LUXEMBOURG, July 29, 2021 /PRNewswire/ -- On April 1, 2021, the transfer of Ardagh Group
S.A.'s ("Ardagh") metal beverage packaging business to Ardagh Metal
Packaging S.A. ("AMP") was completed resulting in AMP becoming
an unrestricted subsidiary of Ardagh. AMP today announced results
for the quarter ended June 30, 2021,
as derived from the group consolidation of Ardagh.
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Three months ended
June 30,
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Change
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Constant
Currency
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
$'m
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$'m
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|
|
|
|
Revenue
(1)
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991
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830
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19%
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14%
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Adjusted EBITDA
(1)
|
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173
|
|
139
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24%
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18%
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|
|
|
|
|
|
|
|
|
|
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|
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Six months ended
June 30,
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Change
|
|
Constant
Currency
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
$'m
|
|
$'m
|
|
|
|
|
Revenue
(1)
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1,930
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1,659
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16%
|
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12%
|
Adjusted EBITDA
(1)
|
|
321
|
|
254
|
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26%
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21%
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- Revenue growth of 14% at constant exchange rates to
$991 million, with Americas
increasing by 21% and Europe by
7%.
- Adjusted EBITDA growth for the quarter of 18% to $173 million at constant currency, with Americas
increasing by 27% and Europe by
10%. LTM Adjusted EBITDA to June 30,
2021 increased to $613
million, from $545 million at
December 31, 2020.
- Global beverage can shipment growth of 3% in the quarter, after
a cyber security impact of 4%, and measured against a strong
comparable. Year to date beverage can shipment growth of 5%.
- Specialty can growth of 16%, with double-digit gains in all
regions. Specialty cans represented 46% of total shipments during
the quarter, reflecting the Group's continued investment
program.
- Demand remains strong across all segments and output is fully
sold in all regions, supported by our customers' and end consumers'
desire for sustainable packaging solutions.
- Growth investment projects to address capacity constraints are
progressing well in each of our markets, with two new high-speed
specialty lines ramping up in Olive Branch (MS), and large projects
under way in Winston-Salem (NC) and Huron (OH). Multiple growth
projects underway and fully on track in Europe and Brazil.
- New $300 million ABL facility to
be executed imminently, augmenting cash on hand of $0.6 billion at June 30,
2021.
- Important social sustainability initiative launched with
Project Lead the Way, promoting STEM education in all schools in
the communities in which we operate across North America.
- In February 2021, AMP entered
into a definitive agreement for a business combination with Gores
Holdings V, Inc. (NASDAQ: GRSV, GRSVU and GRSVW). Stockholders to
vote on proposed business combination on August 3, 2021. If approved, shares of AMP will
begin trading on the New York Stock Exchange ("NYSE") under the
ticker "AMBP" on August 5, 2021.
- Full year 2021 Adjusted EBITDA guidance will be at least in
line with the previously guided $654
million. Third quarter Adjusted EBITDA guidance of
approximately $170 million (Q3 2020:
$151 million).
Financial Performance Review
Bridge of 2020 to 2021 Revenue and Adjusted EBITDA
Three months ended
June 30, 2021
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Revenue
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Europe
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|
Americas
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Group
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$'m
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$'m
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|
$'m
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Revenue
2020
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395
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435
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830
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Organic
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30
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|
92
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122
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FX
translation
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39
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—
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39
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Revenue
2021
|
|
464
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|
527
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|
991
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|
|
|
|
|
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|
|
|
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Adjusted
EBITDA
|
|
Europe
|
|
Americas
|
|
Group
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$'m
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|
$'m
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|
$'m
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Adjusted EBITDA
2020
|
|
70
|
|
69
|
|
139
|
Organic
|
|
8
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|
19
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27
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FX
translation
|
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7
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—
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7
|
Adjusted EBITDA
2021
|
|
85
|
|
88
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173
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2021 margin
%
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18.3%
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16.7%
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17.5%
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2020 margin
%
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17.7%
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15.9%
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16.7%
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Six months ended
June 30, 2021
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Revenue
|
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Europe
|
|
Americas
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|
Group
|
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$'m
|
|
$'m
|
|
$'m
|
Revenue
2020
|
|
780
|
|
879
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|
1,659
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Organic
|
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49
|
|
151
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|
200
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FX
translation
|
|
71
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|
—
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71
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Revenue
2021
|
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900
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1,030
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1,930
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Adjusted
EBITDA
|
|
Europe
|
|
Americas
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Adjusted EBITDA
2020
|
|
124
|
|
130
|
|
254
|
Organic
|
|
15
|
|
40
|
|
55
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FX
translation
|
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12
|
|
—
|
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12
|
Adjusted EBITDA
2021
|
|
151
|
|
170
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321
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2021 margin
%
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16.8%
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16.5%
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16.6%
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2020 margin
%
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15.9%
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14.8%
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15.3%
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Review of the three months ended June
30, 2021
Group
Revenue in the three months ended June
30, 2021 increased by $161
million, or 19%, to $991
million, compared with $830
million in the three months ended June 30, 2020. The increase in revenue is
primarily driven by favorable volume/mix effects, which includes an
impact of the Group's business growth investment program, the pass
through to customers of higher metal costs and favorable foreign
currency translation effects of $39
million.
Adjusted EBITDA in the three months ended June 30, 2021 increased by $34 million, or 24%, to $173 million, compared with $139 million in the three months ended
June 30, 2020. The increase was
primarily driven by favorable volume/mix effects, which includes an
impact of the Group's business growth investment program and
favorable foreign currency translation effects of $7 million. Included within Adjusted EBITDA in
the three months ended June 30, 2021
are losses relating to the cyber security incident of $15 million ($11
million in Europe and
$4 million in Americas), which are
fully compensated by Ardagh under the indemnity agreement in place.
This cyber security incident is further detailed below.
Europe
Revenue increased by $69 million,
or 17%, to $464 million in the three
months ended June 30, 2021, compared
with $395 million in the three months
ended June 30, 2020. Excluding
favorable foreign currency translation effects of $39 million, revenue increased by $30 million, mainly due to the pass through of
higher metal costs.
Adjusted EBITDA increased by $15
million, or 21%, to $85
million in the three months ended June 30, 2021, compared with $70 million in the three months ended
June 30, 2020. Excluding favorable
foreign currency translation effects of $7
million, Adjusted EBITDA increased by $8 million reflecting higher selling prices,
including to recover increased input costs and a positive impact
from the Group's business growth investment program.
Americas
Revenue increased by $92 million,
or 21%, to $527 million in the three
months ended June 30, 2021, compared
with $435 million in the three months
ended June 30, 2020. The increase in
revenue principally reflected favorable volume/mix effects and the
pass through of higher metal costs.
Adjusted EBITDA increased by $19
million, or 27%, to $88
million in the three months ended June 30, 2021, compared with $69 million in the three months ended
June 30, 2020. The increase was
mainly driven by favorable volume/mix effects, which includes an
impact of the Group's business growth investment program.
Cyber incident
On May 17, 2021, the Group announced that it had
experienced a cyber security incident, the response to which
included pro–actively shutting down certain IT systems and
applications used by the business. Key systems have now been
brought back online securely, in a phased manner and in line with
our plan. Production at all of our manufacturing facilities
continued to operate throughout this period, though we experienced
some shipping delays as a result of this incident, principally in
Europe. While investigation of the
incident is ongoing, we have already taken various steps, including
engaging leading industry specialists to conduct a forensic
investigation of our systems and introducing additional protection
tools across our network to further enhance the security of our IT
systems. We believe that our existing information technology
control environment is appropriately robust and consistent with
industry standards. In addition to addressing any findings from
these investigations and assessments, we are reviewing our
information technology roadmap and accelerating planned IT
investments to further improve the effectiveness of our information
security. We do not believe that our business growth investment
program has been impacted by this incident. We maintain appropriate
insurance in respect of a wide range of risks, including in respect
of IT incidents. In addition, AMP entered into a letter agreement
with Ardagh dated May 21, 2021, under which Ardagh agreed to
indemnify AMP and its subsidiaries for certain losses arising from
this incident.
Earnings Webcast and Conference Call Details
Ardagh Metal Packaging S.A. (NYSE: AMBP) will hold its second
quarter 2021 earnings webcast and conference call for investors at
9.00 a.m. EST (2.00 p.m. BST) on August
3, 2021. Please use the following webcast link to register
for this call:
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1480554&tp_key=cca6fa6e83
Conference call dial in:
United States: +1 323 794
2095
International: +44 330 336 9104
Participant pin code: 182599
Slides
Supplemental slides to accompany this release are available at
http://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, working capital, Adjusted operating 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 ended
June 30, 2021 (2)
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Three months ended
June 30, 2021
|
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Before
|
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Exceptional
|
|
|
|
|
exceptional
items
|
|
items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
991
|
|
—
|
|
991
|
Cost of
sales
|
|
(821)
|
|
(5)
|
|
(826)
|
Gross
profit
|
|
170
|
|
(5)
|
|
165
|
Sales, general and
administration expenses
|
|
(44)
|
|
(7)
|
|
(51)
|
Intangible
amortization
|
|
(39)
|
|
—
|
|
(39)
|
Operating
profit
|
|
87
|
|
(12)
|
|
75
|
Net finance
expense
|
|
(28)
|
|
6
|
|
(22)
|
Profit before
tax
|
|
59
|
|
(6)
|
|
53
|
Income tax
charge
|
|
(26)
|
|
(1)
|
|
(27)
|
Profit for the
period
|
|
33
|
|
(7)
|
|
26
|
Unaudited
Consolidated Condensed Statement of Financial Position
(2)
|
|
|
|
At June 30,
2021
|
|
$'m
|
Non-current
assets
|
|
Intangible
assets
|
1,774
|
Property, plant and
equipment
|
1,493
|
Other non-current
assets
|
147
|
|
3,414
|
Current
assets
|
|
Inventories
|
301
|
Trade and other
receivables
|
602
|
Contract
asset
|
140
|
Cash and cash
equivalents
|
587
|
Other current
assets
|
87
|
|
1,717
|
TOTAL
ASSETS
|
5,131
|
|
|
TOTAL
EQUITY
|
(740)
|
|
|
Non-current
liabilities
|
|
Borrowings including
lease obligations
|
2,891
|
Other non-current
liabilities
|
775
|
|
3,666
|
Current
liabilities
|
|
Borrowings including
lease obligations
|
48
|
Payables and other
current liabilities
|
1,072
|
Promissory note
payable to Ardagh
|
1,085
|
|
2,205
|
TOTAL
LIABILITIES
|
5,871
|
TOTAL EQUITY and
LIABILITIES
|
5,131
|
Unaudited
Consolidated Condensed Statement of Cash Flows
(2)
|
|
|
|
Three months ended
June 30, 2021
|
|
$'m
|
Cash flows from
operating activities
|
|
Cash from operations
(3)
|
164
|
Interest
paid
|
(4)
|
Income tax
paid
|
(7)
|
Cash flows from
operating activities
|
153
|
|
|
Cash flows used in
investing activities
|
|
Purchase of
business
|
(574)
|
Capital
expenditure
|
(121)
|
Cash flows used
in investing activities
|
(695)
|
|
|
Cash flows from
financing activities
|
|
Changes in
borrowings
|
2,763
|
Repayment of related
party borrowings to Ardagh
|
(1,741)
|
Lease
payments
|
(11)
|
Other financing cash
flows
|
(10)
|
Net cash inflow
from financing activities
|
1,001
|
|
|
Net increase in
cash and cash equivalents
|
459
|
|
|
Cash and cash
equivalents at beginning of period
|
130
|
Foreign exchange loss
on cash and cash equivalents
|
(2)
|
Cash and cash
equivalents at end of period
|
587
|
Financial assets
and liabilities
|
|
At June 30, 2021, the
Group's net debt and available liquidity was as follows:
|
|
|
|
|
|
|
|
Drawn
amount
|
|
Available
liquidity
|
|
|
$'m
|
|
$'m
|
Senior Secured and
Senior Notes
|
|
2,779
|
|
—
|
Lease
obligations
|
|
194
|
|
—
|
Other
borrowings/credit lines
|
|
5
|
|
—
|
Total borrowings /
undrawn facilities
|
|
2,978
|
|
—
|
Deferred debt issue
costs
|
|
(39)
|
|
—
|
Net borrowings /
undrawn facilities
|
|
2,939
|
|
—
|
Cash and cash
equivalents
|
|
(587)
|
|
587
|
Net debt /
available liquidity
|
|
2,352
|
|
587
|
|
|
AMP expects to put in
place a Global Asset Based Loan Facility of approximately $300
million during the third quarter of 2021.
|
|
|
|
|
|
|
|
|
|
|
|
At June 30,
2021
|
|
|
|
|
$'m
|
Net Debt
|
|
|
|
2,352
|
LTM Adjusted
EBITDA
|
|
|
|
613
|
Net debt to LTM
Adjusted EBITDA (4)
|
|
|
|
3.8x
|
Reconciliation of
profit for the period to Adjusted EBITDA (5), Adjusted
operating cash
flow and Adjusted free cash flow
(6)
|
|
|
|
Three months ended
June 30, 2021
|
|
$'m
|
Profit for the
period
|
26
|
Income tax
charge
|
27
|
Net finance
expense
|
22
|
Depreciation and
amortization
|
86
|
Exceptional operating
items
|
12
|
Adjusted
EBITDA
|
173
|
Movement in working
capital
|
(1)
|
Capital
expenditure
|
(121)
|
Lease
payments
|
(11)
|
Adjusted operating
cash flow
|
40
|
Interest
paid
|
(4)
|
Income tax
paid
|
(7)
|
Adjusted free cash
flow
|
29
|
|
|
|
|
|
Related
Footnotes
|
|
(1) Revenue and
Adjusted EBITDA for the three and six months ended June 30, 2021
and 2020, respectively, are presented as disclosed for the metal
beverage packaging segments within the Ardagh Group Interim
Financial Statements for the three and six months ended June 30,
2021 and 2020, respectively.
|
(2) The condensed
financial information is derived from the group consolidation of
Ardagh Group S.A. and its subsidiaries (together "Ardagh"),
applying the significant accounting policies as described in note 3
of the unaudited consolidated interim financial statements of
Ardagh for the three and six months ended June 30, 2021. However,
such condensed financial information is not necessarily indicative
of the results that would have occurred if AMP had been a
stand-alone business during the period presented.
|
(3) Cash from
operations is derived from the aggregate of Adjusted EBITDA as
presented at the back of this release, working capital outflows of
$1 million and other exceptional cash outflows of $8
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 June 30, 2021 is derived from Adjusted EBITDA as
presented for the six months ended June 30, 2021 and 2020,
respectively, and Adjusted EBITDA as presented for the metal
beverage packaging segments within Ardagh's annual report for the
year ended December 31, 2020.
|
(5) AMP does not
provide a reconciliation to the most comparable GAAP measure for
Adjusted EBITDA for the three and six months ended June 30, 2020
and the six months ended June 30, 2021, because, as outlined in
notes (1) and (2) above, such information was historically reported
to provide information about reportable segments of
Ardagh.
|
(6) Ardagh
historically did not present information about Adjusted operating
cash flow on the level of reportable segments and consequently AMP
does not provide a reconciliation to the most comparable GAAP
measure for the three and six months ended June 30, 2020 and the
six months ended June 30, 2021.
|
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SOURCE Ardagh Metal Packaging S.A.