Ardagh Metal Packaging S.A. Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Strong year-to-date performance with 5% global shipments growth and 18% adjusted EBITDA growth vs prior year, ahead of guidance. Americas drove growth with strong customer portfolio in attractive categories.
• Europe saw revenue growth but adjusted EBITDA impacted by input costs. Robust liquidity position of $680 million, net leverage 5.3x, expecting leverage ~5x at year-end, adjusted free cash flow at least $150 million.

Segment Performance

• Europe: Second quarter revenue increased by 9% to $615 million (4% on constant currency basis) compared to 2024, driven by volume growth and input cost pass-through. Shipments grew 1% with soft drinks up but beer down. Adjusted EBITDA decreased 3% to $77 million (6% on constant currency basis) due to input cost headwinds. Full-year shipments growth expected around 3%.
• Americas: Second quarter revenue increased by 21% to $840 million, adjusted EBITDA increased by 34% to $133 million. North America shipments grew 8%, strong in nonalcoholic beverages. Brazil shipments grew 12%. Full-year shipments growth expected mid-single-digit.

Guidance

• Upgraded full-year adjusted EBITDA guidance to $705 million-$725 million. Full-year shipments growth expected 3%-4%. Q3 adjusted EBITDA expected $200 million-$210 million, ahead of prior year $196 million.

Risks

• Macro-economic uncertainties. Impact of tariff measures minimally felt but still a risk. Input cost headwinds in Europe, especially aluminum timing issues.

Question and Answer

• Q: Stefan Diaz asks about North American volumes and back half expectations. A: Oliver Graham discusses strong categories like soft drinks, energy drinks, sparkling waters, with second half expected slower but still healthy.
• Q: Arun Viswanathan asks about Americas performance and Europe outlook. A: Oliver Graham talks about strong Americas due to promotions, Europe having category and weather impacts but long-term trends positive.
• Q: Josh Spector asks about European cost timing and 4Q guidance. A: Stefan Schellinger and Oliver Graham discuss timing effects and macro uncertainties impacting Q4.
• Q: Richard Carlson asks about energy market dynamics and MAHA movement. A: Oliver Graham says no cannibalization seen, MAHA not a major issue.
• Q: Nico Piccini asks about manufacturing efficiency and contract negotiations. A: Oliver Graham talks about efficiency from full production, contract visibility for 2026 and beyond.
• Q: Stefan Diaz asks about capacity expansion in Europe. A: Oliver Graham and Stefan Schellinger discuss ramping up capacity within cash flow and brownfield projects.