Luxembourg-based metal packaging supplier Ardagh Metal Packaging (Ardagh) has reported a solid performance in the first quarter (Q1), with global beverage can shipments growing by 3% during the period.
Ardagh is a global supplier of sustainable, infinitely recyclable metal beverage cans to brand owners.
The growth was driven by a 4% increase in the Americas and a 2% increase in Europe. Although industry demand is slowly recovering in Brazil, performance in the country remained softer.
Ardagh’s disciplined cost stewardship, actions to improve manufacturing efficiency, and stronger input cost recovery led to a solid start to the year.
The company’s global supply chain partners’ commitment to the Aluminium Forward 2030 coalition and endorsement of the Mission Possible Partnership’s net-zero strategy supports actions to achieve the industry’s net-zero carbon footprint ambition.
Ardagh has reaffirmed its full-year guidance, with shipment growth of mid to high single digits.
It also reported full year 2023 adjusted earnings before interest, taxes, depreciation, and amortisationings (EBITDA) growth of the order of 10%, weighted towards the second half of the year.
Ardagh’s financial performance review
Group
Revenue decreased by $6m, or 1%, to $1,131m in the three months ended 31 March 31 2023, compared to $1,137m in the same period last year.
On a constant currency basis, revenue increased by 2%, reflecting favourable volume/mix effects and the pass-through to customers of higher input costs.
Adjusted EBITDA decreased by $15m, or 10%, to $130m in the three months ended 31 March 2023, compared to $145m in the same period last year.
On a constant currency basis, adjusted EBITDA decreased by 8%, mainly due to negative volume/mix effects and higher operating costs.
Americas
Revenue increased by 1% to $645m in the three months ended 31 March 2023, compared to $638m in the same period last year, primarily reflecting favourable volume/mix impacts.
Adjusted EBITDA for the quarter was $81m, decreasing by 9% compared to $89m in the same period last year, primarily driven by input cost headwinds and higher operating costs, partly offset by favourable volume/mix effects.
Europe’s Revenue decreased by 3% to $486m in the three months ended 31 March 2023, compared to $499m in the same period last year.
On a constant currency basis, revenue increased by 3%, primarily due to the pass-through of higher input costs, partly offset by negative volume/mix effects (including the seasonal rebalancing of the contract asset margin).
Adjusted EBITDA for the quarter was $49m, decreasing by 13% at actual exchange rates and 8% at constant currency compared to $56m in the same period last year.
The decrease in Adjusted EBITDA was mainly due to negative volume/mix effects, partly offset by the pass-through to customers of higher input costs.
