LUXEMBOURG, April 27, 2017 /PRNewswire/ -- Ardagh Group
S.A. (NYSE: ARD) today announced its financial results for the
quarter ended March 31, 2017.
Highlights
|
|
|
Three months
ended
(in €m except per
share and
ratio data)
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
March 31,
2016
|
|
Change
%
|
|
Change
PF1
%
|
|
Revenue
|
1,844
|
|
1,218
|
|
51%
|
|
2%
|
|
Adjusted
EBITDA2
|
299
|
|
217
|
|
38%
|
|
2%
|
|
Operating cash
flow
|
6
|
|
29
|
|
(79%)
|
|
|
|
Free cash
flow
|
(83)
|
|
(43)
|
|
(93%)
|
|
|
|
Adjusted earnings per
share (€)
|
0.29
|
|
0.19
|
|
53%
|
|
|
|
Net debt to LTM
Adjusted EBITDA3
|
5.3x
|
|
5.0x
|
|
|
|
|
|
Dividend per share
declared ($)4
|
0.14
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenue increased by 51% to €1,844 million with pro forma
growth of 2%;
- Adjusted EBITDA increased by 38% to €299 million, with pro
forma growth of 2%;
- Group Adjusted EBITDA margin of 16.2%, unchanged on a pro forma
basis;
- Loss per share €0.28 (2016: profit per share €0.07);
- Adjusted earnings per share of €0.29, up 53% on the prior
year;
- Operating cash flow of €6 million (2016: €29 million),
reflecting improvements in the underlying business, offset by
increased seasonality following the Beverage Can acquisition;
- Initial public offering ("IPO") on the New York Stock Exchange
("NYSE") completed in March
2017;
- €3.0 billion refinancing activity in the quarter yielding
further interest savings;
- $300 million of cash resources
used to repay debt
- The board of directors has declared a quarterly cash dividend
of $0.14 per common share, payable on
May 31, 2017 to shareholders of
record on May 17, 2017.
Paul Coulson, Chairman, stated,
"The Group has made a positive start to the year, with continued
growth in revenue and Adjusted EBITDA, complemented by further
progress integrating the Beverage Can acquisition. The successful
completion of the Group's IPO, combined with timely refinancing
activity, has further enhanced our capital structure and we ended
the quarter with net debt of approximately five times our unchanged
full year Adjusted EBITDA expectations. We remain focused on
continued progress over the course of 2017."
Summary Financial Information
|
|
|
Three months ended
March 31
(in € millions,
except EPS, ratios and percentages)
|
|
|
|
|
March 31,
2017
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,844
|
|
1,218
|
|
|
(Loss)/profit for the
period
|
|
(59)
|
|
14
|
|
|
Adjusted profit for
the period
|
|
61
|
|
38
|
|
|
Adjusted
EBITDA
|
|
299
|
|
217
|
|
|
Adjusted EBITDA
margin
|
|
16.2%
|
|
17.8%
|
|
|
Earnings per share
(€)
|
|
(0.28)
|
|
0.07
|
|
|
Adjusted earnings per
share (€)
|
|
0.29
|
|
0.19
|
|
|
LTM pro forma
Adjusted EBITDA
|
|
1,340
|
|
947
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
7,113
|
|
4,763
|
|
|
Cash and available
liquidity5
|
|
1,346
|
|
772
|
|
|
Net debt to LTM
Adjusted EBITDA
|
|
5.3x
|
|
5.0x
|
|
|
|
|
|
|
|
|
|
Cash generated from
operations
|
|
107
|
|
79
|
|
|
Operating cash
flow
|
|
6
|
|
29
|
|
|
Free cash
flow
|
|
(83)
|
|
(43)
|
|
|
Dividend per share
declared ($)
|
|
0.14
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and Free Cash Flow
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
€m
|
|
€m
|
|
Reported Adjusted
EBITDA
|
|
|
|
|
299
|
|
217
|
|
Movement in working
capital
|
|
|
|
|
(181)
|
|
(122)
|
|
Capital
expenditure
|
|
|
|
|
(109)
|
|
(64)
|
|
Exceptional
restructuring paid
|
|
|
|
|
(3)
|
|
(2)
|
|
Operating Cash
Flow
|
|
|
|
|
6
|
|
29
|
|
Interest
paid
|
|
|
|
|
(76)
|
|
(66)
|
|
Income tax
|
|
|
|
|
(13)
|
|
(6)
|
|
Free Cash
Flow
|
|
|
|
|
(83)
|
|
(43)
|
|
|
|
The non-GAAP information in the above tables has been derived
from the Consolidated Interim Financial Statements and related
notes.
Financial Performance Review
Bridge of 2016 reported revenue to 2017 reported
revenue
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
|
Metal
Packaging
Europe
|
|
Metal
Packaging
Americas
|
|
Glass
Packaging
Europe
|
|
Glass
Packaging
North
America
|
|
Group
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
Reported revenue
2016
|
384
|
|
91
|
|
321
|
|
422
|
|
1,218
|
|
Acquisition
|
295
|
|
289
|
|
-
|
|
-
|
|
584
|
|
Pro forma revenue
2016
|
679
|
|
380
|
|
321
|
|
422
|
|
1,802
|
Organic
|
19
|
|
10
|
|
9
|
|
10
|
|
48
|
Reclassification
|
-
|
|
-
|
|
-
|
|
(11)
|
|
(11)
|
|
FX
translation
|
(10)
|
|
15
|
|
(11)
|
|
11
|
|
5
|
|
Reported revenue
2017
|
688
|
|
405
|
|
319
|
|
432
|
|
1,844
|
|
|
|
|
|
|
|
|
|
|
Bridge of 2016 reported Adjusted EBITDA to 2017 reported
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
|
Metal
Packaging
Europe
|
|
Metal
Packaging
Americas
|
|
Glass
Packaging
Europe
|
|
Glass
Packaging
North
America
|
|
Group
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
Reported Adjusted
EBITDA 2016
|
59
|
|
10
|
|
63
|
|
85
|
|
217
|
|
Acquisition
|
46
|
|
29
|
|
-
|
|
-
|
|
75
|
|
Pro forma Adjusted
EBITDA 2016
|
105
|
|
39
|
|
63
|
|
85
|
|
292
|
|
Organic
|
1
|
|
4
|
|
3
|
|
(1)
|
|
7
|
|
FX
translation
|
(2)
|
|
2
|
|
(2)
|
|
2
|
|
-
|
|
Reported Adjusted
EBITDA 2017
|
104
|
|
45
|
|
64
|
|
86
|
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Adjusted
EBITDA 2017 margin
|
15.1%
|
|
11.1%
|
|
20.1%
|
|
19.9%
|
|
16.2%
|
|
Pro forma Adjusted
EBITDA 2016 margin
|
15.5%
|
|
10.3%
|
|
19.6%
|
|
20.1%
|
|
16.2%
|
|
Group
Revenue in the quarter ended March 31, 2017 increased by 51% to
€1,844 million, compared with the same period last year.
Revenue growth principally reflected the Beverage Can Acquisition,
completed on June 30, 2016, as well
as organic growth of 3%. First quarter Adjusted EBITDA of
€299 million increased by 38%, compared with the same period last
year. Growth reflected a contribution from the Beverage Can
Acquisition, as well as pro forma growth of 2% compared with the
same period last year.
Metal Packaging Europe
Revenue increased by 79%, to
€688 million in the three month period ended March 31, 2017, compared with the same period
last year. Growth reflected the inclusion of the Beverage Can
Acquisition, as well as 3% or €19 million organic growth, partly
offset by €10 million adverse currency translation effects.
Adjusted EBITDA increased by 76% to €104 million in the three
month period ended March 31, 2017,
compared with the same period last year. Growth in Adjusted EBITDA
reflected the Beverage Can Acquisition, as well as pro forma
constant currency growth of 1%.
Metal Packaging Americas
Revenue increased by 345% to
€405 million in the first quarter of 2017, compared with the
same period last year. Revenue growth reflected a 3% organic
increase and the inclusion of the Beverage Can Acquisition, as well
as positive foreign currency translation effects. Adjusted EBITDA
increased by €35 million to €45 million in the quarter
ended March 31, 2017, compared with
the same period last year. Growth primarily reflected a €29 million
increase from the Beverage Can Acquisition, as well as 10% organic
Adjusted EBITDA growth and positive foreign currency translation
effects.
Glass Packaging Europe
Revenue declined by 1% to
€319 million in the three month period ended March 31, 2017, compared with the same period
last year, as organic volume growth was offset by adverse currency
translation effects. Adjusted EBITDA for the quarter increased by
2% to €64 million in the first quarter, compared with the same
period last year, with growth of 5% at constant currency rates.
Glass Packaging North America
Revenue increased by 2%
to €432 million in the first quarter, compared with the same
period last year. On a constant currency basis, revenue was
marginally lower. Adjusted EBITDA increased by 1% to
€86 million in the first quarter, compared with the same
period in 2016. Excluding a positive currency translation effect of
€2 million, Adjusted EBITDA was marginally lower than the same
period last year.
Financing Activity
In March, the Group completed its
offering of 18.63 million Class A shares at $19.00 per share on the NYSE. The Group expects
to use the net proceeds of approximately $319 million for the partial redemption of the
4.250% First Priority Senior Secured Notes due 2022.
The Group took advantage of attractive financing conditions
during the quarter, issuing an aggregate €3.0 billion in new notes.
This included €750 million of 7-year senior secured debt at 2.75%,
$715 million of senior unsecured debt
at 4.25% due 2022 and $1.7 billion of
8-year unsecured debt at 5.75-6.00%. Proceeds were used, together
with cash resources of $300 million,
to repay all debt maturities arising prior to 2021, materially
enhancing the Group's debt maturity profile and resulting in
significant annualized interest savings.
Net debt at March 31, 2017 was
€7.1 billion.
Conference Call Details
Ardagh Group S.A. (NYSE: ARD) will hold its first quarter 2017
earnings call for investors at 3 p.m.
BST (10 a.m. ET) on
April 27, 2017. Please use the
following link to register for this call:
http://event.onlineseminarsolutions.com/r.htm?e=1401478&s=1&k=F6E4B8A18EA6CFD1A9CD8D89517905B2
About Ardagh Group
The Ardagh Group is a global leader in metal and glass packaging
solutions, producing packaging for the world's leading food,
beverage and consumer brands. It operates 109 facilities in 22
countries, employing approximately 23,500 people and has global
sales of approximately €7.7 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.
Condensed Consolidated Interim Financial Statements
Consolidated Interim Income Statement
|
|
Three months ended
March 31, 2017
|
|
Three months ended
March 31, 2016
|
|
|
|
|
Before
exceptional
items
€m
Unaudited
|
|
Exceptional
items
€m
Unaudited
|
|
Total
€m
Unaudited
|
|
Before
exceptional
items
€m
Unaudited
|
|
Exceptional
items
€m
Unaudited
|
|
Total
€m
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,844
|
|
-
|
|
1,844
|
|
1,218
|
|
-
|
|
1,218
|
|
Cost of
sales
|
|
(1,534)
|
|
-
|
|
(1,534)
|
|
(1,006)
|
|
(3)
|
|
(1,009)
|
|
Gross
profit/(loss)
|
|
310
|
|
-
|
|
310
|
|
212
|
|
(3)
|
|
209
|
|
Sales, general and
administration expenses
|
|
(100)
|
|
(13)
|
|
(113)
|
|
(66)
|
|
(2)
|
|
(68)
|
|
Intangible
amortization
|
|
(63)
|
|
-
|
|
(63)
|
|
(27)
|
|
-
|
|
(27)
|
|
Operating
profit/(loss)
|
|
147
|
|
(13)
|
|
134
|
|
119
|
|
(5)
|
|
114
|
|
Finance
expense
|
|
(121)
|
|
(81)
|
|
(202)
|
|
(83)
|
|
-
|
|
(83)
|
|
Profit/(loss)
before tax
|
|
26
|
|
(94)
|
|
(68)
|
|
36
|
|
(5)
|
|
31
|
|
Income tax
(charge)/credit
|
|
(10)
|
|
19
|
|
9
|
|
(17)
|
|
-
|
|
(17)
|
|
Profit/(loss) for
the year
|
|
16
|
|
(75)
|
|
(59)
|
|
19
|
|
(5)
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the
parent
|
|
|
|
|
|
(59)
|
|
|
|
|
|
14
|
|
Non-controlling
interests
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
(Loss)/profit for
the year
|
|
|
|
|
|
(59)
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)/profit
for the year attributable to ordinary
equity holders of the parent
|
|
|
|
|
|
(€0.28)
|
|
|
|
|
|
€0.07
|
|
Consolidated Interim Statement of Financial Position
|
|
March 31,
2017
€m
Unaudited
|
|
December 31,
2016
€m
Audited
|
|
Non-current
assets
|
|
|
|
|
|
Intangible
assets
|
|
3,800
|
|
3,888
|
|
Property, plant and
equipment
|
|
2,916
|
|
2,927
|
|
Derivative financial
instruments
|
|
95
|
|
124
|
|
Deferred tax
assets
|
|
259
|
|
259
|
|
Other non-current
assets
|
|
18
|
|
20
|
|
|
|
7,088
|
|
7,218
|
|
Current
assets
|
|
|
|
|
|
Inventories
|
|
1,230
|
|
1,125
|
|
Trade and other
receivables
|
|
1,258
|
|
1,159
|
|
Derivative financial
instruments
|
|
28
|
|
11
|
|
Restricted
cash
|
|
28
|
|
27
|
|
Cash and cash
equivalents
|
|
1,054
|
|
745
|
|
|
|
3,598
|
|
3,067
|
|
TOTAL
ASSETS
|
|
10,686
|
|
10,285
|
|
Equity
attributable to owners of the parent
|
|
|
|
|
|
Issued
capital
|
|
22
|
|
-
|
|
Share
premium
|
|
1,090
|
|
136
|
|
Capital
contribution
|
|
431
|
|
431
|
|
Other
reserves
|
|
(282)
|
|
(324)
|
|
Retained
earnings
|
|
(2,424)
|
|
(2,301)
|
|
|
|
(1,163)
|
|
(2,058)
|
|
Non-controlling
interests
|
|
1
|
|
2
|
|
TOTAL
EQUITY
|
|
(1,162)
|
|
(2,056)
|
|
Non-current
liabilities
|
|
|
|
|
|
Borrowings
|
|
7,900
|
|
8,142
|
|
Employee benefit
obligations
|
|
906
|
|
904
|
|
Deferred tax
liabilities
|
|
687
|
|
698
|
|
Related party
borrowings
|
|
-
|
|
673
|
|
Provisions
|
|
49
|
|
55
|
|
|
|
9,542
|
|
10,472
|
|
Current
liabilities
|
|
|
|
|
|
Borrowings
|
|
390
|
|
8
|
|
Interest
payable
|
|
105
|
|
81
|
|
Derivative financial
instruments
|
|
5
|
|
8
|
|
Trade and other
payables
|
|
1,602
|
|
1,534
|
|
Amounts payable to
parent companies
|
|
6
|
|
-
|
|
Income tax
payable
|
|
132
|
|
169
|
|
Provisions
|
|
66
|
|
69
|
|
|
|
2,306
|
|
1,869
|
|
TOTAL
LIABILITIES
|
|
11,848
|
|
12,341
|
|
TOTAL EQUITY and
LIABILITIES
|
|
10,686
|
|
10,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Interim Statement of Cash Flows
|
|
Three months
ended
|
|
|
|
March 31,
2017
€m
Unaudited
|
|
March 31,
2016
€m
Unaudited
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Cash generated from
operations
|
|
107
|
|
79
|
|
Interest
paid
|
|
(76)
|
|
(66)
|
|
Income tax
paid
|
|
(13)
|
|
(6)
|
|
Net cash from
operating activities
|
|
18
|
|
7
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(106)
|
|
(62)
|
|
Purchase of software
and other intangibles
|
|
(3)
|
|
(2)
|
|
Net cash used
in investing activities
|
|
(109)
|
|
(64)
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Proceeds from
borrowings
|
|
3,049
|
|
-
|
|
Repayment of
borrowings
|
|
(2,818)
|
|
(2)
|
|
Proceeds from share
issuance
|
|
313
|
|
-
|
|
Dividend
paid
|
|
(64)
|
|
-
|
|
Early redemption
premium costs paid
|
|
(54)
|
|
-
|
|
Deferred debt issue
costs paid
|
|
(17)
|
|
-
|
|
Net cash
inflow/(outflow) from financing activities
|
|
409
|
|
(2)
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
|
318
|
|
(59)
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
772
|
|
553
|
|
Exchange losses on
cash and cash equivalents
|
|
(8)
|
|
(6)
|
|
Cash and cash
equivalents at the end of the year
|
|
1,082
|
|
488
|
|
|
|
|
|
|
|
Reconciliation of (loss)/profit to Adjusted EBITDA
|
Three months
ended
|
|
March 31,
2017
€m
|
|
March 31,
2016
€m
|
(Loss)/profit for the
period
|
(59)
|
|
14
|
Income tax
(credit)/expense
|
(9)
|
|
17
|
Net finance
expense
|
202
|
|
83
|
Depreciation and
amortization
|
152
|
|
98
|
Exceptional operating
items
|
13
|
|
5
|
Adjusted
EBITDA
|
299
|
|
217
|
Reconciliation of (loss)/profit to Adjusted profit and EPS to
Adjusted EPS
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
March 31,
2016
|
|
€m
|
|
Per share
€
|
|
€m
|
|
Per share
€
|
(Loss)/profit for the
period
|
(59)
|
|
(0.28)
|
|
14
|
|
0.07
|
Total exceptional
items6
|
94
|
|
0.45
|
|
5
|
|
0.02
|
Tax credit associated
with exceptional costs
|
(19)
|
|
(0.09)
|
|
-
|
|
-
|
Intangible
amortization
|
63
|
|
0.30
|
|
27
|
|
0.13
|
Tax credit associated
with intangible amortization
|
(18)
|
|
(0.09)
|
|
(8)
|
|
(0.04)
|
Adjusted profit
for the period
|
61
|
|
0.29
|
|
38
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
Three months
ended
|
|
March 31,
2017
€m
|
|
March 31,
2016
€m
|
(Loss)/profit for the
period
|
(59)
|
|
14
|
Income tax
(credit)/expense
|
(9)
|
|
17
|
Net finance
expense
|
202
|
|
83
|
Depreciation and
amortization
|
152
|
|
98
|
Exceptional operating
items
|
13
|
|
5
|
Movement in working
capital
|
(181)
|
|
(122)
|
Exceptional IPO,
acquisition-related, disposal and plant start-up costs
paid
|
(8)
|
|
(14)
|
Exceptional
restructuring paid
|
(3)
|
|
(2)
|
Cash generated
from operations
|
107
|
|
79
|
_________________________
1 Change pro forma reflects the Beverage Can business
acquisition completed June 30,
2016.
2 Adjusted EBITDA is defined as (loss)/profit for the
period before income tax expense/(credit), net finance expense,
depreciation and amortization and exceptional operating items. We
use Adjusted EBITDA to evaluate and assess our segment performance.
Adjusted EBITDA is presented because we believe that it is
frequently used by securities analysts, investors and other
interested parties in evaluating companies in the packaging
industry. However, other companies may calculate Adjusted EBITDA in
a manner different from us. Adjusted EBITDA is not a measure of
financial performance under IFRS and should not be considered an
alternative to profit/(loss) as indicators of operating performance
or any other measures of performance derived in accordance with
IFRS.
3 2017 reflects LTM Adjusted EBITDA on a pro forma
basis.
4 Payable on May 31, 2017
to shareholders of record on May
17,2017.
5 Included within cash and available liquidity at
March 31, 2017 are net IPO proceeds
(€313 million) and proceeds from notes issued on March 8, 2017, used to redeem in full the
principal amount outstanding of the $415
million 6.750% Senior Notes on April
10, 2017 (€406 million).
6 Total exceptional items include debt refinancing and
settlement costs of €81m and costs directly attributable to the
acquisition and integration of the Beverage Can Business and IPO
and other transaction related costs of €13m.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ardagh-group-sa---first-quarter-2017-earnings-release-300447048.html
SOURCE Ardagh Group S.A.