Ardagh Metal Packaging S.A. - First Quarter 2023 Results
Published April 27, 2023
Ardagh Metal Packaging S.A. (NYSE: AMBP) today announced results for the first quarter ended March 31, 2023.
Highlights
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).
