Ardagh Metal Packaging (AMBP) Q2 2024 earnings summary

Executive summary

• Q2 2024 outperformed guidance with double-digit Adjusted EBITDA growth in both Europe and the Americas, driven by strong European recovery, improved cost recovery, and resilient customer relationships.

• Global beverage can shipments grew 3% year-over-year, with Europe up 5% and Americas up 1%.

• Revenue for Q2 2024 was $1,259 million, up $4 million year-over-year, supported by favorable volume/mix and FX, partially offset by lower input cost pass-throughs.

• Net profit for Q2 2024 was $2 million, compared to a $10 million loss in Q2 2023.

• Sustainability initiatives advanced, including expanded solar power agreements in Germany and ISO 14001 certification for all facilities.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $178 million, up 18% year-over-year, with margin improving to 14.1% from 12.0%.

• Q2 2024 revenue was $1,259 million, broadly flat year-over-year; Adjusted earnings per share increased to $0.06 from $0.04.

• Liquidity at quarter-end was $405 million, up from $329 million in Q1; net debt at June 30, 2024 was $3,657 million.

• Net leverage ratio reduced to 5.8x from 6.2x in Q1, with a year-end target of 5.2x.

• Dividend per ordinary share maintained at $0.10.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance raised to $640–$660 million, with Q3 expected around $185 million, up from $171 million in Q3 2023.

• Americas shipments growth for 2024 forecast at low to mid-single digits, slightly below previous guidance due to softer energy drink demand.

• Europe expected to see low single-digit shipment growth for 2024.

• Modest deleveraging expected in 2024, with more significant reduction anticipated in future years.

• Management expects sufficient liquidity to fund operations, capex, and dividends for at least the next twelve months.