LUXEMBOURG, Oct. 31, 2019 /PRNewswire/ -- Ardagh Group
S.A. (NYSE: ARD) today announced its results for the third quarter
ended September 30, 2019.
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September 30,
2019
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September 30,
2018
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Change
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Change
CCY
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($m except per
share data)
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Revenue - Group
1
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2,377
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2,390
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(1%)
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2%
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Adjusted EBITDA -
Group 1
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424
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400
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6%
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9%
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Adjusted EBITDA -
continuing operations 1
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320
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|
302
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6%
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9%
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Adjusted EBITDA
margin - Group 1
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17.8%
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16.7%
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110 bps
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(Loss)/earnings per
share
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(0.12)
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0.03
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Adjusted earnings per
share - Group 1
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0.60
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0.52
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15%
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20%
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(Loss)/profit for the
period
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(29)
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7
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Adjusted free cash
flow 1
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244
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211
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Dividend per share
declared 2
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0.14
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0.14
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Paul Coulson, Chairman and Chief
Executive, said "The Group reported a strong performance in the
third quarter, with notable growth in Glass Europe and Metal
Americas. We took advantage of favorable markets during the quarter
to further improve our debt maturity profile and obtain material
interest savings. We completed the Trivium transaction today,
with cash proceeds of $2.5 billion to
be used for debt reduction".
- Revenue of $2,377 million
increased by 2% on a constant currency basis;
- Adjusted EBITDA of $424 million
increased by 9% at constant exchange rates, led by gains in Glass
Packaging Europe and Metal Beverage Packaging Americas;
- Adjusted earnings per share up 15% to $0.60 (2018: $0.52);
- Group volume/mix growth of 2% led by Global beverage can
volume3 growth of 7%;
- Refinanced $1,650 million 2024
Senior Notes, yielding $45 million
annualized interest savings;
- Metal Food & Specialty business is treated as a
Discontinued Operation, following the announced combination with
Exal Corporation to form Trivium Packaging. Completion of the
transaction took place today, with Ardagh receiving an approximate
43% stake in Trivium Packaging and cash consideration of
$2.5 billion;
- 2019 full year outlook:
-
- Adjusted EBITDA of $1.16 -
$1.18 billion, pro forma for the
divestment of Food & Specialty (the equivalent previous
guidance was at least $1.15
billion);
- Adjusted earnings per share of $1.65 - $1.75,
including Food & Specialty until divestment on October 31;
- Net leverage of approximately 4.5x Adjusted EBITDA at
December 31, 2019, pro forma for the
divestment of Food & Specialty.
Summary Financial Information
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Three months
ended
September 30,
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Nine months
ended
September 30,
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|
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2019
|
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2018
|
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2019
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2018
|
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(in $ millions,
except EPS, ratios and percentages)
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Revenue - Group
4
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2,377
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2,390
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6,865
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6,961
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(Loss)/profit for the
period
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(29)
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7
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|
53
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50
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Adjusted profit for
the period 4
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142
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123
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339
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322
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Adjusted EBITDA -
Group 4
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424
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|
400
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1,182
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|
1,140
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Adjusted EBITDA -
continuing operations 4
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|
320
|
|
302
|
|
906
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|
860
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Adjusted EBITDA
margin - Group 4
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17.8%
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16.7%
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17.2%
|
|
16.4%
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|
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|
|
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(Loss)/earnings per
share
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(0.12)
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0.03
|
|
0.22
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|
0.21
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Adjusted earnings per
share - Group 4
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0.60
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0.52
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|
1.43
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1.36
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Operating cash flow -
Group 4
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379
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301
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364
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355
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Operating cash flow -
continuing operations 4
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255
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241
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288
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|
257
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Adjusted free cash
flow - Group 4
|
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244
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|
211
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(18)
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11
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At September
30,
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At December
31,
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2019
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2018
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$m
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$m
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Net debt
5
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7,866
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7,462
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Cash and available
liquidity
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1,129
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1,170
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Net debt to LTM
EBITDA
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5.2x
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5.0x
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Financial
Performance Review
Bridge of 2018 to
2019 Revenue and Adjusted EBITDA
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Three months ended
September 30, 2019
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Revenue
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Metal
Beverage
Packaging
Europe
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Metal
Beverage
Packaging
Americas
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|
Glass
Packaging
Europe
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|
Glass
Packaging
North
America
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|
|
|
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$'m
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|
$'m
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$'m
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$'m
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$'m
|
2018 - Continuing
Operations
|
|
415
|
|
440
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|
420
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|
433
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1,708
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Organic
|
|
15
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|
24
|
|
14
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|
5
|
|
58
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FX
translation
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(18)
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—
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(20)
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—
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(38)
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2019 - Continuing
Operations
|
|
412
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|
464
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414
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438
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1,728
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2019 - Discontinued
Operation
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649
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2019 -
Group
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2,377
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Adjusted
EBITDA
|
|
Metal
Beverage
Packaging
Europe
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|
Metal
Beverage
Packaging
Americas
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|
Glass
Packaging
Europe
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|
Glass
Packaging
North
America
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|
|
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$'m
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|
$'m
|
|
$'m
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|
$'m
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|
$'m
|
2018 - Continuing
Operations
|
|
75
|
|
57
|
|
103
|
|
67
|
|
302
|
Organic
|
|
(7)
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8
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|
5
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|
1
|
|
7
|
IFRS 16
|
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3
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|
2
|
|
6
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|
9
|
|
20
|
FX
translation
|
|
(3)
|
|
—
|
|
(6)
|
|
—
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|
(9)
|
2019 - Continuing
Operations
|
|
68
|
|
67
|
|
108
|
|
77
|
|
320
|
2019 - Discontinued
Operation
|
|
|
|
|
|
|
|
|
|
104
|
2019 -
Group
|
|
|
|
|
|
|
|
|
|
424
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|
|
|
|
|
|
|
|
|
|
|
2019 margin -
Continuing Operations
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16.5%
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|
14.4%
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|
26.1%
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17.6%
|
|
18.5%
|
2018 margin -
Continuing Operations
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|
18.1%
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|
13.0%
|
|
24.5%
|
|
15.5%
|
|
17.7%
|
2019 margin -
Group
|
|
|
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|
|
|
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17.8%
|
2018 margin -
Group
|
|
|
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|
|
|
|
|
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16.7%
|
|
Nine months ended
September 30, 2019
|
Revenue
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|
Metal
Beverage
Packaging
Europe
|
|
Metal
Beverage
Packaging
Americas
|
|
Glass
Packaging
Europe
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|
Glass
Packaging
North
America
|
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|
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$'m
|
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$'m
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|
$'m
|
|
$'m
|
|
$'m
|
2018 - Continuing
Operations
|
|
1,237
|
|
1,310
|
|
1,236
|
|
1,304
|
|
5,087
|
Organic
|
|
51
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|
49
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|
56
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|
(17)
|
|
139
|
FX
translation
|
|
(73)
|
|
—
|
|
(74)
|
|
—
|
|
(147)
|
2019 - Continuing
Operations
|
|
1,215
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|
1,359
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|
1,218
|
|
1,287
|
|
5,079
|
2019 - Discontinued
Operation
|
|
|
|
|
|
|
|
|
|
1,786
|
2019 -
Group
|
|
|
|
|
|
|
|
|
|
6,865
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
Metal
Beverage
Packaging
Europe
|
|
Metal
Beverage
Packaging
Americas
|
|
Glass
Packaging
Europe
|
|
Glass
Packaging
North
America
|
|
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
2018 - Continuing
Operations
|
|
217
|
|
161
|
|
274
|
|
208
|
|
860
|
Organic
|
|
(7)
|
|
17
|
|
19
|
|
(12)
|
|
17
|
IFRS 16
|
|
11
|
|
6
|
|
16
|
|
25
|
|
58
|
FX
translation
|
|
(12)
|
|
—
|
|
(17)
|
|
—
|
|
(29)
|
2019 - Continuing
Operations
|
|
209
|
|
184
|
|
292
|
|
221
|
|
906
|
2019 - Discontinued
Operation
|
|
|
|
|
|
|
|
|
|
276
|
2019 -
Group
|
|
|
|
|
|
|
|
|
|
1,182
|
|
|
|
|
|
|
|
|
|
|
|
2019 margin -
Continuing Operations
|
|
17.2%
|
|
13.5%
|
|
24.0%
|
|
17.2%
|
|
17.8%
|
2018 margin -
Continuing Operations
|
|
17.5%
|
|
12.3%
|
|
22.2%
|
|
16.0%
|
|
16.9%
|
2019 margin -
Group
|
|
|
|
|
|
|
|
|
|
17.2%
|
2018 margin -
Group
|
|
|
|
|
|
|
|
|
|
16.4%
|
Group Performance
On July 15, 2019, the Ardagh Group
announced that it had entered into an agreement to combine Food
& Specialty, operating as part of the previously reported Metal
Packaging Europe and Metal Packaging Americas segments, with the
business of Exal, a leading producer of aluminum containers, to
form Trivium, a global leader in metal packaging.
Completion of the transaction took place today, with
Ardagh receiving a stake of approximately 43% in Trivium and
$2.5 billion in cash proceeds. The
remaining approximately 57% will be controlled by Ontario
Teachers.
Following the announcement, the composition of the Group's
operating and reporting segments changed. Food and Specialty has
been classified as discontinued, following which the Group's four
operating and reportable segments are:
- Metal Beverage Packaging Europe
- Metal Beverage Packaging Americas
- Glass Packaging Europe
- Glass Packaging North America.
Group
Revenue of $2,377 million
decreased by 1% in the three-month period ended September 30, 2019, compared with the same period
last year. On a constant currency basis, revenue increased by 2%,
mainly due to increased volumes in Metal Beverage Packaging Europe
and Metal Beverage Packaging Americas and the pass through of
increased input costs.
Third quarter Adjusted EBITDA of $424
million increased by 6% at actual exchange rates, compared
with the same period last year. On a constant currency basis,
Adjusted EBITDA increased by 9%, principally due to increased
selling prices, including for the pass through of higher input
costs, the impact of IFRS 16 of $25
million, and favorable volume/mix effects, partly offset by
higher operating costs.
Metal Beverage Packaging Europe
Revenue of $412 million decreased
by 1% in the three-month period ended September 30, 2019, compared with the same period
last year. On a constant currency basis, revenue increased by 4%,
principally due to volume/mix growth, partly offset by lower
selling prices. Adjusted EBITDA for the quarter of
$68 million decreased by 9% at actual
exchange rates and 6% at constant currency rates, compared with the
same period last year. The reduction in Adjusted EBITDA principally
reflected higher input and other operating costs and lower selling
prices due to the pass through of lower input costs, partly offset
by favorable volume/mix effects and the impact of IFRS 16 of
$3 million.
Metal Beverage Packaging Americas
Revenue increased by 5% to $465 million in the third
quarter of 2019, compared with the same period last year. This was
principally due to favorable volume/mix effects of 11%, partly
offset by the pass through of lower input costs. Adjusted EBITDA of
$67 million increased by 18% compared
with the prior year, principally reflecting favorable volume/mix
effects and the impact of IFRS 16, partly offset by higher
operating costs.
Glass Packaging Europe
Revenue of $414 million decreased
by 1% at actual exchange rates and increased by 4% at constant
exchange rates, in the three-month period ended September 30, 2019, compared with the same period
last year. Revenue growth principally reflected higher selling
prices, including to recover increased input costs, partly offset
by unfavorable, weather impacted volume/mix effects. Adjusted
EBITDA for the quarter of $108 million increased by 10% at
constant exchange rates, compared with the same period last year,
mainly due to higher selling prices, the impact of IFRS 16 and the
benefit of short payback capex projects.
Glass Packaging North America
Revenue increased by 1% to $438 million in the third
quarter, compared with the same period last year, principally
reflecting increased selling prices to recover higher input costs,
partly offset by unfavorable volume/mix effects. Adjusted EBITDA
for the quarter of $77 million increased by 15%, compared with
the same period last year, mainly due to higher selling prices,
including to recover increased costs and the impact of IFRS 16,
partly offset by increased overhead costs and unfavorable
volume/mix effects.
Discontinued Operation
Revenue decreased by 5% to $649
million in the three months ended September 30, 2019, compared with the same period
last year principally reflecting unfavorable foreign currency
translation effects of $22 million
and lower volumes in both business units. Adjusted EBITDA increased
by 6% to $104 million, inclusive of
the impact of IFRS 16 of $4 million,
reflecting cost reduction initiatives in response to lower
volumes.
Financing Activity
On August 12, 2019, the Group
issued $1,793 million through a
combination of Senior Secured Notes and Senior Notes. The net
proceeds from the issuance of these notes were used to repay the
$1,650 million 7.250% Senior Notes
due 2024. These notes were repaid on August
13, 2019. The blended cost of the new debt, after swaps is
approximately 3.5% per annum, leading to significant interest cost
savings.
Combination of Food & Specialty with Exal
Following completion of the transaction, and in accordance with the
July 15, 2019 announcement, Ardagh
has today:
- Issued Conditional Redemption Notices in respect of its
€440,000,000 4.125% Senior Secured Notes due 2023 and its
$1,000,000,000 4.625% Senior Secured
Notes due 2023.
- Issued tender offers, at par, in respect of its $715,000,000 4.250% Senior Secured Notes due
2022, €750,000,000 2.750% Senior Secured Notes due 2024,
€440,000,000 2.125% Senior Secured Notes due 2026 and $500,000,000 4.125% Senior Secured Notes due 2026
(the "Excess Proceeds Offer"). The Excess Proceeds Offer is
expected to expire at 4:00 p.m.
(London Time) on November 28, 2019.
The announcement date is expected to be November 29, 2019 and the payment date is
expected to be December 2, 2019.
- Issued a Conditional Redemption Notice in respect of its
€750,000,000 6.750% Senior Notes due 2024.
Earnings Webcast and Conference Call Details
Ardagh Group S.A. (NYSE: ARD) will hold its third quarter 2019
earnings webcast and conference call for investors at 3 p.m. GMT (11 a.m.
ET) on October 31, 2019.
Please use the following webcast link to register for this
call:
Webcast registration and access:
https://event.on24.com/wcc/r/2100767-1/E67A2D3FAF3DCE62ED0CBFE81A494F2F?partnerref=rss-events
Conference call dial in:
United States: +1855 85
70686
International: +44 33 3300 0804
Participant pin code: 85935762#
Slides and quarterly report
Supplemental slides to accompany this release are available at
http://www.ardaghgroup.com/investors.
Third 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 Group is a global supplier of infinitely recyclable,
metal and glass packaging for the world's leading brands. Ardagh
operates more than 50 metal and glass production facilities in 12
countries across three continents, employing over 16,000 people
with sales of $7bn.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the U.S. Securities Act and
Section 21E of the U.S. 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, operating cash
flow, Adjusted free cash flow, 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 for the three months ended September 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
Three months ended
September 30, 2019
|
|
Three months ended
September 30, 2018
|
|
|
Before
|
|
|
|
|
|
|
Before
|
|
|
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
|
items
|
|
Items
|
|
Total
|
|
items
|
|
Items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
1,728
|
|
—
|
|
|
1,728
|
|
1,708
|
|
—
|
|
|
1,708
|
Cost of
sales
|
|
(1,430)
|
|
(5)
|
|
|
(1,435)
|
|
(1,426)
|
|
(46)
|
|
|
(1,472)
|
Gross
profit
|
|
298
|
|
(5)
|
|
|
293
|
|
282
|
|
(46)
|
|
|
236
|
Sales, general and
administration expenses
|
|
(80)
|
|
(28)
|
|
|
(108)
|
|
(69)
|
|
—
|
|
|
(69)
|
Intangible
amortization
|
|
(59)
|
|
—
|
|
|
(59)
|
|
(59)
|
|
—
|
|
|
(59)
|
Operating
profit
|
|
159
|
|
(33)
|
|
|
126
|
|
154
|
|
(46)
|
|
|
108
|
Net finance
expense
|
|
(115)
|
|
(112)
|
|
|
(227)
|
|
(126)
|
|
(20)
|
|
|
(146)
|
Profit/(loss)
before tax
|
|
44
|
|
(145)
|
|
|
(101)
|
|
28
|
|
(66)
|
|
|
(38)
|
Income tax
(charge)/credit
|
|
(13)
|
|
17
|
|
|
4
|
|
(11)
|
|
10
|
|
|
(1)
|
Profit/(loss) from
continuing operations
|
|
31
|
|
(128)
|
|
|
(97)
|
|
17
|
|
(56)
|
|
|
(39)
|
Profit from
discontinued operation, net of tax
|
|
70
|
|
(2)
|
|
|
68
|
|
47
|
|
(1)
|
|
|
46
|
Profit/(loss) for
the period
|
|
101
|
|
(130)
|
|
|
(29)
|
|
64
|
|
(57)
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
holders
|
|
|
|
|
|
|
(29)
|
|
|
|
|
|
|
7
|
Non-controlling
interests
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
(Loss)/profit for
the period
|
|
|
|
|
|
|
(29)
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted (loss)/earnings per share attributable to
equity
holders
|
|
|
|
|
|
|
($0.12)
|
|
|
|
|
|
|
$0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share from continuing operations
attributable to equity holders
|
|
|
|
|
|
|
($0.41)
|
|
|
|
|
|
|
($0.17)
|
Consolidated
Interim Income Statement for the nine months ended September 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
Nine months ended
September 30, 2019
|
|
Nine months ended
September 30, 2018
|
|
|
Before
|
|
|
|
|
|
|
Before
|
|
|
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
|
items
|
|
Items
|
|
Total
|
|
items
|
|
Items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
5,079
|
|
—
|
|
|
5,079
|
|
5,087
|
|
—
|
|
|
5,087
|
Cost of
sales
|
|
(4,248)
|
|
2
|
|
|
(4,246)
|
|
(4,280)
|
|
(99)
|
|
|
(4,379)
|
Gross
profit
|
|
831
|
|
2
|
|
|
833
|
|
807
|
|
(99)
|
|
|
708
|
Sales, general and
administration expenses
|
|
(234)
|
|
(42)
|
|
|
(276)
|
|
(218)
|
|
(11)
|
|
|
(229)
|
Intangible
amortization
|
|
(176)
|
|
—
|
|
|
(176)
|
|
(179)
|
|
—
|
|
|
(179)
|
Operating
profit
|
|
421
|
|
(40)
|
|
|
381
|
|
410
|
|
(110)
|
|
|
300
|
Net finance
expense
|
|
(355)
|
|
(112)
|
|
|
(467)
|
|
(351)
|
|
(20)
|
|
|
(371)
|
Profit/(loss)
before tax
|
|
66
|
|
(152)
|
|
|
(86)
|
|
59
|
|
(130)
|
|
|
(71)
|
Income tax
(charge)/credit
|
|
(23)
|
|
28
|
|
|
5
|
|
(26)
|
|
22
|
|
|
(4)
|
Profit/(loss) from
continuing operations
|
|
43
|
|
(124)
|
|
|
(81)
|
|
33
|
|
(108)
|
|
|
(75)
|
Profit from
discontinued operation, net of tax
|
|
144
|
|
(10)
|
|
|
134
|
|
134
|
|
(9)
|
|
|
125
|
Profit for the
period
|
|
187
|
|
(134)
|
|
|
53
|
|
167
|
|
(117)
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
holders
|
|
|
|
|
|
|
53
|
|
|
|
|
|
|
50
|
Non-controlling
interests
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
Profit for the
period
|
|
|
|
|
|
|
53
|
|
|
|
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings per share attributable to equity
holders
|
|
|
|
|
|
|
$0.22
|
|
|
|
|
|
|
$0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share from continuing operations
attributable to equity holders
|
|
|
|
|
|
|
($0.34)
|
|
|
|
|
|
|
($0.32)
|
Consolidated
Interim Statement of Financial Position
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
At September
30,
|
|
At December
31,
|
|
2019
|
|
2018
|
|
$'m
|
|
$'m
|
|
|
|
|
Non-current
assets
|
|
|
|
Intangible
assets
|
2,894
|
|
3,601
|
Property, plant and
equipment
|
2,546
|
|
3,388
|
Derivative financial
instruments
|
30
|
|
11
|
Deferred tax
assets
|
235
|
|
254
|
Other non-current
assets
|
66
|
|
24
|
|
5,771
|
|
7,278
|
Current
assets
|
|
|
|
Inventories
|
889
|
|
1,284
|
Trade and other
receivables
|
867
|
|
1,053
|
Contract
asset
|
149
|
|
160
|
Derivative financial
instruments
|
3
|
|
9
|
Cash and cash
equivalents
|
537
|
|
530
|
|
2,445
|
|
3,036
|
Assets held for
sale
|
2,450
|
|
—
|
TOTAL
ASSETS
|
10,666
|
|
10,314
|
Equity
attributable to owners of the parent
|
|
|
|
Issued
capital
|
23
|
|
23
|
Share
premium
|
1,292
|
|
1,292
|
Capital
contribution
|
485
|
|
485
|
Other
reserves
|
134
|
|
45
|
Retained
earnings
|
(3,572)
|
|
(3,355)
|
|
(1,638)
|
|
(1,510)
|
Non-controlling
interests
|
1
|
|
1
|
TOTAL
EQUITY
|
(1,637)
|
|
(1,509)
|
Non-current
liabilities
|
|
|
|
Borrowings
|
7,763
|
|
7,729
|
Lease
obligations
|
273
|
|
32
|
Employee benefit
obligations
|
724
|
|
957
|
Derivative financial
instruments
|
13
|
|
107
|
Deferred tax
liabilities
|
377
|
|
543
|
Provisions
|
29
|
|
38
|
|
9,179
|
|
9,406
|
Current
liabilities
|
|
|
|
Borrowings
|
236
|
|
114
|
Lease
obligations
|
60
|
|
4
|
Interest
payable
|
72
|
|
81
|
Derivative financial
instruments
|
22
|
|
38
|
Trade and other
payables
|
1,431
|
|
1,983
|
Income tax
payable
|
102
|
|
114
|
Provisions
|
50
|
|
83
|
|
1,973
|
|
2,417
|
Liabilities held for
sale
|
1,151
|
|
—
|
TOTAL
LIABILITIES
|
12,303
|
|
11,823
|
TOTAL EQUITY and
LIABILITIES
|
10,666
|
|
10,314
|
Consolidated
Interim Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Cash generated from
continuing operations
|
|
386
|
|
306
|
|
717
|
|
549
|
Interest paid
(i)
|
|
(120)
|
|
(74)
|
|
(328)
|
|
(280)
|
Income tax paid
(i)
|
|
(5)
|
|
(14)
|
|
(38)
|
|
(61)
|
Net cash from
operating activities - continuing operations
|
|
261
|
|
218
|
|
351
|
|
208
|
Net cash from
operating activities - discontinued operation
|
|
139
|
|
75
|
|
159
|
|
163
|
Net cash from
operating activities
|
|
400
|
|
293
|
|
510
|
|
371
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(123)
|
|
(91)
|
|
(397)
|
|
(357)
|
Purchase of software
and other intangibles
|
|
(2)
|
|
(4)
|
|
(8)
|
|
(10)
|
Proceeds from
disposal of property, plant and equipment
|
|
1
|
|
1
|
|
1
|
|
5
|
Investing cash
flows used in continuing operations
|
|
(124)
|
|
(94)
|
|
(404)
|
|
(362)
|
Investing cash flows
used in discontinued operation
|
|
(28)
|
|
(21)
|
|
(96)
|
|
(70)
|
Net cash used
in investing activities
|
|
(152)
|
|
(115)
|
|
(500)
|
|
(432)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Repayment of
borrowings
|
|
(1,652)
|
|
(440)
|
|
(1,652)
|
|
(441)
|
Proceeds from
borrowings
|
|
1,706
|
|
295
|
|
1,923
|
|
295
|
Dividends
paid
|
|
(33)
|
|
(33)
|
|
(99)
|
|
(99)
|
Consideration
received/(paid) on extinguishment of derivative financial
instruments
|
|
23
|
|
(44)
|
|
9
|
|
(44)
|
Deferred debt issue
costs paid
|
|
(12)
|
|
—
|
|
(12)
|
|
(5)
|
Lease
payments
|
|
(19)
|
|
(1)
|
|
(55)
|
|
(3)
|
Early redemption
premium paid
|
|
(90)
|
|
(7)
|
|
(90)
|
|
(7)
|
Financing cash
flows from continuing operations
|
|
(77)
|
|
(230)
|
|
24
|
|
(304)
|
Financing cash flows
from discontinued operation
|
|
15
|
|
—
|
|
—
|
|
(1)
|
Net cash
(outflow)/inflow from financing activities
|
|
(62)
|
|
(230)
|
|
24
|
|
(305)
|
|
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
|
186
|
|
(52)
|
|
34
|
|
(366)
|
Cash and cash
equivalents at the beginning of the period
|
|
374
|
|
465
|
|
530
|
|
784
|
Foreign exchange
losses on cash and cash equivalents
|
|
(20)
|
|
(4)
|
|
(24)
|
|
(9)
|
Cash and cash
equivalents at the end of the period(ii)
|
|
540
|
|
409
|
|
540
|
|
409
|
(i) Operating cash
flows for discontinued operation for the nine months ended
September 30, 2019, include interest and income tax payments of $5
million and $16 million respectively (2018: $1 million and $4
million).
|
(ii) Included within
cash and cash equivalents of $540 million is $537 million of cash
relating to continuing operations and $3 million of cash within
assets held for sale.
|
Financial assets
and liabilities
At September 30,
2019, 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
|
|
817
|
|
–
|
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
|
|
479
|
|
–
|
4.250% Senior Secured
Notes
|
|
USD
|
|
715
|
|
15-Sep-22
|
|
Bullet
|
|
715
|
|
715
|
|
–
|
2.125% Senior Secured
Notes
|
|
EUR
|
|
440
|
|
15-Aug-26
|
|
Bullet
|
|
440
|
|
479
|
|
–
|
4.125% Senior Secured
Notes
|
|
USD
|
|
500
|
|
15-Aug-26
|
|
Bullet
|
|
500
|
|
500
|
|
–
|
4.750% Senior
Notes
|
|
GBP
|
|
400
|
|
15-Jul-27
|
|
Bullet
|
|
400
|
|
492
|
|
–
|
6.000% Senior
Notes
|
|
USD
|
|
1,700
|
|
15-Feb-25
|
|
Bullet
|
|
1,700
|
|
1,711
|
|
–
|
6.750% Senior
Notes
|
|
EUR
|
|
750
|
|
15-May-24
|
|
Bullet
|
|
750
|
|
817
|
|
–
|
5.250% Senior
Notes
|
|
USD
|
|
800
|
|
15-Aug-27
|
|
Bullet
|
|
800
|
|
800
|
|
–
|
Global Asset Based
Loan Facility
|
|
USD
|
|
818
|
|
07-Dec-22
|
|
Revolving
|
|
230
|
|
230
|
|
588
|
Lease
Obligations
|
|
USD/GBP/EUR
|
|
|
|
|
|
Amortizing
|
|
|
|
333
|
|
–
|
Other
borrowings/credit lines
|
|
EUR/USD
|
|
|
|
Rolling
|
|
Amortizing
|
|
|
|
7
|
|
1
|
Total borrowings /
undrawn facilities for continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
8,380
|
|
589
|
Deferred debt issue
costs and bond premium
|
|
|
|
|
|
|
|
|
|
|
|
(48)
|
|
–
|
Net borrowings /
undrawn facilities for continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
8,332
|
|
589
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
|
(537)
|
|
537
|
Derivative financial
instruments used to hedge foreign
currency and interest rate risk
|
|
|
|
|
|
|
|
|
|
|
|
(21)
|
|
–
|
Net debt /
available liquidity for continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
7,774
|
|
1,126
|
Net debt / available
liquidity for discontinued operation
|
|
|
|
|
|
|
|
|
|
|
|
92
|
|
3
|
Net debt /
available liquidity
|
|
|
|
|
|
|
|
|
|
|
|
7,866
|
|
1,129
|
Reconciliation of
profit for the period to Adjusted profit - Group
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
(Loss)/profit for
the period - Group
|
|
(29)
|
|
7
|
|
53
|
|
50
|
Total exceptional
items 6
|
|
149
|
|
67
|
|
166
|
|
142
|
Tax credit associated
with exceptional items
|
|
(20)
|
|
(10)
|
|
(33)
|
|
(25)
|
Intangible
amortization
|
|
61
|
|
66
|
|
192
|
|
200
|
Tax credit associated
with intangible amortization
|
|
(16)
|
|
(15)
|
|
(43)
|
|
(45)
|
(Gains)/loss on
derivative financial instruments
|
|
(3)
|
|
8
|
|
4
|
|
—
|
Adjusted profit
for the period - Group
|
|
142
|
|
123
|
|
339
|
|
322
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
236.36
|
|
236.35
|
|
236.36
|
|
236.35
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings
per share
|
|
(0.12)
|
|
0.03
|
|
0.22
|
|
0.21
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share - Group
|
|
0.60
|
|
0.52
|
|
1.43
|
|
1.36
|
Reconciliation of
profit for the period to Adjusted EBITDA, cash generated from
operations, operating cash flow and Adjusted free cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
(Loss)/profit for
the period - Group
|
|
(29)
|
|
7
|
|
53
|
|
50
|
Profit from
discontinued operation
|
|
68
|
|
46
|
|
134
|
|
125
|
Loss from
continuing operations
|
|
(97)
|
|
(39)
|
|
(81)
|
|
(75)
|
Income tax
(credit)/charge
|
|
(4)
|
|
1
|
|
(5)
|
|
4
|
Net finance
expense
|
|
227
|
|
146
|
|
467
|
|
371
|
Depreciation and
amortization
|
|
161
|
|
148
|
|
485
|
|
450
|
Exceptional operating
items
|
|
33
|
|
46
|
|
40
|
|
110
|
Adjusted EBITDA
from continuing operations
|
|
320
|
|
302
|
|
906
|
|
860
|
Movement in working
capital
|
|
78
|
|
38
|
|
(152)
|
|
(221)
|
Transaction-related,
start-up and other exceptional costs paid
|
|
(11)
|
|
(29)
|
|
(28)
|
|
(70)
|
Exceptional
restructuring paid
|
|
(1)
|
|
(5)
|
|
(9)
|
|
(20)
|
Cash generated
from continuing operations
|
|
386
|
|
306
|
|
717
|
|
549
|
Transaction-related,
start-up and other exceptional costs paid
|
|
11
|
|
29
|
|
28
|
|
70
|
Capital expenditure
7
|
|
(124)
|
|
(94)
|
|
(404)
|
|
(362)
|
Lease payments due to
the adoption of IFRS 16
|
|
(18)
|
|
—
|
|
(53)
|
|
—
|
Operating cash
flow from continuing operations
|
|
255
|
|
241
|
|
288
|
|
257
|
Operating cash flow
from discontinued operation
|
|
124
|
|
60
|
|
76
|
|
98
|
Operating cashflow
- Group
|
|
379
|
|
301
|
|
364
|
|
355
|
Interest
8
|
|
(118)
|
|
(72)
|
|
(329)
|
|
(279)
|
Income tax
paid
|
|
(17)
|
|
(18)
|
|
(53)
|
|
(65)
|
Adjusted free cash
flow - Group
|
|
244
|
|
211
|
|
(18)
|
|
11
|
1. A reconciliation
to the most comparable GAAP measures can be found in the Bridge of
2018 to 2019 Revenue and Adjusted EBITDA and reconciliations at the
back of this release.
|
|
2. Payable on
November 29, 2019 to shareholders of record on November 15,
2019.
|
|
3. References to data
on volumes represents units shipped in the period.
|
|
4. A reconciliation
to the most comparable GAAP measures can be found in the Bridge of
2018 to 2019 Revenue and Adjusted EBITDA and reconciliations at the
back of this release.
|
|
5. 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. Net borrowings at September 30, 2019 includes
the impact of IFRS 16 leases.
|
|
6. Total exceptional
items before tax for the three months ended September 30, 2019 of
$149 million include $112 million debt refinancing and settlement
costs related to the notes repaid in August including premium
payable on the early redemption of the notes of $90 million,
accelerated amortisation of deferred finance costs, interest
charges from the call date to date of redemption and a charge
related to the termination of derivative financial instruments.
Total exceptional items for the three months ended September 30,
2019 also include $28 million transaction-related costs, primarily
related to the combination of the Group's Food & Specialty
Metal Packaging business with the business of Exal Corporation.
Other exceptional items include $4 million related to discontinued
operation and $5 million related to the Group's capacity
realignment programs comprising property, plant and equipment
impairment charges ($1 million) and start-up related costs ($4
million). These costs were incurred in Glass Packaging North
America ($2 million) and Glass Packaging Europe ($3
million).
|
|
Total exceptional
items before tax for the nine months ended September 30, 2019 of
$166 million include $112 million debt refinancing and settlement
costs related to the notes repaid in August including premium
payable on the early redemption of the notes of $90 million,
accelerated amortisation of deferred finance costs, interest
charges from the call date to date of redemption and a charge
related to the termination of derivative financial instruments.
Total exceptional items for the nine months ended September 30,
2019 also include a $37 million pension service credit recognized
in Glass Packaging North America, $15 million related to a
provision for a court award and related interest, net of the tax
adjusted indemnity receivable in respect of the Group's U.S. glass
business legal matter and $42 million transaction-related costs,
primarily related to the combination of the Group's Food &
Specialty Metal Packaging business with the business of Exal
Corporation. Other exceptional items include $14 million related to
discontinued operation and $20 million related to the Group's
capacity realignment programs comprising restructuring costs ($7
million), property, plant and equipment impairment charges ($5
million) and start-up related costs ($8 million). These costs were
incurred in Glass Packaging North America ($12 million), Glass
Packaging Europe ($4 million), Metal Beverage Packaging Americas
($2 million) and Metal Beverage Packaging Europe ($2
million).
|
|
7. Capital
expenditure for the three and nine months ended September 30, 2019,
includes $19 million and $68 million respectively, relating to
spend on short payback projects.
|
|
8. Interest paid in
the three and nine months ended September 30, 2019, excludes $4
million in respect of the redemption, in August 2019, of the
Group's $1,650 million 7.250% Senior Notes due 2024, related to the
interest from the date the Notes were called for redemption to the
redemption date. Interest paid in the three and nine months ended
September 30, 2018, excludes $2 million in respect of the
redemption in July 2018 of the Group's $440 million 6.000% Senior
Notes due 2021, related to interest from the date the Notes were
called for redemption to the redemption date.
|
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SOURCE Ardagh Group S.A.