LUXEMBOURG, April 28,
2022 /PRNewswire/ -- Ardagh Metal Packaging S.A.
(NYSE: AMBP) today announced results for the first quarter ended
March 31, 2022.
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March 31,
2022
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March 31, 2021
(1)
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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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1,137
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939
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21%
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25%
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Profit/(loss) for the
period
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57
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(74)
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Adjusted EBITDA
(2)
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145
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148
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(2%)
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1%
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Earnings per
share
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0.09
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Adjusted earnings per
share (2)
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0.08
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Dividend per
share
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0.10
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At March 31,
2022
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At December 31,
2021
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Net debt to LTM
Adjusted EBITDA (3)
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4.2x
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3.7x
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Oliver Graham, CEO of Ardagh
Metal Packaging, said
"First quarter results were in line with our expectations, with
continued strong demand for our products. We share the
international outrage at the Russian invasion of Ukraine and the resulting humanitarian crisis.
Although we have no presence in either country, these events have
exacerbated an already challenging inflationary backdrop, in
response to which we are pursuing additional price recovery. Demand
remains strong across our business, and we significantly advanced
our growth investment plans in the quarter, which will contribute
to a meaningful step-up in shipments in future quarters."
- Adjusted EBITDA growth for the quarter of 1% to $145 million at constant currency, driven by a 9%
advance in the Americas, where growth reflected higher shipments
and lower operating costs. In Europe, Adjusted EBITDA decreased by 10% on a
constant currency basis, in line with expectations, as elevated
input cost inflation was only partly offset by volume/mix
effects.
- Global beverage can shipments grew by 1% in the quarter,
reflecting a strong prior year comparable and driven by growth of
3% in North America. Acceleration
is expected from the second quarter as new capacity ramps up.
Shipments in Europe were unchanged
on the prior year, following a strong fourth quarter 2021, which
depleted inventory levels available for shipment. Brazil showed encouraging trends as the
quarter proceeded.
- Specialty can share increased, to 48% of shipments in the
quarter, from 44% in the prior year quarter, reflecting our
investment program.
- Growth investment program remains on track, with a step up in
shipments expected from the current quarter. In Europe, new capacity in the UK and
Germany is now operational. In
North America, Winston Salem (NC)
continues to ramp up its first line, with the second line also
commencing production. In Huron (OH) can production will commence
shortly, complementing ends production since late-2021.
- AMP does not have any operations in Russia or Ukraine and has not faced any disruption to
date to either sales or supplies arising from the conflict.
Persistently high European energy costs represent a headwind for
which AMP is taking price recovery actions.
- Total liquidity of $450 million
at March 31, 2022, including cash and
cash equivalents of $225 million. Net
leverage of 4.2x LTM Adjusted EBITDA, reflecting seasonal working
capital build and growth investments.
- AMP reiterates its intention to maintain a net leverage in the
range of 3.75 to 4.0x 12-months forward looking Adjusted EBITDA,
enabling the growth investment plan and cash returns to
shareholders, with $400 million
($0.66c per share) to be returned in
2022.
- Dividend of $0.10 per share
declared as the first of three quarterly dividends of $0.10 per share, with the balance of $220 million to be paid as the fourth quarter
dividend. AMP intends to proceed with the planned $600 million issue of non-convertible preference
shares.
- AMP has provided Group support for humanitarian relief efforts
in Ukraine through a donation to
the International Committee of the Red Cross, as well as supporting
local initiatives by colleagues across our network.
- 2022 outlook: [re-iterating expected mid-to-high teens
percentage shipment growth] for the year and Adjusted EBITDA of the
order of $750 million on a constant
currency basis. Second quarter Adjusted EBITDA expected to be of
the order of $180 million on a
constant currency basis (Q2 2021: $168
million at constant currency).
Financial
Performance Review
Bridge of 2021 to
2022 Revenue and Adjusted EBITDA
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Three months ended
March 31, 2022
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Revenue
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Europe
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Americas
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Group
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$'m
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$'m
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$'m
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Revenue
2021
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436
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503
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939
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Organic
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93
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135
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228
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FX
translation
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(30)
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—
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(30)
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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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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
2021
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66
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82
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148
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Organic
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(6)
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7
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1
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FX
translation
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(4)
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—
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(4)
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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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2022 margin
%
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11.2%
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13.9%
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12.8%
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2021 margin
%
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15.1%
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16.3%
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15.8%
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Group Performance
Group
Revenue of $1,137 million in the
three months ended March 31, 2022
increased by $198 million, or 21%,
compared with the same period last year. On a constant currency
basis, revenue increased by 25%, mainly reflecting strong
volume/mix growth and the pass through to customers of higher input
costs.
Adjusted EBITDA decreased by $3
million, or 2%, to $145
million in the three months ended March 31, 2022, compared with $148m in the same period last year. On a constant
currency basis, Adjusted EBITDA increased by 1%, principally due to
favorable volume/mix effects, which includes an impact from the
Group's growth investment program, partly offset by increased input
costs.
Americas
Revenue increased by 27% to $638
million in the three months ended March 31, 2022, compared with the same period
last year, principally reflecting the pass through of higher input
costs and favorable volume/mix effects.
Adjusted EBITDA for the quarter of $89
million increased by 9%, compared with $82 million in the same period last year,
primarily driven by strong recovery of input cost inflation and
strong cost management.
Europe
Revenue of $499 million increased
by 14% in the three months ended March 31,
2022, compared with the same period last year. On a constant
currency basis, revenue increased by 23%, principally due to
volume/mix effects and the pass through of higher input costs.
Adjusted EBITDA for the quarter of $56
million decreased by $10
million, or 15%, at actual exchange rates, and by 10% at
constant currency, compared with the same period last year. The
decrease in Adjusted EBITDA was principally due to input cost
inflation, partly offset by favorable volume/mix effects.
Earnings Webcast and Conference Call Details
Ardagh Metal Packaging S.A. (NYSE: AMBP) will hold its first
quarter 2022 earnings webcast and conference call for investors at
9.00 a.m. EST (2.00 p.m. BST) on April
28, 2022. Please use the following webcast link to register
for this call:
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1542486&tp_key=c4d0a5ded5
Conference call dial in:
United States/Canada: +1 800 239 9838
International: +44 330 165 4027
Participant pin code: 9933231
Slides
Supplemental slides to accompany this release are available at
https://www.ardaghgroup.com/corporate/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 close to 5,800 employees and had sales of
$4.1 billion in 2021.
Forward-Looking Statements
This press release includes
"forward-looking statements" within the meaning of Section 27A
of the U.S. Securities Act and Section 21E of the U.S.
Securities Exchange Act of 1934, as amended. Forward-looking
statements are 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 press release. Any
forward-looking information presented herein is made only as of the
date of this press 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-GAAP Financial Measures
This press 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 or US GAAP. Non-GAAP financial measures may
be considered in addition to GAAP financial information, but should
not be used as substitutes for the corresponding GAAP measures. The
non-GAAP financial measures used by AMP 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, 2022 and
2021 (1)
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Three months ended
March 31, 2022
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Three months ended
March 31, 2021
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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
|
|
Total
|
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$'m
|
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$'m
|
|
$'m
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|
$'m
|
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$'m
|
|
$'m
|
Revenue
|
|
1,137
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|
—
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1,137
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|
939
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|
—
|
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939
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Cost of
sales
|
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(986)
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(14)
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(1,000)
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(787)
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(3)
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(790)
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Gross
profit
|
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151
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(14)
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137
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152
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(3)
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149
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Sales, general and
administration expenses
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(56)
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(4)
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(60)
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(49)
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(3)
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(52)
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Intangible
amortization
|
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(36)
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—
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(36)
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|
(39)
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—
|
|
(39)
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Operating
profit
|
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59
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(18)
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41
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|
64
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|
(6)
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58
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Net finance
income/(expense)
|
|
(28)
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|
51
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|
23
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(92)
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|
(57)
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|
(149)
|
Profit/(loss) before
tax
|
|
31
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|
33
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|
64
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(28)
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(63)
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(91)
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Income tax
(charge)/credit
|
|
(9)
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2
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|
(7)
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|
7
|
|
10
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|
17
|
Profit/(loss) for
the period
|
|
22
|
|
35
|
|
57
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|
(21)
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(53)
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|
(74)
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|
|
|
|
|
|
|
|
|
|
|
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Earnings/(loss) per
share
|
|
|
|
|
|
0.09
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(0.15)
|
Unaudited
Consolidated Condensed Statement of Financial
Position (1)
|
|
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At March 31,
2022
|
|
At December 31,
2021
|
|
$'m
|
|
$'m
|
Non-current
assets
|
|
|
|
Intangible
assets
|
1,608
|
|
1,662
|
Property, plant and
equipment
|
1,908
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|
1,842
|
Other non-current
assets
|
159
|
|
160
|
|
3,675
|
|
3,664
|
Current
assets
|
|
|
|
Inventories
|
484
|
|
407
|
Trade and other
receivables
|
674
|
|
512
|
Cash and cash
equivalents
|
225
|
|
463
|
Contract
assets
|
225
|
|
182
|
Derivative financial
instruments
|
143
|
|
97
|
|
1,751
|
|
1,661
|
TOTAL
ASSETS
|
5,426
|
|
5,325
|
|
|
|
|
TOTAL
EQUITY
|
415
|
|
286
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
2,819
|
|
2,831
|
Other non-current
liabilities*
|
718
|
|
808
|
|
3,537
|
|
3,639
|
Current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
152
|
|
56
|
Payables and other
current liabilities
|
1,322
|
|
1,344
|
|
1,474
|
|
1,400
|
TOTAL
LIABILITIES
|
5,011
|
|
5,039
|
TOTAL EQUITY and
LIABILITIES
|
5,426
|
|
5,325
|
* Other non-current liabilities include liabilities for earnout
shares of $242 million at
March 31, 2022 (December 2021: $292
million) and warrants of $27
million at March 31, 2022
(December 2021: $33 million).
Unaudited
Consolidated Condensed Statement of Cash
Flows (1)
|
|
|
Three months ended
March 31,
|
|
2022
|
|
2021
|
|
$'m
|
|
$'m
|
Cash flows used in
operating activities
|
|
|
|
Cash used in operations
(4)
|
(194)
|
|
(27)
|
Interest
received/(paid)
|
7
|
|
(45)
|
Income tax
paid
|
(7)
|
|
(21)
|
Cash flows used
in operating activities
|
(194)
|
|
(93)
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
Capital
expenditure
|
(117)
|
|
(168)
|
Other investing
activities
|
–
|
|
1
|
Cash flows used
in investing activities
|
(117)
|
|
(167)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Changes in
borrowings
|
96
|
|
(2)
|
Cash received from
Ardagh
|
–
|
|
206
|
Lease
payments
|
(13)
|
|
(11)
|
Other financing cash
flows
|
(2)
|
|
(52)
|
Net cash inflow
from financing activities
|
81
|
|
141
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(230)
|
|
(119)
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
463
|
|
257
|
Foreign exchange losses
on cash and cash equivalents
|
(8)
|
|
(8)
|
Cash and cash
equivalents at end of period
|
225
|
|
130
|
Financial assets and
liabilities
At March 31, 2022, the
Group's net debt and available liquidity was as follows:
|
|
|
|
Drawn
amount
|
|
Available
liquidity
|
|
|
$'m
|
|
$'m
|
Senior Secured and
Senior Notes
|
|
2,705
|
|
—
|
Global Asset Based Loan
Facility
|
|
100
|
|
225
|
Lease
obligations
|
|
181
|
|
—
|
Other borrowings/credit
lines
|
|
18
|
|
—
|
Total borrowings /
undrawn facilities
|
|
3,004
|
|
225
|
Deferred debt issue
costs
|
|
(33)
|
|
—
|
Net borrowings /
undrawn facilities
|
|
2,971
|
|
225
|
Cash and cash
equivalents
|
|
(225)
|
|
225
|
Net debt / available
liquidity
|
|
2,746
|
|
450
|
Reconciliation of
profit for the period to Adjusted profit for the
period
|
|
|
Three months ended
March 31,
|
|
2022
|
|
$'m
|
Profit for the
period
|
57
|
Exceptional items, net
of tax
|
(35)
|
Intangible
amortization, net of tax
|
28
|
Adjusted profit for
the period
|
50
|
|
|
Weighted average common
shares
|
603.3
|
|
|
Earnings per
share
|
0.09
|
|
|
Adjusted earnings
per share
|
0.08
|
Reconciliation of
profit/(loss) for the period to Adjusted EBITDA
|
|
|
Three months ended
March 31,
|
|
2022
|
|
2021
(1)
|
|
$'m
|
|
$'m
|
Profit/(loss) for
the period
|
57
|
|
(74)
|
Income tax
charge/(credit)
|
7
|
|
(17)
|
Net finance
(income)/expense
|
(23)
|
|
149
|
Depreciation and
amortization
|
86
|
|
84
|
Exceptional operating
items
|
18
|
|
6
|
Adjusted
EBITDA
|
145
|
|
148
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA to Adjusted operating cash flow and
Adjusted free cash flow
|
|
|
Three months ended
March 31,
|
|
2022
|
|
2021
(1)
|
|
$'m
|
|
$'m
|
Adjusted
EBITDA
|
145
|
|
148
|
Movement in working
capital
|
(325)
|
|
(169)
|
Maintenance capital
expenditure
|
(20)
|
|
(24)
|
Lease
payments
|
(13)
|
|
(11)
|
Adjusted operating
cash flow
|
(213)
|
|
(56)
|
Interest
received/(paid)
|
7
|
|
(45)
|
Income tax
paid
|
(7)
|
|
(21)
|
Adjusted free cash
flow - pre Growth Investment capital expenditure
|
(213)
|
|
(122)
|
Growth investment
capital expenditure
|
(97)
|
|
(144)
|
Adjusted free cash
flow - post Growth Investment capital expenditure
|
(310)
|
|
(266)
|
Related Footnotes
(1) For information related to and including the period prior to
April 1, 2021, please refer to the
unaudited consolidated interim financial statements prepared on a
carve-out basis from the consolidated financial statements of
Ardagh Group S.A., as included in the unaudited consolidated
interim financial statements of the Group for the three months
ended March 31, 2022, which are
available at:
https://www.ardaghmetalpackaging.com/investors
For information related to the unaudited consolidated condensed
statement of financial position at December
31, 2021, please refer to the Annual Report on Form 20F for
the year ended December 31, 2021,
which is also available at the above link.
(2) For a reconciliation to the most comparable GAAP measures,
see Page 7.
(3) Net debt is comprised of net borrowings, net of cash, cash
equivalents and restricted cash held in escrow. Net borrowings
comprises non-current and current borrowings including lease
obligations.
(4) Cash used in operations for the three months ended
March 31, 2022 is derived from the
aggregate of Adjusted EBITDA as presented on Page 7 less working
capital outflows of $325 million and
other exceptional cash outflows of $14
million. Cash from operations for the three months ended
March 31, 2021 is derived from the
aggregate of Adjusted EBITDA as presented on Page 7, working
capital outflows of $169 million and
other exceptional cash outflows of $6
million.
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SOURCE Ardagh Metal Packaging S.A.