Ardagh Metal Packaging (AMP), a global leader in supplying sustainable and infinitely recyclable metal beverage cans, has reported strong financial outcomes for 2024, supported by robust operations and a comprehensive sustainability strategy.
Image source: Ardagh Metal Packaging
Backed by 4 per cent growth in European beverage can shipments and 2 per cent in American shipments, the Luxembourg-headquartered company achieved a revenue of $4,908 million in 2024, up by 2 per cent Y-o-Y from $4,812 million in 2023. The European business unit contributed USD 2,161 million to the Group's annual revenue, while the Americas business unit added USD 2,747 million.
Ardagh's Adjusted EBITDA grew by 12 per cent from $600 million to $672 million, resulting in a minimised loss per share. According to the 2024 fiscal report, the company faced a $0.05 loss per share, compared to a $0.12 loss per share in 2023. Loss for the entire year (2024) was $3 million after being lessened from $50 million in 2023.
At the end of the year, Ardagh's total liquidity was $963 million, up by 18.6 per cent from $812 million a year ago.
The annual growth of Ardagh's 2024 financial performance was highly supported by the fourth quarter results, when the outcome also saw a Y-o-Y rise but decreased over the quarter.
In the fourth quarter of 2024, Ardagh Metal Packaging (AMP) generated USD 1,195 million in revenue, which was 6 per cent higher than USD 1,132 million during the corresponding period of the previous year. But compared to the prior quarter, the revenue nudged a 9 per cent decline from USD 1,313 million.
Adjusted EBITDA also grew Y-o-Y by 10.8 per cent from USD 148 million to USD 164 million, while plunged from the previous quarter's USD 196 million, marking a decline rate of 16.33 per cent. Loss per share was USD 0.03 per share in Q4 2024 after shrinking from the loss of USD 0.10 per share in Q4 2023, significantly offset by USD 0.02 per share of earnings in Q3 2024.
Adjusted earnings per share in Q4 2024 emerged at USD 0.03 per share, compared to USD 0.01 per share a year ago.
The year-on-year growth seen in the fourth quarter of 2024 could be attributed to an 8 per cent surge in European beverage can shipments and a 5 per cent rise in America during the specified three-month period.
In the December quarter, Adjusted EBITDA in Europe increased by 81 per cent to $56 million, but that in America contracted by 8 per cent to $108 million. A similar trend was also reflected in revenue, as Ardagh earned higher revenue of USD 542 million from Europe versus USD 427 million a year ago but yielded lower revenue of USD 653 million from America compared to USD 705 million during the corresponding period of the previous year.
Oliver Graham said, "Across our global footprint the beverage can continue to gain share in our customers' packaging mix. While we are still in a challenging consumer environment, this supports our expectation for industry shipments growth into 2025 and we are encouraged by our solid start to the year. We are confident that our team can drive further growth in Adjusted EBITDA in 2025. This will be achieved through increased shipments, further improvements to capacity utilisation and operational improvements, more than offsetting some inflationary pressures in Europe and currency headwinds."
For 2025, the forecast is 2 to 3 per cent shipment growth, supporting Adjusted EBITDA in the range of USD 675-695 million. In the first quarter of 2024, Adjusted EBITDA is likely to range between USD 140 and 145 million, marking a surge of 4.5 to 8.2 per cent from USD 134 million in Q1 2023.
Plans to embrace sustainability
In addition to financial performance, Ardagh Metal Packaging is committed to a comprehensive sustainability plan aimed at reducing Scope 1 and Scope 2 emissions by 2030. The company's initiatives include:
· Enhancing can manufacturing efficiency to reduce gas usage
· Adopting low-carbon internal transport
· Exploring alternative low or zero-carbon heating technologies
· Increasing recycled content in its products
· Sourcing low-carbon footprint aluminium
· Transitioning to electric or biofuel-based transport solutions
· Implementing highly recycled beverage can ends industry-wide
· Reducing the carbon footprint of primary aluminium production
Through these sustainability efforts, AMP aims to lead the industry in reducing environmental impact while continuing to deliver solid financial growth.
Here’s how’s the initiative going on
Image source: Ardagh Metal Packaging
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