Ardagh Metal Packaging S.A. – Second Quarter 2021 Results
Published July 29, 2021
On April 1, 2021, the transfer of Ardagh Group S.A.’s (“Ardagh”) metal beverage packaging business to Ardagh Metal Packaging S.A. (“AMP”) was completed resulting in AMP becoming an unrestricted subsidiary of Ardagh. AMP today announced results for the quarter ended June 30, 2021, as derived from the group consolidation of Ardagh.
Highlights
Paul Coulson, Chairman and Chief Executive, said “We have made an excellent start to 2021, with strong earnings growth in Metal Packaging and a robust performance in Glass Packaging Europe. Our $2.1 billion investment program is fully on track and we are well-placed to deliver further growth over the course of the year.”
- Revenue increased by 9% to $1,774 million, reflecting increased shipments in both Metal Packaging and Glass Packaging, the pass through of higher input costs and favorable currency translation effects.
- Metal Packaging shipments increased by 8% in the quarter. Speciality can volumes increased by 16% and represented c.45% of total shipments.
- Glass Packaging shipments increased by 2%, led by growth in North America. Shipments in Europe were in line with the prior year, despite continuing lockdowns in much of Europe during the quarter.
- Adjusted EBITDA of $300 million increased by 10% at actual exchange rates and by 5% on a constant currency basis.
- Metal Packaging Adjusted EBITDA increased by 23%, with growth of 34% and 12% in the Americas and Europe respectively. Glass Packaging Adjusted EBITDA decreased by 8%, due to a lower outturn in Glass Packaging North America, which was impacted by severe weather and higher operating costs. Glass Packaging Europe Adjusted EBITDA increased by 9% and was in line with the prior year at constant currency rates.
- Metal Packaging to list separately on NYSE as Ardagh Metal Packaging (“AMP”), a pure-play beverage can producer with leading market positions in the Americas and Europe. On completion of the transaction with Gores Holdings V Inc., expected in the second quarter of 2021, Ardagh Group will hold a stake of ~80% in AMP and will receive up to $3.4 billion in cash.
- Business Growth Investment program progressing on plan, with two new sleek lines commissioned and ramping up in Olive Branch, Mississippi. First quarter growth investment spending of $162 million is on track, with multiple other projects under way.
- Cash and available liquidity of $1.6 billion at March 2021.
- Sustainability agenda further progressed during the quarter, with advances in implementing our SBTI based emissions reduction and social sustainability strategies. The Furnace for the Future project is advancing and, in AMP, a $2.8 billion Green Bond was issued in March.
- Re-iterating 2021 Guidance: Adjusted EBITDA of $1.28 – $1.30 billion in 2021 with end of year reported net leverage of around 5x LTM Adjusted EBITDA. Second quarter Adjusted EBITDA is expected to be $325 – $330 million
