Weil, Gotshal & Manges, LLP and Loyens & Loeff N.V. are acting as legal advisors to Gores Holdings V. Citigroup is acting as exclusive financial advisor to Ardagh and is acting as joint lead placement agent on the PIPE. 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. And is that driven primarily by kind of volume recovery or maybe cost? Thank you, operator, and welcome, everybody. Some of the pricing actions that are being taken that are very different across our customer base. I guess maybe if it's more helpful to talk by categories, that's fine and you could do that. But that said, I think we're sitting nicely now with a period of growth in the industry about which we're very confident and with no need to do further investment and with a good set of new and efficient assets. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. So what we see is a lot of variation between customers depending on their pricing strategies. The Company believes that strong demand in traditional and new beverage categories coupled with environmentally-conscious end consumers are driving an inflection point in beverage can demand and the Company is well positioned to capitalize on these multifaceted growth opportunities. Remarks today will include certain forward-looking statements and include use of non-IFRS financial measures. Moving now to our financial position. Ardagh is pleased to announce that its acquisition of Consol Holdings Proprietary Limited, the leading producer of glass packaging on the African continent, has completed. Our expectation of the current year is unchanged, which includes growth investment of just under $400 million with a cash flow element under $300 million. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. As previously indicated, our revised growth investment plans are well advanced, and cash outflows comprised the finishing of projects already underway. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. We're not letting any of the bank on it, but we're still excited about the still water category. Ardagh Metal Packaging S.A. - First Quarter 2023 Results, Investors Look Right Past the First Republic Bank Closure, Markets Brief: 10th Straight Fed Rate Hike on Tap. LUXEMBOURG, April 27, 2023 /PRNewswire/ -- Ardagh Metal Packaging S.A. (NYSE: AMBP) today announced results for the first quarter ended March 31, 2023. Whereas as you say, I think there's sufficient capacity on the can side at the moment that carries through a couple of years of good growth now, particularly with the investments we've done in the one way completing this year. The business has grown significantly since our acquisition of the metal beverage packaging business in 2016 and we have a clear roadmap that we believe will lead us to more than double Adjusted EBITDA by 2024, as we invest in support of our customers growth. And just a question on North America. 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. Please. And therefore, that growth we see having zero impact on our growth because our growth will be much more significant given the capacity position, given the consumer adoption of the can and given the significant shift we expect out of two-way. And so I think customers in Brazil are still short and importing the one way, and that explains why you might see investments there. We will take our first question from Anthony Pettinari from Citi. One of the first things you do along that journey is that is to kind of change of raw material buying patterns, and we calibrate that where your demand profile is, and we've been doing that during the quarter. Please go ahead. Could you comment on that in the context of capacity? The second element is, we've not built out all the investment in the original program, so particularly the Brazil greenfield. Is there ability for some shift there? The Gores Group You can update your preferences by clicking the "Cookie Policy" link at the bottom of any page on our website. And just so on that note then, does your European business take a step down from here? We strive to add value in line with customer aspirations and develop packaging that continually improves the consumer experience. As part of our strategy, we have mapped out ambitious commitments and targets for the next decade. We're highly contracted and so are our major peers through the middle of the decade. To ensure the most secure and best overall experience on our website, we recommend the latest versions of, https://www.ardaghgroup.com/corporate/investors. 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,. They're saying it publicly, and I think the major CSD player in the last week or so has absolutely signaled that they want to both carry on hitting the higher end of the market, but definitely hitting the lower end and the more economically challenged consumers because they don't want to lose those consumers to their brand. (568ml) aluminum beverage can offering enables. And appreciating that you can't speak for kind of your sister organization. And could that possibly trigger just sort of a repricing event across the space? As I say, I think they have reached the limit of sales growth without driving some volume. What makes you confident your potential to realize this $300 million CapEx by year-end? [Operator Instructions]. And that's a fundamental shift, and we expect that to continue once the normalization occurs around the very high inflation that's occurred on the can in the last 6, 12 months in Brazil, which we talked about and others have talked about, that's about the LME and where our customers have to hedge LME, and it's also about the fact that with dollar price elements of the can, which in a devaluing currency environment obviously increases inflation. From Bank of America, we will take our next question from George Staphos. Sure, Jay. And so you get typically a stabilization. AMP operates 24 production facilities in nine countries, employing more than 6,300 employees and had sales of $4.7 billion in 2022. 2023 outlook reaffirmed: shipment growth of mid to high single digits and full year 2023 Adjusted EBITDA growth of the order of 10%, weighted towards the second half of the year. The growth was driven by a 4% increase in the Americas and a 2% increase in Europe. They're very elastic categories, and demand does expand with promotional and with price. And maybe just to clarify on a couple of those points. And that linked to their overall market weakness. California Refund Value (CRV) is the amount paid by consumers at the checkout stand and paid back to consumers when they recycle eligible aluminum, plastic, glass and bi-metal beverage containers at certified recycling centers. The growth of our business over the past decade has been driven by our unrivalled expertise and commitment to innovation. Additional information about the transactions, including a copy of the business combination agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Gores Holdings V and in a report on Form 6-K to be filed by Ardagh with the U.S. Securities and Exchange Commission and available at www.sec.gov. Our actions taken on cost recovery and our well-advanced investment program will drive adjusted EBITDA growth and significantly improve adjusted free cash flow generation in 2023 and beyond. I'd say you put those 3 components together, you're at or very close to covering the dividend mix. And then if there's any sort of trigger date for contract resets for PPI or any kind of mechanism like that, that we should keep in mind as we kind of think about the rest of the year? 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). By clicking Accept all cookies, you agree to the storing of cookies on your device and to the associated processing of personal data to enhance site navigation, analyse site usage, and assist in our marketing and performance efforts. Investors We support our customers' drive to differentiate their products, providing innovative shaping, decoration and convenience features. 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. And then South America, it did grow the market, high single digits, but against a very weak comparator of Q1 '22. Ardagh Metal Packaging operates 24 production facilities in nine. Ardagh Group also holds a 42% interest in Trivium Packaging, a leading supplier of sustainable metal packaging I would like to turn the call back over to Oliver for any additional or closing remarks. And actually, in some markets, when they're trying for revenue management, they will push glass for a while. If you have an ad-blocker enabled you may be blocked from proceeding. Directions Advertisement. [2] As of 2012, the company operated 89 facilities in 22 countries, employed approximately 23,500 people, and had approximately 7.7 billion in revenue. Q1 2023 Ardagh Metal Packaging SA Earnings Call. San Pedro, CA (310) 519-2400. It appears we have no further questions at this time. Mingfeng USA Packaging. Highlights. They've chosen to kind of accelerate their glass investment, and then you guys have sort of delayed the greenfield investment that you're going to make in cans down in Brazil. You can update your preferences by clicking the "Cookie Policy" link at the bottom of any page on our website. 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. So I think when you add it all together, it makes all sorts of sense that you'd see some increased promotional activity as we go through the year. So if you put all that together, would you characterize, if you can just help us understand the supply-demand balance in each of these markets. How concerned are you about the spread of Coronavirus? [3] History 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. As a first step in the transaction, AMP will raise new debt of approximately $2.65 billion, (approximately $2.3 billion net), representing a multiple of 3.3x of 2021E pro forma Adjusted EBITDA. Is that what you're seeing as well or maybe just comment overall on the outlook there. Fixed cost under absorption net of our mitigating curtailment actions remains a headwind to our performance. 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. Ardagh Group is a global supplier of sustainable, infinitely recyclable, metal and glass packaging for brand owners around the world. Fullyarn Packaging USA Inc. Packaging Materials. On closing of these transactions, in addition to its holding in AMP, Ardagh will retain 100% ownership of its glass packaging business as well as its 42% stake in Trivium Packaging BV. So I think we're still guiding to low in the market, low to mid. Certain factors that could cause actual events to differ materially from those discussed in any forward-looking statements include the risk factors described in Ardagh Metal Packaging S.A.'s Annual Report on Form 20-F for the year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission (the "SEC") and any other public filings made by Ardagh Metal Packaging S.A. with the SEC. Ardagh Metal Packaging is benefiting from long-term megatrends, including sustainability and changing consumer preferences, said Paul Coulson, Chairman and CEO of Ardagh. And as you put those numbers together with some EBITDA growth, that's why you can see we're very confident in the sustainability of the dividend. 2 min read New 19.2 oz. Ardagh will retain an approximately 80% stake in AMP and receive up to $3.4 billion in cash in the transactions. The European energy market continues to improve its resilience supported by public policy actions. So we have volumes, we're getting to pick up. Our Code of Conduct is a guide for conducting our business in an honest and professional manner. Summers at MIC: Be Careful in the Stock Market, 2 Undervalued Stocks From the Morningstar Wide Moat Focus Index, Maybe 2022 Was the Start of the Return to Normal, Aswath Damodaran Says, First-Quarter Returns Positive Despite Banking Crisis and Fears of Recession, The Best iShares ETFs and BlackRock Funds, 20 Best Healthcare Companies to Invest In, Transparency is our policy. I appreciate that. And so we can't speak to what impact that's having on them and their position. Europes Revenue decreased by 3% to $486m in the three months ended 31 March 2023, compared to $499m in the same period last year. This reduces our impact on the environment, and improves the communities in which we do business. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Sort:Default. We have also added an earnings presentation on to our investor website for your reference. The call can be accessed by dialing +1 (833) 470-1428 (domestic toll-free number) or +1 (404) 975-4839 (international) and providing the access code: 403501. Sure. The point I'd make is the market is putting a very high return on that. Estimated $118K - $149K a year. Just to summarize again, we met our Q1 guidance, and we reaffirmed our full year as we see a strengthening in the demand environment and improved EBITDA recovery through the year. The hard seltzer category accounted for 8% of North America shipments in the quarter, with the segment remaining under pressure. But as I said, I think it's really at the margin relative to the overall volume being shipped in the market. I think you said Europe looking just to mid-single digit. Ardagh Claude Marbach beverage can . Indianapolis, IN 46256. 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 as I say, we think that's a fundamental shift. Following any such transaction involving such consideration, Ardaghs ownership in AMP would decrease to below 80%, with a corresponding increase in the public float of AMP. I mean it's not the biggest situation. 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. 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. 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. Metal beverage packaging is universally recognised for its protective qualities, versatility and environmental credentials. Our resilient start to the year allows us to reaffirm our full year guidance. I'll take the first and hand over to David on the working capital. In terms of guidance for the second quarter, adjusted EBITDA is anticipated to be in the order of $170 million, which compares with the prior year adjusted EBITDA of $180 million on a constant currency basis. +353 87 2269345 / +1 646 776 5918. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed Business Combination may be obtained by reading the proxy statement/prospectus regarding the proposed Business Combination when it becomes available. See jobs Follow View all 6,018 employees Overview Jobs Life About us We are. And returnable systems then eventually do collapse because they lose scale. Ardagh Group is a global leader in metal and glass packaging solutions, producing packaging for the world's leading brands. So if that's the case, how much lower can your CapEx go? And so I think what that means, there's a volatility in demand patterns customer by customer. Ardaghs focus on customer satisfaction builds on the environmental strengths of the beverage can, which are marked by high recycle rate and content numbers, and clear business advantages which include the cans ideal filling, distribution and retail display economics. 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. Is it fair to assume now that given what you're seeing, maybe there's a little bit of optimism that Ardagh can also kind of start to approach into the mid-single digits? Metal beverage cans are the ideal example of a circular economy, with recycled cans being able to return to retail shelves in their original form in approximately 60 days. This offset softer performance in Brazil where industry demand is slowly recovering. So it's got no meaningful impact really on our capacity position. Thank you, guys. Unaudited Consolidated Condensed Income Statement for the three months ended March 31, 2023 and 2022, Sales, general and administration expenses, Unaudited Consolidated Condensed Statement of Financial Position. And what's the update on progress if those initiatives have been part of your strategy? So yes. Terms of Service apply. Modesto, CA . Ardagh Metal Packaging S.A. (AMBP) Q1 2023 Earnings Conference Call April 27, 2023 9:00 AM ET. Our adjusted EBITDA result represented an 8% decline on a constant currency basis versus the prior year quarter. And then lastly, just I guess on the curtailments. This press release is not a solicitation of a proxy from any investor or securityholder. And right now, you need to be operating in economy or price competitive parts of the market or you need to be discounting into those parts of the market because the consumer is under pressure. The people that make up AMP share much more than a strong brand and an excellent reputation. Cookie Policy | Privacy Statement | Terms&Conditions. By clicking Accept all cookies, you agree to the storing of cookies on your device and to the associated processing of personal data to enhance site navigation, analyse site usage, and assist in our marketing and performance efforts. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. So I think the way we'd characterize that is the major players are taking action to keep ourselves balanced and to keep utilization in the 90s. The company is a global supplier of sustainable, infinitely recyclable metal beverage cans to brand owners. I think that the existing players in the market is probably around flat. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. I'll now briefly hand over to David to talk through our financial position before finishing with some concluding remarks. If we turn to North America, there's clearly strength in the soft drink side, CSD and especially the energy space, which is very hot, still a lot of innovation in that space, exciting new companies. We see the growth coming much more in the second half when the LME hedges roll off some of the other input cost inflation moderates, and we'll see the big customers going back into retail away from returnables and discounting much more. Together with the cash held in Gores Holdings Vs trust account, additional investors have committed to participate in the proposed business combination by purchasing 60 million shares of AMP for an aggregate purchase price of $600 million in a private placement (the PIPE) at $10.00 per share. Thank you. We delivered global shipment growth of 3%, including 5% growth in North America and 2% in Europe, and adjusted EBITDA of $130 million, in line with our guidance. Ardagh Metal Packaging (AMP) is a leading global supplier of sustainable, infinitely recyclable, metal beverage cans to brand owners. Default; Distance; Rating; Name (A - Z) Sponsored Links. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. We reaffirm our guidance for 2023, which assumes global shipment growth of a mid to high single-digit percentage and adjusted EBITDA growth in the order of 10% weighted to the second half due to more favorable prior year comparisons and improving volumes. to the food & specialty and personal care markets. Shearman & Sterling LLP is acting as legal advisor, to Ardagh. The contribution from shipment growth was more than offset by higher operating costs. A subsidiary of sustainable packaging business Ardagh Group, AMP is a leading industry player across Europe and the Americas with innovative production capabilities. For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MiFID II; or (ii) a customer within the meaning of Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (this regulation together with any implementing measures in any member state, the Prospectus Regulation). To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. So overall, yes, here the point, but I think that the can growth will be good in Brazil going forward. And then also similarly in Europe and Brazil, how did you characterize the supply and demand? I had a question, two actually, on Brazil. Sustainability at Ardagh is at the core of our operations. To read more about our new targets, please click here for our 2021 Sustainability Report. Looking at AMP's results by segment and at constant exchange rates. We are committed to conducting our activities with the highest standards of integrity and business practice in dealing with all of our stakeholders. But in any event, perhaps we want to solve that on this call, but that's the only thing I'd point out there. And we also just have some one-off effects in our results. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. The first one, so look, when we've looked at packaging markets over the years, over time, within one-way packaging, cans almost always went out over one-way glass because you have distribution efficiencies. Murray Group So there's some good space for additional innovation still to come. Cash from operations for the three months ended March 31, 2022, is derived from the aggregate of Adjusted EBITDA as presented on Page 7, working capital outflows of $325 million and other exceptional cash outflows of $14 million. read more . Ardagh has reaffirmed its full-year guidance, with shipment growth of mid to high single digits. So we'd have to backfill it that way. This press release contains certain AMP projected financial information. As the only pure-play beverage can company, AMP products touch billions of consumers worldwide. We delivered a solid performance in the first quarter and met our market guidance. Yes. Please go ahead. Thank you. Our next question comes from Kyle White from Deutsche Bank. So look, overall, it is soft. 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. In addition, new risk factors and uncertainties emerge from time to time, and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual events to differ materially from those contained in any forward-looking statements. As we step through that, of course, you get the benefit to raw materials, but you get the step-down in payables. The cash proceeds from the transactions will be used to reduce net debt at Ardagh. AMP is a global leader in the supply of sustainable and infinitely-recyclable beverage cans. So that's also a drag. 1901 Avenue Of The Stars, Suite 450 Los Angeles, CA 90067 Anwar Dillon-Thomas Burton Attorney at Bokhour Law Group 1901 Avenue Of The Stars, Suite 450 Los Angeles, CA 90067 Defendant Attorneys Sabrina Layne Shadi
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