EX-99.1 2 tm2125235d28_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

Ardagh Metal Packaging S.A. – Third Quarter 2021 Results

 

Ardagh Metal Packaging S.A. (NYSE: AMBP) today announced results for the third quarter ended September 30, 2021.

 

   Three months ended September 30,         
   2021   2020 (1)   Change   Constant Currency 
   $'m   $'m         
Revenue   1,038    899    15%   14%
(Loss)/profit for the period   (178)   52           
Adjusted EBITDA(2)   176    151    17%   15%
Loss per share   (0.32)               
Adjusted earnings per share(2)   0.14                

 

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.

 

 

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Financial Performance Review

Bridge of 2020 to 2021 Revenue and Adjusted EBITDA

 

Three months ended September 30, 2021

 

Revenue  Europe   Americas   Group 
   $'m   $'m   $'m 
Revenue 2020   421    478    899 
Organic   48    77    125 
FX translation   14    —    14 
Revenue 2021   483    555    1,038 

 

Adjusted EBITDA  Europe   Americas   Group 
   $'m   $'m   $'m 
Adjusted EBITDA 2020   73    78    151 
Organic   1    22    23 
FX translation   2    —    2 
Adjusted EBITDA 2021   76    100    176 
                
2021 margin %   15.7%   18.0%   17.0%
2020 margin %   17.3%   16.3%   16.8%

 

Nine months ended September 30, 2021 (1)

 

Revenue  Europe   Americas   Group 
   $'m   $'m   $'m 
Revenue 2020   1,201    1,357    2,558 
Organic   97    228    325 
FX translation   85    —    85 
Revenue 2021   1,383    1,585    2,968 

 

Adjusted EBITDA  Europe   Americas   Group 
   $'m   $'m   $'m 
Adjusted EBITDA 2020   197    208    405 
Organic   16    62    78 
FX translation   14    —    14 
Adjusted EBITDA 2021   227    270    497 
                
2021 margin %   16.4%   17.0%   16.7%
2020 margin %   16.4%   15.3%   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.

 

 

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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.

 

Contacts:

 

Investors:  
Email: john.sheehan@ardaghgroup.com
   
  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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Unaudited Consolidated Condensed Income Statement for the three months ended September 30, 2021 (1)

 

   Three months ended September 30, 2021 
   Before   Exceptional     
   exceptional items   items   Total 
   $'m   $'m   $'m 
Revenue   1,038    —    1,038 
Cost of sales   (869)   (8)   (877)
Gross profit   169    (8)   161 
Sales, general and administration expenses   (40)   (230)   (270)
Intangible amortization   (37)   —    (37)
Operating profit/(loss)   92    (238)   (146)
Net finance (expense)/income   (27)   9    (18)
Profit/(loss) before tax   65    (229)   (164)
Income tax (charge)/credit   (16)   2    (14)
Profit/(loss) for the period   49    (227)   (178)

 

Unaudited Consolidated Condensed Statement of Financial Position (1)

 

   At September 30, 2021 
   $'m 
Non-current assets     
Intangible assets   1,711 
Property, plant and equipment   1,620 
Other non-current assets   111 
    3,442 
Current assets     
Inventories   366 
Trade and other receivables   624 
Cash and cash equivalents   496 
Other current assets including contract assets   283 
    1,769 
TOTAL ASSETS   5,211 
      
TOTAL EQUITY   271 
      
Non-current liabilities     
Borrowings including lease obligations   2,851 
Other non-current liabilities*   781 
    3,632 
Current liabilities     
Borrowings including lease obligations   54 
Payables and other current liabilities   1,254 
    1,308 
TOTAL LIABILITIES   4,940 
TOTAL EQUITY and LIABILITIES   5,211 

 

* 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)

 

   Three months ended September 30, 2021 
   $'m 
Cash flows from operating activities     
Cash from operations (3)   138 
Interest received   7 
Income tax paid   (7)
Cash flows from operating activities   138 
      
Cash flows used in investing activities     
Capital expenditure   (139)
Cash flows used in investing activities   (139)
      
Cash flows from financing activities     
Changes in borrowings   7 
Repayment of related party borrowings to Ardagh   (996)
Proceeds from share issuance, net of costs   934 
Lease payments   (12)
Other financing cash flows   (8)
Net cash outflow from financing activities   (75)
      
Net decrease in cash and cash equivalents   (76)
      
Cash and cash equivalents at beginning of period   587 
Foreign exchange loss on cash and cash equivalents   (15)
Cash and cash equivalents at end of period   496 

 

Financial assets and liabilities

 

At September 30, 2021, the Group’s net debt and available liquidity was as follows:

 

   Drawn amount   Available liquidity 
   $'m   $'m 
Senior Secured and Senior Notes   2,750    — 
Global Asset Based Loan Facility   —    325 
Lease obligations   185    — 
Other borrowings/credit lines   11    — 
Total borrowings / undrawn facilities   2,946    325 
Deferred debt issue costs   (41)   — 
Net borrowings / undrawn facilities   2,905    325 
Cash and cash equivalents   (496)   496 
Net debt / available liquidity   2,409    821 

 

   At September 30, 2021 
   $'m 
Net Debt   2,409 
LTM Adjusted EBITDA   637 
Net debt to LTM Adjusted EBITDA (4)   3.8x

 

  

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Reconciliation of loss for the period to Adjusted profit

 

   Three months ended September 30, 2021 
   $'m 
Loss for the period   (178)
Exceptional items, net of tax   227 
Intangible amortization, net of tax   29 
Adjusted profit for the period   78 
      
Weighted average common shares   562.8 
      
Loss per share   (0.32)
      
Adjusted earnings per share   0.14 

 

Reconciliation of loss for the period to Adjusted EBITDA(5), Adjusted operating cash flow and Adjusted free cash flow

 

   Three months ended September 30, 2021 
   $'m 
Loss for the period   (178)
Income tax charge   14 
Net finance expense   18 
Depreciation and amortization   84 
Exceptional operating items   238 
Adjusted EBITDA   176 
Movement in working capital   (23)
Capital expenditure   (139)
Lease payments   (12)
Adjusted operating cash flow   2 
Interest received   7 
Income tax paid   (7)
Adjusted free cash flow   2 

 

 

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

 

(2) For a reconciliation to the most comparable GAAP measures, see Page 7.

 

(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.

 

(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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