Ardagh Metal Packaging(US:AMBP)2025-03-04 17:13Financial Performance - Operating profit for the year ended December 31, 2024, increased by $126 million, or 166%, to $202 million compared to $76 million in 2023[316]. - Revenue for the year ended December 31, 2023, increased by $123 million, or 3%, to $4,812 million compared to $4,689 million in 2022[329]. - Adjusted EBITDA for the year ended December 31, 2024, increased by $72 million, or 12%, to $672 million compared to $600 million in 2023[350]. - The loss for the year ended December 31, 2024, decreased by $47 million to $3 million, compared to a $50 million loss in 2023[327]. - Gross profit for the year ended December 31, 2023, decreased by $52 million, or 10%, to $474 million compared to $526 million in 2022[333]. - For the year ended December 31, 2024, Ardagh Metal Packaging reported total revenue of $4,908 million, an increase of $96 million or 2% compared to $4,812 million in 2023[358]. Expenses and Costs - Net finance expense for the year ended December 31, 2024, was $192 million, an increase of $45 million, or 31%, compared to $147 million in 2023[317]. - Income tax charge for the year ended December 31, 2024, was $13 million, compared to a tax credit of $21 million in 2023[324]. - Sales, general and administration expenses for the year ended December 31, 2023, increased by $43 million, or 20%, to $255 million compared to $212 million in 2022[334]. - Exceptional items for 2024 totaled a net charge of $16 million, down from a net charge of $34 million in 2023, primarily due to lower start-up related costs[355][358]. - Exceptional costs paid, including restructuring, decreased to $53 million in 2024 from $56 million in 2023, primarily comprising $25 million of start-up costs and $22 million of restructuring costs[409]. Cash Flow and Liquidity - Cash generated from operations for the year ended December 31, 2024, was $659 million, supporting the company's liquidity position[376]. - As of December 31, 2024, Ardagh Metal Packaging had $272 million available under the Global Asset Based Loan Facility[378]. - The company entered into a new €269 million ($300 million equivalent) senior secured term loan facility on September 24, 2024, maturing in September 2029[371]. - Total borrowings at December 31, 2024, amounted to $3,933 million, with net borrowings of $3,902 million after accounting for cash and cash equivalents[375]. - The company reported an operating profit of $202 million for the year ended December 31, 2024[382]. - As of December 31, 2024, the company had $610 million in cash, cash equivalents, and restricted cash, along with $353 million in undrawn liquidity under credit facilities[383]. - For the year ended December 31, 2024, net cash from operating activities was $450 million, a decrease of $166 million from $616 million in 2023, primarily due to a $230 million decrease in working capital inflows[393]. Capital Expenditure - Capital expenditure for the year ended December 31, 2024 was $179 million, which included $68 million on growth investment projects[397]. - The capital expenditure for the growth investment program was $68 million in 2024, down from $266 million in 2023, indicating a significant reduction as the program nears completion[415]. - In Europe, capital expenditure for 2024 was $76 million, down from $155 million in 2023, while in the Americas, it decreased from $223 million in 2023 to $103 million in 2024, both attributed to reduced growth investment spending[416]. - Capital expenditure for the year ended December 31, 2023, decreased by $217 million to $378 million, compared to $595 million for 2022, also driven by reduced spending on the growth investment program[417]. Debt and Obligations - Total contractual obligations as of December 31, 2024 amounted to $5.963 billion, with long-term debt capital repayment of $3.517 billion[389]. - As of December 31, 2024, the company had total borrowings of $3.9 billion and net debt of $3.3 billion[155]. - The company’s substantial debt could limit its ability to raise additional capital and negatively impact its financial flexibility[159]. Risks and Compliance - The company faces risks related to potential disruptions in operations due to cybersecurity threats, which have been increasing in frequency and sophistication[116]. - The company has experienced adverse impacts from pandemics, including disruptions to supply chains and increased costs, which may continue to affect operations[102]. - The company is subject to extensive legal and regulatory frameworks, which may impose substantial costs and affect operations, particularly regarding environmental compliance and emissions reductions[125]. - The company anticipates increased compliance costs due to evolving regulations, including the EU Industrial Emissions Directive, which periodically reduces permitted pollutant emissions levels[128]. - The company may incur significant costs related to workplace injury and illness claims, which could impact its financial condition and reputation[138]. - The company is exposed to climate change risks, including physical risks from extreme weather events that could disrupt operations and increase production costs[121]. Shareholder and Market Information - The trading price of the company's Ordinary Shares is subject to volatility and may fluctuate significantly, potentially leading to substantial losses for shareholders[167]. - Factors influencing the trading price include announcements of new products, customer gains or losses, competitive developments, and changes in the global economy[169]. - The company has outstanding Warrants to purchase 16,749,984 Ordinary Shares at an exercise price of $11.50 per share, which may lead to dilution for existing shareholders[175]. - The company issued dividends on its Ordinary Shares quarterly in 2024, but future dividends will depend on various factors including financial condition and cash needs[180]. - The company’s ability to pay dividends may be restricted by its subsidiaries' financial conditions and existing indebtedness agreements[180]. - Future sales of Ordinary Shares by major shareholders could negatively impact the market price of the company's shares[174]. Corporate Governance - The company may be adversely affected by the actions and risks associated with its controlling shareholder, which could impact its share price and financial condition[166]. - AGSA indirectly owns approximately 76% of the company’s outstanding Ordinary Shares, which may lead to conflicts of interest[163]. - The company relies on administrative support from AGSA, and any failure in this support could result in operational difficulties[151]. - The Services Agreement with AGSA automatically renews annually, with fees based on the fully allocated cost of services provided[152].