Ardagh Metal Packaging has announced results for Q3 2024.

Oliver Graham, CEO of Ardagh Metal Packaging (AMP), said: “Our strong business performance in the quarter delivered double-digit Adjusted EBITDA growth, ahead of guidance. Growth in the quarter was driven by favorable volume/mix, higher input cost recovery and lower operating costs.

“We are encouraged by the resilience in beverage consumption trends across our markets during the quarter and we expect that the beverage can will continue to outperform other packaging types – supported by customer innovation and the can’s positive credentials regarding circularity and decarbonisation.

“Our outperformance through the year versus initial expectations, particularly in Europe, gives us the confidence to further improve our full year guidance for Adjusted EBITDA to $650-660 million.”

Key summary:

• Global beverage can shipments grew by 2% in the quarter with growth of 1% in the Americas and 2% in Europe. North America grew by 1%, versus a strong prior year comparable (+20%) – which benefited from the ramp-up of new capacity and strong growth in the energy drinks category, which softened in the current year. Brazil volumes also grew by 1% in the quarter, showing sequential improvement, but lagging a strong market due to customer and filling location mix effects.
  
• Adjusted EBITDA of $196 million for the quarter was ahead of guidance and represents a 15% increase versus the prior year quarter, with a strong performance in both segments.
  
• In the Americas Adjusted EBITDA for the quarter increased by 13% to $117 million driven by favorable volume/mix and lower operating costs.
  
• In Europe Adjusted EBITDA for the quarter increased by 18% to $79 million, principally due to stronger input cost recovery and favorable volume/mix, partly offset by higher operating costs.
  
• Strong liquidity position of $0.7 billion at September 30, 2024. This reflects a solid cash performance in the quarter as well as the completion and subsequent drawdown of the $300 million senior secured term loan facility, which is neutral to net leverage.
  
• Net cash inflows in the fourth quarter are expected to drive further deleveraging and are expected to result in total liquidity at end 2024 of approximately $1 billion. Supportive debt maturity profile with no bonds maturing before June 2027.
  
• Growth capex to reduce to below $100 million in 2024, with a further reduction anticipated in 2025.
  
• Regular quarterly ordinary dividend of 10c announced. No change to capital allocation priorities.
  
• 2024 Adjusted EBITDA guidance improved: Full year shipments growth of 2-3% and Adjusted EBITDA in the range of $650-660 million (compared to previous Adjusted EBITDA guidance of $640-660 million).
  
• Fourth quarter Adjusted EBITDA in the range of $142-152 million. This compares with Q4 2023 Adjusted EBITDA of $148 million ($151 million at constant currency), which included a strong double-digit shipments performance in the Americas.

Group Performance

Group

Revenue increased by $19 million, or 1%, on a reported and constant currency basis, to $1,313 million in the three months ended September 30, 2024, compared with $1,294 million in the three months ended September 30, 2023, principally due to the pass through of higher input costs to customers, partly offset by unfavorable volume/mix effects (impact of IFRS 15 contract asset).

Adjusted EBITDA increased by $25 million, or 15%, on a reported and constant currency basis, to $196 million in the three months ended September 30, 2024, compared with $171 million in the three months ended September 30, 2023, principally due to higher input cost recovery, favorable volume/mix effects and lower operating costs.

Americas

Revenue increased by $9 million, or 1% to $741 million in the three months ended September 30, 2024, compared with $732 million in the three months ended September 30, 2023. The increase in revenue principally due to favorable volume/mix effects and the pass through of higher input costs to customers.

Adjusted EBITDA increased by $13 million, or 13% to $117 million in the three months ended September 30, 2024, compared with $104 million in the three months ended September 30, 2023. The increase was primarily driven by favorable volume/mix effects and lower operating costs.

Europe

Revenue increased by $10 million, or 2%, on a reported and constant currency basis, to $572 million in the three months ended September 30, 2024, compared with $562 million in the three months ended September 30, 2023. The increase is principally due to the pass through of higher input costs to customers, partly offset by unfavorable volume/mix effects (impact of IFRS 15 contract asset).

Adjusted EBITDA increased by $12 million, or 18%, to $79 million in the three months ended September 30, 2024, compared with $67 million in the three months ended September 30, 2023. On a constant currency basis, Adjusted EBITDA increased by 16%, principally due to higher input cost recovery and favourable volume/mix effects, partly offset by higher operating costs.