#Financial Performance #Luxembourg #Ardagh Metal #Beverage Cans

Ardagh Metal Packaging S.A. 2024 Financial Highlights

Ardagh Metal Packaging S.A. (NYSE: AMBP) recently released its financial results for the fourth quarter and full year ending December 31, 2024. The company reported impressive growth metrics, signaling a positive trajectory in its operational performance.

In the fourth quarter of 2024, Ardagh achieved revenues of $1,195 million, marking a 6% increase from $1,132 million in the same period the previous year. On a constant currency basis, this translates to a 4% rise, highlighting the company's ability to recover from fluctuations in input costs, alongside favorable volume and product mix effects.

Notably, the loss for the quarter was significantly reduced, amounting to $11 million compared to $56 million in Q4 2023. Adjusted EBITDA saw a commendable increase of 11%, reaching $164 million against the previous year's $148 million, reflecting strong underlying business performance supported by volume growth both in Europe and the Americas.

As for the full year 2024, total revenue hit $4.908 billion, slightly up by 2% from $4.812 billion in 2023. Again, when adjusted for constant currency effects, the revenue growth was 1%, underpinning Ardagh's resilient sales strategy amidst economic uncertainties.

The year concluded with a noteworthy adjusted EBITDA of $672 million—a 12% enhancement from $600 million in 2023. The company reported a reduced full-year loss of $3 million versus a loss of $50 million the prior year, showcasing significant strides in profitability and operational efficiency. The solid performance also encouraged Ardagh to maintain its quarterly dividend at $0.10 per share, demonstrating confidence in future cash flows.

CEO Commentary
Oliver Graham, CEO of Ardagh Metal Packaging, expressed pride in the company's performance during 2024, emphasizing double-digit growth in adjusted EBITDA. He stated, "This result was underpinned by 3% global volume growth, as well as stronger input cost recovery. Our performance in Europe was particularly strong, demonstrating good volume growth and a recovery from customer destocking experienced in the previous year."

The Americas region contributed a somewhat resilient performance despite facing challenges related to customer mix issues in Brazil and slight weaknesses in North America's energy sector. Furthermore, the company ended the year with nearly $1 billion in liquidity, paired with a net leverage ratio reduction to 4.9 times net debt to adjusted EBITDA.

Market Position and Strategic Outlook
Looking ahead to 2025, Ardagh anticipates an industry-wide growth in beverage can shipments between 2-3%, and adjusted EBITDA is forecasted to be between $675 million and $695 million. Graham remains optimistic, stating, "While we continue to navigate a challenging consumer environment, we expect industry shipment growth to persist into 2025 and are encouraged by our strong start to the year."

In terms of sustainability, Ardagh's commitment was reinforced with the release of their 2024 sustainability roadmap report, which highlighted progress toward emissions reduction targets, particularly decreasing scope 3 emissions below the 2030 target level.

As Ardagh Metal Packaging builds on its positive performance, the focus for the upcoming year will center on increasing shipment volumes, improving operational efficiency, and further leveraging the benefits of the growing demand for sustainable packaging solutions. The company’s adept handling of input cost inflation and currency challenges will also be pivotal in maintaining its competitive edge.

With its established market share and reinforced liquidity, Ardagh Metal Packaging is poised for a robust 2025, driving innovation and sustainability within the packaging industry.