Ardagh Metal Packaging has announced its results for Q3 ended 30 September 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 programme 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. Speciality can share increased to 46% of shipments in the quarter from 44% in the prior year quarter, reflecting their investment programme.

• 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 $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.

• 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 programme, 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).

Group

Revenue of $1,173 million in the three months ended 30 September 2022 increased by $135 million, or 13%, compared with $1,038 million in the same period last year. On a constant currency basis, revenue increased by 21%, mainly reflecting the pass through to customers of higher input costs and strong volume/mix growth.

Adjusted EBITDA decreased by $36 million, or 20%, to $140 million in the three months ended 30 September 2022, compared with $176 million in the same period last year. On a constant currency basis, Adjusted EBITDA decreased by 15%, principally due to input cost headwinds, partly offset by favourable volume/mix effects, which includes an impact of the Group’s growth investment programme.

Americas

Revenue increased by 23% to $680 million in the three months ended 30 September 2022, compared with $555 million in the same period last year, principally reflecting the pass through of higher input costs and favourable volume/mix effects.

Adjusted EBITDA for the quarter of $102 million increased by 2%, compared with $100 million in the same period last year, primarily driven by favourable volume/mix effects, which includes an impact of the Group’s growth investment programme, partly offset by increased operating costs and input cost headwinds.

Europe

Revenue of $493 million increased by 2% in the three months ended September 30, 2022, compared with $483 million in the same period last year. On a constant currency basis, revenue increased by 19%, principally due to the pass through of higher input costs and favourable volume/mix effects.

Adjusted EBITDA for the quarter of $38 million decreased by $38 million, or 50%, at actual exchange rates, and by 42% at constant currency, compared with $76 million in the same period last year. The decrease in Adjusted EBITDA was principally due to input cost headwinds, which were partly offset by favourable volume/mix effects, which includes an impact of the Group’s growth investment programme, and favourable non-recurring SG&A and other gains.