Ardagh Metal Packaging records 3% growth in beverage can shipments in Q1 of FY23

LUXEMBOURG – Ardagh Metal Packaging (AMP), a subsidiary of the Irish sustainable packaging business Ardagh Group, has reported a solid performance in the first quarter (Q1), with global beverage can shipments growing by 3% during the period.

The growth was driven by a 4% increase in the Americas and a 2% increase in Europe, notes the company.

Although industry demand is slowly recovering in Brazil, performance in the country remained softer.

Revenue decreased by US$6 million, or 1%, to US$1.13 billion in the three months ended March 31, 2023, compared to US$1.14 billion in the same period last year.

On a constant currency basis, revenue increased by 2%, reflecting favorable volume/mix effects and the pass-through to customers of higher input costs.

Adjusted EBITDA decreased by US$15 million, or 10%, to US$130 million in the three months ended March 31, 2023, compared to US$145 million in the same period last year.

On a constant currency basis, adjusted EBITDA decreased by 8%, mainly due to negative volume/mix effects and higher operating costs.

Meanwhile, revenue in the Americas increased by 1% to US$645 million in the three months ended March 31, 2023, compared to US$638 million in the same period last year, primarily reflecting favorable volume/mix impacts.

Adjusted EBITDA for the quarter was US$81 million, decreasing by 9% compared to US$89 million in the same period last year, primarily driven by input cost headwinds and higher operating costs, partly offset by favorable volume/mix effects.

Europe’s Revenue decreased by 3% to US$486 million in the three months ended March 31, 2023, compared to US$499 million in the same period last year.

On a constant currency basis, revenue increased by 3%, primarily 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).

Adjusted EBITDA for the quarter was US$49 million, decreasing by 13% at actual exchange rates and 8% at constant currency compared to US$56 million in the same period last year.

The decrease in Adjusted EBITDA was mainly due to negative volume/mix effects, partly offset by the pass-through to customers of higher input costs.

Ardagh’s disciplined cost stewardship, actions to improve manufacturing efficiency, and stronger input cost recovery led to a solid start to the year.

The company’s global supply chain partners’ commitment to the Aluminium Forward 2030 coalition and endorsement of the Mission Possible Partnership’s net-zero strategy supports actions to achieve the industry’s net-zero carbon footprint ambition.

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