76 million) and warrants of $4
million at March 31, 2023 (December 2022: $7 million).
|
Unaudited
Consolidated Condensed Statement of Cash Flows
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2023
|
|
2022
|
|
|
$'m
|
|
$'m
|
Cash flows used in
operating activities
|
|
|
|
|
Cash used in operations
(2)
|
|
(228)
|
|
(194)
|
Net interest
paid
|
|
(8)
|
|
(3)
|
Settlement of foreign
currency derivative financial instruments
|
|
(12)
|
|
10
|
Income tax
paid
|
|
(9)
|
|
(7)
|
Cash flows used
in operating activities
|
|
(257)
|
|
(194)
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
Capital
expenditure
|
|
(126)
|
|
(117)
|
Cash flows used
in investing activities
|
|
(126)
|
|
(117)
|
|
|
|
|
|
Cash flows (used
in)/received from financing activities
|
|
|
|
|
Changes in
borrowings
|
|
34
|
|
96
|
Deferred debt issue
costs paid
|
|
(1)
|
|
(2)
|
Lease
payments
|
|
(16)
|
|
(13)
|
Dividends
paid
|
|
(66)
|
|
–
|
Cash flows (used
in)/received from financing activities
|
|
(49)
|
|
81
|
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(432)
|
|
(230)
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
555
|
|
463
|
Foreign exchange
gains/(losses) on cash, cash equivalents and restricted
cash
|
|
1
|
|
(8)
|
Cash, cash
equivalents and restricted cash at end of period
|
|
124
|
|
225
|
Financial assets and
liabilities
|
|
|
|
|
|
At March 31, 2023, the
Group's net debt and available liquidity was as follows:
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|
|
|
|
|
|
|
Drawn
amount
|
|
Available
liquidity
|
|
|
$'m
|
|
$'m
|
Senior Secured Green
and Senior Green Notes
|
|
3,283
|
|
—
|
Global Asset Based Loan
Facility
|
|
36
|
|
371
|
Lease
obligations
|
|
342
|
|
—
|
Other borrowings/credit
lines
|
|
42
|
|
—
|
Total borrowings /
undrawn facilities
|
|
3,703
|
|
371
|
Deferred debt issue
costs
|
|
(35)
|
|
—
|
Net borrowings /
undrawn facilities
|
|
3,668
|
|
371
|
Cash, cash equivalents
and restricted cash
|
|
(124)
|
|
124
|
Derivative financial
instruments used to hedge foreign currency and interest rate
risk
|
|
9
|
|
—
|
Net debt / available
liquidity
|
|
3,553
|
|
495
|
Reconciliation of
(loss)/profit for the period to Adjusted profit
|
|
|
|
|
|
Three months ended
March 31,
|
|
2023
|
|
2022
|
|
$'m
|
|
$'m
|
(Loss)/profit for
the period as presented in the income statement
|
(1)
|
|
57
|
Less: Dividend on
preferred shares
|
(6)
|
|
—
|
(Loss)/profit for
the period used in calculating earnings per share
|
(7)
|
|
57
|
Exceptional items, net
of tax
|
(12)
|
|
(35)
|
Intangible
amortization, net of tax
|
27
|
|
28
|
Adjusted profit for
the period
|
8
|
|
50
|
|
|
|
|
Weighted average number
of ordinary shares
|
597.6
|
|
603.3
|
|
|
|
|
(Loss)/earnings per
share
|
(0.01)
|
|
0.09
|
|
|
|
|
Adjusted earnings
per share
|
0.01
|
|
0.08
|
Reconciliation of
(loss)/profit for the period to Adjusted EBITDA
|
|
|
|
|
|
Three months ended
March 31,
|
|
2023
|
|
2022
|
|
$'m
|
|
$'m
|
(Loss)/profit for
the period
|
(1)
|
|
57
|
Income tax
(credit)/charge
|
(9)
|
|
7
|
Net finance
expense/(income)
|
23
|
|
(23)
|
Depreciation and
amortization
|
98
|
|
86
|
Exceptional operating
items
|
19
|
|
18
|
Adjusted
EBITDA
|
130
|
|
145
|
Reconciliation of
Adjusted EBITDA to Adjusted operating cash flow and Adjusted free
cash flow
|
|
|
|
|
|
Three months ended
March 31,
|
|
2023
|
|
2022
|
|
$'m
|
|
$'m
|
Adjusted
EBITDA
|
130
|
|
145
|
Movement in working
capital
|
(346)
|
|
(325)
|
Maintenance capital
expenditure
|
(36)
|
|
(20)
|
Lease
payments
|
(16)
|
|
(13)
|
Adjusted operating
cash flow
|
(268)
|
|
(213)
|
Interest
paid
|
(8)
|
|
(3)
|
Settlement of foreign
currency derivative financial instruments
|
(12)
|
|
10
|
Income tax
paid
|
(9)
|
|
(7)
|
Adjusted free cash
flow - pre Growth Investment capital expenditure
|
(297)
|
|
(213)
|
Growth investment
capital expenditure
|
(90)
|
|
(97)
|
Adjusted free cash
flow - post Growth Investment capital expenditure
|
(387)
|
|
(310)
|
Related Footnotes
(1) For a reconciliation to the most comparable IFRS measures,
see Page 7.
(2) Cash from 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 other exceptional
cash outflows of $12 million. Cash
from operations for the three months ended March 31, 2022, is derived from the aggregate of
Adjusted EBITDA as presented on Page 7, working capital outflows of
$325 million and other exceptional
cash outflows of $14 million.
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SOURCE Ardagh Metal Packaging S.A.