Business Overview

Leading pure play in the growing beverage can sector

We are a pure play leading global producer in the growing metal beverage packaging sector. We are the #2 supplier of metal beverage cans by value in Europe and the #3 supplier in the Americas (United States and Brazil). Demand for metal beverage cans in each of our regions is growing, driven by long-term consumer megatrends, including convenience, increasing sustainability awareness and a desire for wellness and refreshment. Aluminum is also favoured by brand owners and consumers as it is strong, light and efficient to transport and store, as well as suited to attractive branding.

Business Growth Investment Program 2021-2024 underpins strong organic growth

We are focused on driving superior shareholder value, as we invest in support of existing and new customers’ growth in each of our regions. Our $1.8 billion 2021-2024 Business Growth Investment Program is targeted to deliver strong organic growth in volumes, revenues and earnings. This program is largely centred on expansion of our existing manufacturing facilities and is underpinned by multi-year customer contracts.

Exclusively focused on 100% sustainable products

Metal beverage cans are fully and infinitely recyclable, a key attraction for end consumers. Production of a beverage can from recycled beverage containers saves over 90% of the energy used in making a beverage container from virgin materials. A used beverage container can be collected, recycled into a new beverage can and returned to the shelf within 60 days. For our customers, beverage cans are more efficient to fill and easier to transport and store than other substrates, contributing to the lowest total cost of ownership. This helps our customers to meet their sustainability targets and, working with our industry associations, we continue to promote increased recycling.

Leading environmental and social credentials

We are committed to adopting Science-Based Sustainability Targets, with a targeted 27% reduction in our Scope 1, 2 and 3 emissions by 2030. We are also highly rated by the CDP for climate change (A-*), water security (B*) and supplier engagement (A*). We actively promote and support community engagement across our organisation, with a particular focus on educational development in all the communities in which we operate.

Long-term, contracted relationships with a diverse, blue-chip customer base

We have a longstanding and diversified customer base, including leading multinational, national and local beverage companies, all of which we supply with sustainable, innovative packaging solutions. Well over 80% of our revenue is backed by multi-year supply agreements, with the remainder largely pursuant to annual arrangements. A significant proportion of our sales volumes are supplied under contracts which include mechanisms that protect us from earnings volatility related to input costs.

Well-invested asset base with a significant and growing specialty can footprint

We operate 23 well-invested and strategically located production facilities in nine countries, enabling us to efficiently serve our customers with high-quality and innovative products. We pursue continuous improvement and operational excellence across our operations. We have a significant presence in the faster-growing specialty can segment, which represented 43% of our total can volumes in 2020. Following completion of our business growth investment program 2021-2024, specialty cans are projected to represent 55-60% of our total volumes.

Stable economies and end-use categories, enjoying growing demand

We derive approximately 90% of our revenues from Europe and North America, stable economies with relatively low cyclicality, with the balance largely derived from the Brazil beverage market. Our revenues are entirely generated from beverage end-use categories, demand for which is generally less impacted by economic cycles. In Europe, North America and Brazil, demand for metal beverage cans has accelerated in recent years, principally driven by new beverage innovations, increased awareness by consumers of sustainability and structural pack-mix shifts by our customers.

*Ardagh Group