Ardagh Metal Packaging S.A. - Third Quarter 2022 Results
Ardagh Metal Packaging S.A. (NYSE: AMBP) today announced results for the third quarter ended September 30, 2022.
Oliver Graham, CEO of Ardagh Metal Packaging, said
“We experienced a challenging third quarter of 2022. While global shipments increased by 9% compared with the same period last year, demand was below our expectations and impacted earnings. We expect these conditions to persist through the fourth quarter and into the first half of 2023. In response we are taking a disciplined approach to managing our costs and capacity, and further flexing our growth expenditure. Our well-advanced investment program puts us in a very strong position to serve the continuing secular demand growth for sustainable beverage can packaging.”
- Global beverage can shipments grew by 9% in the quarter, with growth of 10% in the Americas and 9% in Europe. Specialty can share increased to 46% of shipments in the quarter from 44% in the prior year quarter, reflecting our investment program.
- Adjusted EBITDA of $140 million for the quarter represented a 15% decline on a constant currency basis due to input cost headwinds, as operating costs relating to capacity ramp-up in excess of demand offset the contribution from shipment growth.
- In the Americas, Adjusted EBITDA advanced by 2% reflecting higher shipments, largely offset by higher operating costs. This was more than offset by a 42% decline, on a constant currency basis, in Adjusted EBITDA in Europe as input cost headwinds exceeded the contribution from higher shipments, and costs related to metal valuation timing issues were offset by positive one-off factors.
- Growth investments for 2022 will reduce to c. $0.6 billion, including leasing. The growth investment plan is well advanced, with installed capacity continuing its ramp-up. Future additions will be appropriately phased in line with demand conditions.
- Total liquidity of $998 million at September 30, 2022, including cash and cash equivalents of $583 million and an upsized ABL facility of $415 million. Our current investment plans mean we do not anticipate any external market financing need in 2023.
- Fourth quarter dividend of 10c announced, delivering on guidance for a sustainable annual dividend totalling 40c per share. In the quarter $32 million of shares were repurchased under the buyback program, taking the total to $35 million to date.
- AMP received approval from the Science Based Targets initiative (SBTi) for greenhouse gas emission reduction targets.
- 2022 outlook: mid-single digit shipment growth for the year and full year 2022 Adjusted EBITDA of the order of $640-650 million, assuming EUR/USD parity to year end. (2021: $630 million at constant currency; $662 million reported). Fourth quarter Adjusted EBITDA expected to be of the order of $175-185 million (Q4 2021: $157 million at constant currency, $165 million reported).
27 October 2022