Ardagh Metal Packaging(US:AMBP)2025-03-04 17:11Financial Performance - Cost of sales for the year ended December 31, 2024, decreased by $60 million, or 1%, to $4,278 million compared to $4,338 million in 2023, primarily due to lower exceptional costs[325]. - Gross profit increased by $156 million, or 33%, to $630 million for the year ended December 31, 2024, with a gross profit percentage rising to 12.8% from 9.9% in 2023[326]. - Operating profit increased by $126 million to $202 million for the year ended December 31, 2024, compared to $76 million in 2023, primarily due to higher gross profit[332]. - Net finance expense increased by $45 million to $192 million in 2024, with senior facilities interest expense rising by $8 million, or 6%[333]. - Income tax charge for the year ended December 31, 2024, was $13 million, compared to a tax credit of $21 million in 2023, reflecting an increase in profit before tax[338]. - The effective income tax rate on profit before exceptional items decreased to 28% in 2024 from 30% in 2023, attributed to changes in profitability mix[340]. - The loss for the year ended December 31, 2024, decreased by $47 million to $3 million, compared to a $50 million loss in 2023[341]. - Adjusted EBITDA for the year ended December 31, 2024, increased by $72 million, or 12%, to $672 million compared to $600 million in 2023[363]. - Total revenue for the year ended December 31, 2024, was $4,908 million, an increase of $96 million, or 2%, from $4,812 million in 2023[369]. Revenue Breakdown - Revenue in Europe increased by $131 million, or 6%, to $2,161 million for the year ended December 31, 2024, compared to $2,030 million in 2023[370]. - Revenue in the Americas decreased by $35 million, or 1%, to $2,747 million for the year ended December 31, 2024, compared to $2,782 million in 2023[371]. - Adjusted EBITDA in Europe increased by $46 million, or 22%, to $257 million for the year ended December 31, 2024, compared to $211 million in 2023[372]. - Adjusted EBITDA in the Americas increased by $26 million, or 7%, to $415 million for the year ended December 31, 2024, compared to $389 million in 2023[373]. Exceptional Items and Costs - A net charge of $16 million was recognized as exceptional items for the year ended December 31, 2024, compared to a net charge of $34 million in 2023[367]. - Exceptional costs paid, including restructuring, decreased by $3 million to $53 million in 2024, down from $56 million in 2023[420]. - Exceptional costs paid in 2023 decreased by $45 million to $56 million, down from $101 million in 2022[421]. Cash Flow and Liquidity - Operating profit for the year ended December 31, 2024, was reported at $202 million, with cash generated from operations amounting to $659 million and Adjusted EBITDA of $672 million[394]. - Net cash from operating activities decreased by $166 million from $616 million in 2023 to $450 million in 2024, mainly due to a decrease in working capital inflows[406]. - The company had $610 million in cash, cash equivalents, and restricted cash at December 31, 2024, along with available but undrawn liquidity of $353 million under credit facilities[395]. - The company expects to satisfy future long-term liquidity needs through a combination of cash flow generated from operations and refinancing of debt obligations[396]. Capital Expenditure - Capital expenditure for the year ended December 31, 2024, was $179 million, including $68 million on growth investment projects[408]. - Capital expenditure for the year ended December 31, 2024, decreased by $199 million to $179 million, compared to $378 million in 2023[426]. - In Europe, capital expenditure for 2024 was $76 million, down from $155 million in 2023[427]. - In the Americas, capital expenditure for 2024 was $103 million, down from $223 million in 2023[427]. Debt and Borrowings - Total borrowings as of December 31, 2024, amounted to $3,933 million, with net debt available liquidity of $3,305 million[387]. - The company entered into a new credit facility with Banco Bradesco S.A. for BRL500 million (approximately $90 million) on October 7, 2024[382]. - The company secured a €269 million ($300 million equivalent) senior secured term loan facility on September 24, 2024, maturing in September 2029[383]. - Proceeds from borrowings for the year ended December 31, 2024, amounted to $517 million, reflecting the drawdown of the Group's Senior Secured Term Loan and Global Asset Based Loan Facility[411]. - Total contractual obligations at December 31, 2024, amounted to $5,963 million, with long-term debt capital repayment obligations of $3,517 million[401]. Environmental and Regulatory Risks - The company has set GHG emission reduction targets to reduce Scope 1 and 2 emissions by 42% and absolute Scope 3 emissions by 12.3% by 2030, approved by the SBTi[136]. - Compliance with evolving environmental regulations may impose substantial costs, including potential capital upgrades to production facilities due to stricter pollutant emissions levels[141]. - The company may face significant liabilities related to environmental contamination at sites it operates or has operated, which could impose substantial costs[144]. - Changes in laws regarding recycling and deposits on metal packaging could disrupt demand and affect production costs, potentially leading to reduced production of certain products[149]. Cybersecurity and Operational Risks - The company relies heavily on automated systems and technology for operations, with risks of disruptions from cybersecurity attacks and other failures that could materially affect business[126]. - Increased global cybersecurity threats, including AI-enabled attacks, pose significant risks to the security of the company's systems and data[127]. - The company has previously experienced cybersecurity incidents, leading to temporary shutdowns of IT systems, highlighting vulnerabilities in its cybersecurity program[129]. Shareholder and Market Risks - The company’s substantial debt could limit its flexibility in managing operations and pursuing growth opportunities, potentially placing it at a competitive disadvantage[173]. - The trading price of Ordinary Shares may be volatile, influenced by factors such as new product announcements, customer gains or losses, and general market conditions[185]. - Future sales of Ordinary Shares by AGSA or other shareholders could significantly reduce the market price of Ordinary Shares[191]. - The company may not be able to raise additional capital without significant costs or shareholder dilution, which could further limit its operational capabilities[177]. - The company’s ability to pay dividends on Ordinary Shares may be limited by restrictions on obtaining sufficient funds through dividends from subsidiaries[196].