Ardagh Metal Packaging S.A. - Second Quarter 2022 Results
Ardagh Metal Packaging S.A. (NYSE: AMBP) today announced results for the second quarter ended June 30, 2022.
Oliver Graham, CEO of Ardagh Metal Packaging, said
“We successfully delivered our Q2 guidance in the face of unprecedented inflationary and supply chain challenges and a headwind from FX. In the quarter we continued to commercialise new capacity, largely in line with budget and with minimal delays. The ramp-up of our investments and an outperformance in Brazil contributed to strong shipments growth in the period. We are actively pursuing a recovery of our exceptional energy inflation costs and are focused on a disciplined build-out of further capacity, suitably rephased so as to align it with demand.”
- Global beverage can shipments grew by 8% in the quarter, with growth of 11% in the Americas and 5% in Europe. Specialty can share increased, to 48% of shipments in the quarter, from 46% in the prior year quarter, reflecting our investment program.
- Adjusted EBITDA of $181 million for the quarter represented 10% growth on a constant currency basis, driven by a 36% advance in the Americas, where growth reflected higher shipments and a strong recovery of input cost inflation. In Europe, Adjusted EBITDA decreased by 20% on a constant currency basis, due to inflationary headwinds, in particular energy, which were partially offset by commercial recovery programs.
- New capacity continues to ramp up across our regions, including in Germany, the UK, United States and Brazil. Can production started during the quarter in Huron (OH), with further capacity planned through the remainder of the year.
- AMP has contracted its remaining energy needs for 2022 and will continue to build out its cover for 2023 on a rolling basis over the remainder of the year. The assumption of a net $25 million impact in 2022 from Europe energy inflation is unchanged.
- Total liquidity of $761 million at June 30, 2022, including cash and cash equivalents of $436 million. This follows the issuance of $600 million of 6% Senior Secured Green Notes in June. As previously announced, growth investments for 2022 will reduce to $0.8bn (inc. leasing), and a €250 million perpetual non-convertible preference shares issue was completed in July.
- Second quarter dividend of $0.10 per share paid on June 28, 2022. $200 million share buyback program authorised in June and in operation through to the end of 2023, with $3 million repurchased in the quarter and approaching $15 million to date.
- 2022 outlook: high-single digit shipment growth for the full year and Adjusted EBITDA of the order of $710 million, assuming EUR/USD parity to year end which results in a c. $20 million adverse currency impact relative to prior guidance. (2021: $662 million reported; $629 million at constant currency). Third quarter Adjusted EBITDA expected to be of the order of $175 million (Q3 2021: $176 million reported; $164 million at constant currency).
28 July 2022