Ardagh Metal Packaging S.A. - First Quarter 2024 Results
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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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1,141 |
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1,131 |
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1 % |
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(1 %) |
Loss for the period |
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(12) |
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(1) |
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Adjusted EBITDA (1) |
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134 |
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130 |
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3 % |
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2 % |
Loss per share |
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(0.03) |
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(0.01) |
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Adjusted earnings per share (1) |
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0.01 |
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0.01 |
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Dividend per ordinary share |
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0.10 |
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0.10 |
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"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
- Global beverage can shipments grew by 7% in the quarter, driven by strong growth of 11% in the
Americas and 3% inEurope .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 atMarch 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:$151 million reported and constant currency basis).
Financial Performance Review Bridge of 2023 to 2024 Revenue and Adjusted EBITDA |
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Three months ended |
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Revenue |
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Group |
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$'m |
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$'m |
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$'m |
Revenue 2023 |
|
486 |
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645 |
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1,131 |
Organic |
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(22) |
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15 |
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(7) |
FX translation |
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17 |
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— |
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17 |
Revenue 2024 |
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481 |
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660 |
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1,141 |
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Adjusted EBITDA |
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Group |
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$'m |
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$'m |
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$'m |
Adjusted EBITDA 2023 |
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49 |
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81 |
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130 |
Organic |
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(8) |
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10 |
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2 |
FX translation |
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2 |
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— |
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2 |
Adjusted EBITDA 2024 |
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43 |
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91 |
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134 |
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2024 margin % |
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8.9 % |
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13.8 % |
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11.7 % |
2023 margin % |
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10.1 % |
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12.6 % |
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11.5 % |
Group Performance
Group
Revenue of
Adjusted EBITDA increased by
Revenue increased by 2% to
Adjusted EBITDA for the quarter of
Revenue of
Adjusted EBITDA for the quarter of
Earnings Webcast and Conference Call Details
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1662740&tp_key=c9ddd7fc2f
Conference call dial in:
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
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
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
Unaudited Consolidated Condensed Income Statement for the three months ended |
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Three months ended |
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Three months ended |
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Before |
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Exceptional |
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Total |
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Before |
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Exceptional |
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Total |
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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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$'m |
Revenue |
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1,141 |
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— |
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1,141 |
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1,131 |
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— |
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1,131 |
Cost of sales |
|
(1,010) |
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(8) |
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(1,018) |
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(1,008) |
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(10) |
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(1,018) |
Gross profit |
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131 |
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(8) |
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123 |
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123 |
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(10) |
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113 |
Sales, general and administration expenses |
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(70) |
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(3) |
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(73) |
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(56) |
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(9) |
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(65) |
Intangible amortization |
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(36) |
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— |
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(36) |
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(35) |
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— |
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(35) |
Operating profit |
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25 |
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(11) |
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14 |
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32 |
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(19) |
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13 |
Net finance expense |
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(52) |
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17 |
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(35) |
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(50) |
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27 |
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(23) |
Loss before tax |
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(27) |
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6 |
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(21) |
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(18) |
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8 |
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(10) |
Income tax credit |
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8 |
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1 |
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9 |
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5 |
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4 |
|
9 |
Loss for the period |
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(19) |
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7 |
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(12) |
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(13) |
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12 |
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(1) |
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Loss per share: |
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Basic and diluted loss per share |
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(0.03) |
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(0.01) |
Unaudited Consolidated Condensed Statement of Financial Position |
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At |
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At |
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$'m |
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$'m |
Non-current assets |
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Intangible assets |
1,333 |
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1,382 |
Property, plant and equipment |
2,586 |
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2,628 |
Other non-current assets |
150 |
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154 |
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4,069 |
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4,164 |
Current assets |
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Inventories |
468 |
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469 |
Trade and other receivables |
368 |
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278 |
Contract assets |
269 |
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259 |
Income tax receivable |
37 |
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44 |
Derivative financial instruments |
11 |
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12 |
Cash, cash equivalents and restricted cash |
155 |
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443 |
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1,308 |
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1,505 |
TOTAL ASSETS |
5,377 |
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5,669 |
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TOTAL EQUITY |
29 |
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106 |
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Non-current liabilities |
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Borrowings including lease obligations |
3,602 |
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3,640 |
Other non-current liabilities* |
362 |
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401 |
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3,964 |
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4,041 |
Current liabilities |
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Borrowings including lease obligations |
305 |
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94 |
Payables and other current liabilities |
1,079 |
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1,428 |
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1,384 |
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1,522 |
TOTAL LIABILITIES |
5,348 |
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5,563 |
TOTAL EQUITY and LIABILITIES |
5,377 |
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5,669 |
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* Other non-current liabilities include liabilities for earnout shares of |
Unaudited Consolidated Condensed Statement of Cash Flows |
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Three months ended |
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2024 |
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2023 |
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$'m |
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$'m |
Cash flows used in operating activities |
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|
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Cash used in operations (2) |
|
(316) |
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(228) |
Net interest paid |
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(15) |
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(8) |
Settlement of foreign currency derivative financial instruments |
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(5) |
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(12) |
Income tax paid |
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(2) |
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(9) |
Cash flows used in operating activities |
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(338) |
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(257) |
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Cash flows used in investing activities |
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Net capital expenditure |
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(62) |
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(126) |
Cash flows used in investing activities |
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(62) |
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(126) |
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Cash flows received from/(used in) financing activities |
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Changes in borrowings |
|
204 |
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34 |
Deferred debt issue costs paid |
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– |
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(1) |
Lease payments |
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(21) |
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(16) |
Dividends paid |
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(66) |
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(66) |
Cash flows received from/(used in) financing activities |
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117 |
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(49) |
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Net decrease in cash, cash equivalents and restricted cash |
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(283) |
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(432) |
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Cash, cash equivalents and restricted cash at beginning of period |
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443 |
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555 |
Foreign exchange (losses)/gains on cash, cash equivalents and restricted cash |
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(5) |
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1 |
Cash, cash equivalents and restricted cash at end of period |
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155 |
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124 |
Financial assets and liabilities |
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At |
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Drawn amount |
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Available liquidity |
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$'m |
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$'m |
Senior Secured Green and Senior Green Notes |
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3,277 |
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— |
Global Asset Based Loan Facility |
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213 |
|
174 |
Lease obligations |
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398 |
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— |
Other borrowings |
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46 |
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— |
Total borrowings / undrawn facilities |
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3,934 |
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174 |
Deferred debt issue costs |
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(27) |
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— |
Net borrowings / undrawn facilities |
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3,907 |
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174 |
Cash, cash equivalents and restricted cash |
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(155) |
|
155 |
Derivative financial instruments used to hedge foreign currency and interest rate risk |
|
19 |
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— |
Net debt / available liquidity |
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3,771 |
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329 |
Reconciliation of loss for the period to Adjusted profit |
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Three months ended |
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2024 |
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2023 |
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$'m |
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$'m |
Loss for the period as presented in the income statement |
(12) |
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(1) |
Less: Dividend on preferred shares |
(6) |
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(6) |
Loss for the period used in calculating earnings per share |
(18) |
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(7) |
Exceptional items, net of tax |
(7) |
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(12) |
Intangible amortization, net of tax |
28 |
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27 |
Adjusted profit for the period |
3 |
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8 |
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Weighted average number of ordinary shares |
597.6 |
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597.6 |
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Loss per share |
(0.03) |
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(0.01) |
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Adjusted earnings per share |
0.01 |
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0.01 |
Reconciliation of loss for the period to Adjusted EBITDA |
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Three months ended |
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2024 |
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2023 |
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$'m |
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$'m |
Loss for the period |
(12) |
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(1) |
Income tax credit |
(9) |
|
(9) |
Net finance expense |
35 |
|
23 |
Depreciation and amortization |
109 |
|
98 |
Exceptional operating items |
11 |
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19 |
Adjusted EBITDA |
134 |
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130 |
Reconciliation of Adjusted EBITDA to Adjusted operating cash flow and Adjusted free cash flow |
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Three months ended |
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2024 |
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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 |
(370) |
|
(297) |
Growth investment capital expenditure |
(38) |
|
(90) |
Adjusted free cash flow - post |
(408) |
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(387) |
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Related Footnotes |
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(1) For a reconciliation to the most comparable IFRS measures, see Page 7. |
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(2) Cash used in operations for the three months ended |
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