LUXEMBOURG, Feb. 24, 2022 /PRNewswire/ -- Ardagh Metal
Packaging S.A. (NYSE: AMBP) today announced results for the fourth
quarter and year ended December 31,
2021.
|
December 31,
2021
|
|
December 31, 2020
(1)
|
|
Change
|
|
Constant
Currency
|
|
$'m
|
|
$'m
|
|
|
|
|
Fourth
Quarter
|
|
|
|
|
|
|
|
Revenue
|
1,087
|
|
893
|
|
22%
|
|
22%
|
Profit for the
period
|
16
|
|
64
|
|
|
|
|
Adjusted EBITDA
(2)
|
165
|
|
140
|
|
18%
|
|
19%
|
Earnings per
share
|
0.03
|
|
|
|
|
|
|
Adjusted earnings per
share (2)
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year
|
|
|
|
|
|
|
|
Revenue
|
4,055
|
|
3,451
|
|
18%
|
|
15%
|
(Loss)/profit for the
year
|
|
|
(210)
|
|
111
|
|
|
|
|
Adjusted EBITDA
(2)
|
662
|
|
545
|
|
21%
|
|
19%
|
Net debt to LTM
Adjusted EBITDA (3)
|
3.7x
|
|
|
|
|
|
|
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 favorable 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.
- 2022 outlook: growth investments underpin mid-to-high teens
percentage shipment growth for the year and Adjusted EBITDA in the
order of $775 million, after a
currency translation headwind of ~$20
million. Q1 2022 Adjusted EBITDA expected to be broadly in
line with the prior year constant currency outturn of $144 million.
|
Financial
Performance Review
|
Bridge of 2020 to
2021 Revenue and Adjusted EBITDA
|
|
Three months ended
December 31, 2021
|
|
|
|
|
|
|
|
Revenue
|
|
Europe
|
|
Americas
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
2020
|
|
398
|
|
495
|
|
893
|
Organic
|
|
62
|
|
137
|
|
199
|
FX
translation
|
|
(5)
|
|
—
|
|
(5)
|
Revenue
2021
|
|
455
|
|
632
|
|
1,087
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
Europe
|
|
Americas
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Adjusted EBITDA
2020
|
|
52
|
|
88
|
|
140
|
Organic
|
|
3
|
|
23
|
|
26
|
FX
translation
|
|
(1)
|
|
—
|
|
(1)
|
Adjusted EBITDA
2021
|
|
54
|
|
111
|
|
165
|
|
|
|
|
|
|
|
2021 margin
%
|
|
11.9%
|
|
17.6%
|
|
15.2%
|
2020 margin
%
|
|
13.1%
|
|
17.8%
|
|
15.7%
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2021 (1)
|
|
|
|
|
|
|
|
Revenue
|
|
Europe
|
|
Americas
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
2020
|
|
1,599
|
|
1,852
|
|
3,451
|
Organic
|
|
159
|
|
365
|
|
524
|
FX
translation
|
|
80
|
|
—
|
|
80
|
Revenue
2021
|
|
1,838
|
|
2,217
|
|
4,055
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
Europe
|
|
Americas
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Adjusted EBITDA
2020
|
|
249
|
|
296
|
|
545
|
Organic
|
|
19
|
|
85
|
|
104
|
FX
translation
|
|
13
|
|
—
|
|
13
|
Adjusted EBITDA
2021
|
|
281
|
|
381
|
|
662
|
|
|
|
|
|
|
|
2021 margin
%
|
|
15.3%
|
|
17.2%
|
|
16.3%
|
2020 margin
%
|
|
15.6%
|
|
16.0%
|
|
15.8%
|
Group Performance
Fourth Quarter
Group
Revenue of $1,087 million for the
fourth quarter increased by $194
million, or 22%, at both actual and constant exchange rates,
compared with the same period last year, mainly reflecting strong
volume/mix growth and the pass through to customers of higher input
costs.
Fourth quarter Adjusted EBITDA of $165
million increased by 18% at actual exchange rates compared
with the same period last year. On a constant currency basis,
Adjusted EBITDA increased by 19%, principally due to favorable
volume/mix effects, which includes an impact from the Group's
growth investment program.
Americas
Fourth quarter revenue increased by 28% to $632 million, compared with the same period last
year, principally reflecting favorable volume/mix effects and the
pass through of higher input costs.
Adjusted EBITDA for the quarter of $111
million increased by 26%, compared with $88 million in the same period last year, due to
favorable volume/mix effects, which includes an impact of the
Group's growth investment program, and strong cost management.
Europe
Revenue of $455 million increased
by 14% in the fourth quarter, compared with the same period last
year. On a constant currency basis, revenue increased by 16%,
principally due to favorable volume/mix effects and the pass
through of higher input costs.
Adjusted EBITDA for the quarter of $54
million increased by $2
million, or 4%, at actual exchange rates, and by 6% at
constant currency, compared with the same period last year. The
increase in Adjusted EBITDA was principally due to a strong volume
performance, partly offset by input cost inflation.
Full Year
Group
Revenue increased by $604 million,
or 18%, to $4,055 million in 2021,
compared with $3,451 million in 2020.
On a constant currency basis, revenue increased by 15%, principally
due to favorable volume/mix effects, which includes an impact of
the Group's growth investment program and the pass through to
customers of higher input costs.
Adjusted EBITDA increased by $117
million, to $662 million in
2021, compared with $545 million in
2020. On a constant currency basis, Adjusted EBITDA increased by
19%, principally due to favorable volume/mix effects, which
includes an impact of the Group's growth investment program and
strong cost management.
Americas
Revenue increased by $365 million,
or 20%, to $2,217 million in the year
ended December 31, 2021, compared
with $1,852 million in the year ended
December 31, 2020. Revenue growth
reflected favorable volume/mix effects of 7%, and the pass through
of higher input costs.
Adjusted EBITDA increased by $85
million, or 29%, to $381
million in the year ended December
31, 2021, compared with $296
million in the year ended December
31, 2020. Adjusted EBITDA growth was mainly driven by
favorable volume/mix effects, including a positive impact from the
Group's growth investment program.
Europe
Revenue increased by $239 million,
or 15%, to $1,838 million in the year
ended December 31, 2021, compared
with $1,599 million in the year ended
December 31, 2020. On a constant
currency basis, the increase in revenue of 9%, principally reflects
favorable volume/mix effects of 4% and the pass through of higher
input costs.
Adjusted EBITDA increased by $32
million, or 13%, to $281
million in the year ended December
31, 2021, compared with $249
million in the year ended December
31, 2020. Excluding favorable foreign currency translation
effects of $13 million, the increase
in Adjusted EBITDA of 7% reflected favorable volume/mix effects,
which included a contribution from the Group's growth investment
program, as well as operating cost savings.
Sustainability
During 2021, AMP significantly advanced its sustainability
agenda. AMP's revised strategy, overseen by the Board
Sustainability Committee, commits AMP to achieving science based
sustainability targets through the Science-Based Targets
initiative, whereby AMP will set specific goals for reducing
greenhouse gas emissions in alignment with the Paris Agreement
2015, under which governments mutually pledged to limit the
increase in global temperatures to 1.5°C. In 2021, Ardagh has, once
again, been awarded a Gold sustainability assessment by Ecovadis
and Leadership Class ratings by CDP (formally the Carbon Disclosure
Project), gaining A- in respect of climate change and A- in respect
of water management. Community giving back initiatives were also
increased during the year and AMP is re-investing in its people
through various training programs.
Earnings Webcast and Conference Call Details
Ardagh Metal Packaging S.A. (NYSE: AMBP) will hold its fourth
quarter 2021 earnings webcast and conference call for investors at
9.00 a.m. EST (2.00 p.m. BST) on February
24, 2022. Please use the following webcast link to register
for this call:
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1525306&tp_key=d6c5698510
Conference call dial in:
United States/Canada: +1 800 239 9838
International: +44 330 336 9105
Participant pin code: 8922974
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 24 production facilities in
nine countries, employing close to 5,800 employees and had sales of
$4.1 billion in 2021.
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 and
year ended December 31, 2021 and 2020
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2021
|
|
Three months ended
December 31, 2020
|
|
|
Before
|
|
Exceptional
|
|
|
|
Before
|
|
Exceptional
|
|
|
|
|
exceptional
items
|
|
items
|
|
Total
|
|
exceptional
items
|
|
items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
1,087
|
|
—
|
|
1,087
|
|
893
|
|
—
|
|
893
|
Cost of
sales
|
|
(932)
|
|
(14)
|
|
(946)
|
|
(747)
|
|
(3)
|
|
(750)
|
Gross
profit
|
|
155
|
|
(14)
|
|
141
|
|
146
|
|
(3)
|
|
143
|
Sales, general and
administration expenses
|
|
(43)
|
|
(2)
|
|
(45)
|
|
(50)
|
|
(7)
|
|
(57)
|
Intangible
amortization
|
|
(36)
|
|
—
|
|
(36)
|
|
(38)
|
|
—
|
|
(38)
|
Operating
profit
|
|
76
|
|
(16)
|
|
60
|
|
58
|
|
(10)
|
|
48
|
Net finance
expense
|
|
(31)
|
|
(15)
|
|
(46)
|
|
13
|
|
—
|
|
13
|
Profit before
tax
|
|
45
|
|
(31)
|
|
14
|
|
71
|
|
(10)
|
|
61
|
Income tax
charge
|
|
(4)
|
|
6
|
|
2
|
|
(6)
|
|
9
|
|
3
|
Profit for the
period
|
|
41
|
|
(25)
|
|
16
|
|
65
|
|
(1)
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
$0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2021
|
|
Year ended
December 31, 2020
|
|
|
Before
|
|
Exceptional
|
|
|
|
Before
|
|
Exceptional
|
|
|
|
|
exceptional
items
|
|
items
|
|
Total
|
|
exceptional
items
|
|
items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
4,055
|
|
—
|
|
4,055
|
|
3,451
|
|
—
|
|
3,451
|
Cost of
sales
|
|
(3,409)
|
|
(30)
|
|
(3,439)
|
|
(2,896)
|
|
(7)
|
|
(2,903)
|
Gross
profit
|
|
646
|
|
(30)
|
|
616
|
|
555
|
|
(7)
|
|
548
|
Sales, general and
administration expenses
|
|
(176)
|
|
(242)
|
|
(418)
|
|
(176)
|
|
(13)
|
|
(189)
|
Intangible
amortization
|
|
(151)
|
|
—
|
|
(151)
|
|
(149)
|
|
—
|
|
(149)
|
Operating
profit
|
|
319
|
|
(272)
|
|
47
|
|
230
|
|
(20)
|
|
210
|
Net finance
expense
|
|
(178)
|
|
(57)
|
|
(235)
|
|
(70)
|
|
—
|
|
(70)
|
(Loss)/profit
before tax
|
|
141
|
|
(329)
|
|
(188)
|
|
160
|
|
(20)
|
|
140
|
Income tax
charge
|
|
(39)
|
|
17
|
|
(22)
|
|
(43)
|
|
14
|
|
(29)
|
(Loss)/profit for
the year
|
|
102
|
|
(312)
|
|
(210)
|
|
117
|
|
(6)
|
|
111
|
|
|
|
Unaudited
Consolidated Condensed Statement of Financial Position
(1)
|
|
|
|
At December 31,
2021
|
|
$'m
|
Non-current
assets
|
|
Intangible
assets
|
1,662
|
Property, plant and
equipment
|
1,842
|
Other non-current
assets
|
160
|
|
3,664
|
Current
assets
|
|
Inventories
|
407
|
Trade and other
receivables
|
512
|
Cash and cash
equivalents
|
463
|
Other current assets
including contract assets
|
279
|
|
1,661
|
TOTAL
ASSETS
|
5,325
|
|
|
TOTAL
EQUITY
|
286
|
|
|
Non-current
liabilities
|
|
Borrowings including
lease obligations
|
2,831
|
Other non-current
liabilities*
|
808
|
|
3,639
|
Current
liabilities
|
|
Borrowings including
lease obligations
|
56
|
Payables and other
current liabilities
|
1,344
|
|
1,400
|
TOTAL
LIABILITIES
|
5,039
|
TOTAL EQUITY and
LIABILITIES
|
5,325
|
|
* Other non-current
liabilities include liabilities for earnout shares of $292 million
and warrants of $33 million.
|
|
|
|
Unaudited
Consolidated Condensed Statement of Cash Flows
(1)
|
|
|
|
|
Three months
ended
|
Year
ended
|
|
December
31,
|
December
31,
|
|
2021
|
2021
|
|
$'m
|
$'m
|
Cash flows from
operating activities
|
|
|
Cash from operations
(4)
|
336
|
611
|
Interest
paid
|
(63)
|
(105)
|
Income tax
paid
|
(13)
|
(48)
|
Cash flows from
operating activities
|
260
|
458
|
|
|
|
Cash flows used in
investing activities
|
|
|
Capital
expenditure
|
(259)
|
(686)
|
Purchase of business,
net of cash acquired
|
(5)
|
(5)
|
Cash flows used
in investing activities
|
(264)
|
(691)
|
|
|
|
Cash flows (used
in)/from financing activities
|
|
|
Net proceeds from
borrowings
|
–
|
2,768
|
Net repayment of
related party borrowings to Ardagh
|
(14)
|
(2,736)
|
Proceeds from share
issuance, net of costs
|
(9)
|
925
|
Payment as part of
capital reorganization
|
–
|
(574)
|
Cash received from
Ardagh
|
–
|
206
|
Lease
payments
|
(14)
|
(48)
|
Redemption premium
and issuance costs paid
|
–
|
(52)
|
Deferred debt issue
costs paid
|
(2)
|
(35)
|
Net cash
(outflow)/inflow from financing activities
|
(39)
|
454
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents
|
(43)
|
221
|
|
|
|
Cash and cash
equivalents at beginning of period
|
496
|
257
|
Foreign exchange
gain/(loss) on cash and cash equivalents
|
10
|
(15)
|
Cash and cash
equivalents at end of period
|
463
|
463
|
|
|
|
Financial assets
and liabilities
|
At December 31, 2021,
the Group's net debt and available liquidity was as
follows:
|
|
|
|
|
|
|
|
Drawn
amount
|
|
Available
liquidity
|
|
|
$'m
|
|
$'m
|
Senior Secured and
Senior Notes
|
|
2,726
|
|
—
|
Global Asset Based
Loan Facility
|
|
—
|
|
325
|
Lease
obligations
|
|
182
|
|
—
|
Other
borrowings/credit lines
|
|
19
|
|
—
|
Total borrowings /
undrawn facilities
|
|
2,927
|
|
325
|
Deferred debt issue
costs
|
|
(40)
|
|
—
|
Net borrowings /
undrawn facilities
|
|
2,887
|
|
325
|
Cash and cash
equivalents
|
|
(463)
|
|
463
|
Net debt /
available liquidity
|
|
2,424
|
|
788
|
|
|
|
Reconciliation of
profit for the period to Adjusted profit for the
period
|
|
|
|
Three months
ended
|
|
December
31,
|
|
2021
|
|
$'m
|
Profit for the
period
|
16
|
Exceptional items,
net of tax
|
25
|
Intangible
amortization, net of tax
|
28
|
Adjusted profit
for the period
|
69
|
|
|
Weighted average
common shares
|
603.28
|
|
|
Earnings per
share
|
0.03
|
|
|
Adjusted earnings
per share
|
0.11
|
|
|
|
Reconciliation of
profit/(loss) for the period to Adjusted EBITDA
(5)
|
|
|
|
|
Three months
ended
|
Year
ended
|
|
December
31,
|
December
31,
|
|
2021
|
2021
|
|
$'m
|
$'m
|
Profit for the
period
|
16
|
(210)
|
Income tax
(credit)/charge
|
(2)
|
22
|
Net finance
expense
|
46
|
235
|
Depreciation and
amortization
|
89
|
343
|
Exceptional operating
items (6)
|
16
|
272
|
Adjusted
EBITDA
|
165
|
662
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA (5) to Adjusted
operating cash flow and Adjusted free cash flow
|
|
|
|
|
Three months
ended
|
Year
ended
|
|
December
31,
|
December
31,
|
|
2021
|
2021
|
|
$m
|
$m
|
Adjusted
EBITDA
|
165
|
662
|
Movement in working
capital
|
209
|
16
|
Maintenance capital
expenditure
|
(25)
|
(88)
|
Lease
payments
|
(14)
|
(48)
|
Adjusted operating
cash flow
|
335
|
542
|
Interest
paid
|
(63)
|
(105)
|
Income tax
paid
|
(13)
|
(48)
|
Adjusted free cash
flow - pre Growth Investment capital expenditure
|
259
|
389
|
Growth investment
capital expenditure
|
(234)
|
(598)
|
Adjusted free cash
flow - post Growth Investment capital expenditure
|
25
|
(209)
|
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
For information related to the period ended December 31, 2020, please refer to 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").
(2) For a reconciliation to the most comparable GAAP measures,
see Page 9.
(3) Net debt is comprised of net borrowings, net of cash, cash
equivalents and restricted cash held in escrow. Net borrowings
comprises non-current and current borrowings including lease
obligations.
(4) Cash from operations for the three months ended December 31, 2021 is derived from the aggregate
of Adjusted EBITDA as presented on Page 9, working capital inflows
of $209 million and other exceptional
cash outflows of $38 million. Cash
from operations for the year ended December
31, 2021 is derived from the aggregate of Adjusted EBITDA as
presented on Page 9, working capital inflows of $16 million and other exceptional cash outflows
of $67 million.
(5) AMP does not present a reconciliation to the most comparable
GAAP measure for Adjusted EBITDA for the three months and year
ended December 31, 2020 because such
information was historically reported to provide information about
reportable segments of the Ardagh Group S.A. and its
subsidiaries.
(6) Exceptional operating items for the year ended December 31, 2021 of $272
million is primarily comprised of an expense of $205 million relating to the service for the
listing of the Shares upon the completion of the Business
Combination on August 4, 2021,
$41 million of professional advisory
fees in relation to the Business Combination and transactions and
other costs related to transformation initiatives, and $30 million start-up related costs incurred for
the Group's investment programs.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ardagh-metal-packaging-sa--fourth-quarter-and-full-year-2021-results-301489583.html
SOURCE Ardagh Metal Packaging S.A.