LUXEMBOURG, July 27, 2017 /PRNewswire/ -- Ardagh Group
S.A. (NYSE: ARD) today announced its financial results for the
second quarter ended June 30,
2017.
Highlights
|
|
|
Three months
ended
(in €m except per
share and ratio data)
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
Change
%
|
|
Change
PF1
%
|
|
Revenue
|
2,021
|
|
1,281
|
|
58%
|
|
1%
|
|
Adjusted
EBITDA2
|
379
|
|
256
|
|
48%
|
|
6%
|
|
Operating cash
flow
|
237
|
|
184
|
|
29%
|
|
|
|
Adjusted free cash
flow
|
77
|
|
59
|
|
31%
|
|
|
|
Adjusted earnings per
share (€)
|
0.49
|
|
0.10
|
|
|
|
|
|
Net debt to LTM
Adjusted EBITDA3
|
5.1x
|
|
5.7x
|
|
|
|
|
|
Dividend per share
declared ($)4
|
0.14
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenue increased by 58% to €2,021 million with pro forma
growth of 1% at actual and constant currency;
- Adjusted EBITDA increased by 48% to €379 million, with pro
forma growth of 6%;
- Adjusted EBITDA margin of 18.8%, an increase of 100bps on a pro
forma basis;
- Earnings per share €0.13 (2016: loss per share €0.34);
- Adjusted earnings per share of €0.49, up from €0.10 in the
prior year;
- Net debt to LTM Adjusted EBITDA reduced from 5.3x to 5.1x
during the quarter;
- 10-year GBP400 million Senior
Notes issuance, further improving debt maturities to almost 7
years;
- $750 million of available cash
and IPO proceeds used or allocated to repay debt to date in
2017;
- Quarterly cash dividend of $0.14
per common share, payable on August 31,
2017;
- Prior guidance for 2017 Adjusted EBITDA of €1.4 billion
($1.5 billion) was based on then
prevailing exchange rates. At current exchange rates this
guidance becomes €1.37 billion ($1.6
billion) due entirely to currency. Targeted leverage of
approximately 4.75x Adjusted EBITDA at December 31, 2017 is unchanged.
Summary Financial Information
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
(in € millions,
except EPS, ratios and percentages)
|
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
2,021
|
|
1,281
|
|
3,865
|
|
2,499
|
|
|
Profit/(loss) for the
period
|
30
|
|
(69)
|
|
(29)
|
|
(55)
|
|
|
Adjusted profit for
the period
|
116
|
|
21
|
|
177
|
|
59
|
|
|
Adjusted
EBITDA
|
379
|
|
256
|
|
678
|
|
473
|
|
|
Adjusted EBITDA
margin
|
18.8%
|
|
20.0%
|
|
17.5%
|
|
18.9%
|
|
|
Earnings per share
(€)
|
0.13
|
|
(0.34)
|
|
(0.13)
|
|
(0.27)
|
|
|
Adjusted earnings per
share (€)
|
0.49
|
|
0.10
|
|
0.79
|
|
0.29
|
|
|
LTM Adjusted
EBITDA
|
|
|
|
|
1,363
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt5
|
|
|
|
|
6,964
|
|
7,365
|
|
|
Cash and available
liquidity6
|
|
|
|
|
988
|
|
819
|
|
|
Net debt to LTM
Adjusted EBITDA
|
|
|
|
|
5.1x
|
|
5.7x
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from
operations
|
309
|
|
243
|
|
416
|
|
322
|
|
|
Operating cash
flow
|
237
|
|
184
|
|
243
|
|
213
|
|
|
Adjusted free cash
flow
|
77
|
|
59
|
|
(6)
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and Adjusted Free Cash Flow
|
Three months
ended
|
|
Six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
Adjusted
EBITDA
|
379
|
|
256
|
|
678
|
|
473
|
|
Movement in working
capital
|
(42)
|
|
(3)
|
|
(223)
|
|
(125)
|
|
Capital
expenditure
|
(98)
|
|
(65)
|
|
(207)
|
|
(129)
|
|
Exceptional
restructuring
|
(2)
|
|
(4)
|
|
(5)
|
|
(6)
|
|
Operating Cash
Flow
|
237
|
|
184
|
|
243
|
|
213
|
|
Interest
|
(133)
|
|
(99)
|
|
(209)
|
|
(165)
|
|
Income tax
|
(27)
|
|
(26)
|
|
(40)
|
|
(32)
|
|
Adjusted Free Cash
Flow
|
77
|
|
59
|
|
(6)
|
|
16
|
|
|
|
The non-GAAP information in the above tables has been derived
from the Consolidated Interim Financial Statements and related
notes. Interest included in the calculation of Adjusted Free
Cash Flow excludes exceptional interest paid.
Financial Performance Review
Bridge of 2016 reported revenue to 2017 reported
revenue
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30
|
|
|
Metal
Packaging
Europe
|
|
Metal
Packaging
Americas
|
|
Glass
Packaging
Europe
|
|
Glass
Packaging
North
America
|
|
Group
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
Reported revenue
2016
|
398
|
|
83
|
|
371
|
|
429
|
|
1,281
|
|
Acquisition
|
385
|
|
332
|
|
-
|
|
-
|
|
717
|
|
Pro forma revenue
2016
|
783
|
|
415
|
|
371
|
|
429
|
|
1,998
|
Organic
|
11
|
|
4
|
|
5
|
|
(4)
|
|
16
|
Reclassification
|
-
|
|
-
|
|
-
|
|
(4)
|
|
(4)
|
|
FX
translation
|
(8)
|
|
15
|
|
(10)
|
|
14
|
|
11
|
|
Reported revenue
2017
|
786
|
|
434
|
|
366
|
|
435
|
|
2,021
|
|
|
|
|
|
|
|
|
|
|
Bridge of 2016 reported Adjusted EBITDA to 2017 reported
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30
|
|
|
Metal
Packaging
Europe
|
|
Metal
Packaging
Americas
|
|
Glass
Packaging
Europe
|
|
Glass
Packaging
North
America
|
|
Group
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
Reported Adjusted
EBITDA 2016
|
68
|
|
13
|
|
79
|
|
96
|
|
256
|
|
Acquisition
|
58
|
|
42
|
|
-
|
|
-
|
|
100
|
|
Pro forma Adjusted
EBITDA 2016
|
126
|
|
55
|
|
79
|
|
96
|
|
356
|
|
Organic
|
9
|
|
12
|
|
3
|
|
(2)
|
|
22
|
|
FX
translation
|
(1)
|
|
1
|
|
(2)
|
|
3
|
|
1
|
|
Reported Adjusted
EBITDA 2017
|
134
|
|
68
|
|
80
|
|
97
|
|
379
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Adjusted
EBITDA 2017 margin
|
17.0%
|
|
15.7%
|
|
21.9%
|
|
22.3%
|
|
18.8%
|
|
Pro forma Adjusted
EBITDA 2016 margin
|
16.1%
|
|
13.3%
|
|
21.3%
|
|
22.4%
|
|
17.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bridge of 2016 reported revenue to 2017 reported
revenue
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30
|
|
|
Metal
Packaging
Europe
|
|
Metal
Packaging
Americas
|
|
Glass
Packaging
Europe
|
|
Glass
Packaging
North
America
|
|
Group
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
Reported revenue
2016
|
782
|
|
174
|
|
692
|
|
851
|
|
2,499
|
|
Acquisition
|
680
|
|
621
|
|
-
|
|
-
|
|
1,301
|
|
Pro forma revenue
2016
|
1,462
|
|
795
|
|
692
|
|
851
|
|
3,800
|
Organic
|
30
|
|
14
|
|
14
|
|
6
|
|
64
|
Reclassification
|
-
|
|
-
|
|
-
|
|
(15)
|
|
(15)
|
|
FX
translation
|
(18)
|
|
30
|
|
(21)
|
|
25
|
|
16
|
|
Reported revenue
2017
|
1,474
|
|
839
|
|
685
|
|
867
|
|
3,865
|
|
|
|
|
|
|
|
|
|
|
Bridge of 2016 reported Adjusted EBITDA to 2017 reported
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30
|
|
|
Metal
Packaging
Europe
|
|
Metal
Packaging
Americas
|
|
Glass
Packaging
Europe
|
|
Glass
Packaging
North
America
|
|
Group
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
Reported Adjusted
EBITDA 2016
|
127
|
|
23
|
|
142
|
|
181
|
|
473
|
|
Acquisition
|
104
|
|
71
|
|
-
|
|
-
|
|
175
|
|
Pro forma Adjusted
EBITDA 2016
|
231
|
|
94
|
|
142
|
|
181
|
|
648
|
|
Organic
|
10
|
|
16
|
|
6
|
|
(3)
|
|
29
|
|
FX
translation
|
(3)
|
|
3
|
|
(4)
|
|
5
|
|
1
|
|
Reported Adjusted
EBITDA 2017
|
238
|
|
113
|
|
144
|
|
183
|
|
678
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Adjusted
EBITDA 2017 margin
|
16.1%
|
|
13.5%
|
|
21.0%
|
|
21.1%
|
|
17.5%
|
|
Pro forma Adjusted
EBITDA 2016 margin
|
15.8%
|
|
11.8%
|
|
20.5%
|
|
21.3%
|
|
17.1%
|
|
Group
Revenue in the quarter ended June 30, 2017 increased by 58% to
€2,021 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 1%. Second quarter Adjusted EBITDA of
€379 million increased by 48%, compared with the same period last
year. Growth reflected the Beverage Can Acquisition, as well as pro
forma growth of 6% compared with the same period last year.
Metal Packaging Europe
Revenue increased by 97%, to
€786 million in the three month period ended June 30, 2017, compared with the same period last
year. Growth reflected the inclusion of the Beverage Can
Acquisition, as well as 1% organic growth, partly offset by €8
million currency translation effects. Adjusted EBITDA increased by
97% to €134 million, compared with the same period last year.
Growth in Adjusted EBITDA reflected the Beverage Can Acquisition,
as well as 7% organic growth, partly offset by €1 million adverse
currency translation effects.
Metal Packaging Americas
Revenue increased by 423% to
€434 million in the second quarter of 2017, compared with the
same period last year. Revenue growth reflected the Beverage Can
Acquisition, a 1% organic increase, as well as positive currency
translation effects of €15 million. Adjusted EBITDA increased by
€55 million to €68 million, compared with the same period
last year. Growth primarily reflected the Beverage Can Acquisition,
22% organic Adjusted EBITDA growth and positive currency
translation effects of €1 million.
Glass Packaging Europe
Revenue declined by 1% to
€366 million in the three month period ended June 30, 2017, compared with the same period last
year, as organic growth of 1% was more than offset by €10 million
currency translation effects. Adjusted EBITDA for the quarter
increased by 1% to €80 million, compared with the same period
last year, with growth of 4% at constant currency rates.
Glass Packaging North America
Revenue increased by 1%
to €435 million in the second quarter, compared with the same
period last year including a €14 million positive currency
translation effect. Constant currency revenue was 2% lower, due
mainly to continued soft mass beer markets. Adjusted EBITDA
increased by 1% to €97 million in the second quarter, compared
with the same period in 2016. Excluding a positive currency
translation effect of €3 million, Adjusted EBITDA was 2% lower than
the same period last year.
Financing Activity
In June, the Group issued £400
million, 10-year sterling notes, representing the longest debt
maturity issued to date and its first in sterling. Proceeds,
together with available cash, were used to redeem in full the
$500 million Senior Secured Floating
Rate Notes due 2021.
Following the redemption of the €405 million 4.250% First
Priority Senior Secured Notes due 2022 on August 1, the Group will have used over
$750 million of available cash and
IPO proceeds to repay debt.
Net debt at June 30, 2017 was €7.0
billion.
Conference Call Details
Ardagh Group S.A. (NYSE: ARD) will hold its second quarter 2017
earnings call for investors at 3 p.m.
BST (10 a.m. ET) on
July 27, 2017. Please use the
following link to register for this call:
http://event.onlineseminarsolutions.com/r.htm?e=1454308&s=1&k=7EDB2CFB20A388384D0D59894AA95288
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 for the three months
ended June 30, 2017
|
|
Three months ended
June 30, 2017
|
|
Three months ended
June 30, 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
|
|
2,021
|
|
-
|
|
2,021
|
|
1,281
|
|
-
|
|
1,281
|
|
|
Cost of
sales
|
|
(1,640)
|
|
(8)
|
|
(1,648)
|
|
(1,041)
|
|
9
|
|
(1,032)
|
|
|
Gross
profit/(loss)
|
|
381
|
|
(8)
|
|
373
|
|
240
|
|
9
|
|
249
|
|
|
Sales, general and
administration expenses
|
|
(97)
|
|
(5)
|
|
(102)
|
|
(54)
|
|
(81)
|
|
(135)
|
|
|
Intangible
amortization
|
|
(59)
|
|
-
|
|
(59)
|
|
(27)
|
|
-
|
|
(27)
|
|
|
Operating
profit/(loss)
|
|
225
|
|
(13)
|
|
212
|
|
159
|
|
(72)
|
|
87
|
|
|
Finance
expense
|
|
(109)
|
|
(42)
|
|
(151)
|
|
(125)
|
|
(99)
|
|
(224)
|
|
|
Finance
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
78
|
|
78
|
|
|
Profit/(loss)
before tax
|
|
116
|
|
(55)
|
|
61
|
|
34
|
|
(93)
|
|
(59)
|
|
|
Income tax
(charge)/credit
|
|
(42)
|
|
11
|
|
(31)
|
|
(30)
|
|
20
|
|
(10)
|
|
|
Profit/(loss) for
the period
|
|
74
|
|
(44)
|
|
30
|
|
4
|
|
(73)
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the
parent
|
|
|
|
|
|
30
|
|
|
|
|
|
(69)
|
|
|
Non-controlling
interests
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
Profit/(loss)
for the period
|
|
|
|
|
|
30
|
|
|
|
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic profit/(loss)
for the period attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
€0.13
|
|
|
|
|
|
(€0.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Interim Income Statement for the six months
ended June 30, 2017
|
|
Six months ended June
30, 2017
|
|
Six months ended June
30, 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
|
|
3,865
|
|
-
|
|
3,865
|
|
2,499
|
|
-
|
|
2,499
|
|
|
Cost of
sales
|
|
(3,174)
|
|
(8)
|
|
(3,182)
|
|
(2,047)
|
|
6
|
|
(2,041)
|
|
|
Gross
profit/(loss)
|
|
691
|
|
(8)
|
|
683
|
|
452
|
|
6
|
|
458
|
|
|
Sales, general and
administration expenses
|
|
(197)
|
|
(18)
|
|
(215)
|
|
(120)
|
|
(83)
|
|
(203)
|
|
|
Intangible
amortization
|
|
(122)
|
|
-
|
|
(122)
|
|
(54)
|
|
-
|
|
(54)
|
|
|
Operating
profit/(loss)
|
|
372
|
|
(26)
|
|
346
|
|
278
|
|
(77)
|
|
201
|
|
|
Finance
expense
|
|
(230)
|
|
(123)
|
|
(353)
|
|
(208)
|
|
(99)
|
|
(307)
|
|
|
Finance
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
78
|
|
78
|
|
|
Profit/(loss)
before tax
|
|
142
|
|
(149)
|
|
(7)
|
|
70
|
|
(98)
|
|
(28)
|
|
|
Income tax
(charge)/credit
|
|
(52)
|
|
30
|
|
(22)
|
|
(47)
|
|
20
|
|
(27)
|
|
|
Profit/(loss) for
the period
|
|
90
|
|
(119)
|
|
(29)
|
|
23
|
|
(78)
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the
parent
|
|
|
|
|
|
(29)
|
|
|
|
|
|
(55)
|
|
|
Non-controlling
interests
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
Loss for the
period
|
|
|
|
|
|
(29)
|
|
|
|
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss for the
period attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
(€0.13)
|
|
|
|
|
|
(€0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Interim Statement of Financial Position
|
|
June 30,
2017
€m
Unaudited
|
|
December 31,
2016
€m
Audited
|
|
Non-current
assets
|
|
|
|
|
|
Intangible
assets
|
|
3,616
|
|
3,904
|
|
Property, plant and
equipment
|
|
2,810
|
|
2,911
|
|
Derivative financial
instruments
|
|
-
|
|
124
|
|
Deferred tax
assets
|
|
246
|
|
259
|
|
Other non-current
assets
|
|
18
|
|
20
|
|
|
|
6,690
|
|
7,218
|
|
Current
assets
|
|
|
|
|
|
Inventories
|
|
1,177
|
|
1,125
|
|
Trade and other
receivables
|
|
1,367
|
|
1,164
|
|
Derivative financial
instruments
|
|
10
|
|
11
|
|
Restricted
cash
|
|
28
|
|
27
|
|
Cash and cash
equivalents
|
|
693
|
|
745
|
|
|
|
3,275
|
|
3,072
|
|
TOTAL
ASSETS
|
|
9,965
|
|
10,290
|
|
Equity
attributable to owners of the parent
|
|
|
|
|
|
Issued
capital
|
|
22
|
|
-
|
|
Share
premium
|
|
1,090
|
|
136
|
|
Capital
contribution
|
|
431
|
|
431
|
|
Other
reserves
|
|
(315)
|
|
(324)
|
|
Retained
earnings
|
|
(2,429)
|
|
(2,313)
|
|
|
|
(1,201)
|
|
(2,070)
|
|
Non-controlling
interests
|
|
1
|
|
2
|
|
TOTAL
EQUITY
|
|
(1,200)
|
|
(2,068)
|
|
Non-current
liabilities
|
|
|
|
|
|
Borrowings
|
|
7,168
|
|
8,142
|
|
Employee benefit
obligations
|
|
880
|
|
905
|
|
Deferred tax
liabilities
|
|
633
|
|
694
|
|
Derivative financial
instruments
|
|
112
|
|
-
|
|
Related party
borrowings
|
|
-
|
|
673
|
|
Provisions
|
|
47
|
|
57
|
|
|
|
8,840
|
|
10,471
|
|
Current
liabilities
|
|
|
|
|
|
Borrowings
|
|
406
|
|
8
|
|
Interest
payable
|
|
69
|
|
81
|
|
Derivative financial
instruments
|
|
-
|
|
8
|
|
Trade and other
payables
|
|
1,632
|
|
1,539
|
|
Amounts payable to
parent companies
|
|
6
|
|
-
|
|
Income tax
payable
|
|
156
|
|
182
|
|
Provisions
|
|
56
|
|
69
|
|
|
|
2,325
|
|
1,887
|
|
TOTAL
LIABILITIES
|
|
11,165
|
|
12,358
|
|
TOTAL EQUITY and
LIABILITIES
|
|
9,965
|
|
10,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Interim Statement of Cash Flows
|
Three months ended
June 30,
|
|
Six months ended June
30,
|
|
|
2017
€m
Unaudited
|
|
2016
€m
Unaudited
|
|
2017
€m
Unaudited
|
|
2016
€m
Unaudited
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Cash generated from
operations
|
309
|
|
243
|
|
416
|
|
322
|
|
Interest
paid
|
(135)
|
|
(108)
|
|
(211)
|
|
(174)
|
|
Income tax
paid
|
(27)
|
|
(26)
|
|
(40)
|
|
(32)
|
|
Net cash from
operating activities
|
147
|
|
109
|
|
165
|
|
116
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchase of business,
net of cash acquired
|
-
|
|
(2,571)
|
|
-
|
|
(2,571)
|
|
Purchase of property,
plant and equipment
|
(96)
|
|
(63)
|
|
(202)
|
|
(125)
|
|
Purchase of software
and other intangibles
|
(3)
|
|
(3)
|
|
(6)
|
|
(5)
|
|
Proceeds from
disposal of property, plant and equipment
|
1
|
|
1
|
|
1
|
|
1
|
|
Net cash used
in investing activities
|
(98)
|
|
(2,636)
|
|
(207)
|
|
(2,700)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings
|
458
|
|
3,950
|
|
3,507
|
|
3,950
|
|
Repayment of
borrowings
|
(838)
|
|
(1,311)
|
|
(3,656)
|
|
(1,313)
|
|
Net (costs)/proceeds
from share issuance
|
(3)
|
|
-
|
|
310
|
|
-
|
|
Dividend
paid
|
(29)
|
|
-
|
|
(93)
|
|
-
|
|
Early redemption
premium paid
|
(22)
|
|
(59)
|
|
(76)
|
|
(59)
|
|
Deferred debt issue
costs paid
|
(5)
|
|
(50)
|
|
(22)
|
|
(50)
|
|
Proceeds from the
termination of derivative financial instruments
|
42
|
|
-
|
|
42
|
|
-
|
|
Net cash
(outflow)/inflow from financing activities
|
(397)
|
|
2,530
|
|
12
|
|
2,528
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents
|
(348)
|
|
3
|
|
(30)
|
|
(56)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
1,082
|
|
488
|
|
772
|
|
553
|
|
Exchange
(losses)/gains on cash and cash equivalents
|
(13)
|
|
48
|
|
(21)
|
|
42
|
|
Cash and cash
equivalents at end of period
|
721
|
|
539
|
|
721
|
|
539
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of profit/(loss) to Adjusted EBITDA
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
2017
€m
|
|
June 30,
2016
€m
|
|
June 30,
2017
€m
|
|
June 30,
2016
€m
|
Profit/(loss) for
the period
|
30
|
|
(69)
|
|
(29)
|
|
(55)
|
Income tax
charge
|
31
|
|
10
|
|
22
|
|
27
|
Net finance
expense
|
151
|
|
146
|
|
353
|
|
229
|
Depreciation and
amortization
|
154
|
|
97
|
|
306
|
|
195
|
Exceptional operating
items
|
13
|
|
72
|
|
26
|
|
77
|
Adjusted
EBITDA
|
379
|
|
256
|
|
678
|
|
473
|
Reconciliation of profit/(loss) to Adjusted profit
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
2017
€m
|
|
June 30,
2016
€m
|
|
June 30,
2017
€m
|
|
June 30,
2016
€m
|
Profit/(loss) for
the period
|
30
|
|
(69)
|
|
(29)
|
|
(55)
|
Total exceptional
items7
|
55
|
|
93
|
|
149
|
|
98
|
Tax credit associated
with exceptional items
|
(11)
|
|
(20)
|
|
(30)
|
|
(20)
|
Intangible
amortization
|
59
|
|
27
|
|
122
|
|
54
|
Tax credit associated
with intangible amortization
|
(17)
|
|
(10)
|
|
(35)
|
|
(18)
|
Adjusted profit
for the period
|
116
|
|
21
|
|
177
|
|
59
|
Weighted average
ordinary shares
|
236.3
|
|
202.0
|
|
222.8
|
|
202.0
|
Adjusted earnings
per share (€)
|
0.49
|
|
0.10
|
|
0.79
|
|
0.29
|
Cash generated from operations
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
2017 €m
|
|
June 30,
2016
€m
|
|
June 30,
2017
€m
|
|
June 30,
2016
€m
|
Profit/(loss) for
the period
|
30
|
|
(69)
|
|
(29)
|
|
(55)
|
Income tax
charge
|
31
|
|
10
|
|
22
|
|
27
|
Net finance
expense
|
151
|
|
146
|
|
353
|
|
229
|
Depreciation and
amortization
|
154
|
|
97
|
|
306
|
|
195
|
Exceptional operating
items
|
13
|
|
72
|
|
26
|
|
77
|
Movement in working
capital
|
(42)
|
|
(3)
|
|
(223)
|
|
(125)
|
Acquisition-related,
IPO, plant start-up and other exceptional costs paid
|
(26)
|
|
(6)
|
|
(34)
|
|
(20)
|
Exceptional
restructuring paid
|
(2)
|
|
(4)
|
|
(5)
|
|
(6)
|
Cash generated
from operations
|
309
|
|
243
|
|
416
|
|
322
|
|
|
|
|
|
|
|
|
|
1 Change pro forma reflects the Beverage Can
Acquisition completed June 30,
2016.
2 Adjusted EBITDA is defined as profit/(loss) 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.
A reconciliation of the profit/(loss) for the period to
Adjusted EBITDA can be found at the back of this press release.
3 2016 reflects LTM Adjusted EBITDA on a pro forma
basis.
4 Payable on August 31,
2017 to shareholders of record on August 17,2017.
5 Net debt at June 30,
2016, excludes Senior PIK Notes due 2019, redeemed in
September 2016.
6 Included within cash and available liquidity at
June 30, 2017 are net IPO proceeds of
€303 million which are intended to be used to redeem in full the
principal amount outstanding of the €405 million 4.250% First
Priority Senior Secured Notes due 2022, on August 1, 2017.
7 Total exceptional items for the three and six months
ended June 30, 2017 include debt
refinancing and settlement costs of €28 million and €109 million
respectively. Further, total exceptional items for the three
and six months ended June 30, 2017
include costs directly attributable to the acquisition and
integration of the Beverage Can Business and IPO and other
transaction related costs of €5 million and €18 million
respectively.
View original
content:http://www.prnewswire.com/news-releases/ardagh-group-sa---second-quarter-2017-earnings-release-300495185.html
SOURCE Ardagh Group S.A.