LUXEMBOURG, Oct. 28, 2021 /PRNewswire/ -- Ardagh Metal
Packaging S.A. (NYSE: AMBP) today announced results for the third
quarter ended September 30, 2021.
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Three months ended
September 30,
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2021
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2020
(1)
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Change
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Constant
Currency
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$'m
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$'m
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Revenue
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1,038
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899
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15%
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14%
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(Loss)/profit for the
period
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(178)
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52
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Adjusted
EBITDA(2)
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176
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151
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17%
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15%
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Loss per
share
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(0.32)
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Adjusted earnings per
share(2)
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0.14
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Oliver Graham, CEO of Ardagh
Metal Packaging, said
"We delivered strong earnings growth in the quarter, with
Adjusted EBITDA increasing by 17% to $176
million. AMP's diversified customer base and end markets, as
well as our operational agility, served us well in the quarter and
enabled us to manage softness in the hard seltzer end market. We
are modestly raising our full year 2021 earnings outlook, despite a
highly inflationary environment for costs. We are committing to
strategic new growth initiatives in the United Kingdom and the southwestern
United States as we respond to
strong demand for sustainable metal packaging. Both projects
involve multi-line beverage can production facilities, with
production commencing in 2023 and 2024."
- Revenue growth of 14% at constant exchange rates to
$1,038 million, with Americas
increasing by 16% and Europe by
11%.
- Adjusted EBITDA growth for the quarter of 15% to $176 million at constant currency, with the
Americas increasing by 28% as a result of favorable mix. Europe
Adjusted EBITDA was modestly higher, reflecting a strong prior year
third quarter. LTM Adjusted EBITDA to September 30, 2021 increased to $637 million, from $545
million at December 31, 2020.
Adjusted EBITDA margin for the quarter increased to 17.0% (Q3 2020:
16.8%).
- Global beverage can shipments were 6% lower in the quarter, of
which over 3% was attributable to the residual impact of the cyber
security incident. Excluding this, Americas shipments declined by
low-single digits, principally due to hard seltzer weakness in
North America and some market
softness in the winter season in Brazil relative to a strong comparable. In
response, AMP successfully pivoted to other stronger-growing
beverage markets during the quarter. In Europe, where we are capacity constrained
until 2022 pending new capacity coming online, lower shipments
reflected a very strong prior year comparable, with growth of
10%.
- Specialty cans represented 44% of shipments during the
quarter.
- Growth investment program largely on track, despite global
supply chain challenges, and set to deliver significant additional
capacity for 2022 and beyond. Olive
Branch (MS) ramp up of two new high-speed lines is well
advanced, while Winston Salem (NC) can lines will commence
production around year end. Huron (OH) brownfield facility to begin
ends production later this quarter, with can production commencing
in early-2022. Third quarter growth investment spend of
$121 million.
- Strategic additional growth initiatives planned in the
United Kingdom and the
southwestern United States. Both
projects involve multi-line beverage can production facilities,
with production commencing in 2023 and 2024.
- Total liquidity in excess of $0.8
billion at September 30, 2021,
including a newly executed $325
million ABL facility.
- Full year 2021 Adjusted EBITDA to be at least $660 million compared with the previously-guided
at least $654 million.
Financial
Performance Review
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Bridge of 2020 to
2021 Revenue and Adjusted EBITDA
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Three months ended
September 30, 2021
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Revenue
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Europe
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Americas
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Group
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$'m
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$'m
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$'m
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Revenue
2020
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421
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478
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899
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Organic
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48
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77
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125
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FX
translation
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14
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—
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14
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Revenue
2021
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483
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555
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1,038
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Adjusted
EBITDA
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Europe
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Americas
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Group
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$'m
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$'m
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$'m
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Adjusted EBITDA
2020
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73
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78
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151
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Organic
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1
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22
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23
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FX
translation
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2
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—
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2
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Adjusted EBITDA
2021
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76
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100
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176
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2021 margin
%
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15.7%
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18.0%
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17.0%
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2020 margin
%
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17.3%
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16.3%
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16.8%
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Nine months ended
September 30, 2021 (1)
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Revenue
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Europe
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Americas
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Group
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$'m
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$'m
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$'m
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Revenue
2020
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1,201
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1,357
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2,558
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Organic
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97
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228
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325
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FX
translation
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85
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—
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85
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Revenue
2021
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1,383
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1,585
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2,968
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Adjusted
EBITDA
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Europe
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Americas
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Group
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$'m
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$'m
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$'m
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Adjusted EBITDA
2020
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197
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208
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405
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Organic
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16
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62
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78
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FX
translation
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14
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—
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14
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Adjusted EBITDA
2021
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227
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270
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497
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2021 margin
%
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16.4%
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17.0%
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16.7%
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2020 margin
%
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16.4%
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15.3%
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15.8%
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Review of the three months ended September 30, 2021
Group
Revenue in the three months ended September 30, 2021 increased by $139 million, or 15%, to $1,038 million, compared with $899 million in the three months ended
September 30, 2020. The increase in
revenue is primarily driven by favorable volume/mix effects, which
includes an impact of the Group's growth investment program and the
pass through to customers of higher metal costs and favorable
foreign currency translation effects of $14
million.
Adjusted EBITDA in the three months ended September 30, 2021 increased by $25 million, or 17%, to $176 million, compared with $151 million in the three months ended
September 30, 2020. The increase was
primarily driven by favorable volume/mix effects, which includes an
impact of the Group's growth investment program and favorable
foreign currency translation effects of $2
million. Included within Adjusted EBITDA in the three months
ended September 30, 2021 are losses
and incremental costs relating to the previously-reported cyber
security incident of $11 million
($7 million in Americas and
$4 million in Europe), which are fully compensated by Ardagh
under the indemnity agreement in place.
Americas
Revenue increased by $77 million,
or 16%, to $555 million in the three
months ended September 30, 2021,
compared with $478 million in the
three months ended September 30,
2020. The increase in revenue principally reflected the pass
through of higher metal costs and favorable volume/mix effects.
Adjusted EBITDA increased by $22
million, or 28%, to $100
million in the three months ended September 30, 2021, compared with $78 million in the three months ended
September 30, 2020. The increase was
mainly driven by favorable volume/mix effects, which includes an
impact of the Group's growth investment program.
Europe
Revenue increased by $62 million,
or 15%, to $483 million in the three
months ended September 30, 2021,
compared with $421 million in the
three months ended September 30,
2020. Excluding favorable foreign currency translation
effects of $14 million, revenue
increased by $48 million, mainly due
to favorable volume/mix effects and the pass through of higher
metal costs.
Adjusted EBITDA increased by $3
million, or 4%, to $76 million
in the three months ended September 30,
2021, compared with $73
million in the three months ended September 30, 2020. Excluding favorable foreign
currency translation effects of $2
million, Adjusted EBITDA increased by $1 million, principally reflecting favorable
volume/mix effects, including a positive impact from the Group's
growth investment program, partly offset by increased costs.
Earnings Webcast and Conference Call Details
Ardagh Metal Packaging S.A. (NYSE: AMBP) will hold its third
quarter 2021 earnings webcast and conference call for investors at
9.00 a.m. EST (2.00 p.m. BST) on October
28, 2021. Please use the following webcast link to register
for this call:
Webcast registration and
access:
https://event.webcasts.com/starthere.jsp?ei=1502997&tp_key=acbc8f17b7
Conference call dial in:
United States: +1 323 794
2093
International: +44 330 336 9105
Participant pin code: 3746074
Slides
Supplemental slides to accompany this release are available at
https://www.ardaghmetalpackaging.com/corporate/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 23 production facilities in
nine countries, employing close to 5,000 employees and had sales of
approximately $3.5 billion in
2020.
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.
Unaudited
Consolidated Condensed Income Statement for the three months
ended
September 30, 2021
(1)
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Three months ended
September 30, 2021
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Before
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Exceptional
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exceptional
items
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items
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Total
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$'m
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$'m
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$'m
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Revenue
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1,038
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—
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1,038
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Cost of
sales
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(869)
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(8)
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(877)
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Gross
profit
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169
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(8)
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161
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Sales, general and
administration expenses
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(40)
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(230)
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(270)
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Intangible
amortization
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(37)
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—
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(37)
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Operating
profit/(loss)
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92
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(238)
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(146)
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Net finance
(expense)/income
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(27)
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9
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(18)
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Profit/(loss)
before tax
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65
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(229)
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(164)
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Income tax
(charge)/credit
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(16)
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2
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(14)
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Profit/(loss) for
the period
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49
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(227)
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(178)
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Unaudited
Consolidated Condensed Statement of Financial Position
(1)
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At September 30,
2021
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$'m
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Non-current
assets
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Intangible
assets
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1,711
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Property, plant and
equipment
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1,620
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Other non-current
assets
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111
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3,442
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Current
assets
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Inventories
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366
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Trade and other
receivables
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624
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Cash and cash
equivalents
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496
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Other current assets
including contract assets
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283
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1,769
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TOTAL
ASSETS
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5,211
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TOTAL
EQUITY
|
271
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Non-current
liabilities
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Borrowings including
lease obligations
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2,851
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Other non-current
liabilities*
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781
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3,632
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Current
liabilities
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Borrowings including
lease obligations
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54
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Payables and other
current liabilities
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1,254
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1,308
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TOTAL
LIABILITIES
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4,940
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TOTAL EQUITY and
LIABILITIES
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5,211
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* Other non-current
liabilities include liabilities for earnout shares of $282 million
and warrants of $37 million.
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Unaudited
Consolidated Condensed Statement of Cash Flows
(1)
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Three months ended
September
30, 2021
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$'m
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Cash flows from
operating activities
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Cash from operations
(3)
|
138
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Interest
received
|
7
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Income tax
paid
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(7)
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Cash flows from
operating activities
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138
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|
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Cash flows used in
investing activities
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Capital
expenditure
|
(139)
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Cash flows used
in investing activities
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(139)
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Cash flows from
financing activities
|
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Changes in
borrowings
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7
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Repayment of related
party borrowings to Ardagh
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(996)
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Proceeds from share
issuance, net of costs
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934
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Lease
payments
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(12)
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Other financing cash
flows
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(8)
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Net cash
outflow from financing activities
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(75)
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Net decrease in
cash and cash equivalents
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(76)
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Cash and cash
equivalents at beginning of period
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587
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Foreign exchange loss
on cash and cash equivalents
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(15)
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Cash and cash
equivalents at end of period
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496
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Financial assets
and liabilities
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At September 30,
2021, the Group's net debt and available liquidity was as
follows:
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Drawn
amount
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Available
liquidity
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$'m
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$'m
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Senior Secured and
Senior Notes
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2,750
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—
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Global Asset Based
Loan Facility
|
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—
|
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325
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Lease
obligations
|
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185
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—
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Other
borrowings/credit lines
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11
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—
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Total borrowings /
undrawn facilities
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|
2,946
|
|
325
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Deferred debt issue
costs
|
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(41)
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—
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Net borrowings /
undrawn facilities
|
|
2,905
|
|
325
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Cash and cash
equivalents
|
|
(496)
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496
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Net debt /
available liquidity
|
|
2,409
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|
821
|
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At September 30,
2021
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$'m
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Net Debt
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2,409
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LTM Adjusted
EBITDA
|
|
637
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Net debt to LTM
Adjusted EBITDA (4)
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3.8x
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Reconciliation of
loss for the period to Adjusted profit
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|
Three months ended
September 30,
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|
2021
|
|
$'m
|
Loss for the
period
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(178)
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Exceptional items,
net of tax
|
227
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Intangible
amortization, net of tax
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29
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Adjusted profit
for the period
|
78
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|
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Weighted average
common shares
|
562.8
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Loss per
share
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(0.32)
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Adjusted earnings
per share
|
0.14
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Reconciliation of
loss for the period to Adjusted EBITDA (5), Adjusted
operating cash
flow and Adjusted free cash flow
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|
|
Three months ended
September 30,
|
|
2021
|
|
$'m
|
Loss for the
period
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(178)
|
Income tax
charge
|
14
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Net finance
expense
|
18
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Depreciation and
amortization
|
84
|
Exceptional operating
items
|
238
|
Adjusted
EBITDA
|
176
|
Movement in working
capital
|
(23)
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Capital
expenditure
|
(139)
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Lease
payments
|
(12)
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Adjusted operating
cash flow
|
2
|
Interest
received
|
7
|
Income tax
paid
|
(7)
|
Adjusted free cash
flow
|
2
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____________________
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Related
Footnotes
|
|
(1) For information
related to and including the period prior to April 1, 2021, please
refer to the unaudited combined 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 and nine months ended September 30, 2021, which are available
at
https://www.ardaghmetalpackaging.com/corporate/investors
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(2) For a
reconciliation to the most comparable GAAP measures, see Page
7.
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(3) Cash from
operations is derived from the aggregate of Adjusted EBITDA as
presented on Page 7, working capital outflows of $23 million and
other exceptional cash outflows of $15 million.
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(4) Net debt is
comprised of net borrowings, net of cash and cash equivalents and
restricted cash held in escrow. Net borrowings comprises
non-current and current borrowings including lease obligations. LTM
Adjusted EBITDA at September 30, 2021 is derived from Adjusted
EBITDA as presented on Page 2 for the nine months ended September
30, 2021 and 2020, respectively, and Adjusted EBITDA as presented
in the audited combined financial statements of the AMP Business
for the year ended December 31, 2020, as included on pages F–2 to
F-60 of Amendment No. 3 of the Company's Registration Statement on
Form F-4 (333-254005) filed with the Securities and Exchange
Commission (the "SEC") on June 22, 2021 (the "Form
F-4").
|
(5) AMP does not
present a reconciliation to the most comparable GAAP measure for
Adjusted EBITDA for the three and nine months ended September 30,
2020 and the nine months ended September 30, 2021, because such
information was historically reported to provide information about
reportable segments of the Ardagh Group S.A. and its subsidiaries.
See the unaudited consolidated interim financial statements of the
Group for the three and nine months ended September 30, 2021
referred to in Note (1).
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SOURCE Ardagh Metal Packaging S.A.