LUXEMBOURG, Feb. 22, 2018 /PRNewswire/ -- Ardagh Group
S.A. (NYSE: ARD) today announced its financial results for the
fourth quarter and year ended December 31,
2017.
Highlights
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December 31,
2017
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December 31,
2016
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Change
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Change PF
CCY
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(€m except per share
and ratio data)
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Full
Year
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Revenue
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7,644
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6,345
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20%
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1%
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Adjusted EBITDA
1
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1,340
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1,158
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16%
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2%
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Adjusted earnings per
share (€) 1
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1.63
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1.13
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44%
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Adjusted free cash
flow 1
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465
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519
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(10%)
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Fourth
Quarter
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Revenue
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1,789
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1,826
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(2%)
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1%
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Adjusted EBITDA
1
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285
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306
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(7%)
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(3%)
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Adjusted earnings per
share (€) 1
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0.31
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0.32
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(4%)
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Net debt to LTM
Adjusted EBITDA 2
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4.9x
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5.4x
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Dividend per share
($) 3
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0.14
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—
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Paul Coulson, Chairman and Chief
Executive, said "In 2017, we delivered pro forma constant currency
Adjusted EBITDA growth of 2%, helped by the successful beverage can
integration and de-levered as a result of strong free cash
generation. Fourth quarter results were in line with our
expectations, with constant currency revenue up 1% and Adjusted
EBITDA advancing in three of our four divisions. Profit improvement
initiatives in Glass North America are under way and we remain
focused on driving growth in Adjusted EBITDA and cash generation as
we continue to de-lever."
- Full year Revenue and Adjusted EBITDA growth of 20% and 16% to
€7,644 million and €1,340 million respectively, including a full
year beverage can contribution;
- Pro forma constant currency Revenue and Adjusted EBITDA
growth of 1% and 2% respectively for the year;
- Earnings per share €0.24 for 2017 (2016: loss per share
€0.33);
- Adjusted earnings per share growth of 44% to €1.63 for the full
year;
- Adjusted Free Cash Flow of €465 million, contributing to
de-leveraging of 0.57x during 2017;
- Over US$750 million of cash and
IPO proceeds used to repay debt during 2017;
- Enhanced capital structure, with available liquidity of €1.3
billion and no debt maturities before 2021;
- Adoption of US dollar reporting from January 1, 2018;
- 2018 outlook: Full year Adjusted EBITDA of approximately
US$1.6 billion, with Adjusted Free
Cash Flow in the region of US$550 –
US$575 million and Adjusted earnings
per share of US$1.90 – US$2.10. First quarter Adjusted EBITDA of
approximately US$345 million.
Summary Financial
Information
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Three months ended
December 31,
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Year ended December
31,
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2017
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2016
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2017
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2016
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(in € millions,
except EPS, ratios and percentages)
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Revenue
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1,789
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1,826
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7,644
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6,345
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Profit/(loss) for the
period
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30
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(6)
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54
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(67)
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Adjusted profit for
the period 4
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73
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65
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375
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229
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Adjusted EBITDA
4
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285
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306
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1,340
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1,158
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Adjusted EBITDA
margin
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15.9%
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16.8%
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17.5%
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18.3%
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Earnings/(loss) per
share (€)
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0.13
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(0.03)
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0.24
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(0.33)
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Adjusted earnings per
share (€) 4
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0.31
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0.32
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1.63
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1.13
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Pro forma Adjusted
EBITDA
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1,340
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1,333
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Net debt
5
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6,525
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7,254
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Cash and available
liquidity
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1,333
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1,022
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Net debt to LTM
Adjusted EBITDA 6
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4.9x
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5.4x
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Cash generated from
operations
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487
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503
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1,330
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1,109
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Operating cash flow
4
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373
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438
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959
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950
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Adjusted free cash
flow 4
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217
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287
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465
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519
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Financial
Performance Review
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Bridge of 2016 to
2017 Reported Revenue and Adjusted EBITDA
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Three months ended
December 31, 2017
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Metal Packaging
Europe
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Metal Packaging
Americas
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Glass Packaging
Europe
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Glass Packaging
North America
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Group
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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
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Reported revenue
2016
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658
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436
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339
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393
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1,826
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Organic
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27
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28
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(6)
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(28)
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21
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FX
translation
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(1)
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(29)
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—
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(28)
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(58)
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Reported revenue
2017
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684
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435
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333
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337
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1,789
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Metal Packaging
Europe
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Metal Packaging
Americas
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Glass Packaging
Europe
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Glass Packaging
North America
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Group
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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
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Reported Adjusted
EBITDA 2016
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98
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57
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66
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85
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306
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Organic
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1
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5
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2
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(18)
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(10)
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FX
translation
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(1)
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(4)
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—
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(6)
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(11)
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Reported Adjusted
EBITDA 2017
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98
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58
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68
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61
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285
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Reported Adjusted
EBITDA 2017 margin
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14.3%
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13.3%
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20.4%
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18.1%
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15.9%
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Reported Adjusted
EBITDA 2016 margin
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14.9%
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13.1%
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19.5%
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21.6%
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16.8%
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Year ended
December 31, 2017
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Metal Packaging
Europe
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Metal Packaging
Americas
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Glass Packaging
Europe
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Glass Packaging
North America
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Group
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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
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Reported revenue
2016
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2,235
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1,059
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1,392
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1,659
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6,345
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Acquisition
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680
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621
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—
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—
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1,301
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Proforma revenue
2016
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2,915
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1,680
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1,392
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1,659
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7,646
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Organic
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80
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59
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11
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(35)
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115
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Reclassification
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—
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—
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—
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(15)
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(15)
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FX
translation
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(28)
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(25)
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(27)
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(22)
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(102)
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Reported revenue
2017
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2,967
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1,714
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1,376
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1,587
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7,644
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Metal Packaging
Europe
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Metal Packaging
Americas
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Glass Packaging
Europe
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Glass Packaging
North America
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Group
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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
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Reported Adjusted
EBITDA 2016
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366
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139
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296
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357
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1,158
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Acquisition
|
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104
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71
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—
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—
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175
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Proforma Adjusted
EBITDA 2016
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470
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210
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296
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357
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1,333
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Organic
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26
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29
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11
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(39)
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27
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FX
translation
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(5)
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(4)
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(6)
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(5)
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(20)
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Reported Adjusted
EBITDA 2017
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491
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235
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301
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313
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1,340
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Reported Adjusted
EBITDA 2017 margin
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16.5%
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13.7%
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21.9%
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19.7%
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17.5%
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Pro forma Adjusted
EBITDA 2016 margin
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16.1%
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12.5%
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21.3%
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21.5%
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17.4%
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Full Year
Revenue increased by €1,299 million, or 20%, to €7,644 million
in 2017, compared with €6,345 million in the year ended
December 31, 2016. The inclusion of
the Beverage Can Acquisition for a full year increased revenue by
€1,301 million compared with the prior year. Revenue growth also
reflected higher selling prices driven by the pass-through of
higher input costs, partly offset by adverse currency translation
effects of €102 million, which were largely attributable to
unfavorable movements in the US dollar and British
pound. Adjusted EBITDA increased by €182 million, or 16%, to
€1,340 million in the year ended December
31, 2017. Growth reflected a full year contribution from the
Beverage Can Acquisition, as well as synergy realization and cost
reductions, partly offset by higher input costs and unfavorable
currency translation effects.
Fourth Quarter
Group
Revenue of €1,789 million for the quarter ended December 31, 2017 represented a decrease of 2% at
actual exchange rates and, at constant currency, increased by 1%
compared with the same period last year. The reduction in revenue
was attributable to €58 million adverse currency translation
effects, partly offset by 1% organic growth. Fourth quarter
Adjusted EBITDA of €285 million decreased by 7% at actual exchange
rates, compared with the same period last year. On a constant
currency basis, Adjusted EBITDA decreased by 3%, with growth in
three of our four divisions, more than offset by a decline in Glass
North America.
Metal Packaging Europe
Revenue increased by 4%, to €684 million in the three-month
period ended December 31, 2017,
compared with the same period last year. Growth reflected 4%
organic growth, partly offset by €1 million negative currency
translation effects. Adjusted EBITDA for the quarter of €98 million
increased by 1% at constant currency compared with the same period
last year, reflecting continued synergy realization.
Metal Packaging Americas
Revenue of €435 million in the fourth quarter of 2017, was
in line with the same period last year. Organic revenue growth of
6%, as a result of the pass through of higher input costs and
favorable volume/mix, was offset by negative currency translation
effects of €29 million. Adjusted EBITDA increased by
€1 million to €58 million, compared with the same period
last year and by 9% on a constant currency basis. Growth in
Adjusted EBITDA primarily reflected higher volumes and continued
cost efficiencies, partly offset by currency translation effects of
€4 million.
Glass Packaging Europe
Revenue declined by 2% to €333 million in the three-month
period ended December 31, 2017,
compared with the same period last year, mainly reflecting lower
glass engineering revenues. Adjusted EBITDA for the quarter
increased by 3% to €68 million, compared with the same period
last year, as a result of cost savings.
Glass Packaging North America
Revenue decreased by 14% to €337 million in the fourth
quarter, compared with the same period last year. On a constant
currency basis, revenue was 8% lower, due mainly to lower volumes,
in particular in the beer and wine end markets. Adjusted EBITDA
decreased by 28% to €61 million in the fourth quarter,
compared with the same period in 2016. Adjusted EBITDA at constant
currency was 23% lower than the prior year as a result of lower
volumes, increased freight costs and higher input costs compared
with the same period last year.
We have now completed the review of our Glass North America
division. The main conclusions are as follows:
- Closure of the Milford,
Massachusetts, production facility, as announced in
January;
- We intend to pursue growth opportunities in stronger performing
end markets, such as food, wine and spirits. In order to avail of
these opportunities, we will convert production capacity from the
mass beer sector to these alternative end markets;
- This will result in a reduction in overall production capacity,
but an even greater reduction in our mass beer capacity;
- Targeted investment in Glass North America's network, including
state of the art inspection equipment, to enhance our competitive
position and enable differentiation through a focus on innovation,
quality and service;
- Revision of our freight and logistics infrastructure and
arrangements, where rates remain at elevated levels, to optimize
costs and ensure effective recovery.
These initiatives are expected to lead to a restoration of
appropriate profitability in Glass North America, through an
increased focus on improved manufacturing performance, so as to
bring it into line with our European Glass business.
Financing Activity
In December, the Group closed a committed five year $850 million Global Asset Based Loan Facility.
The new facility, secured by trade receivables and inventories,
reflects the Group's increased scale following the Beverage Can
Acquisition in 2016.
Earnings Webcast and Conference Call Details
Ardagh Group S.A. (NYSE: ARD) will hold its fourth quarter 2017
earnings webcast and conference call for investors at 3 p.m. BST (10 a.m.
EST) on February 22, 2018.
Please use the following webcast link to register for this
call:
Webcast registration and access:
http://event.on24.com/wcc/r/1585909-1/32EC5CA902EB04FF3D278C6A4EA4C4D7
Conference call dial in:
United States callers: 1866 928
7517
International callers: +44 20 3139 4830
Participant pin code: 40582638#
Slides and annual report
Supplemental slides to accompany this release are available on
our website at http://www.ardaghgroup.com/investors
The Group's 2017 annual report on Form 20-F is expected to be
filed in March 2018.
The 2017 annual report on Form 20-F for ARD Finance S.A., issuer
of the Senior Secured Toggle Notes due 2023, will also be filed in
March 2018 and will be 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 109 facilities in
22 countries, employing approximately 23,500 people and has global
sales of approximately €7.6 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.
Condensed
Consolidated Financial Statements
Consolidated
Income Statement
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|
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|
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Year ended
December 31, 2017
|
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Year ended
December 31, 2016
|
|
|
Before
|
|
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|
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|
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Before
|
|
|
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
|
items
|
|
Items
|
|
Total
|
|
items
|
|
Items
|
|
Total
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
7,644
|
|
—
|
|
|
7,644
|
|
6,345
|
|
—
|
|
|
6,345
|
Cost of
sales
|
|
(6,321)
|
|
(85)
|
|
|
(6,406)
|
|
(5,221)
|
|
(15)
|
|
|
(5,236)
|
Gross
profit/(loss)
|
|
1,323
|
|
(85)
|
|
|
1,238
|
|
1,124
|
|
(15)
|
|
|
1,109
|
Sales, general and
administration expenses
|
|
(359)
|
|
(43)
|
|
|
(402)
|
|
(300)
|
|
(116)
|
|
|
(416)
|
Intangible
amortization
|
|
(235)
|
|
—
|
|
|
(235)
|
|
(173)
|
|
—
|
|
|
(173)
|
Operating
profit/(loss)
|
|
729
|
|
(128)
|
|
|
601
|
|
651
|
|
(131)
|
|
|
520
|
Finance
expense
|
|
(459)
|
|
(123)
|
|
|
(582)
|
|
(450)
|
|
(165)
|
|
|
(615)
|
Finance
income
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
78
|
|
|
78
|
Profit/(loss)
before tax
|
|
270
|
|
(251)
|
|
|
19
|
|
201
|
|
(218)
|
|
|
(17)
|
Income tax
(charge)/credit
|
|
(87)
|
|
122
|
|
|
35
|
|
(93)
|
|
43
|
|
|
(50)
|
Profit/(loss) for
the year
|
|
183
|
|
(129)
|
|
|
54
|
|
108
|
|
(175)
|
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the
parent
|
|
|
|
|
|
|
54
|
|
|
|
|
|
|
(67)
|
Non‑controlling
interests
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
Profit/(loss) for
the year
|
|
|
|
|
|
|
54
|
|
|
|
|
|
|
(67)
|
Profit/(loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic profit/(loss) for the year attributable to
equity holders
|
|
|
|
|
|
|
€0.24
|
|
|
|
|
|
|
(€0.33)
|
Consolidated
Statement of Financial Position
|
|
|
|
|
|
|
|
At December
31,
|
|
|
2017
|
|
2016
|
|
|
€m
|
|
€m
|
Non-current
assets
|
|
|
|
|
Intangible
assets
|
|
3,422
|
|
3,904
|
Property, plant and
equipment
|
|
2,808
|
|
2,911
|
Derivative financial
instruments
|
|
6
|
|
124
|
Deferred tax
assets
|
|
184
|
|
259
|
Other non-current
assets
|
|
21
|
|
20
|
|
|
6,441
|
|
7,218
|
Current
assets
|
|
|
|
|
Inventories
|
|
1,128
|
|
1,125
|
Trade and other
receivables
|
|
1,062
|
|
1,164
|
Derivative financial
instruments
|
|
13
|
|
11
|
Cash and cash
equivalents
|
|
654
|
|
772
|
|
|
2,857
|
|
3,072
|
TOTAL
ASSETS
|
|
9,298
|
|
10,290
|
Equity
attributable to owners of the parent
|
|
|
|
|
Issued
capital
|
|
22
|
|
—
|
Share
premium
|
|
1,090
|
|
136
|
Capital
contribution
|
|
431
|
|
431
|
Other
reserves
|
|
(321)
|
|
(324)
|
Retained
earnings
|
|
(2,370)
|
|
(2,313)
|
|
|
(1,148)
|
|
(2,070)
|
Non-controlling
interests
|
|
1
|
|
2
|
TOTAL
EQUITY
|
|
(1,147)
|
|
(2,068)
|
Non-current
liabilities
|
|
|
|
|
Borrowings
|
|
6,926
|
|
8,142
|
Employee benefit
obligations
|
|
831
|
|
905
|
Derivative financial
instruments
|
|
251
|
|
—
|
Deferred tax
liabilities
|
|
486
|
|
694
|
Related party
borrowings
|
|
—
|
|
673
|
Provisions
|
|
37
|
|
57
|
|
|
8,531
|
|
10,471
|
Current
liabilities
|
|
|
|
|
Borrowings
|
|
2
|
|
8
|
Interest
payable
|
|
59
|
|
81
|
Derivative financial
instruments
|
|
2
|
|
8
|
Trade and other
payables
|
|
1,658
|
|
1,539
|
Income tax
payable
|
|
135
|
|
182
|
Provisions
|
|
58
|
|
69
|
|
|
1,914
|
|
1,887
|
TOTAL
LIABILITIES
|
|
10,445
|
|
12,358
|
TOTAL EQUITY and
LIABILITIES
|
|
9,298
|
|
10,290
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
|
Year ended
December 31,
|
|
|
2017
|
|
2016
|
|
|
€m
|
|
€m
|
Cash flows from
operating activities
|
|
|
|
|
Cash generated from
operations
|
|
1,330
|
|
1,109
|
Interest paid —
excluding cumulative PIK interest paid
|
|
(406)
|
|
(372)
|
Cumulative PIK
interest paid
|
|
—
|
|
(184)
|
Income tax
paid
|
|
(90)
|
|
(84)
|
Net cash from
operating activities
|
|
834
|
|
469
|
Cash flows from
investing activities
|
|
|
|
|
Purchase of business,
net of cash acquired
|
|
—
|
|
(2,685)
|
Purchase of property,
plant and equipment
|
|
(422)
|
|
(310)
|
Purchase of
intangible assets
|
|
(19)
|
|
(12)
|
Proceeds from
disposal of property, plant and equipment
|
|
5
|
|
4
|
Net cash used
in investing activities
|
|
(436)
|
|
(3,003)
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
borrowings
|
|
3,497
|
|
3,950
|
Repayment of
borrowings
|
|
(4,061)
|
|
(2,322)
|
Proceeds from
borrowings with related party
|
|
—
|
|
673
|
Proceeds from share
issuance
|
|
306
|
|
6
|
Contribution from
parent
|
|
—
|
|
431
|
Repayment of
borrowings issued to related party
|
|
—
|
|
404
|
Dividends
paid
|
|
(148)
|
|
(270)
|
Early redemption
premium paid
|
|
(85)
|
|
(108)
|
Deferred debt issue
costs paid
|
|
(35)
|
|
(60)
|
Proceeds from the
termination of derivative financial instruments
|
|
42
|
|
—
|
Net cash
(outflow)/inflow from financing activities
|
|
(484)
|
|
2,704
|
Net
(decrease)/increase in cash and cash equivalents
|
|
(86)
|
|
170
|
Cash and cash
equivalents at the beginning of the year
|
|
772
|
|
553
|
Exchange
(losses)/gains on cash and cash equivalents
|
|
(32)
|
|
49
|
Cash and cash
equivalents at the end of the year
|
|
654
|
|
772
|
Financial assets
and liabilities
|
|
At December 31, 2017,
the Group's net debt and available liquidity is 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
|
|
750
|
|
—
|
4.625% Senior Secured
Notes
|
|
USD
|
|
1,000
|
|
15-May-23
|
|
Bullet
|
|
1,000
|
|
834
|
|
—
|
4.125% Senior Secured
Notes
|
|
EUR
|
|
440
|
|
15-May-23
|
|
Bullet
|
|
440
|
|
440
|
|
—
|
4.250% Senior Secured
Notes
|
|
USD
|
|
715
|
|
15-Sep-22
|
|
Bullet
|
|
715
|
|
596
|
|
—
|
4.750% Senior
Notes
|
|
GBP
|
|
400
|
|
15-Jul-27
|
|
Bullet
|
|
400
|
|
451
|
|
—
|
6.000% Senior
Notes
|
|
USD
|
|
1,700
|
|
15-Feb-25
|
|
Bullet
|
|
1,700
|
|
1,414
|
|
—
|
7.250% Senior
Notes
|
|
USD
|
|
1,650
|
|
15-May-24
|
|
Bullet
|
|
1,650
|
|
1,376
|
|
—
|
6.750% Senior
Notes
|
|
EUR
|
|
750
|
|
15-May-24
|
|
Bullet
|
|
750
|
|
750
|
|
—
|
6.000% Senior
Notes
|
|
USD
|
|
440
|
|
30-Jun-21
|
|
Bullet
|
|
440
|
|
367
|
|
—
|
Global Asset Based
Loan Facility
|
|
USD
|
|
813
|
|
07-Dec-22
|
|
Revolving
|
|
—
|
|
—
|
|
678
|
Finance Lease
Obligations
|
|
GBP/EUR
|
|
|
|
|
|
Amortizing
|
|
7
|
|
7
|
|
—
|
Other
borrowings/credit lines
|
|
EUR
|
|
4
|
|
Rolling
|
|
Amortizing
|
|
3
|
|
3
|
|
1
|
Total borrowings /
undrawn facilities
|
|
|
|
|
|
|
|
|
|
|
|
6,988
|
|
679
|
Deferred debt issue
costs and bond premium
|
|
|
|
|
|
|
|
|
|
|
|
(60)
|
|
—
|
Net borrowings /
undrawn facilities
|
|
|
|
|
|
|
|
|
|
|
|
6,928
|
|
679
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
|
(654)
|
|
654
|
Derivative financial
instruments used to
hedge foreign currency and interest rate risk
|
|
|
|
|
|
|
|
|
|
|
|
251
|
|
—
|
Net debt /
available liquidity
|
|
|
|
|
|
|
|
|
|
|
|
6,525
|
|
1,333
|
Reconciliation of
profit/(loss) for the period to Adjusted profit
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
Profit/(loss) for
the period
|
|
30
|
|
(6)
|
|
54
|
|
(67)
|
Total exceptional
items 7
|
|
86
|
|
33
|
|
251
|
|
218
|
Tax credit associated
with exceptional items 8
|
|
(89)
|
|
(17)
|
|
(122)
|
|
(43)
|
Intangible
amortization
|
|
57
|
|
77
|
|
235
|
|
173
|
Tax credit associated
with intangible amortization
|
|
(16)
|
|
(22)
|
|
(67)
|
|
(52)
|
Loss on derivative
financial instruments
|
|
5
|
|
—
|
|
24
|
|
—
|
Adjusted profit
for the period
|
|
73
|
|
65
|
|
375
|
|
229
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares
|
|
236.3
|
|
202.0
|
|
229.6
|
|
202.0
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share (€)
|
|
0.13
|
|
(0.03)
|
|
0.24
|
|
(0.33)
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share (€)
|
|
0.31
|
|
0.32
|
|
1.63
|
|
1.13
|
|
|
Reconciliation of
profit/(loss) for the period to Adjusted EBITDA, cash generated
from operations, operating cash flow and Adjusted free cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
€m
|
|
€m
|
|
€m
|
|
€m
|
Profit/(loss) for
the period
|
|
30
|
|
(6)
|
|
54
|
|
(67)
|
Income tax
(credit)/charge
|
|
(95)
|
|
(6)
|
|
(35)
|
|
50
|
Net finance
expense
|
|
111
|
|
121
|
|
582
|
|
537
|
Depreciation and
amortization
|
|
153
|
|
172
|
|
611
|
|
507
|
Exceptional operating
items
|
|
86
|
|
25
|
|
128
|
|
131
|
Adjusted
EBITDA
|
|
285
|
|
306
|
|
1,340
|
|
1,158
|
Movement in working
capital
|
|
225
|
|
251
|
|
64
|
|
120
|
Acquisition-related,
IPO, start-up and other exceptional
costs paid
|
|
(20)
|
|
(53)
|
|
(65)
|
|
(159)
|
Exceptional
restructuring paid
|
|
(3)
|
|
(1)
|
|
(9)
|
|
(10)
|
Cash generated
from operations
|
|
487
|
|
503
|
|
1,330
|
|
1,109
|
Acquisition-related,
IPO, start-up and other exceptional
costs paid
|
|
20
|
|
53
|
|
65
|
|
159
|
Capital
expenditure
|
|
(134)
|
|
(118)
|
|
(436)
|
|
(318)
|
Operating cash
flow
|
|
373
|
|
438
|
|
959
|
|
950
|
Interest
9
|
|
(124)
|
|
(112)
|
|
(404)
|
|
(347)
|
Income tax
|
|
(32)
|
|
(39)
|
|
(90)
|
|
(84)
|
Adjusted free cash
flow
|
|
217
|
|
287
|
|
465
|
|
519
|
1
|
A reconciliation to
the most comparable GAAP measures can be found in the tables at the
back of this release
|
2
|
2016 reflects Adjusted EBITDA
on a pro forma basis, including twelve months Adjusted EBITDA for
the Beverage Can Business.
|
3
|
Dividend declared on February
08, 2018. Payable on March 13, 2018 to shareholders of record on
February 27, 2018.
|
4
|
A reconciliation to
the most comparable GAAP measures can be found in the tables 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.
|
6
|
2016 reflects Adjusted EBITDA
on a pro forma basis, including twelve months Adjusted EBITDA for
the Beverage Can Business.
|
7
|
Total exceptional items for the
three months ended December 31, 2017 include €46 million asset
impairment charges in Glass Packaging North America and Metal
Packaging Europe, €20 million capacity realignment and
restructuring costs in Metal Packaging Europe and €15 million costs
directly attributable to the acquisition and integration of the
Beverage Can Business and IPO and other transaction related
costs. Total exceptional items for the year ended December
31, 2017 include €123 million debt refinancing and settlement
costs, €46 million asset impairment charges as noted above, €43
million costs directly attributable to the acquisition and
integration of the Beverage Can Business and IPO and other
transaction related costs and €32 million capacity realignment and
restructuring costs in Metal Packaging Europe.
|
8
|
The three months and
year ended December 31, 2017 includes a €68 million one-time
non-cash benefit on re-measurement of the Groups's deferred tax
positions, following the enactment of the Tax Cuts and Jobs Act of
2017 signed into US law on December 22, 2017.
|
9
|
Interest paid in the
year ended December 31, 2017, excludes €2 million of interest paid
in lieu of notice, relating to the 6.750% Senior Notes due 2021.
Interest paid in the year ended December 31, 2016, excludes: (i)
€15 million in respect of notes held in escrow for the period
between their issuance and the completion of the acquisition of the
Beverage Can Business, (ii) €10 million of interest, paid in lieu
of notice, relating to the 9.250% and 9.125% Senior Notes due 2020
repaid in full in May 2016 and (iii) cumulative PIK interest paid
of €184 million.
|
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SOURCE Ardagh Group S.A.