So in theory, you might get a lower cost on other cash utilization relative to the dividend where the market is putting a 11% yield on. Our adjusted EBITDA result represented an 8% decline on a constant currency basis versus the prior year quarter. In light of our resilient start to the year, we are reaffirming our full year guidance. So I think we'll again see some volatility in results across the can makers. The contribution from higher volumes and stronger input cost recovery was offset by the under absorption of higher operating costs and the expected impact relating to the timing of recognition of inflation recovery in EBITDA. Looking at AMP's results by segment and at constant exchange rates. And then I think you'll see that the competition or return to the off-trade into the cans and to the extent they can source it one-way glass, because that's where market share will be gained and that's what led to the shift out of returnable over the last few years was the fact that players didn't like losing market share. As the only pure-play beverage can company, AMP products touch billions of consumers worldwide. And we, as I say, we've done our assessment on that with our security position, and we're comfortable with our position. Would you attribute that to the new entrants or just kind of the overall supply-demand balance in the North American market right now? The people that make up AMP share much more than a strong brand and an excellent reputation. Ardagh Group is a Luxembourg -based producer of glass and metal products that has "grown in the past two decades into one of the world's largest metal and glass packaging companies". Being infinitely recyclable, a glass bottle or jar can be made into a new one over and over again, with no loss in quality or purity. 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. The market we put, probably a low single digit for the quarter, mainly on the back of the strength, there's still growth in some of the newer players in the market. We will show continued discipline with our capacity planning in the interim. Ardaghs metal packaging business operates 23 production facilities in Europe and the Americas, employs approximately 4,900 people and recorded revenues of $3.5 billion in 2020. Yes. The people that make up Ardagh share much more than a strong brand and an excellent reputation. More. And the third element is that our program included a significant proportion of seltzers, which had a very strong mix impact in our numbers. Thank you. The point I'd make is the market is putting a very high return on that. Verify your identity, personalize the content you receive, or create and administer your account. Estimated $118K - $149K a year. Please go ahead. And we can see those in our results, which is why we think we're a little bit ahead of the market. The quick one is just of the curtailment you guys have talked about for this year, the 1 billion in Europe and 2 billion cans in North America, have you started that yet? Assuming no share redemptions by the public stockholders of Gores Holdings V, approximately $525 million in cash held in Gores Holdings Vs trust account, together with the $600 million in private placement proceeds and approximately $2.3 billion of the new debt raised by AMP, will be used to pay up to $3.4 billion in cash to Ardagh, as well as to pay transaction expenses. AMP will hold Ardaghs metal packaging business, which is a leading supplier of beverage cans globally, with a particular focus on The Americas and Europe. Gores Holdings V and The Gores Group are separate entities with separate management, although there is overlap in size and industry of target acquisition and personnel involved. These filings identify and address (or will identify and address) other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. And so I think what that means, there's a volatility in demand patterns customer by customer. So there's some good space for additional innovation still to come. There clearly is now action there, new brands, new activity and people very interested in it. Adjusted EBITDA for the quarter of $81 million decreased by 9%, compared with $89 million in the same period last year, primarily driven by input cost headwinds and higher operating costs, partly offset by favorable volume/mix effects. You can update your preferences by clicking the "Cookie Policy" link at the bottom of any page on our website. Is this happening to you frequently? We build upon the inherent environmental advantages of metal beverage cans by clearly supporting our customers sustainability platforms. So I think North America, this 83% innovation number is really playing through into the market, and we're seeing that in the results. We operate 65metal and glass production facilities in 16countries, employing more than 20,000 people. AMP operates 24 metal beverage can production facilities in nine countries, employing more than 6,300 people with sales of approximately $4.7bn. Yes. A subsidiary of sustainable packaging business Ardagh Group, AMP is a leading industry player across Europe, North America and Brazil with innovative production capabilities. So we're still excited about it. We will achieve our vision by delivering customer innovation, providing an inspirational environment for our people and creating sustainable value for our business through growth and development. The projected financial information contained in this press release constitutes forward-looking information. Adjusted EBITDA of $130 million for the quarter was in line with our guidance and represented an 8% decrease on a constant currency basis. We recorded revenue of $1.1 billion, which represented a growth of 2% on a constant currency basis, predominantly reflecting higher volumes. So again, sort of through to the middle of the decade. For more information, please visit www.gores.com. Constantly evolving production technologies are used to ensure exciting possibilities and environmental sustainability in metal packaging for the future. And so I think that although there is capacity in the market, I think it's being managed in a good way. Ardagh Metal Packaging Usa in Brea, CA. Adjusted EBITDA decreased by $15 million, or 10%, to $130 million in the three months ended March 31, 2023, compared with $145 million in the same period last year. Ardagh Metal Packaging (AMP), 75%-owned by Ardagh Group islisted on the New York Stock Exchange. We look forward to talking to you all at our Q2 results. The hard seltzer category accounted for 8% of North America shipments in the quarter, with the segment remaining under pressure. And then in terms of why we're confident in timing through the rest of the year, I think that we've had signals from customers that they're looking into additional promotions for Q2 and beyond. They've always been very promotional, and there's no reason, I think, to believe that won't reassert itself at some point. We each share a common vision: to be the preferred metal beverage packaging partner to brand owners around the world. Look, I think in one-returnable transition to one-way transitions to one-way can [indiscernible] glass because the customers want to use the shelf and have some premium positioning around glass and then some mass volume driving around cans. Is that part of your European outlook as well? We remain disciplined in our capacity management and with our growth investments completing in 2023, the business is well positioned both to capture the positive secular growth opportunity for the sustainable beverage can and drive a meaningful uplift in cash generation. In the second quarter, we will complete the addition of further capacity in our La Ciotat plant in Southern France, and our intention remains to close one of the legacy steel lines in Weienthurm, Germany during the year. +353 87 2269345 / +1 646 776 5918. ARDAGH METAL BEVERAGE USA INC. Cargegie, Pennsylvania 11 followers Follow View all 14 employees About us Headquarters Cargegie, Pennsylvania Founded 2016 Locations 600 N BELL AVE Cargegie,. Ardagh Group 3.2. To date, Alec Gores and affiliates of The Gores Group have announced and completed six business combinations representing over $27 billion in transaction value. So overall, yes, here the point, but I think that the can growth will be good in Brazil going forward. Shearman & Sterling LLP is acting as legal advisor, to Ardagh. [Operator Instructions]. Total beverage can shipments in the quarter were 3% higher than the prior year, with 5% growth in North America and 2% growth in Europe, offsetting a 1% decline in Brazil. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And I think that's true also in Europe where there's probably a bit less capacity being built out in the last few years and similarly in Brazil where the market is a bit softer. This reduces our impact on the environment, and improves the communities in which we do business. So I think we're committed to it. So that's typically what we're looking at there. Just wanted to maybe expand a little bit more on the customer dynamics. None of Gores Holdings V, Ardagh or AMP gives any assurance that either Gores Holdings V or AMP will achieve its expectations. And we're not giving exact numbers on any of this, but it means that it won't be '24, and it won't be at that level. Under the Social pillar of our sustainability strategy, Ardagh committed to invest approximately $50 million from 2021-2032 in the local communities in which our U.S. facilities are located. Entering text into the input field will update the search result below. Ardagh operates 56 metal and glass production facilities in 12 countries, employing more than 16,000 people with sales of approximately $7 billion. Are you feeling pretty good about your contracted position? And I think it just will depend a lot on which customers and which segments you're in. The Company intends to apply to list its shares on the New York Stock Exchange (NYSE) under the new ticker symbol AMBP. On a long-term basis, to the extent that there is a transition from returnable glass to one-way packaging kind of both substrates can win in that environment from a number of units perspective. I guess first question is on Europe. So we also get some enhanced inflation recovery in the subsequent quarters. No, absolutely. Gear advertisements and other marketing efforts towards your interests. Ardagh Metal Packaging (NYSE: AMBP ), is a leading global supplier of infinitely recyclable, sustainable, metal beverage cans and ends to brand owners. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. PRIIPs/Prospectus Regulation/IMPORTANT EEA AND UK RETAIL INVESTORS. It should not be relied upon as being indicative of future results. Sleek to 24 oz., offering a wide variety of options to ideally represent customer brands. But actually, if you look across broader markets, there's a stabilization that occurs at a certain point where the customers and the retailers have respectively divided the categories into more premium positioning for the glass bottle one way and then, as I said, for more mass volume driving position for the can. As previously indicated, our revised growth investment plans are well advanced, and cash outflows comprised the finishing of projects already underway. So yes. To ensure the most secure and best overall experience on our website, we recommend the latest versions of, https://www.ardaghgroup.com/corporate/investors. But on the direct energy piece, yes, there will clearly be some get back with the dropping of the energy price. Ardagh Group is a global supplier of infinitely recyclable metal and glass packaging for the world's leading brands. Metal can packaging offers versatility, unlimiteddesign and brand building opportunities like no other material and is used across the world in many market sectors. Our investments in Huron, Ohio, Winston-Salem in North Carolina and Olive Branch, Mississippi position us favorably for future growth. If you are a customer of Ardagh Metal Beverage and do not yet have a user ID and password for this portal, please register here: Register; Contact. Under no circumstances should the inclusion of such forward-looking statements in this release be regarded as a representation or warranty by us or any other person with respect to the achievement of results set out in such statements or that the underlying assumptions used will in fact be the case. I think we said at the full year, and so we can repeat, there are 3 elements that mean that we won't get to 1.1 without further action those three elements of foreign exchange, so that can obviously move. Typically, companies focused on the economy segment. And we always said, for us, it was a sort of mid-decade opportunity. One last one on Europe. Sure. Ardagh Metal Beverage USA Inc. Attorney/Law Firm Details Plaintiff Attorneys Mehrdad Bokhour Attorney at Bokhour Law Group, P.C. We will continue to focus on working capital efficiencies, and our guidance for a full year working capital benefit of approximately $100 million remains unchanged. So yes, keep an eye on off-trade penetration of cans is the number to look for. So energy costs have risen very significantly as a proportion of household income. This press release relates to the proposed Business Combination. ", Bridge of 2022 to 2023 Revenue and Adjusted EBITDA. Revenue increased by 1% to $645 million in the three months ended March 31, 2023, compared with $638 million in the same period last year, principally reflecting favorable volume/mix impacts, partly offset by lower metal cost pass through. Website. So soft drink is definitely a bit stronger than beer. We've seen a very unusual period where price is rising and volumes are dropping less than historically, but we're clearly reaching the limits of that now. And then, finally, they're not just saying to us, right? And appreciating that you can't speak for kind of your sister organization. So I guess a quick one and then a high-level question for you. A subsidiary of . Please disable your ad-blocker and refresh. Ardagh has reaffirmed its full-year guidance, with shipment growth of mid to high single digits. We are proud to have committed to the International Aluminium Institute's, Aluminium Forward 2030 initiative, bringing together global leaders across the aluminium supply chain, with the aim to accelerate progress towards net zero emissions. We suspect that energy drinks is also a bit stronger, though, again, we don't have the big share of that market, we have good share, but not the big share. The Company has a leading presence in the Americas and Europe and is the second-largest beverage can producer in Europe and the third-largest in North America and Brazil. We are delighted to partner with Gores Holdings V to create a NYSE-listed pure-play beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey., Over the past five years, our metal packaging business has grown its position as one of the worlds leading beverage can producers through our agility and foresight in tapping into emerging consumer and market trends, said Oliver Graham, CEO of AMP. This release contains "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Thank you for joining today for Ardagh Metal Packaging's first quarter 2023 earnings call, which follows the earlier publication of AMP's Earnings Release for the first quarter. Overall, the decline in the year reflected softer conditions in the Brazil market, with our performance in North America ahead of the prior year and our expectations due to good volume growth and improved manufacturing efficiency. And we are committed to our quarterly $0.10 dividend. Our resilient start to the year allows us to reaffirm our full year guidance. Obviously, there's still softness in key areas. Sure. We definitely see soft drinks a bit stronger than beer overall. Actual results could vary materially from such statements. So we're working very hard this year to get that inventory back aligned through the year, and that's our $100 million working capital inflow for the year is our step along that particular journey. I'd say you put those 3 components together, you're at or very close to covering the dividend mix. Once cans arrive at stores, stacking efficiency provides easy and effective retail display. Got it. So I think that's where there is some softness. When are we on path to maybe see that? Actual results may differ materially from the results contemplated by the projected financial information contained in this press release, and the inclusion of such information in this press release should not be regarded as a representation by any person that the results reflected in such projections will be achieved. Cookie Policy | Privacy Statement | Terms&Conditions. But obviously, the main thing that's going on for our business at the moment is that the capital expenditure we have this year is just the wrap-up of the projects that we've essentially more or less completely finished. In Europe Adjusted EBITDA declined by 8% to $49 million as a strong contribution from input cost recovery was more than offset by higher operating costs and the seasonal rebalancing of the contract asset margin. Now potentially, the market is a little bit more balanced. George, thank you. We will now move to Jay Mayers from Goldman Sachs. The European energy market continues to improve its resilience supported by public policy actions. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. Adjusted EBITDA of $130 million was down 8% on the prior year on a constant currency basis. You have billboard. So it's got no meaningful impact really on our capacity position. This would reduce the . We have today announced our quarterly ordinary dividend of $0.10 per share to be paid later in June, in line with our guidance and supported by our improving cash generation outlook. Given the Q1 CapEx, how much above the average targeted quarterly level? Can you give us a rough bridge, David, in terms of how we go from roughly $180 to the $170 2Q versus 2Q? jchou@gores.com, John Christiansen/Cassandra Bujarski/Danya Al-Qattan And then we -- in North America, we had a couple of contract gains. We're encouraged by the early signs of an improvement in demand with a small increase in promotional activity, which we expect to strengthen over the coming months through the peak summer season. I think it will be adjusted free cash flow positive for this year. Reiterate expectation for positive Adjusted Free Cash Flow generation in 2023 and, with growth plans to substantially complete, a significant reduction in capex in 2024. If you have an ad-blocker enabled you may be blocked from proceeding. Thanks. And is that driven primarily by kind of volume recovery or maybe cost? Default; Distance; Rating; Name (A - Z) Sponsored Links. We're encouraged by the early signs of a return to promotional activity and the easing of customer input cost inflation, which supports our expectations of improved H2 volumes. We continue to manage our capacity in a disciplined manner through curtailment actions that moderate our footprint ahead of growth in demand and that position the business for a period of investment-free growth. So how are you thinking about achieving maybe the '21, sorry, the '24 numbers around $1.1 billion of EBITDA? Thank you. On a constant currency basis, adjusted EBITDA decreased by 8%, mainly due to negative volume/mix effects and higher operating costs. I referred to it in the remarks, but there's some drag in Q1 from the timing of the recognition of those PPI mechanisms into EBITDA, and that drag has gone after Q1. The future were creating for Ardagh is built around our three core values of Trust, Teamwork and Excellence. AMP's state-of-the-art can manufacturing facility will occupy about 40,000m (430,556ft). By Mohamed Dabo. Paul Coulson, Chairman and CEO of Ardagh, will serve as Chairman and Shaun Murphy, COO of Ardagh, will serve as Vice Chairman of the Company following the closing of the transaction. Okay. The companys global supply chain partners commitment to the Aluminium Forward 2030 coalition and endorsement of the Mission Possible Partnerships net-zero strategy supports actions to achieve the industrys net-zero carbon footprint ambition. Got it. They are infinitely recyclable and contain an average of approximately 70% recycled content. We've got some still water filling that's moved back to the U.S. I think if I recall correctly, your last quarter, your thought process was maybe industry does mid-single digit, and Ardagh, maybe is closer to low single digits. Ardagh Metal Packaging (AMP) is a leading global supplier of sustainable, infinitely recyclable, metal beverage cans to brand owners. Look, it's going to go very meaningfully lower. Nov 19, 2021, 08:00 ET. One of our customers in Brazil entered a judicial reorganization process in the period. Ardagh Group is aglobal supplier of sustainable, value added, infinitely recyclable, metal and glass packaging for brand owners around the world. On a constant currency basis, revenue increased by 3%, principally 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). Ardagh Metal Packaging is a supplier of sustainable and infinitely recyclable beverage cans globally and operates 24 production facilities in nine countries. Our expectation for industry growth in 2023 supported by positive secular tailwinds is for a low single-digit percentage growth in the Americas and a low to mid-single-digit percentage growth in Europe. Forward-looking statements speak only as of the date they are made. And therefore, you'll see in our results and our peers' results probably some different results linked to customer mix and which customers you're in by region. The decrease in Adjusted EBITDA was principally due to negative volume/mix effects (including the seasonal rebalancing of the contract asset margin), partly offset by the pass through to customers of higher input costs. About Search Results. About Team NEO I'm joined today by Oliver Graham, AMP's Chief Executive Officer; and David Bourne, AMP's Chief Financial Officer. Visit our Privacy Policy for more information about our services, how GlobalData may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. We've got some filling that moved to the Nordics where we don't have capacity. Looking into Q2 and beyond, we see inflation recovery in Europe that will drop through its adjusted EBITDA as we set out in our forecast. So we completed all that activity last year in terms of getting to more direct energy pass-through mechanisms with customers, particularly large customers. We offer the latest innovations across such areas as decoration, label graphics, end design, and more. Ardagh Group S.A. ("Ardagh") (NYSE: ARD), a global supplier of infinitely-recyclable metal beverage and glass packaging for the world's leading brands The conference call will be accompanied by a detailed investor presentation. You can get your beverage container recycling refunds on a per-container basis instead of by weight. And if you look into the can side that are selling well at the moment, we don't see room for lots of movement there. Thanks, Stephen. I think the market has got a couple of $100 million down from that. I mean it's not the biggest situation. 2. So regarding your CapEx guidance for '23, your guide is $300 million, and your cash flow generation alleviation depends a lot on CapEx cuts. And as I said in my other remarks, I think there's a few other categories very ripe for the can, including the sports drink as well. We hedged out all our risk for this year, last year and confirm with customers that they were comfortable with that position, which is higher than spot because of the unexpected drop in the energy market. I think you said Europe looking just to mid-single digit. Any thoughts there would be appreciated. We have local experts who understand your customers needs and who can speak your language. Yes. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. Ardagh Metal Packaging is benefiting from long-term megatrends, including sustainability and changing consumer preferences, said Paul Coulson, Chairman and CEO of Ardagh. So maybe what are you hearing in terms of their level of inventories? Read our editorial policy to learn more about our process. Then that gets us into a very sustainable position for funding the dividend. The growth of our business over the past decade has been driven by our unrivalled expertise and commitment to innovation. And so you get the shift into one-way packaging. For more, click here. A partner of choice for beverage companies, AMP is known for its outstanding quality and customer service and is the only pure play metal beverage can producer of scale in the market today.