EX-99.1
Published on April 28, 2022
Exhibit 99.1
Ardagh Metal Packaging S.A. – First Quarter 2022 Results
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 |
|
March 31, 2021 (1) |
|
Change |
|
Constant Currency |
|
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($'m except per share data) |
|
|
|
|
||
Revenue |
|
1,137 |
|
939 |
|
21% |
|
25% |
Profit/(loss) for the period |
|
57 |
|
(74) |
|
|
|
|
Adjusted EBITDA (2) |
|
145 |
|
148 |
|
(2%) |
|
1% |
Earnings per share |
|
0.09 |
|
|
|
|
|
|
Adjusted earnings per share (2) |
|
0.08 |
|
|
|
|
|
|
Dividend per share |
|
0.10 |
|
|
|
|
|
|
|
|
At March 31, 2022 |
|
At December 31, 2021 |
|
|
|
|
Net debt to LTM Adjusted EBITDA (3) |
|
4.2x |
|
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). |
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1 |
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Financial Performance Review
Bridge of 2021 to 2022 Revenue and Adjusted EBITDA
Three months ended March 31, 2022
Revenue |
|
Europe |
|
Americas |
|
Group |
|
|
$'m |
|
$'m |
|
$'m |
Revenue 2021 |
|
436 |
|
503 |
|
939 |
Organic |
|
93 |
|
135 |
|
228 |
FX translation |
|
(30) |
|
— |
|
(30) |
Revenue 2022 |
|
499 |
|
638 |
|
1,137 |
Adjusted EBITDA |
|
Europe |
|
Americas |
|
Group |
|
|
$'m |
|
$'m |
|
$'m |
Adjusted EBITDA 2021 |
|
66 |
|
82 |
|
148 |
Organic |
|
(6) |
|
7 |
|
1 |
FX translation |
|
(4) |
|
— |
|
(4) |
Adjusted EBITDA 2022 |
|
56 |
|
89 |
|
145 |
|
|
|
|
|
|
|
2022 margin % |
|
11.2% |
|
13.9% |
|
12.8% |
2021 margin % |
|
15.1% |
|
16.3% |
|
15.8% |
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.
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2 |
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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.ardaghmetalpackaging.com/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.
Contacts:
Investors:
Email:stephen.lyons@ardaghgroup.com
Media:
Pat Walsh, Murray Consultants
Tel.: +1 646 776 5918 / +353 87 2269345
Email: pwalsh@murrayconsult.ie
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3 |
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Unaudited Consolidated Condensed Income Statement for the three months ended March 31, 2022 and 2021 (1)
|
|
Three months ended March 31, 2022 |
|
Three months ended March 31, 2021 |
||||||||
|
|
Before exceptional items |
|
Exceptional items |
|
Total |
|
Before exceptional items |
|
Exceptional items |
|
Total |
|
|
$'m |
|
$'m |
|
$'m |
|
$'m |
|
$'m |
|
$'m |
Revenue |
|
1,137 |
|
— |
|
1,137 |
|
939 |
|
— |
|
939 |
Cost of sales |
|
(986) |
|
(14) |
|
(1,000) |
|
(787) |
|
(3) |
|
(790) |
Gross profit |
|
151 |
|
(14) |
|
137 |
|
152 |
|
(3) |
|
149 |
Sales, general and administration expenses |
|
(56) |
|
(4) |
|
(60) |
|
(49) |
|
(3) |
|
(52) |
Intangible amortization |
|
(36) |
|
— |
|
(36) |
|
(39) |
|
— |
|
(39) |
Operating profit |
|
59 |
|
(18) |
|
41 |
|
64 |
|
(6) |
|
58 |
Net finance income/(expense) |
|
(28) |
|
51 |
|
23 |
|
(92) |
|
(57) |
|
(149) |
Profit/(loss) before tax |
|
31 |
|
33 |
|
64 |
|
(28) |
|
(63) |
|
(91) |
Income tax (charge)/credit |
|
(9) |
|
2 |
|
(7) |
|
7 |
|
10 |
|
17 |
Profit/(loss) for the period |
|
22 |
|
35 |
|
57 |
|
(21) |
|
(53) |
|
(74) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
|
0.09 |
|
|
|
|
|
(0.15) |
4
Unaudited Consolidated Condensed Statement of Financial Position (1)
|
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 |
|
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).
5
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 |
|
6 |
|
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) |
|
7 |
|
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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8 |
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