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AL CIRCLE

Challenging Q3 for Ardagh Group: Adjusted EBIDTA drops 15% while global shipments of beverage cans are up by 9%

EDITED BY : 2MINS READ

Ardagh Metal Packaging, the international supplier of sustainable and recyclable aluminium and glass packaging solutions for brand owners worldwide, announced its financial result for the third quarter of 2022 (Q32022), which ended September 30.

Challenging Q3 for Ardagh Group: Adjusted EBIDTA drops 15% while global shipments of beverage cans are up by 9%

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According to the results, shipments of beverage cans increased by 9 per cent globally during the quarter, with growth in the Americas and Europe ascending by 10 per cent. Due to the company's investment programme, the percentage of particular cans in exports climbed from 44 per cent to 46 per cent in the third quarter.

"We experienced a challenging third quarter of 2022. While global shipments increased by 9% compared with the same period last year, demand was below our expectations and impacted earnings. We expect these conditions to persist through the fourth quarter and into the first half of 2023," said Oliver Graham, CEO of Ardagh Metal Packaging.

On the other hand, with input cost headwinds, adjusted EBITDA for the quarter fell to $140 million, representing a 15 per cent decrease on a constant currency basis. Operating expenses associated with a capacity ramp-up over demand negated the benefit from shipment increase.

Challenging Q3 for Ardagh Group: Adjusted EBIDTA drops 15% while global shipments of beverage cans are up by 9%

For Q32022, the group earned revenue of $1,173 million, showing a Y-o-Y growth of $135 million or 13 per cent from $1,038 million recorded in Q32021. Revenue rose by 21 per cent on a constant currency basis, primarily due to higher input prices being passed through to consumers and significant volume/mix growth.

"In response, we are taking a disciplined approach to managing our costs and capacity, and further flexing our growth expenditure. Our well-advanced investment programme puts us in a very strong position to serve the continuing secular demand growth for sustainable beverage can packaging," added Oliver Graham.

In the three months that ended on September 30, 2022, revenue in America climbed by 23 per cent to $680 million from $555 million in the same period the previous year, mostly due to the pass-through of higher input prices and favourable volume/mix impacts.

Future of the Global Aluminium Castings Industry

In Europe as well, in comparison to the same period the previous year, when revenue was $483 million, it climbed by 2 per cent to $493 million for Q32022. Revenue rose by 19 per cent on a constant currency basis, mainly due to favourable volume/mix impacts and the pass-through of higher input prices.


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EDITED BY : 2MINS READ

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