And maybe you can just characterize what you're seeing in Europe from a demand perspective. Please go ahead. The timing and terms of any such transaction, if effected at all, has not been determined. The contribution from volume mix was more than offset by an expected fixed cost absorption drag and unfavorable input cost recovery relative to some over recovery in the prior year period. So look, I think on this promotional question, there's a couple of fundamentals that we should touch on, and then we should talk about the timing of it returning. The leading site for news and procurement in the packaging industry. Yes. We're encouraged by the early signs of an improvement in demand with a small increase in promotional activity, which we expect to strengthen over the coming months through the peak summer season. The future were creating for AMP is built around our three core values of Trust, Teamwork and Excellence. I think you said Europe looking just to mid-single digit. Perfect. Okay. AMP is a global leader in the supply of sustainable and infinitely-recyclable beverage cans. Ardagh Metal Packaging operates 24 production facilities in nine . Thank you. Second quarter Adjusted EBITDA expected to be of the order of $170 million (Q2 2022: $181 million reported; $180 million at constant currency). I'll give an overview, and then I'll let David cover anything further. Why the drag on working capital, why you expect to get it back to the source of $100 million, I think you said for the year? Again, clearly, with the events of the last few weeks, there's going to be very different outcomes for different players in the market, depending on which customer they've got on the beer side. Ardagh Metal Packaging (AMP) is a leading global supplier of infinitely recyclable, sustainable, metal beverage cans and ends to brand owners. Pro forma Adjusted EBITDA is not calculated in accordance with IFRS or U.S. GAAP. But that means that by Q2, you should see the working capital rightsizing for raw materials relative to payables as we go through that journey. Talk to an Ardagh customer sales representative about how we can support the achievement of your brand and business objectives. So as I say, we think that's a fundamental shift. On the promotional activity, what gives you the confidence that -- and you mentioned, I think, in non-alcoholic that you're starting to see some activity and some improvement, but why should we expect that, that's going to continue going forward? Metal's unique and proven product protection qualities are outstanding. Looking into Q2 and beyond, we see inflation recovery in Europe that will drop through its adjusted EBITDA as we set out in our forecast. The companys global supply chain partners commitment to the Aluminium Forward 2030 coalition and endorsement of the Mission Possible Partnerships net-zero strategy supports actions to achieve the industrys net-zero carbon footprint ambition. Glass packaging protects its content and enhances a brands appeal. Yes. Additional Information about the Business Combination and Where to Find It. Our capital allocation strategy will continue to prioritize dividend sustainability and deleveraging in the near and medium term. We are committed to investing in a future for all and we work hard to uphold our promises. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: (i) the risk that the proposed Business Combination may not be completed in a timely manner or at all, which may adversely affect the price of Gores Holdings Vs or Ardaghs securities; (ii) the risk that the proposed Business Combination may not be completed by Gores Holdings Vs business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Gores Holdings V; (iii) the failure to satisfy the conditions to the consummation of the proposed Business Combination, including the approval of the proposed Business Combination by Gores Holdings Vs stockholders, and the satisfaction of the minimum trust account amount following redemptions by Gores Holdings Vs public stockholders; (iv) the effect of the announcement or pendency of the proposed Business Combination on Ardaghs or AMPs business relationships, performance, and business generally; (v) risks that the proposed Business Combination disrupts current plans of Ardagh or AMP and potential difficulties in Ardagh or AMP employee retention as a result of the proposed Business Combination; (vi) the outcome of any legal proceedings that may be instituted against Gores Holdings V or Ardagh related to the proposed Business Combination; (vii) the ability to maintain, prior to the closing of the proposed Business Combination, the listing of Gores Holdings Vs securities on the NASDAQ, and, following the closing of the proposed Business Combination, AMPs shares on the NYSE; (viii) the price of Gores Holdings Vs securities prior to the closing of the proposed Business Combination, and AMPs shares after the closing of the proposed business combination, including as a result of volatility resulting from changes in the competitive and highly regulated industries in which AMP plans to operate, variations in performance across competitors, changes in laws and regulations affecting AMPs business and changes in the combined capital structure; and (ix) AMPs ability to implement business plans, forecasts, and other expectations after the closing of the proposed Business Combination, and identify and realize additional opportunities. A subsidiary of sustainable packaging business Ardagh Group, AMP is a leading industry player across Europe and the Americas with innovative production capabilities. So if you agree with that premise, and the numbers are the numbers. Demand remains restrained by sustained higher retail pricing, but with greater resilience experience in non-alcoholic categories, which represent the majority of our North American business. There is some acceleration in volume received in our guidance in the second half, and we can talk more about the markets and why we've got that assumed. This reduces our impact on the environment, and improves the communities in which we do business. If you have an ad-blocker enabled you may be blocked from proceeding. And that linked to their overall market weakness. Our Code of Conduct is a guide for conducting our business in an honest and professional manner. Through PLTW, we plan to deliver positive results for more than 2,000 schools and 500,000 PreK-12 students in our local communities. Some of the pricing actions that are being taken that are very different across our customer base. This, in turn, supports our dividend policy and balance sheet deleveraging. And we always said, for us, it was a sort of mid-decade opportunity. ", Bridge of 2022 to 2023 Revenue and Adjusted EBITDA. One longer-term question, one sort of short-term financial question. I'll take the first and hand over to David on the working capital. Privacy Policy and Anthony. We are committed to conducting our activities with the highest standards of integrity and business practice in dealing with all of our stakeholders. Ardagh Group is a global supplier of sustainable, infinitely recyclable, metal and glass packaging for brand owners around the world. Ardagh Group is a global supplier of infinitely recyclable metal and glass packaging for the world's leading brands. jchou@gores.com, John Christiansen/Cassandra Bujarski/Danya Al-Qattan Ardagh Group is a global leader in metal and glass packaging solutions, producing packaging for the world's leading brands. And so their main problem at the moment is to try and to get that from a position where there is almost no one way. Ardagh has reaffirmed its full-year guidance, with shipment growth of mid to high single digits. Just to summarize again, we met our Q1 guidance, and we reaffirmed our full year as we see a strengthening in the demand environment and improved EBITDA recovery through the year. But obviously, the main thing that's going on for our business at the moment is that the capital expenditure we have this year is just the wrap-up of the projects that we've essentially more or less completely finished. So we're working very hard this year to get that inventory back aligned through the year, and that's our $100 million working capital inflow for the year is our step along that particular journey. The second element is, we've not built out all the investment in the original program, so particularly the Brazil greenfield. The following are a few key characteristics: Alternative printing and embossing techniques for brand differentiation, enabling beverages to draw consumer attention and enhance brand loyalty. Strengths across package variety, the environment and customer business. And what's kind of a good normalized CapEx range for you? I was going to hit it later. We'll now move to Arun Viswanathan from RBC. And therefore, you'll see in our results and our peers' results probably some different results linked to customer mix and which customers you're in by region. We recorded revenue of $1.1 billion, which represented a growth of 2% on a constant currency basis, predominantly reflecting higher volumes. Thank you, operator, and welcome, everybody. Ardagh operates 56 metal and glass production facilities in 12 countries, employing more than 16,000 people with sales of approximately $7 billion. And actually, what's happened in Brazil historically is that was held back by a lack of one-way glass capacity. Revenue of $486 million decreased by 3% in the three months ended March 31, 2023, compared with $499 million in the same period last year. . Ardagh Group is a Luxembourg -based producer of glass and metal products that has "grown in the past two decades into one of the world's largest metal and glass packaging companies". Cookie Policy | Privacy Statement | Terms&Conditions. And so I think that although there is capacity in the market, I think it's being managed in a good way. Adjusted EBITDA for the quarter was $81m, decreasing by 9% compared to $89m in the same period last year, primarily driven by input cost headwinds and higher operating costs, partly offset by favourable volume/mix effects. Hi, Arun. In fact, it's more than minus 10%. Ardagh operates 56 metal and glass production facilities in 12 countries, employing more than 16,000 people with sales of $7 billion. Well, we said at the full year, we're curtailing over $1 billion in Europe this year and over $2 billion in North America. So I don't think you've got a single picture for the market. The market we put, probably a low single digit for the quarter, mainly on the back of the strength, there's still growth in some of the newer players in the market. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We laid the groundwork in 2020 by partnering with Project Lead The Way (PLTW) due to their high impact, national reach, experience serving under-served students and strong management. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. We create packaging for numerous market sectors including, among others, beverage cans, food, beers, wine and spirits. So in theory, you might get a lower cost on other cash utilization relative to the dividend where the market is putting a 11% yield on. I think the market has got a couple of $100 million down from that. And if so, how far along are you? Sort:Default. Thanks, George. No. Due to disciplined cost stewardship, actions to improve manufacturing efficiency and stronger input cost recovery. Thank you. As a reminder, currency effects are broadly neutral from a leverage perspective in the medium term. I think March was slightly weaker than expectations, and April similarly, but we're looking into May and June where we see some good demand. And overall, in Europe, I think with the actions we're taking, we're pretty balanced there. Please go ahead. So that big step-down is what then allows us to grow, as we say, investment-free into our capacity. Learn how it impacts everything we do, https://www.ardaghmetalpackaging.com/investors, https://www.prnewswire.com/news-releases/ardagh-metal-packaging-sa--first-quarter-2023-results-301809466.html. So that's also a drag. The market recorded a high single-digit growth rate against a weak 2022 comparator and was softer than anticipated as adverse weather and more challenging macroeconomic backdrop pressured consumption. Global beverage can shipments grew by 3% in the quarter, driven by growth of 4% in Americas and 2% in Europe. Whatever your customers told you specifically in terms of why you think promotional activity is going to pick up, particularly in non-alc, over the rest of the year? And again, we're talking about prices coming off historically very high levels because of the market was so tight. Probably mostly around the new. And just a question on North America. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. So that typically has a floor. Ardagh Metal Beverage USA Inc. 2145 Cedar St Fremont OH 43420 (419) 355-8222. See Forward-Looking Statements above. And we don't see that happening this year. So look, I mean, our investment profile is front-loaded in terms of, as we said in the opening remarks, we are finishing off projects largely that have been crystallized, started last year and under flowing through. We're not letting any of the bank on it, but we're still excited about the still water category. And is that driven primarily by kind of volume recovery or maybe cost? Now whether they're getting the volumes that went with those contractual coverage, we don't know. Our expectation for industry growth in 2023 supported by positive secular tailwinds is for a low single-digit percentage growth in the Americas and a low to mid-single-digit percentage growth in Europe. You can update your preferences by clicking the "Cookie Policy" link at the bottom of any page on our website. There have been some times, we have off trends, but generally, that's been the trend. Our performance in North America, with good volume growth, and Europe with improved cost passthroughs were both ahead of expectations. And right now, you need to be operating in economy or price competitive parts of the market or you need to be discounting into those parts of the market because the consumer is under pressure. Remarks today will include certain forward-looking statements and include use of non-IFRS financial measures. We are delighted to partner with Gores Holdings V to create a NYSE-listed pure-play beverage can business of scale with impeccable ESG credentials, and we intend to remain a committed, long-term majority shareholder of AMP as it continues its growth journey., Over the past five years, our metal packaging business has grown its position as one of the worlds leading beverage can producers through our agility and foresight in tapping into emerging consumer and market trends, said Oliver Graham, CEO of AMP. I will now turn the call over to Oliver Graham. As I say, I think they have reached the limit of sales growth without driving some volume. Provide specific products and services to you, such as portfolio management or data aggregation. I appreciate that. And then also, what does that mean for your European footprint in terms of now potentially having some excess slack over in the Austrian region? We suspect that energy drinks is also a bit stronger, though, again, we don't have the big share of that market, we have good share, but not the big share. Our Sales team is uniquely qualified to discuss these product advantages and how Ardagh will deliver value across your entire business from design, to spec, to production and on-time delivery of the highest quality packaging in the industry. (2) Cash from operations for the three months ended March 31, 2023, is derived from the aggregate of Adjusted EBITDA as presented on Page 7, working capital outflows of $346 million and other exceptional cash outflows of $12 million. Our metal cans are available in a range of sizes from 8 oz. So what are you seeing across the regions in terms of the buying patterns as well? We will take our first question from Anthony Pettinari from Citi. They've chosen to kind of accelerate their glass investment, and then you guys have sort of delayed the greenfield investment that you're going to make in cans down in Brazil. To date, Alec Gores and affiliates of The Gores Group have announced and completed six business combinations representing over $27 billion in transaction value. How we use your information depends on the product and service that you use and your relationship with us. And could that possibly trigger just sort of a repricing event across the space? And then the second fundamental is that inflation is moderating. We haven't guided on it, but I think that some of the market numbers we've seen are in the right order. Ardagh Metal Packaging S.A. - First Quarter 2023 Results, Investors Look Right Past the First Republic Bank Closure, Markets Brief: 10th Straight Fed Rate Hike on Tap. We offer the latest innovations across such areas as decoration, label graphics, end design, and more. So let's go region by region. So if that's the case, how much lower can your CapEx go? Adjusted EBITDA for the quarter of $49 million decreased by $7 million, or 13%, at actual exchange rates, and by 8% at constant currency, compared with $56 million in the same period last year. We are fully hedged for the current year and have significantly progressed our energy purchases for future years as prices have fallen. Following closing of the business combination, Ardagh currently intends to offer holders of its Class A common shares the opportunity to exchange their Class A common shares for consideration which may include a portion of Ardaghs holding in AMP. So effectively, in Q2 last year, you had the Brazil reopening, which was a volume coming in the offseason from transitioning out of COVID, which gave a very unusual offseason pattern. We will achieve our vision by delivering customer innovation, providing an inspirational environment for our people and creating sustainable value for our business through growth and development. We support our customers' drive to differentiate their products, providing innovative shaping, decoration and convenience features. It is part of the company's multi-billion dollar investment programme to build new, recyclable, metal packaging capacity across Europe, North America and Brazil. Under no circumstances should the inclusion of such forward-looking statements in this release be regarded as a representation or warranty by us or any other person with respect to the achievement of results set out in such statements or that the underlying assumptions used will in fact be the case. AMP's earnings release and related materials for the first quarter can be found on AMP's website at www.ardaghmetalpackaging.com. And then we -- in North America, we had a couple of contract gains. Ardaghs disciplined cost stewardship, actions to improve manufacturing efficiency, and stronger input cost recovery led to a solid start to the year. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Investors and security holders will be able to obtain free copies of the Registration Statement and the Definitive Proxy Statement and all other relevant documents filed or that will be filed with the SEC by Gores Holdings V or AMP through the website maintained by the SEC at www.sec.gov, or by directing a request to Gores Holdings V, Inc., 9800 Wilshire Boulevard, Beverly Hills, CA 90212, attention: Jennifer Kwon Chou or by contacting Morrow Sodali LLC, Gores Holdings Vs proxy solicitor, for help, toll-free at (800) 662-5200 (banks and brokers can call collect at (203) 658-9400).
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