ARDAGH PACKAGING REPORTS FIRST QUARTER RESULTS FOR THE YEAR

Multinational Ardagh Metal Packaging has released its results for the first quarter of the year. Among the main findings was the adjusted growth during the first quarter of the year, reflecting a 1% growth in adjusted EBITDA for the quarter, equivalent to US$145 million in constant currency, driven by a 9% increase in the Americas.

On the other hand, worldwide beverage can shipments grew 1% in the quarter, reflecting a strong comparable prior year and driven by 3% growth in North America. However, an acceleration is expected from the second quarter onwards as new capacity increases. Shipments in Europe were unchanged from the prior year, following a strong fourth quarter of 2021, which depleted inventory levels available for shipment. Brazil showed encouraging trends as the quarter progressed.

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The share of specialty cans increased to 48% of shipments in the quarter from 44% in the prior-year quarter, reflecting our investment program. In this context, Oliver Graham, CEO of Ardagh Metal Packaging, confirms that “first quarter results were in line with our expectations, with continued strong demand for our products. We share the international outrage at the Russian invasion of Ukraine and the resulting humanitarian crisis” to which he adds that “although we have no presence in either country, these events have exacerbated an already challenging inflationary backdrop, in response to which we are seeking additional price recovery. Demand remains strong across our business and we made significant progress on our growth investment plans in the quarter, which will contribute to a significant increase in shipments in the coming quarters.”

In Europe, adjusted EBITDA decreased by 10% at constant exchange rates, in line with expectations, as high input cost inflation was only partially offset by volume/mix effects.

The growth investment program remains on track, and shipments are expected to increase starting in the current quarter. In Europe, new capacity is already operational in the United Kingdom and Germany. In North America, Winston Salem (NC) continues to ramp up its first line, and the second line also began production. In Huron (OH), can production will start shortly, complementing final production from the end of 2021.

On the other hand, AMP has no operations in Russia or Ukraine and has not faced any disruption to date in sales or supplies arising from the conflict. Persistently high energy costs in Europe represent an obstacle for which AMP is taking price recovery measures.

AMP has provided group support for humanitarian relief efforts in Ukraine through a donation to the International Committee of the Red Cross, in addition to supporting local initiatives of colleagues in our network. Finally, the outlook for 2022: reiteration of the percentage growth in mid-to-high teen shipments expected for the year and adjusted EBITDA in the order of US$750 million on a constant currency basis. Adjusted EBITDA for the second quarter is expected to be in the range of US$180 million in constant currency.