AMBP - Earnings call transcript Q3 2024 | Ardagh Metal Packaging S.A.

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Operator

Welcome to the Ardagh Metal Packaging S.A.

Third Quarter 2024 Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Stephen Lyons, Investor Relations. ahead. go Please

Stephen Lyons

for and and for operator, Call, Thank for Officer. AMP's earnings you follows today I'm Thank Oliver Schellinger, by Metal welcome, AMP's Packaging's today Graham, release AMP's of Ardagh earlier Executive Earnings third Third joining quarter. the joined Officer; you, Chief publication everybody. the Stefan Quarter which Financial XXXX Chief

related of remarks materials we ir.ardaghmetalpackaging.com. around your certain IFRS will the AMP's now moving statements. questions, will reconciliation earnings AMP's disclaimer use Oliver non-IFRS first materially includes I and release vary the financial some earnings the AMP's to Actual non-IFRS release. call the statements forward-looking from forward-looking can and performance Graham. could AMP's Remarks financial measures quarter introductory for and third statements measures Please include of financial in to such details on be outlook. to Before provide over measures. and results turn review today of found will at website AMP's

Oliver Graham

across beverage our energy in crisis volume X% Americas, the the recorded set the strong of revenue EBITDA context a adjusted another in can This the of with the unchanged, improved quarter margin favorable beverage and in EBITDA both third normalization consumption strong strongly. with growth by grew Brazilian and performance grew versus with with while segments performance segments. business beverage strong the delivered encouraged Global mix during shipments by a reflects AMP continent's growth Europe's XX% cost of demand quarter by trends of across the in performing manufacturing results and both prior ahead each management, of post double-digit strength year, quarter. markets input Stephen. guidance, adjusted in broadly impact. We're and the Thanks, continued strong

circularity and can and will can's decarbonization. outperform regarding the continue customer innovation other that the supported positive types, We by credentials to expect beverage packaging

outperformance gives year initial to expectations, particularly million. $XXX Our Europe, our versus full for through guidance EBITDA $XXX in confidence to the improve to us adjusted year the further million

agenda, to this We also Purchase continue we energy XXX% a Agreement AMP XXXX. towards represents for value beverage our will Europe's a quarter, our cosponsors which were represent content other recently the to can in concluded aluminum sustainability target half key progress approximately its X in such large-scale the on can the and pathways stakeholders, major consumption. achievement commencing chain virtual continental we summit as And in and sustainability decarbonization of renewable X XXXX, leadership Portugal This advance Power energy step industry alongside of issues a recycled of how X-day enhance of measurement.

results to by If AMP's segment. we turn

the in pass-through Firstly, We the growth saw compared period for X% the in Europe, higher of quarter increased million same over $XXX principally by input to solid with in to costs of due to third X% favor level. revenue the geography XXXX, volumes, both quarter our customers. shipments of in market. maintain the and and year by a broad-based pack end the rebuild is Growth their mix customers focus can increased context strong by inventory as on in prior product on

inventory performance constraints cabin customers capacity the back part certain short-term sizes, the Our own build to cautious particularly slightly year. shipment was related were by after first on held of in

cost due Europe EBITDA offset adjusted complexity. to additional stronger volume/mix in partly due to Third by higher XX% million increased recovery, by manufacturing operating input quarter and to costs favorable $XX

overall low from has uncertain strong business for in together through the to shipments adjusted informed recovery QX, our with guidance us overall encouraged by confidence guide growth summer Europe prior increase start a our the year. single-digit European for year the This, initial strong The We're to period. for of end the our X% range the to growth. gives market nature EBITDA for expectations X% for to of our

group. for the outlook region's underpins full overall in confidence improved year our recovery Our the

the to in cost effects customers. in of Americas. Turning the the the $XXX higher million, increased reflected and EBITDA which to third Revenue pass-through Americas Adjusted quarter by input to favorable volume/mix X% to increased lower was strongly costs, million, and with improved by stronger fixed growth regions, cost a absorption. including XX% $XXX volume/mix favorable both effects by in performance driven and which operating manufacturing

over a comparable. represent grew waters, the a solid strong the portfolio. shipments the for quarter, category In our carbonated drinks market of our and we combined, and in for by prior sparkling America, with X% performance estimate which North softness despite line year quarter, half energy in saw In against soft

reflecting growth X% We of with versus Overall, underpins beer, growth. modest our mix portfolio attractive also this year-to-date saw shipments industry growth volumes. in our new contracted outperformance

for in in some weakness in this category, growth percentage confident medium-term We're category. represents current teens which portfolio, the outlook in softness our quarter. result a The North energy American restraining is our of the well-established and low currently fourth will the

by base, were of of towards can event very enjoyed increased of The overall the packaging. against sales third X% environment customers mix the least of very shift order quarter. Volume/mix [ year specific pack of supportive well can be preemptively quarter filling track but customer We strongly, across from summer customer the continues Brazil, shipments single-digit to for a for growth their as our looks by grow ] at Industry a macroeconomic percentage. Brazilian the the growth growth to the the market as backdrop high market. in benefited securing on for a driven majority In beverage as end the timing result impacted strong strong the mix location a supply back by chain to season. one-way

September. indication where to reflecting shipments We He'll quarter, mix order remarks. position some prior finish growth of ] talk in record some of us in the to [ a you expect for the year financial percentage I in customer XXXX. with Stefan, ] [ through fourth who continuation Americas single-digit plus CFO, our I'll now strong decline new concluding shipments We low XX%. the joined by the effects, our a in before expect grew in have shipments performance

Stefan Schellinger

to growth, and engagement. I'm joined the business given market. opportunity I well I so morning, drive manufacturing excited and business Thank far, relationships. in with our positioned well-invested forward several afternoon, think you, the time looking on to our meet The Oli, particularly the attractive have further have investors, and based to company footprint the spent an is the strong And in to good analysts customer everyone. AMP. good and I continued I'm operates

me briefly So on financial comment let position. now AMP's

$XX tight management. modest This growth $XXX for million of million million, total expect net and million. capital $XXX the CapEx. inflow Our included on of million adjusted of a below for driven CapEx and strong focus working generation cash a We growth which a CapEx XXXX growth cash was performance quarter free $XX by flow now $XX to of included EBITDA

a of reduced quarter, flow over of CapEx. capital we Xs growth, supported low the usual X.Xx EBITDA we generation end to net the expect further As slightly X.Xx at inflows free seasonality a including of the million, cash the CapEx at year-end ratio reduction and leverage to result our from third end of our growth working of anticipated at QX $XXX and territory, and the by

quarter, increase and $XXX announced $XXX liquidity $XXX down the million, global asset-based We we at proceeds the and of term an loan the the we ended million previously loan quarter to down the position our facility. completed from million with In of second end used a drew the pay quarter.

net So this leverage, overall financing the is to company. position strengthens liquidity neutral but of the

the on is term indicated, green levels. loan secured a and par caps a loan at As maturity has terms payments the our senior of the secured The X-year dividend previously basis alongside new current notes.

a the facility approximately in AMP's million the a BRL access of Brazil into approximately $X currency liquidity. we very strong position billion. the year liquidity credit current expect fourth At entered beginning have to which quarter, further of million local to Overall, XXX or end now $XX we deepens with

We announced policy, and it in our I'll with allocation $X.XX our of dividend in back line unchanged. With our to December, be capital remains have hand share which guidance Oli. per paid today to quarterly that,

Oliver Graham

Thanks, Stefan.

to on key questions, today. to AMP's your and take moving performance So just before messages recap our

Firstly, shipments growth double-digit with growth successive EBITDA for ahead our third segments of global X%. year-over-year guidance adjusted by delivering a was growing and quarter, both

$X year-to-date fourth on $X.X liquidity actions strong billion our Europe, $XXX full in adjusted us cash to gives finally, to the strong to guidance billion And we particularly improve EBITDA confidence increase performance our quarter, our range of million. and the in year resulted around performance, million to liquidity Secondly, quarter. which flow expect to $XXX in in

Our by X% to of global full and cost EBITDA underpinned shipments guidance input growth recovery. X% expectation stronger year is

we'll $XXX million. now in million that quarter, guidance terms EBITDA Having you adjusted these fourth to opening made have. remarks, for order of any is the take In $XXX may to of questions anticipated to proceed be the

Operator

And Instructions] Pettinari go we'll with to Citi. Thank first Anthony [Operator you.

Anthony Pettinari

In last to single terms you low the now maybe volume talked that's digit. single digit closer of and for the to mid-single quarter, year, digit low think I Americas outlook, about

Just a in want issue weakness U.S. also energy? the driver you the to if customer I sure right? make there Brazil. Is primary that's referenced know in

big Just from what's a wondering, picture delta? perspective, that driving

Oliver Graham

Yes.

volume it's Americas. expectation think down calling I right say the So we're in our to

we strengthened, have of do Europe As pockets has Americas. in the the weakness

QX. do energy the persisting in had customer forecast drag in and we energy America, the some is a further first drag category, we The and North through where of mix QX, that

we is had specific And specific the -- then mentioned a issue customer filling remarks, and Brazil. in location a the in second actually I

took us, reduced on we of end in So quarter, market, see particular that in affected the that the the commercial still price, towards that as some that persisting of a that was we volume, happened a customer increased into and took And a and downtime. that the brewery position QX. X serve, breweries meant particular and

those have Americas down both for full expectation it's on volumes. the us yes, led So that year to the factors call

Anthony Pettinari

Got then Europe. it. it. to shifting Got And just

look as You've XXXX, of had somewhat had strong comps. I guess like the year. And you kind easier very you on a year, back

giving categories? demand? years, much the maybe of others next shift, of the European And as you're the Euro, of for you Understanding by not had or strength maybe new long-term drivers European the of 'XX, product can we driven real the the that understand bev bev just in of seen just and but I'm trying have is midterm sort maybe cans? substrate talk that think You to share sustainability you guidance some can about Olympics. few how about

Oliver Graham

No, sure.

So into beverage easily We've you has substitution. -- higher X% know, than I going in an packing Europe XX started XX, Anthony, cans always a as see growth to average last we been pandemic, for increased X% think to the the as seen years. market that,

impacts have the We in there. recovery Germany long-term

and ] is definitely we our made a And packaging So shape, Europe. gains that think I against although bit. both year [ markets I normalize plastics stabilizing all in not great consumer this seeing glass of trend think the we're in in they're

So yes, and we the look confidence, forward of Europe. lot with think, beyond of a profile 'XX I for into growth

place continue on the the think that I this to recovery. in pack moderates year strengthening terms in see factors in would are side inflation to will in then of interest the mix, rates also of some and Germany terms recovery, I as come And we place consumer expect think long-term be down.

market also build particularly year. yes, we in part we year back first this our capacity by due less of X inventory left points we growth to constraints least So muted of at X the on growing in the and that were the the in to where on had table the strongly customers certain believe sizes quarter of we had early the on and

our we're lot of know into have could confidence of with a XXXX yes, we Europe. the better. forward growth So for number been looking And

Anthony Pettinari

very That's helpful. Okay. I'll over. it turn

Operator

of next Bank with line We Cashen to of America. Keeler go the

Cashen Keeler

the that? out you 'XX, going that? I market the Ardagh to your look sit and would what And how here against each of you then perhaps of to guess, in would perform guess regions behind you some in as maybe of today, last as terms off directionally, I you growth expect question, expect drivers

Oliver Graham

Sure. Hi, Cashen.

seeing. that I 'XX, I range as can range a to into bit in easily which think improves it a It X% on with that think Europe, prospect. mix shift at traditionally And is if we're I be pack we go ahead the the look, said reasonable as market. consumer was or least X% that So a of I mean

So Southern broadly with in We're that place reasonable be, I but we'd think Northern, very and with Mostly expect a be balanced, beer to soft pretty line to and that's in based drinks. representation, market. very Europe. ourselves

Europe. we're typically, market in So around the

to turn you market. as if think that I low Then see America, singles we North a

substrates. some I think of into innovation pressures other decent the shift potential America with pack again there's in on still North the with amount mix from can that's the upside going of

that And see billion above X.X% we're talking could do as tick market. case, we think can that. In a We in it's -- it should year. So X%, which up be growth a this market. the $XXX

it need So I the X% year. said every if I've a X% into but can think new you to get before, plant range, you

last we'd to category, So strong in strong of recovery line -- the taken in -- the players that after growth shelf ourselves this about expect a category. overall see to innovation at years. again, broadly We couple strong record of years. space It's delivery very think, the over with delivery There's retail, of the a bit largely of be increasingly category. energy the I constructive, very dip dedicated some energy track of certainly significant year

mentioned year, these but that few better, dips see we'd Brazil XX And pretty business occasionally. be our in you seen mean, We're with we to dips, today, territory then be years. particular last double-digit could that we We kind Brazil, few a for still that low expect the broadly, growth strong contractual get ones this what but expect years year. singles for. those seems goes see relative to gains again any growth, don't likely. the and of we'll and I And in you a potentially But year-to-date. it it yes, in certainly back ourselves if we that's to line. obviously, very the we've after mean through years hope in singles in I look So high market see of unbelievable be we'd the

I I XXXX. as relatively So in for we got think mid-single Brazil conservative a mean, digits, estimate

be peers to strategies -- have big And terms the because of related It to we'll still commercial about then growth, relative is market and the year. on soft side commercial our they talked depending of can think which cautious bit in our the drink growth. that see I very a this. just little number. our of of customers, you lower relatively don't It's very this participate But of We the also on brewers, been the house. a small are on strong or higher strategies the

the of As most area X have weakness. had double-digit of in our but I said we've we across had remarks, portfolio, growth

a that of market be pinning maybe X at So ourselves just sort we're probably at level cautious. to the or tick below moment,

taken January these said them. we would if But -- before I've again, have overall and market this trends on during taken year, the X, you've definitely

all of for markets and sizes markets there's think increasing from the that's obviously in I and our business. been a excellent also strength instructive very in through or perspective our supply tightness season uncertain our regions, or all certain

Cashen Keeler

Got it.

then could Okay. next than you $XXX CapEx year. growth understand called that sneak in X I be And I million out the lower CapEx, if just more. will On

expect further token, you would CapEx? without of you So additionally, us range? from do and your I leverage guess, first targeted when to help growth grow path the understand your on think you long here network current that, can deleveraging achieve into considering more the And how then on you same just some on can

Oliver Graham

kick pass and Stefan. to then that yes. off Sure, I'll

with with of in align adjust So that into the earlier sometimes broadly the this different couple of a projects, in we've year. this networks the did ramp-up of existing current additional Obviously, capital. we where But or point year, were growth capacity. changes to particularly a the over as And from of view could growth, overall to think I couple we moment, or pass X again, a or regional question continued projects Europe, see of were at the ourselves again, we have as perfectly same spend not of in we an we aligned do the without another and year the we we're growth to, capacity got on to deleveraging Europe, significant for trends, go Stefan. in kind I'll any U.S. year X particularly the those market seismic in think to year. we the

Stefan Schellinger

Yes.

from various comes think, I delevering, the think sources. I

I these organic into lower X think I foremost, about of We flow. talked and that contributors. where side are definitely and growth things, growth. we are expecting first CapEx sort And the major EBITDA think think of I BGI the cash of growth translates

of So comes it obviously, working of inflow and a of sort I on expecting work sort full year the basics a sort capital -- brilliant to business the for and the think on then continue small running as side, to that.

levers, in I So growth continue is our deleveraging flow profile. the combination other kind cash think of own our the market I growth, drive sort some position think, to us in of and organic to own should market with a

Operator

with we'll Spector go Josh Instructions] to And [Operator UBS. next

Joshua Spector

comments I up the in some wanted to of Europe. follow just on

past the had lost? due Is to you or of does some up of couple mix and catch following on being another out because dynamics, does about maybe more talked volumes or constraints I'm please? where quarters, demand get I that through with you some kind think Just pack that curious, you of go to So you sync that? those size year? in So walk you production capacity. -- that quarter competitor can following can't the the fill of something

Oliver Graham

Josh. Sure, Yes.

look, think year. it in was I this clear tight market Europe was that So the very overall

constraints sizes, us think had just certain looking regions So keep and and I that we because for it support. some wasn't did customers that saw in

but things some that not a volume I certainly then whole necessarily I mix that. got you up with happen all think So that did. of picked that of elsewhere, have think And

those yes, Sometimes, volumes can stay.

because at talking on level. contractual we about a obviously, business total situations. our have come not huge we're they'll the effect back And Sometimes overall

customers. different in yes, European have these market, it's So because of some multiregional, think, issues traditionally, complicated we market, many seen I the multi-size, a

end as like point, out. we a turns At were the the where capacity season in through cautious. that And went production all levels, so clearly back year relatively with don't last low year, QX. a have to customers where you exact quite can remained At get in you they the getting demand of alignment, year situation this cautious meet fresh into the in it particularly

So but of clearly held us yes, it -- it's on I back a it effect business, major a point don't certainly our I think growth. as X by see or

Joshua Spector

x? are guess that they not to if Okay. to inventories year? grows than next help you like trying you I guys understand Or way does customer to it? the industry think grow So where be? x, X point And lower is, above would is I'm about what that right the might your

Oliver Graham

winter QX. will think be this resolved and I inventories

think did don't will where QX. the I towards do we year-end, back So customers industry a off definitely the the the saw year, what definitely cash caution it last of running in we and for that saw

think I So and year. see inventory don't see that's why than stronger we we'll last rebalancing, some QX partly

that see, if your in And growth point our already already this sitting 'XX. peers, QX can expect guide overall our seen QX. in a from you So the guidance, extra we you of I've than 'XX better industry for like,

a it don't think impact the it X months. So next 'XX, I see as on will I over get massive resolved but

Operator

Arun next with to go Markets. Capital We Viswanathan RBC

Arun Viswanathan

seeing Maybe in carbonated get your some that bit been you any say, improvements know of It the destocking, North markets and appears any and seems improvements out I quite you've still that not the of as material inflation these into demand but But maybe, the of it under levels? soft you categories. some consumer beer drink, of of settling has in like different on pressure. are water really we're down And now a kind weakness I categories. with in seeing lack could look some incremental around called just thoughts other America. energy in

other beer on ] maybe as get well. thoughts as well, your I and just NAVs book So those [ categories

Oliver Graham

Sure.

X this I our [indiscernible]. some data gained think would a sparkling we sure. which the one, to So But at can there's and strength. drinks, we contractual weaker or say of also I think Carbonated again, beer. improved can across think, If in is look the we've of clearly weeks. soft there's very for year. actually. improvement, think scanner positions areas last X trend of last portfolio, been months, sort strong some definitely obviously, so we in particularly sales X the also detect, waters, I particular X strong, Beer And categories,

So rest there. And we of weaker but QX, alcohol yes, the and a first the had half. slightly very see of a space at half a rather good strong then a very growth first bit

clearly area energy main So of yes, is the the category. weakness

Arun Viswanathan

couple follow-up, then America as do also I asked Latin -- was what was a I the inroads shift has now your growth. It Brazil? where I just as growth guess, like on shifted Brazil? forward glass could pretty were you It guess, thoughts -- about a back. strong down know in guess, some there I as like recently. seems question Europe seems But years we going a to and And making maintaining maybe the cans what see substrate of more back sustainable rate far get

Oliver Graham

year as Look, trends think Sure. rises. I markets replicated of returnable glass out see we're is a across XXXX all talking which packaging, you GDP trend per into one-way capita

effects, it high that occasionally out a occasionally. the But faced issues either the COVID coming very particular big of LME. we've seen does economic with was interrupted, So aluminum because we get price of which

for saw cost in But the aspects a was lot So issue. that a issue it price base. Obviously, market. on a our just -- other hedge for us, we We of for of issue. customers, big them, a was it's inflation our

the float, system, we so returnable X-way And which shift glass needed. a there a make exploit they deliberate they big very they where down largest a have particularly brewer big when can into saw have

relevant. think that a I off-trade less there's the share become the in and happens then market that what typically, of is brands loss

growth number years. that, the back of long get And X-year over moderated. to see I you the isn't And said you these same that's very the the what for then time we're as earlier, where And seeing then and there's we strongest off-trade some can X- so there after the to trend, cost in and trend growth that a year, the this can if is which usually persists. periods that a period, then strong you look is base get return cans, as

there's mid-single pretty given at lot I digits today. think why for on substitution. to And number Brazil number that's sitting double is go So a returnable still a runway year this digit we're safe of a glass for

American on don't in yes, view I other We think comment markets, Brazil. I participate so So that's can't those. our on Latin

Operator

Stefan Stanley. with Morgan Diaz to next go We'll

Stefan Diaz

starting way. Maybe, mean, I name, And from with pretty strategy. Great doesn't has by capital the guess improve any are messaging the The on? your to you. X.X Stefan, months can your guess, changes I maybe things been said, clear that any you what impressions? necessarily the that specific after arrival AMBP's allocation company major at the think company company, first

Stefan Schellinger

decision-making and Yes, the look, to meet of went the the first regional leadership to good. and spend the lot the impressions on road. to U.S. very to are have to and I Europe Brazil I opportunity teams, actually out the a time assessing the meet America, into various sort centers the go teams a team and of on cetera. and the the plants, et and to operational processes, of fair the teams, sites, Finance time. finance engineering data, information technical and processes, spend amount obviously [indiscernible]

all think very has I So positive. been that

I think company. a it's well-run

in in to of [ the of bit little continuous that I the a company and I I ]. Denaha in a come it's be every terms embedded going think think forward, DNA. improvements, all of improvement. sort has in to That's improved mindset world think from regards

a of continue all the to excellence. So I there think work think things on, are we commercial I lot

of mean, working returns generally I deployed intense, cost position. a the in the as lot side, your on capital operational it is, and speaking, industry of getting it's employed, continue the think to capital I the

I any spirit, I things of this that you to as I build think I travel we think incoming there So probably And expect there good from, to things on on, CFO, I a but think would in here. lot are to think, improve. think continue are journey

Stefan Diaz

benefit wrong, Great. correct to a me in of you $XX guided modeling. Profitability which $XX million And I to under-absorption then you we were when to XXXX, better XXXX. it but is in than million if came compare believe I'm actually

your under what sort for $XX you we $XX still initially, if volumes, would way low the be still about of is But do normalized I global right I million absorption XXXX. maybe guess under-absorption I think the phase next understand million assume year? guess in XXXX? to you're to And that think single-digit So planning

Oliver Graham

with this Sure. right weaknesses actually guide for think our specific think still in Brazil. North way year now bit and little there's in I under with America, issues the the about because a energy category year the think Look, to it's we're I volume the

So year line. I not don't anything on helped us of you anything where year. which has that gains main say, that about as it's the at some can has improvement looking But won't capacity. talk guide I on as think the we this a number, it look at process, year, results. year $XX to reasonable then million next the line recovery, into around The drop we think we I made changed but we we been very underused strong we've the cost we think to The have we today, had as grow year go I the million, it's fair input middle performance, to expect budget next capacity. again cost out. in price we're on into the And the expect $XX we're into that say as say, full But so detailing as exact the

Operator

next Wells Fargo. Gabe go to Hajde We'll with

Unknown Analyst

on This Alex for is Gabe.

scanner on to of was Euro that is quite Cup, the kind it could Olympics you the I So -- data, it that look high sort year? growth next volumes promotional to confidence would to in where a whatnot. on if some if at and like I my expectations? guess And perform so that Europe, in activities promotional the mean, still of you my is question base half. is first But you Or have during activities thinking actually question seems there with it lower do will that -- line are single-digit will guys be needed are you year, have next low promotional your support level XXXX,

Oliver Graham

August, Europe Yes. the actually, the Look, beginning data And less there. there the side. in we scanner weakest to I pattern very terrible. strong. was Whereas June data we're think July, this QX at definitely look Northern were was if can May, actually actually year, at the -- with And sell-through get for the we're bit that months a we're the you look seeing on weather

could the over range the sort You X% softdrinks X% side. be talking in beer and of to on side X

not I over on of was able discern thought any The the is which we the year, never particularly about this had major It's our the that which all to not about the impact that So Olympics volumes the Olympics, tells have shape think been it you Euro. we've was. never years. that all

I again, levels back market that certainly to think even growth really Europe on have And verse customers take leaning that But activity. promotional a a back don't seen promotional think still actually. be that. of doing of that. go I'll we're that depends for the normal of We years there sure dimension I years year normal you with on been this could XX-odd to after don't not into chapter yet. activity X and volume I'm And fact has levels we've I growth Europe's on not further to that. think But

mix, other activity. growth year year certain call in, to advantages of pack I of point view. And a is you regions again, the a in think think in liquid of play point normal, then can certain segments which liquid from from growth normal is, the the reasonably view, the a what in factors on we only have might all which this promotional to get I

As the still Germany strong. I in said, is pretty recovery

Europe promotional to some level year. elevated of next activity grow need doesn't So yes,

in think a of place that without growth I the year are that. for next good all factors level

Unknown Analyst

trying about assume how beverage what thinking whatnot. as in Okay. I and more XXXX, to some mindful I of producers some try look about And be they're -- this to kind as that on thinking you guys costs procurement year would of guess are of your terms, pricing I another guess more on way maybe lean customers favorable to is guess? I next seek volumes

Oliver Graham

additionally in ever year improved they I I where don't terms. a mean, we've sought think been haven't

we have we contractual paid what for don't in pricing, looking and customers can So to and industry but anything for our then the I think structures contracts. equally, need long-term new from better get we there's do,

the XXXX more Europe So in drive factors of will will be of rates. in the that PPI some this

our that into the input rather elevated through seen in in including who, broader the and any their our of the, P&L. as year, general, coming some than I are the negotiations of costs out last length contract input the Some also costs that costs the moderating by play ways particularly LME-type short activity customers said, have autumn

particularly on So for in the the could falling equally, from cost the there headwinds business price not plays certainly if take think process. mechanisms, pass-through go calling X we're many I yet. business in and with the that I it other and be whole, line our our PPI as affect pass-throughs do robust very that I the are if there And particular, We out, some how things a take full but Brazil. America, budget in our to through North we need will some euro, autumn have also

a as business if front no So take on the particular I I comment whole. have that

other in I think many Europe, to address be we've but there few got headwinds those. to pull could levers a

Operator

next We'll Roxland from Truist take Securities. Michael our with question

Unknown Analyst

on the you end the for shipments back Can in think cadence over of I trends saw that, as we America go you maybe of year? what just and North -- if to North promotional Niko Mike. of you again. were just head the This up then that's off in share? the ] to into America, can end Bacini activity where going And guess and you last touch on quarter comment is [ on

Oliver Graham

Yes.

activity activity. think less side, participate look it as the muted where which the is you I beer look, at on we mean, year, promotional drinks, around -- I of last this back same pretty has sort if been in the soft So promotional levels is think I or at

And so pre-pandemic still it's as probably not strong as levels.

I but think 'XX at we the distance that level necessarily decent to comparing yet. them, numbers, back to were not some

certainly the But weeks, see definitely data, if data, the we in and you is growth X a despite that, in cans last CSD that. in package look our to into X

don't house. need that side again, I to think up drink we of too So hung on the the get soft on

that think the to which probably chain. of volume some leaning and is in those growth equally, it in without value some seems return there's be, that good go estimation, pre-pandemic no think as my for forward. I still I industry because levels, we profit promotional levels full pre-pandemic promotion, we're there'll But getting the into overall activity of

still overall in So chain. it's is probably better value if there profit the

concerned need get think that So too I yes, think don't we -- to I about that.

As America. constructive I bit growth pretty side November, are CSD still about significant the pressures said in look think all plastics still the some of on less. And also as on we 'XX, into In portfolio. bev it North I house, in I think customers' a then there we're looks

an we can the in think ongoing see I tailwind that area. do for So

Unknown Analyst

sorry, as And then on of it. the -- just you quarter? Got cadence on move through shipments

Oliver Graham

Yes.

strong. was Yes, July very So strong. July was

were we a tracking August, comp. For strong

the a very October, specific was And in is of about was issue. more weaker between than well two. October. sort means place. in double that we talked weak in the September QX yes, result already trending it a in in similar trending like this it's definitely Brazil, looks is October So bit Europe That

Operator

Spitz to America. We'll Bank with go Roger of next

Roger Spitz

I wonder other still costs, cash taxes, growth And base talked you might of changed anything being and Is and less million. working EBITDA if et you closure the some items? CapEx a You about $XXX than from flow interest, cetera? million? $XXX cash capital, cash start-up have over costs go lease CapEx little

Stefan Schellinger

Yes.

for side, $XX full $XX million the on on So magnitude capital moderate of order a working the million expect we sort inflow year. to still of

of sort guided exceptional XX. we magnitude. cash cash to sort side. And think I On $XXX tax continue order of of expect slightly bit towards Then the over we side, million, on probably sort the in the around also XX the a the on below cash of XX-ish lease little interest,

Roger Spitz

just $XXX cash but borrowed Perfect. cash I sheet? you from it then balance million the when term did down And then and pay is the on fungible, you loan mean, ABL the both Apollo. effectively to use

Stefan Schellinger

ABL. Yes, to correct. down was used the pay It

a it's proceeds. the from perspective, way leverage that the really used but we was So neutral

Operator

Morgan Diaz next with to Stanley. Stefan go We'll

Stefan Diaz

up are So your protect aluminum a believe to may we roughly their you. aluminum understand think a customers substrate prices level But XXXX. XX% I levels margins? start to pass-through saw there's year-over-year. early Obviously, where you is for price lower do switch in the direct you than

Oliver Graham

is, with it's about we significantly there we higher it saw talked mean but in and as than switch, this. I the Brazil, returnable

talking mean, -- I to at we're points think. levels we're various in X,XXX I X,XXX the in that cycle.

from XX we So to other XX overall months of been last cost we're And favorable the a relatively substrates. I think certainly way the that. relative input or the can see have long

from in think a customer I from in that place And choice. Europe. particularly yes, think still the we we're a year, we good all mix So evidence of have this

Operator

our And at this back turn over time, remarks. any further it I'll to additional speakers or closing we no for have questions.

Oliver Graham

of successive good against everyone, of Yes. us pleased joining obviously third beat the able which for well. been quarter as performance, year earnings the guidance. quarter Thanks, Thanks, raise for year-to-date is with Melinda. the And -- the our particularly expectations, a ahead we'd Obviously, strong we've guide then today. and that full third to

at full results. talking to taking again time, and year for the you the look to forward So we

Operator

for you thank your We conference. today's concludes This participation.

time. You may your lines disconnect at this

Ardagh Metal Packaging (AMBP) 24 Oct 242024 Q3 Earnings call transcript