Ardagh Group S.A. - First Quarter 2018 Results

Ardagh Group S.A. - First Quarter 2018 Results

PR Newswire

LUXEMBOURG, April 26, 2018 /PRNewswire/ -- Ardagh Group S.A. ARD today announced its financial results for the first quarter ended March 31, 2018.

Highlights

























March 31, 2018



March 31, 2017



Change



Change

CCY







($m except per share and ratio data)











First Quarter



















Revenue



2,224



1,960



13%



5%



Adjusted EBITDA 1



348



318



9%



1%



Adjusted earnings per share 1



0.33



0.31



6%



3%























Dividend per share declared 2



0.14



0.14











Paul Coulson, Chairman and Chief Executive, said "Our first quarter results again highlight the benefit of Ardagh's scale and diversity across our two substrates and multiple geographies. The Group delivered Adjusted EBITDA growth of 9% to $348 million on a reported basis and 1% at constant currency. A strong performance in both Metal Packaging divisions and in Glass Packaging Europe more than offset a decline in Glass Packaging North America, where we remain focused on the implementation of our profit improvement initiatives."

  • Revenue and Adjusted EBITDA growth of 13% and 9% to $2,224 million and $348 million respectively;
  • Constant currency Revenue and Adjusted EBITDA growth of 5% and 1% respectively;
  • Group volume/mix growth of 3%, led by Metal Packaging Americas;
  • Loss per share $0.06 (2017: loss per share $0.31);
  • Adjusted earnings per share growth of 6% to $0.33;
  • Quarterly cash dividend of $0.14 per common share, payable on May 31, 2018;
  • Adoption of US dollar reporting from January 1, 2018;
  • 2018 outlook: Full year guidance remains unchanged. Second quarter Adjusted EBITDA of approximately US$415 million (2017: US$415 million).

 

Summary Financial Information















Three months ended March 31





2018



2017





(in $ millions, except EPS, ratios and percentages)











Revenue



2,224



1,960

Loss for the period



(15)



(64)

Adjusted profit for the period 3



79



64

Adjusted EBITDA 3



348



318

Adjusted EBITDA margin



15.6%



16.2%

Loss per share ($)



(0.06)



(0.31)

Adjusted earnings per share ($) 3



0.33



0.31











Cash (used in)/generated from operations



(6)



114

Operating cash flow 3



(149)



7

Adjusted free cash flow 3



(242)



(88)





March 31, 2018



December 31, 2017

Net debt 4



8,328



7,825

Cash and available liquidity



1,307



1,598

Net debt to LTM Adjusted EBITDA



5.4x



5.2x











 

Financial Performance Review

Bridge of 2017 to 2018 Reported Revenue and Adjusted EBITDA

Three months ended March 31, 2018



























Metal

Packaging

Europe



Metal

Packaging

Americas



Glass

Packaging

Europe



Glass

Packaging

North

America



Group 5





$m



$m



$m



$m



$m

Reported revenue 2017



731



431



339



459



1,960

Organic



48



98



10



(46)



110

FX translation



106





48





154

Reported revenue 2018



885



529



397



413



2,224































Metal

Packaging

Europe



Metal

Packaging

Americas



Glass

Packaging

Europe



Glass

Packaging

North

America



Group 5





$m



$m



$m



$m



$m

Reported Adjusted EBITDA 2017



111



48



68



91



318

Organic



7



15



3



(20)



5

FX translation



16





9





25

Reported Adjusted EBITDA 2018



134



63



80



71



348























Reported Adjusted EBITDA 2018 margin



15.1%



11.9%



20.2%



17.2%



15.6%

Reported Adjusted EBITDA 2017 margin



15.2%



11.1%



20.1%



19.8%



16.2%

 

Group

Revenue of $2,224 million for the quarter ended March 31, 2018 represented an increase of 13% at actual exchange rates and, at constant currency, increased by 5% compared with the same period last year. The increase in revenue was attributable to $154 million favorable currency translation effects, 3% volume/mix growth and the pass through of increased input costs. First quarter Adjusted EBITDA of $348 million increased by 9% at actual exchange rates, compared with the same period last year. On a constant currency basis, Adjusted EBITDA increased by 1%, with growth in three of our four divisions partly offset by a decline in Glass Packaging North America.

Metal Packaging Europe

Revenue increased by 21%, to $885 million in the three-month period ended March 31, 2018, compared with the same period last year. Growth reflected favorable currency translation effects of $106 million and 6% organic growth, principally from favorable volume/mix effects and the pass through of higher input costs. Adjusted EBITDA for the quarter of $134 million increased by 6% at constant currency compared with the same period last year, reflecting cost savings and synergy delivery partly offset by higher input costs.

Metal Packaging Americas

Revenue increased by 23% to $529 million in the first quarter of 2018, compared with the same period last year. The increase was due mainly to favorable volume/mix effects and the pass through of higher input costs. Adjusted EBITDA increased by $15 million, or 31% to $63 million, compared with the same period last year. Growth primarily reflected higher volume/mix effects, synergy realization and cost reductions, partly offset by higher input costs.

Glass Packaging Europe

Revenue increased by 17% to $397 million in the three-month period ended March 31, 2018, compared with the same period last year, benefitting from higher volume/mix effects and favorable currency translation effects of $48 million. Adjusted EBITDA for the quarter increased by 18% to $80 million, compared with the same period last year, as a result of cost savings and favorable currency translation effects of $9 million.

Glass Packaging North America

Revenue decreased by 10% to $413 million in the first quarter, compared with the same period last year principally reflecting lower volumes. Adjusted EBITDA decreased by 22% to $71 million in the first quarter, compared with the same period in 2017 as a result of lower volumes and higher freight and other operating costs compared with the same period last year.

Earnings Webcast and Conference Call Details

Ardagh Group S.A. ARD will hold its first quarter 2018 earnings webcast and conference call for investors at 3 p.m. BST (10 a.m. ET) on April 26, 2018. Please use the following webcast link to register for this call:

Webcast registration and access:

http://event.on24.com/wcc/r/1641811-1/5A7D879B23B597155888ED29ED385496?partnerref=rss-events

Conference call dial in:

United States callers: 1866 928 7517

International callers: +44 20 3139 4830



Participant pin code: 43871149#

Slides and annual report

Supplemental slides to accompany this release are available on our website at http://www.ardaghgroup.com/investors.

First quarter results for ARD Finance S.A., issuer of the Senior Secured Toggle Notes due 2023, are available at http://www.ardholdings-sa.com/.

About Ardagh Group

Ardagh is a global leader in metal and glass packaging solutions, producing packaging for most of the world's leading food, beverage and consumer brands. It operates 108 facilities in 22 countries, employing approximately 23,300 people and has global sales of approximately $8.6 billion.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Non-GAAP Financial Measures

This press release may contain certain consolidated financial measures such as Adjusted EBITDA, working capital, net debt, Adjusted profit/(loss), Adjusted earnings/(loss) per share, and ratios relating thereto that are not calculated in accordance with IFRS or US GAAP. Non-GAAP financial measures may be considered in addition to GAAP financial information, but should not be used as substitutes for the corresponding GAAP measures. The non-GAAP financial measures used by Ardagh may differ from, and not be comparable to, similarly titled measures used by other companies.

 

Consolidated Interim Financial Statements

Consolidated Interim Income Statement



































Unaudited



Unaudited, re-presented (i)





Three months ended March 31, 2018



Three months ended March 31, 2017





Before













Before















exceptional



Exceptional









exceptional



Exceptional











items



Items



Total



items



Items



Total





$m



$m



$m



$m



$m



$m































Revenue



2,224







2,224



1,960







1,960

Cost of sales



(1,872)



(48)





(1,920)



(1,631)







(1,631)

Gross profit/(loss)



352



(48)





304



329







329

Sales, general and administration expenses



(118)



(6)





(124)



(106)



(14)





(120)

Intangible amortization



(67)







(67)



(67)







(67)

Operating profit/(loss)



167



(54)





113



156



(14)





142

Finance expense



(126)







(126)



(129)



(86)





(215)

Profit/(loss) before tax



41



(54)





(13)



27



(100)





(73)

Income tax (charge)/credit



(14)



12





(2)



(11)



20





9

Profit/(loss) for the period



27



(42)





(15)



16



(80)





(64)































Loss attributable to:





























Equity holders













(15)













(64)

Non‑controlling interests

























Loss for the period













(15)













(64)































Loss per share:





























Basic loss for the period attributable to equity holders













($0.06)













($0.31)





(i)

The consolidated interim income statement for the three months ended March 31, 2017 has been re-presented to reflect the Group's change in presentation currency from euro to U.S. dollar on January 1, 2018.

 

Consolidated Interim Statement of Financial Position











Unaudited



March 31, 2018



December 31, 2017



$m



$m







Re-presented (ii)

Non-current assets







Intangible assets

4,104



4,104

Property, plant and equipment

3,499



3,368

Derivative financial instruments

6



7

Deferred tax assets

212



222

Other non-current assets

25



25



7,846



7,726

Current assets







Inventories

1,335



1,208

Trade and other receivables

1,448



1,269

Contract asset

214



168

Derivative financial instruments



16

Cash and cash equivalents

493



784



3,490



3,445

TOTAL ASSETS

11,336



11,171

Equity attributable to owners of the parent







Issued capital

23



23

Share premium

1,292



1,290

Capital contribution

485



485

Other reserves

(118)



(19)

Retained earnings

(3,136)



(3,139)



(1,454)



(1,360)

Non-controlling interests

1



1

TOTAL EQUITY

(1,453)



(1,359)

Non-current liabilities







Borrowings

8,407



8,306

Employee benefit obligations

955



997

Derivative financial instruments

381



301

Deferred tax liabilities

576



587

Related party borrowings



Provisions

41



44



10,360



10,235

Current liabilities







Borrowings

5



2

Interest payable

115



71

Derivative financial instruments

48



2

Trade and other payables

2,041



1,988

Income tax payable

110



162

Provisions

110



70



2,429



2,295

TOTAL LIABILITIES

12,789



12,530

TOTAL EQUITY and LIABILITIES

11,336



11,171





(ii)

The consolidated statement of financial position at December 31, 2017 has been re-presented to reflect the Group's change in presentation currency from euro to U.S. dollar, the impact of the adoption of IFRS 15 "Revenue with contracts from customers" and the impact of the adoption of IFRS 9 "Financial Instruments".

 

Consolidated Interim Statement of Cash Flows















Unaudited





Three months ended





March 31





2018



2017





$m



$m









Re-presented (iii)

Cash flows from operating activities









Cash (used in)/generated from operations



(6)



114

Interest paid



(68)



(81)

Income tax paid



(25)



(14)

Net cash (used in)/from operating activities



(99)



19











Cash flows from investing activities









Purchase of property, plant and equipment



(163)



(113)

Purchase of software and other intangibles



(5)



(3)

Proceeds from disposal of property, plant and equipment



2



Net cash used in investing activities



(166)



(116)











Cash flows from financing activities









Dividends paid



(33)



(67)

Finance lease payments



(1)



Repayment of borrowings



(1)



(2,996)

Deferred debt issue costs paid



(1)



(18)

Proceeds from borrowings





3,241

Proceeds from share issuance





333

Early redemption premium paid





(57)

Net cash (outflow)/inflow from financing activities



(36)



436











Net (decrease)/increase in cash and cash equivalents



(301)



339

Cash and cash equivalents at the beginning of the period



784



813

Exchange gains on cash and cash equivalents



10



5

Cash and cash equivalents at the end of the period



493



1,157





(iii)

The consolidated interim statement of cashflows for the three months ended March 31, 2017 has been re-presented to reflect the Group's change in presentation currency from euro to U.S. dollar on January 1, 2018.

 

Financial assets and liabilities

At March 31, 2018, the Group's net debt and available liquidity was as follows:







































Maximum



Final

























amount



maturity



Facility











Undrawn

Facility



Currency



drawable



date



type



Amount drawn



amount









Local











Local



$m



$m









currency











currency

















m











m









2.750% Senior Secured Notes



EUR



750



15-Mar-24



Bullet



750



924



4.625% Senior Secured Notes



USD



1,000



15-May-23



Bullet



1,000



1,000



4.125% Senior Secured Notes



EUR



440



15-May-23



Bullet



440



542



4.250% Senior Secured Notes



USD



715



15-Sep-22



Bullet



715



715



4.750% Senior Notes



GBP 



400



15-Jul-27



Bullet



400



563



6.000% Senior Notes



USD



1,700



15-Feb-25



Bullet



1,700



1,681



7.250% Senior Notes



USD



1,650



15-May-24



Bullet



1,650



1,650



6.750% Senior Notes



EUR



750



15-May-24



Bullet



750



924



6.000% Senior Notes



USD



440



30-Jun-21



Bullet



440



440



Global Asset Based Loan Facility



USD



813



07-Dec-22



Revolving







813

Finance Lease Obligations



USD/GBP/EUR











Amortizing



39



39



Other borrowings/credit lines



EUR



4



Rolling



Amortizing



3



3



1

Total borrowings / undrawn facilities























8,481



814

Deferred debt issue costs and bond premium























(69)



Net borrowings / undrawn facilities























8,412



814

Cash and cash equivalents























(493)



493

Derivative financial instruments used to

hedge foreign currency and interest rate risk























409



Net debt / available liquidity























8,328



1,307



Reconciliation of loss for the period to Adjusted profit























































Three months ended March 31

























2018



2017

























$m



$m

Loss for the period























(15)



(64)

Total exceptional items 6























54



100

Tax credit associated with exceptional items























(12)



(20)

Intangible amortization























67



67

Tax credit associated with intangible amortization























(15)



(19)

Adjusted profit for the period























79



64































Weighted average ordinary shares























236.3



208.7































Loss per share ($)























(0.06)



(0.31)































Adjusted earnings per share ($)























0.33



0.31



Reconciliation of loss for the period to Adjusted EBITDA, cash generated from operations, operating cash flow and Adjusted free cash flow























































Three months ended March 31

























2018



2017

























$m



$m

Loss for the period























(15)



(64)

Income tax charge/(credit)























2



(9)

Net finance expense























126



215

Depreciation and amortization























181



162

Exceptional operating items























54



14

Adjusted EBITDA























348



318

Movement in working capital























(326)



(192)

Acquisition-related, IPO, start-up and other exceptional costs paid























(23)



(9)

Exceptional restructuring paid























(5)



(3)

Cash (used in)/generated from operations























(6)



114

Acquisition-related, IPO, start-up and other exceptional costs paid























23



9

Capital expenditure























(166)



(116)

Operating cash flow























(149)



7

Interest























(68)



(81)

Income tax























(25)



(14)

Adjusted free cash flow























(242)



(88)

 

1

A reconciliation to the most comparable GAAP measures can be found at the back of this release.

2

Payable on May 31, 2018 to shareholders of record on May 17, 2018.

3

A reconciliation to the most comparable GAAP measures can be found at the back of this release.

4

Net debt is comprised of net borrowings and derivative financial instruments used to hedge foreign currency and interest rate risk, net of cash and cash equivalents.

5

Revenue and Adjusted EBITDA includes the impact of the adoption of IFRS 15 from January 1, 2018, of $42 million and $10 million respectively.

6

Total exceptional items for the three months ended March 31, 2018 of $54 million include $34 million restructuring charges in Glass Packaging North America and Metal Packaging Europe, $9 million start-up costs in Glass Packaging North America and Metal Packaging Americas and $5 million asset impairment charges in Metal Packaging Americas. Exceptional items also include $6 million costs directly attributable to the integration of the Beverage Can Business and other transaction related costs.





 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/ardagh-group-sa--first-quarter-2018-results-300637139.html

SOURCE Ardagh Group S.A.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EarningsPress ReleasesConference Call Announcements
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!