Ardagh Metal Packaging S.A. - Second Quarter 2024 Results
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Three months ended |
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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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1,259 |
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1,255 |
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- |
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- |
Profit/(loss) for the period |
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2 |
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(10) |
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Adjusted EBITDA (1) |
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178 |
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151 |
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18 % |
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18 % |
Loss per share |
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(0.01) |
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(0.03) |
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Adjusted earnings per share (1) |
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0.06 |
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0.04 |
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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 strong earnings performance, reflected in double-digit Adjusted EBITDA growth in both regions, delivered a second successive outperformance against our quarterly guidance. Volume growth, strong input cost recovery and lower plant operating costs drove sequentially improved Adjusted EBITDA growth. Strong performance in
- Global beverage can shipments grew 3% in the quarter driven by strong growth of 5% in
Europe , withAmericas growth of 1%.North America grew by 3%, versus a strong prior year comparable, supported by contracted new volumes.Brazil volumes were impacted by temporary customer mix effects, during off-season, as the industry backdrop continues to strengthen. - Adjusted EBITDA of
$178 million for the quarter was ahead of guidance and represented a 18% increase versus the prior year quarter. - In the Americas Adjusted EBITDA for the quarter increased by 14% to
$99 million driven by favorable volume/mix and lower operating costs. - In Europe Adjusted EBITDA for the quarter increased by 23% to
$79 million , principally due to favorable volume/mix and stronger input cost recovery, partly offset by higher operating costs. - Total liquidity improved to
$405 million atJune 30, 2024 , ahead of expectation. Growth capex to reduce to approximately$100 million in 2024 – in line with prior guidance - with a further reduction anticipated in 2025. - Modest deleveraging expected in 2024, versus end 2023 position, through Adjusted EBITDA growth and lease principal repayments, with a more meaningful reduction thereafter. Full year 2024 Adjusted Free Cashflow anticipated to be broadly in line with prior expectations.
- Announcing new
$300 million secured financing commitment from Apollo directly to AMP, which will further strengthen liquidity in H2 and supplement expected seasonal cash inflows. Financing is expected to be neutral to net leverage. - Regular quarterly ordinary dividend of 10c announced. No change to capital allocation priorities.
- 2024 outlook improved: shipments growth approaching mid-single digits % and full year 2024 Adjusted EBITDA in the range of
$640-660 million (from$630-660 million prior guidance). - Third quarter Adjusted EBITDA expected to be of the order of
$185 million (Q3 2023:$171 million reported and constant currency basis).
Financial Performance Review Bridge of 2023 to 2024 Revenue and Adjusted EBITDA |
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Three months ended |
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Revenue |
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Group |
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$'m |
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$'m |
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$'m |
Revenue 2023 |
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555 |
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700 |
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1,255 |
Organic |
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6 |
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(7) |
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(1) |
FX translation |
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5 |
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— |
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5 |
Revenue 2024 |
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566 |
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693 |
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1,259 |
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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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$'m |
Adjusted EBITDA 2023 |
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64 |
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87 |
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151 |
Organic |
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15 |
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12 |
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27 |
FX translation |
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— |
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— |
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— |
Adjusted EBITDA 2024 |
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79 |
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99 |
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178 |
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2024 margin % |
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14.0 % |
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14.3 % |
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14.1 % |
2023 margin % |
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11.5 % |
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12.4 % |
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12.0 % |
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Six months ended |
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Revenue |
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Group |
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$'m |
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$'m |
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$'m |
Revenue 2023 |
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1,041 |
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1,345 |
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2,386 |
Organic |
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(16) |
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8 |
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(8) |
FX translation |
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22 |
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— |
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22 |
Revenue 2024 |
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1,047 |
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1,353 |
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2,400 |
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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 |
|
113 |
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168 |
|
281 |
Organic |
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7 |
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22 |
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29 |
FX translation |
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2 |
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— |
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2 |
Adjusted EBITDA 2024 |
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122 |
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190 |
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312 |
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2024 margin % |
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11.7 % |
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14.0 % |
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13.0 % |
2023 margin % |
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10.9 % |
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12.5 % |
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11.8 % |
Group Performance
Group
Revenue increased by
Adjusted EBITDA increased by
Revenue decreased by
Adjusted EBITDA increased by
Revenue increased by
Adjusted EBITDA increased by
Earnings Webcast and Conference Call Details
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1677398&tp_key=5b40bc06f6
Conference call dial in:
International: +44 330 165 4027
Participant pin code: 8753981
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® Accounting Standards. 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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1,259 |
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— |
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1,259 |
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1,255 |
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— |
|
1,255 |
Cost of sales |
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(1,081) |
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(9) |
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(1,090) |
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(1,109) |
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(37) |
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(1,146) |
Gross profit |
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178 |
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(9) |
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169 |
|
146 |
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(37) |
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109 |
Sales, general and administration expenses |
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(76) |
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(1) |
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(77) |
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(60) |
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(3) |
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(63) |
Intangible amortization |
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(37) |
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— |
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(37) |
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(35) |
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— |
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(35) |
Operating profit |
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65 |
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(10) |
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55 |
|
51 |
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(40) |
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11 |
Net finance expense |
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(51) |
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— |
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(51) |
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(49) |
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26 |
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(23) |
Profit/(loss) before tax |
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14 |
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(10) |
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4 |
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2 |
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(14) |
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(12) |
Income tax (charge)/credit |
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(4) |
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2 |
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(2) |
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— |
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2 |
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2 |
Profit/(loss) for the period |
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10 |
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(8) |
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2 |
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2 |
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(12) |
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(10) |
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Loss per share |
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Basic and diluted loss per share |
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(0.01) |
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(0.03) |
Unaudited Consolidated Condensed Income Statement for the six months ended |
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Six months ended |
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Six 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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2,400 |
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— |
|
2,400 |
|
2,386 |
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— |
|
2,386 |
Cost of sales |
|
(2,091) |
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(17) |
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(2,108) |
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(2,117) |
|
(47) |
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(2,164) |
Gross profit |
|
309 |
|
(17) |
|
292 |
|
269 |
|
(47) |
|
222 |
Sales, general and administration expenses |
|
(146) |
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(4) |
|
(150) |
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(116) |
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(12) |
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(128) |
Intangible amortization |
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(73) |
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— |
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(73) |
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(70) |
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— |
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(70) |
Operating profit |
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90 |
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(21) |
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69 |
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83 |
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(59) |
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24 |
Net finance expense |
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(103) |
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17 |
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(86) |
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(99) |
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53 |
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(46) |
Loss before tax |
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(13) |
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(4) |
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(17) |
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(16) |
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(6) |
|
(22) |
Income tax credit |
|
4 |
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3 |
|
7 |
|
5 |
|
6 |
|
11 |
Loss for the period |
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(9) |
|
(1) |
|
(10) |
|
(11) |
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— |
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(11) |
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Loss per share: |
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Basic and diluted loss per share |
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(0.04) |
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(0.04) |
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 |
1,295 |
|
1,382 |
Property, plant and equipment |
2,557 |
|
2,628 |
Other non-current assets |
142 |
|
154 |
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3,994 |
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4,164 |
Current assets |
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Inventories |
417 |
|
469 |
Trade and other receivables |
438 |
|
278 |
Contract assets |
228 |
|
259 |
Income tax receivable |
32 |
|
44 |
Derivative financial instruments |
23 |
|
12 |
Cash, cash equivalents and restricted cash |
236 |
|
443 |
|
1,374 |
|
1,505 |
TOTAL ASSETS |
5,368 |
|
5,669 |
|
|
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TOTAL EQUITY |
(22) |
|
106 |
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Non-current liabilities |
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Borrowings including lease obligations |
3,590 |
|
3,640 |
Other non-current liabilities* |
356 |
|
401 |
|
3,946 |
|
4,041 |
Current liabilities |
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|
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Borrowings including lease obligations |
285 |
|
94 |
Payables and other current liabilities |
1,159 |
|
1,428 |
|
1,444 |
|
1,522 |
TOTAL LIABILITIES |
5,390 |
|
5,563 |
TOTAL EQUITY and LIABILITIES |
5,368 |
|
5,669 |
|
* 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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Six months ended |
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2024 |
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2023 |
|
2024 |
|
2023 |
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|
$'m |
|
$'m |
|
$'m |
|
$'m |
Cash flows from/(used in) operating activities |
|
|
|
|
|
|
|
|
Cash generated from/(used in) operations (2) |
|
315 |
|
302 |
|
(1) |
|
74 |
Net interest paid |
|
(78) |
|
(74) |
|
(93) |
|
(82) |
Settlement of foreign currency derivative financial instruments |
|
6 |
|
1 |
|
1 |
|
(11) |
Income tax paid |
|
(9) |
|
(6) |
|
(11) |
|
(15) |
Cash flows from/(used in) operating activities |
|
234 |
|
223 |
|
(104) |
|
(34) |
|
|
|
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|
Cash flows used in investing activities |
|
|
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|
|
|
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|
Net capital expenditure |
|
(36) |
|
(96) |
|
(98) |
|
(222) |
Cash flows used in investing activities |
|
(36) |
|
(96) |
|
(98) |
|
(222) |
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Cash flows (used in)/received from financing activities |
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|
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Changes in borrowings |
|
(23) |
|
24 |
|
181 |
|
58 |
Deferred debt issue costs paid |
|
– |
|
(1) |
|
– |
|
(2) |
Lease payments |
|
(23) |
|
(22) |
|
(44) |
|
(38) |
Dividends paid |
|
(66) |
|
(65) |
|
(132) |
|
(131) |
Cash flows (used in)/received from financing activities |
|
(112) |
|
(64) |
|
5 |
|
(113) |
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|
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|
Net increase/(decrease) in cash, cash equivalents and restricted cash |
|
86 |
|
63 |
|
(197) |
|
(369) |
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
155 |
|
124 |
|
443 |
|
555 |
Foreign exchange losses on cash, cash equivalents and restricted cash |
|
(5) |
|
(5) |
|
(10) |
|
(4) |
Cash, cash equivalents and restricted cash at end of period |
|
236 |
|
182 |
|
236 |
|
182 |
Financial assets and liabilities
At |
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Drawn amount |
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Available liquidity |
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|
$'m |
|
$'m |
Senior Secured Green and Senior Green Notes |
|
3,267 |
|
— |
Global Asset Based Loan Facility |
|
187 |
|
169 |
Lease obligations |
|
398 |
|
— |
Other borrowings |
|
46 |
|
— |
Total borrowings / undrawn facilities |
|
3,898 |
|
169 |
Deferred debt issue costs |
|
(23) |
|
— |
Net borrowings / undrawn facilities |
|
3,875 |
|
169 |
Cash, cash equivalents and restricted cash |
|
(236) |
|
236 |
Derivative financial instruments used to hedge foreign currency and interest rate risk |
|
18 |
|
— |
Net debt / available liquidity |
|
3,657 |
|
405 |
Reconciliation of profit/(loss) for the period to Adjusted profit |
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Three months ended |
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2024 |
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2023 |
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$'m |
|
$'m |
Profit/(loss) for the period as presented in the income statement |
2 |
|
(10) |
Less: Dividend on preferred shares |
(6) |
|
(6) |
Loss for the period used in calculating earnings per share |
(4) |
|
(16) |
Exceptional items, net of tax |
8 |
|
12 |
Intangible amortization, net of tax |
29 |
|
27 |
Adjusted profit for the period |
33 |
|
23 |
|
|
|
|
Weighted average number of ordinary shares |
597.7 |
|
597.6 |
|
|
|
|
Loss per share |
(0.01) |
|
(0.03) |
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Adjusted earnings per share |
0.06 |
|
0.04 |
Reconciliation of profit/(loss) for the period to Adjusted EBITDA |
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Three months ended |
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Six months ended |
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2024 |
|
2023 |
|
2024 |
|
2023 |
|
$'m |
|
$'m |
|
$'m |
|
$'m |
Profit/(loss) for the period |
2 |
|
(10) |
|
(10) |
|
(11) |
Income tax charge/(credit) |
2 |
|
(2) |
|
(7) |
|
(11) |
Net finance expense |
51 |
|
23 |
|
86 |
|
46 |
Depreciation and amortization |
113 |
|
100 |
|
222 |
|
198 |
Exceptional operating items |
10 |
|
40 |
|
21 |
|
59 |
Adjusted EBITDA |
178 |
|
151 |
|
312 |
|
281 |
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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Six months ended |
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
$'m |
|
$'m |
|
$'m |
|
$'m |
Adjusted EBITDA |
178 |
|
151 |
|
312 |
|
281 |
Movement in working capital |
152 |
|
171 |
|
(271) |
|
(175) |
Maintenance capital expenditure |
(26) |
|
(26) |
|
(50) |
|
(62) |
Lease payments |
(23) |
|
(22) |
|
(44) |
|
(38) |
Exceptional restructuring costs |
(6) |
|
— |
|
(20) |
|
— |
Adjusted operating cash flow |
275 |
|
274 |
|
(73) |
|
6 |
Interest paid |
(78) |
|
(74) |
|
(93) |
|
(82) |
Settlement of foreign currency derivative financial instruments |
6 |
|
1 |
|
1 |
|
(11) |
Income tax paid |
(9) |
|
(6) |
|
(11) |
|
(15) |
Adjusted free cash flow - pre |
194 |
|
195 |
|
(176) |
|
(102) |
Growth investment capital expenditure |
(10) |
|
(70) |
|
(48) |
|
(160) |
Adjusted free cash flow - post |
184 |
|
125 |
|
(224) |
|
(262) |
|
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Related Footnotes |
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(1) For a reconciliation to the most comparable IFRS measures, see Page 9. |
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(2) Cash from operations for the three months ended |
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