Ardagh Metal Packaging S.A. - Fourth Quarter and Full Year 2022 Results

Ardagh Metal Packaging S.A. (NYSE: AMBP) today announced results for the fourth quarter and year ended December 31, 2022.

Highlights

Oliver Graham, CEO of Ardagh Metal Packaging, said:

“Our performance in Q4 was resilient as we navigated challenging market conditions, delivering 1% global shipment growth with equivalent growth in Adjusted EBITDA at constant currency. For the full year we delivered shipment growth of 5%, supported by our investment program, although softer-than-expected demand conditions resulted in fixed cost under-absorption. Into 2023 we have taken actions to drive double-digit earnings growth through volume increases, contract resets with our customers and disciplined cost and capacity management. Our investment program is largely complete, providing the strong foundation to capture secular growth for the sustainable beverage can and to generate positive adjusted free cash flow in 2023, and further meaningful improvement in cash generation beyond.”

• Global beverage can shipments grew by 1% in the quarter, driven by growth of 3% in North America and 1% in Europe. Softer performance in Brazil resulted in modest growth vs. the prior year quarter overall in the Americas. Specialty can share increased to 48% in 2022 from 45% in the prior year, reflecting our investment program.
• Adjusted EBITDA of $159 million for the quarter represented a 1% increase on a constant currency basis as the contribution from volume/mix, including from growth investments, was offset by higher costs.
• In the Americas, Adjusted EBITDA advanced by 3% to $114 million as the contribution from volume/mix, including growth investments, offset higher operating and inflationary costs.
• In Europe Adjusted EBITDA declined by 2% to $45 million as inflationary input cost headwinds - including metal premium valuation effects - and higher operating costs exceeded the contribution from higher shipments. Completed discussions with European customers and strengthened energy hedging positions, will support improved cost recovery and predictability in 2023.
• Total liquidity of $970 million at December 31, 2022, including cash and cash equivalents of $555 million and an undrawn ABL facility of $415 million. Positive Adjusted Free Cash Flow generation anticipated in 2023, with a net working capital inflow and a reduction in growth capex to below $0.3 billion. Growth capex will further significantly reduce in 2024.
• First quarter ordinary dividend of 10c announced, in line with guidance for an annual dividend of 40c per share.
• Recognition of sustainability commitments, with a first standalone rating from CDP, achieving a leadership A- rating for water management and a B rating for climate change.
• 2023 outlook: 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 as our contracted inflation recovery and shipments accelerate. First quarter Adjusted EBITDA expected to be of the order of $130 million (Q1 2022: $145 million reported; $142m at constant currency).

Click here to see the full Earnings Release

22 February 2023