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By the numbers: Q1 2025
Q1 revenue: $1.27B
Up 11.1% year over year
Americas revenue: $740M
Up 12.1% year over year
Europe revenue: $528M
Up 9.8% year over year
- Results: Ardagh Metal Packaging’s global shipments rose more than 6% in the first quarter, up by 8% in North America amid growth in non-alcoholic beverages, including sparkling water, “wellness drinks” and energy drinks. AMP said it passed through higher inputs costs to customers. “Against the backdrop of a highly dynamic macro environment this performance is testament to the resilience of our business and the attractiveness of the beverage can as a packaging choice for our customers,” CEO Oliver Graham said in a statement.
- Tariffs: AMP is not worried about direct impacts from tariffs. “At the current time we anticipate minimal impact to our business arising from the tariff measures announced,” Graham said on an earnings call Thursday. AMP noted that in North America, all of its can-making operations are within the United States. It does not import empty cans and its indirect exposure to customers’ filled beverage can imports into the U.S. is low, Graham added. Additionally, “Across our global operations, our suppliers, customers and end consumers are all mostly local to the region.”
- Demand: Asked about how tariffs could stress consumer demand, Graham said the company hasn’t seen change in April. “In fact, one of the reasons we're upgrading guidance is because of a continued momentum of our sales into April, particularly in North America where the growth is pretty broad based. We've seen a lot of inflation go into the North American beverage can market in the last few years and in fact it's been moderating.” The company also didn’t witness a pull-forward ahead of tariffs. “Most of our customers are pretty just-in-time in the way that they operate their businesses. Obviously, we're building inventory for them in some situations, but I don't get the feeling that consumers are stockpiling soft drinks,” Graham said.
- Growth plans: Capacity is tight in Europe, with utilization above 90%, making it a prime target for growth spending. “We're ramping up capacity this year from the projects that were not complete and we're also debottlenecking and improving performance in other plants,” Graham said. “But we're seeing, as we look out a year or two, that that's not going to be enough for the growth in Europe. And therefore, we are starting to target some high-return projects that increase both the capacity but also the flexibility of our capacity.” AMP still has to firm up details in the coming months, but capacity could be added within the existing footprint as opposed to establishing a new factory.
- Outlook: Confidence coming out of Q1 leads AMP to expect between 3% and 4% growth in shipments in 2025, up from a previous projection of 2% to 3%. In the Americas specifically, AMP is increasing its shipment growth outlook to a low to mid-single digit percentage for 2025, up from a previous prediction of at least low single digits.
