The following is a summary of the Ardagh Metal Packaging S.A. (AMBP) Q1 2024 Earnings Call Transcript:
Financial Performance:
Ardagh Metal Packaging reported a Q1 2024 revenue of $1.14 billion, up by 1% predominantly due to volume mix and positive currency impacts, offset partially by the pass-through of lower metal costs to customers.
Adjusted EBITDA increased by 3% to $134 million as compared to the previous year.
Revenue for the Americas region increased by 2% to $660 million thanks to growth in shipments and the pass-through of lower input costs.
Europe's revenue, on the other hand, experienced a 4% decrease on a constant currency basis to $481 million, majorly as a result of lower input costs passed on to customers.
Business Progress:
In Q1 2024, Ardagh Metal Packaging exceeded expectations with a 7% increase in global beverage shipments compared to the previous year, and higher adjusted EBITDA growth due to a favorable volume and mix.
The company also highlighted disciplined capacity management and anticipates further volume growth and increased manufacturing activity, positively affecting fixed cost absorption.
Ardagh Metal Packaging has made progress in terms of sustainability as indicated by an improved CDP score to A-, reflecting progress in addressing climate change.
The company expects promotional activities, which increased in Q1 2024, to further improve throughout the rest of 2024, especially within the soft drinks sector.
Innovations in terms of different sizes, increased decoration and functionality, speed of lines for cost performance, and types of can ends are anticipated to drive growth. The company is also investigating the adoption of 'Uni alloy' to increase the recycled content in packaging.
Despite supply disruptions, particularly in North America due to mill outages, the company managed it well and retained a stable liquidity situation with $329 million available at the end of Q1 2024. The company reassured that it's well-positioned to benefit from recovering market demand in the medium term.
More details: Ardagh Metal IR
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