Ardagh Metal Packaging revenue increased by 18% in 2021
Ardagh Metal Packaging announced results for the fourth quarter and year ended December 31, 2021.
Revenue of $1,087 million for the fourth quarter increased by $194 million, or 22%.
AMP’s revenue increased by $604 million, or 18%, to $4,055 million in 2021 compared with $3,451 million in 2020.
Oliver Graham, CEO of Ardagh Metal Packaging, said: ”AMP delivered a year of strong earnings growth, with Adjusted EBITDA increasing by 21% and in excess of plan.
“This performance demonstrates the resilience of the business in managing unprecedented inflationary pressures and supply chain disruption.
“The team performed an exceptional job supporting customers and partnering on their growth ambitions.
“The year finished strongly with global shipments rising by 6% in the quarter. Demand remains strong, backed by sustainability and innovation tailwinds.
“Confidence in the strength and resilience of AMP’s end markets is underpinned by further expanding the customer contracted growth investment program.”
- Adjusted EBITDA growth for the quarter of 19% to $165 million at constant currency, driven by a 26% advance in the Americas, where growth reflected higher shipments and a favourable mix. In Europe, Adjusted EBITDA grew by 6% on a constant currency basis, as a strong volume performance in the period was partly offset by input cost inflation.
- Global beverage can shipments grew by 6% in the quarter, despite a strong prior year comparable, with growth of 6% in North America and 11% in Europe. Growth in both regions was broad-based and reflected the diversity of the Group’s customer base and end markets.
- Specialty can penetration increased, reflecting our investment program, reaching 48% of shipments in the quarter and 45% for the year.
- Growth investment program continued to advance strongly; Huron (OH) facility commenced ends production in November, our Winston Salem (NC) expansion recently started can production, while our two new high-speed lines in Olive Branch (MS) continued their successful ramp-up. European projects also advanced well, with new capacity commissioning in the United Kingdom and Germany in the first half of 2022, while Brazil can and ends capacity was also increased during the year.
- Strong cash generation in 2021 – with Adjusted free cashflow before Growth Investment capital expenditure for the year of $389 million and liquidity approaching $800 million at year-end. Net leverage was under 3.7x Adjusted EBITDA at December 31, 2021.
- To enable cash returns to shareholders, in tandem with executing the growth investments, AMP will in future maintain net leverage in the range 3.75 to 4.0x 12-months forward looking Adjusted EBITDA. This range will govern annual cash returns to shareholders.
- Planned cash return to shareholders of $400 million in calendar 2022, thereafter annual cash returns to shareholders increasing progressively in line with business and cash flow growth.
- 2022 cash return via three quarterly dividends of $0.10 per share, totaling ~$180 million. The balance of $220 million to be paid before year end as the fourth quarter dividend. AMP to launch a $600 million issue of non-convertible preference shares in the near future.