Paul Coulson, Chairman and Chief Executive, said, “The Group performed very well in the quarter in a challenging operating environment, with continued strong growth in Metal Beverage Packaging and resumed volume growth in Glass Packaging, as on- premise channels re-opened. Our 2020 250 million USD Business Growth Investment program has progressed well and will deliver new beverage can capacity in North America later this quarter. In addition, given a very favourable long-term outlook for sustainable packaging, we plan to invest over 1.8 billion USD in organic growth projects in 2021 to 2024, in addition to maintenance capex. This investment, will be principally in our beverage can business.”
- Revenue for the quarter of 1,800 million USD, an increase of 4% at actual exchange rates and 2% at constant currency; Glass Packaging increased by 4% at constant currency, while Metal Beverage Packaging grew by 1% at constant currency, after the pass through of lower metal input costs.
- Group volume/mix increased by 3%, with growth of 4% and 3% in Metal Beverage Packaging and Glass Packaging respectively.
- Metal Beverage Packaging shipments increased by 7% in the quarter and by 4% in the year to date, with growth recorded in all regions. Specialty can shipments increased by 20% in the quarter and by 11% to date in 2020.
- Adjusted EBITDA of 330 million USD increased by 3% at actual exchange rates and 1% at constant currency. Metal Beverage Packaging Adjusted EBITDA increased by 9% at constant currency in the quarter. Glass Packaging Adjusted EBITDA decreased by 6% at constant currency.
- Earnings per share of 0.18 USD (2019: loss per share of 0.12 USD), with Adjusted earnings per share of 0.48 USD (2019: 0.60 USD).
- The 2020 250 million USD Business Growth Investment program remains on track, with two new beverage can lines due to commence production in North America by the end of the year. The very favourable outlook for sustainable packaging supports planned organic investment of over 1.8 billion USD in business growth projects in 2021-2024, approximately 85% of which will be in our beverage can businesses and underpinned by long-term customer contracts. All told, investment in organic growth projects will exceed 2 billion USD in the five years to 2024, with investments of approximately 800 million USD in 2021, 500 million USD in 2022 and the remaining 500 million USD during 2023-2024. The investment program, which will be funded from existing cash resources, free cash flow and, where necessary, incremental debt will provide attractive, de- leveraging returns to the Group.
- Cash and available liquidity of 1.9 billion USD at September 30, 2020, including over 1.2 billion USD in cash, having fully repaid drawings under the Group’s Global Asset Based Loan Facility during the quarter.
- Sustainability agenda further advanced during the quarter, with the commitment to adopt science-based sustainability targets.