LUXEMBOURG, Feb. 20, 2020 /PRNewswire/ -- Ardagh Group S.A.
(NYSE: ARD) today announced its results for the fourth quarter and
year ended December 31, 2019.
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December 31,
2019
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December 31,
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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Full
Year
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Revenue
(1)
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6,660
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6,676
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-
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2%
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Adjusted EBITDA
(1)
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1,173
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1,115
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5%
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8%
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Adjusted EBITDA
margin (1)
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17.6%
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16.7%
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+90 bps
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+90 bps
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Adjusted earnings per
share - Group (1)
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1.82
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1.69
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8%
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10%
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Earnings/(loss) per
share - Group
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6.17
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(0.40)
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Fourth
Quarter
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Revenue
(1)
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1,581
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1,589
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(1%)
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1%
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Adjusted EBITDA
(1)
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267
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255
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5%
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6%
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Adjusted EBITDA
margin (1)
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16.9%
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16.0%
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+90 bps
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+80 bps
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Adjusted earnings per
share - Group (1)
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0.39
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0.33
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18%
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22%
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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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Net debt to LTM
Adjusted EBITDA
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4.5x
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5.0x
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Paul Coulson, Chairman and Chief
Executive, said "2019 was a year of significant progress for the
Group. Metal Packaging demand was strong, notably in the Americas,
and global beverage can shipments increased by 5%. Glass Packaging
Europe delivered another excellent year of growth, while Glass
Packaging North America successfully stabilized earnings. The
sustainability-driven demand backdrop for our infinitely-recyclable
products remains favorable and we look to further progress in
2020."
- Revenue from Continuing Operations increased by 2% at constant
currency, to $6.7 billion for the
year;
- Adjusted EBITDA from Continuing Operations increased by 8% at
constant currency, to $1,173
million;
- Adjusted earnings per share increased by 10% at constant
currency to $1.82 (2018: $1.69);
- Earnings per share of $6.17 for
the year (2018: Loss per share of $0.40);
- Fourth quarter revenue and Adjusted EBITDA growth of 1% and 6%
respectively at constant currency;
- Global beverage can shipments growth of 4% for the quarter and
5% for the year, with full year specialty can growth of 6%;
- Glass Packaging revenue and Adjusted EBITDA growth of 2% and
20% respectively at constant currency in the quarter, reflecting
continued strong delivery in Europe and stabilization in North America;
- Food & Specialty Packaging divestment completed in
October 2019, with proceeds used to
repay debt;
- Leverage reduced to 4.5x at year end, with further maturity and
interest rate savings achieved during the year;
- 2020 outlook: Adjusted EBITDA of approximately $1.2 billion; Adjusted free cash flow of
$375 - $400
million, before Business Growth Investments of approximately
$250 million; Adjusted earnings per
share of $1.48 - $1.64 (3); First quarter Adjusted
EBITDA of approximately $270
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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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
(4)
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1,581
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1,589
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6,660
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6,676
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Adjusted EBITDA
(4)
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267
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255
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1,173
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1,115
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Adjusted EBITDA
margin (4)
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16.9%
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16.0%
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17.6%
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16.7%
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Operating cash flow
(4)
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399
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359
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687
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616
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Profit/(loss) for the
period - Group
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1,405
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(144)
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1,458
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(94)
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Adjusted profit for
the period - Group (4)
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92
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78
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431
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400
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Earnings/(loss) per
share - Group
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5.94
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(0.61)
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6.17
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(0.40)
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Adjusted earnings per
share - Group (4)
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0.39
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0.33
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1.82
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1.69
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At December
31,
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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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5,328
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7,462
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Cash and available
liquidity
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1,278
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1,170
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Net debt to LTM
Adjusted EBITDA (6)
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4.5x
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5.0x
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Financial
Performance Review
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Bridge of 2018 to
2019 Revenue and Adjusted EBITDA – Continuing
Operations
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Three months ended
December 31, 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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Continuing
Operations
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$'m
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$'m
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$'m
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$'m
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$'m
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Revenue
2018
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379
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432
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387
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391
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1,589
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Organic
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(25)
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25
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21
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(3)
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18
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FX
translation
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(13)
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—
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(13)
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—
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(26)
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Revenue
2019
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341
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457
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395
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388
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1,581
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Adjusted
EBITDA
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Metal
Beverage
Packaging
Europe
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Metal
Beverage
Packaging
Americas
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Glass
Packaging
Europe
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Glass
Packaging
North
America
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Continuing
Operations
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$'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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Adjusted EBITDA
2018
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53
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69
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84
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49
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255
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Organic
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(11)
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(6)
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9
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(2)
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(10)
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IFRS 16
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3
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3
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8
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11
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25
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FX
translation
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(1)
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—
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(2)
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—
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(3)
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Adjusted EBITDA
2019
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44
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66
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99
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58
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267
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2019
margin
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12.9%
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14.4%
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25.1%
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14.9%
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16.9%
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2018
margin
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14.0%
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16.0%
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21.7%
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12.5%
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16.0%
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Year ended
December 31, 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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Continuing
Operations
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$'m
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$'m
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$'m
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$'m
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$'m
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Revenue
2018
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1,616
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1,742
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1,623
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1,695
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6,676
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Organic
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26
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74
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77
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(20)
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157
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FX
translation
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(86)
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—
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(87)
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—
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(173)
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Revenue
2019
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1,556
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1,816
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1,613
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1,675
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6,660
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Adjusted
EBITDA
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Metal
Beverage
Packaging
Europe
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Metal
Beverage
Packaging
Americas
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|
Glass
Packaging
Europe
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Glass
Packaging
North
America
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Continuing
Operations
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$'m
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$'m
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$'m
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$'m
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$'m
|
Adjusted EBITDA
2018
|
|
270
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|
230
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|
358
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257
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1,115
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Organic
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(18)
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11
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28
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(14)
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7
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IFRS 16
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14
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|
9
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|
24
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36
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|
83
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FX
translation
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(13)
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—
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|
(19)
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—
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(32)
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Adjusted EBITDA
2019
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|
253
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|
250
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|
391
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279
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1,173
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2019
margin
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16.3%
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13.8%
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24.2%
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16.7%
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17.6%
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2018
margin
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16.7%
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13.2%
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22.1%
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15.2%
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16.7%
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Group Performance
On October 31, 2019, the Group
completed the combination of its Food & Specialty Metal
Packaging business, operating as part of the Metal Packaging Europe
and Metal Packaging Americas segments, with the business of Exal,
to form Trivium Packaging, a global leader in metal packaging. The
Group holds a stake of approximately 42% in Trivium. As a result of
the completion of the transaction, the composition of the Group's
operating and reporting segments changed. The Food & Specialty
Metal Packaging business has been reported as a discontinued
operation.
The following are the Group's four operating and reportable
segments:
- Metal Beverage Packaging Europe
- Metal Beverage Packaging Americas
- Glass Packaging Europe
- Glass Packaging North America
Full year
Continuing Operations
Revenue decreased by $16 million,
to $6,660 million in 2019, compared
with $6,676 million in the year ended
31 December 2018. On a constant
currency basis, revenue increased by 2%, principally due to
volume/mix growth in beverage cans and the pass through of
increased input costs in Glass packaging.
Adjusted EBITDA increased by $58
million, or 5%, to $1,173
million in the year ended 31 December
2019. On a constant currency basis, Adjusted EBITDA
increased by $90 million, or 8%,
principally due to favorable volume/mix effects, lower input costs
and the impact of IFRS 16, partly offset by higher operating
costs.
Fourth Quarter
Continuing Operations
Revenue of $1,581 million for the
quarter ended December 31, 2019
decreased by 1% at actual exchange rates and increased by
$18 million or 1% at constant
currency, compared with the same period last year. The increase in
revenue is driven mainly by favorable volume/mix effects in
Beverage Packaging Americas and higher selling prices in Glass
Packaging, including the pass through of higher input costs.
Adjusted EBITDA increased by $12
million, or 5%, to $267
million in the three months ending December 31, 2019. On a constant currency basis,
Adjusted EBITDA increased by 6%, principally due to favourable
volume mix effects, the impact of IFRS 16, partly offset by higher
operating costs.
Metal Beverage Packaging Europe
Revenue of $341 million decreased
by 10% in the three-month period ended December 31, 2019, compared with the same period
last year. On a constant currency basis, revenue decreased by 7%,
principally due to unfavorable volume/mix effects and lower selling
prices. Adjusted EBITDA for the quarter of $44 million decreased by 17% at actual exchange
rates and 15% at constant currency, compared with the same period
last year. The reduction in Adjusted EBITDA principally reflected
increased operating costs and unfavorable volume/mix effects,
partly offset by the impact of IFRS 16.
Metal Beverage Packaging Americas
Revenue increased by 6% to $457 million in the fourth
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
$66 million decreased by 4% compared
with the particularly strong prior year period, principally
reflecting other operating cost increases, partly offset by
favorable volume/mix effects and the impact of IFRS 16.
Glass Packaging Europe
Revenue for the quarter of $395
million increased by 2% at actual exchange rates and by 5%
at constant currency, compared with the same period last year.
Revenue growth principally reflected increased selling prices,
including to recover increased input costs. Adjusted EBITDA for the
quarter of $99 million increased by 21%, at constant exchange
rates, compared with the same period last year, mainly due to
higher selling prices and the impact of IFRS 16, partly offset by
increased input costs.
Glass Packaging North America
Revenue decreased by 1% to $388 million in the fourth
quarter, compared with the same period last year. This
principally reflected unfavorable volume/mix effects, partly
offset by increased selling prices to recover higher input costs.
Adjusted EBITDA for the quarter of $58 million increased by
18%, compared with the same period last year, mainly due to the
impact of IFRS 16 of $11 million,
increased selling prices reflecting the pass through of higher
input costs and lower freight and logistics costs, partly offset by
unfavorable volume/mix effects.
Financing Activity
On October 31, 2019, the Group
completed the combination of its Food & Specialty Metal
Packaging business, operating as part of the Metal Packaging Europe
and Metal Packaging Americas segments, with the business of Exal,
to form Trivium Packaging, a global leader in metal
packaging.
Following the completion of the combination of its Food &
Specialty business with the business of Exal, on October 31, 2019, the Group issued tender offers,
at par, in respect of its $715
million 4.250% Senior Secured Notes due 2022 ("the 2022
Notes"), €750 million 2.750% Senior Secured Notes due 2024 ("the
2024 Notes"), €440 million 2.125% Senior Secured Notes due 2026
("the 2026 Senior Secured Euro Notes") and $500 million 4.125% Senior Secured Notes due 2026
("the 2026 Senior Secured Euro Notes"). Following the expiration of
the offer on November 28, 2019 notice
was given to repurchase the following amounts, $20 million of the 2022 Notes, €9 million of the
2024 Notes, and €1 million of the 2026 Senior Secured Euro Notes.
On December 2, 2019, in accordance
with the terms of the offer, the redemptions were completed.
On November 14, 2019, the Group
redeemed $1,000 million 4.625% Senior
Secured Notes due 2023 and €440 million 4.125% Senior Secured Notes
due 2023, and paid the applicable redemption premiums and accrued
interest.
On November 29, 2019, the Group
redeemed €750 million 6.750% Senior Notes due 2024 and paid the
applicable redemption premium and accrued interest.
As at December 31, 2019, the Group
had $663 million available under the
Global Asset Based Loan Facility. During 2019, the Group reduced
the facility size from $850 million
to $700 million as a result of the
Trivium transaction.
Earnings Webcast and Conference Call Details
Ardagh Group S.A. (NYSE: ARD) will hold its fourth quarter 2019
earnings webcast and conference call for investors at 3 p.m. GMT (10 a.m.
ET) on February 20, 2020.
Please use the following webcast link to register for this
call:
Webcast registration and access:
https://event.on24.com/wcc/r/2168526/2003269CB850A7C26A442C9150B4952C
Conference call dial in:
United States: +1855 85
70686
International: +44 33 3300 0804
Participant pin code: 97848277#
Slides and annual report
Supplemental slides to accompany this release are available at
http://www.ardaghgroup.com/investors.
The Group's 2019 annual report on Form 20-F is expected to be
filed by March 2020.
The 2019 annual report for ARD Finance S.A., issuer of the
Senior Secured Toggle Notes due 2027, will be published in
March 2020 and 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 $6.7bn.
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
Financial Statements
|
Consolidated
Income Statement for the three months ended December 31,
2019
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
Three months ended
December 31, 2019
|
|
Three months ended
December 31, 2018
|
|
|
Before
|
|
|
|
|
|
|
Before
|
|
|
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
|
items
|
|
Items
|
|
Total
|
|
items
|
|
Items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
1,581
|
|
—
|
|
|
1,581
|
|
1,589
|
|
—
|
|
|
1,589
|
Cost of
sales
|
|
(1,347)
|
|
(4)
|
|
|
(1,351)
|
|
(1,343)
|
|
(9)
|
|
|
(1,352)
|
Gross
profit
|
|
234
|
|
(4)
|
|
|
230
|
|
246
|
|
(9)
|
|
|
237
|
Sales, general and
administration expenses
|
|
(77)
|
|
(9)
|
|
|
(86)
|
|
(82)
|
|
(6)
|
|
|
(88)
|
Intangible
amortization and impairment
|
|
(57)
|
|
—
|
|
|
(57)
|
|
(58)
|
|
(186)
|
|
|
(244)
|
Operating
profit/(loss)
|
|
100
|
|
(13)
|
|
|
87
|
|
106
|
|
(201)
|
|
|
(95)
|
Net finance
expense
|
|
(101)
|
|
(91)
|
|
|
(192)
|
|
(106)
|
|
(2)
|
|
|
(108)
|
Share of post-tax
losses in equity accounted joint venture
|
|
(10)
|
|
(39)
|
|
|
(49)
|
|
—
|
|
—
|
|
|
—
|
Loss before
tax
|
|
(11)
|
|
(143)
|
|
|
(154)
|
|
—
|
|
(203)
|
|
|
(203)
|
Income tax
charge
|
|
(18)
|
|
(31)
|
|
|
(49)
|
|
(41)
|
|
27
|
|
|
(14)
|
Loss from
continuing operations
|
|
(29)
|
|
(174)
|
|
|
(203)
|
|
(41)
|
|
(176)
|
|
|
(217)
|
Profit from
discontinued operation
|
|
71
|
|
1,537
|
|
|
1,608
|
|
77
|
|
(4)
|
|
|
73
|
Profit/(loss) for
the period
|
|
42
|
|
1,363
|
|
|
1,405
|
|
36
|
|
(180)
|
|
|
(144)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
holders
|
|
|
|
|
|
|
1,405
|
|
|
|
|
|
|
(144)
|
Non-controlling
interests
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
Profit/(loss) for
the period
|
|
|
|
|
|
|
1,405
|
|
|
|
|
|
|
(144)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings/(loss) per
share attributable to
equity holders
|
|
|
|
|
|
|
$5.94
|
|
|
|
|
|
|
($0.61)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted loss per share from continuing operations
attributable to equity holders
|
|
|
|
|
|
|
($0.86)
|
|
|
|
|
|
|
($0.92)
|
Consolidated
Income Statement for the twelve months ended December 31,
2019
|
|
|
|
|
|
|
|
Year ended
December 31, 2019
|
|
Year ended
December 31, 2018
|
|
|
Before
|
|
|
|
|
|
|
Before
|
|
|
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
exceptional
|
|
Exceptional
|
|
|
|
|
|
items
|
|
Items
|
|
Total
|
|
items
|
|
Items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
6,660
|
|
—
|
|
|
6,660
|
|
6,676
|
|
—
|
|
|
6,676
|
Cost of
sales
|
|
(5,595)
|
|
(2)
|
|
|
(5,597)
|
|
(5,623)
|
|
(108)
|
|
|
(5,731)
|
Gross
profit
|
|
1,065
|
|
(2)
|
|
|
1,063
|
|
1,053
|
|
(108)
|
|
|
945
|
Sales, general and
administration expenses
|
|
(311)
|
|
(51)
|
|
|
(362)
|
|
(300)
|
|
(17)
|
|
|
(317)
|
Intangible
amortization
|
|
(233)
|
|
—
|
|
|
(233)
|
|
(237)
|
|
(186)
|
|
|
(423)
|
Operating
profit
|
|
521
|
|
(53)
|
|
|
468
|
|
516
|
|
(311)
|
|
|
205
|
Net finance
expense
|
|
(456)
|
|
(203)
|
|
|
(659)
|
|
(457)
|
|
(22)
|
|
|
(479)
|
Share of post-tax
loss in equity accounted joint venture
|
|
(10)
|
|
(39)
|
|
|
(49)
|
|
—
|
|
—
|
|
|
—
|
Loss before
tax
|
|
55
|
|
(295)
|
|
|
(240)
|
|
59
|
|
(333)
|
|
|
(274)
|
Income tax
charge
|
|
(41)
|
|
(3)
|
|
|
(44)
|
|
(67)
|
|
49
|
|
|
(18)
|
Loss from
continuing operations
|
|
14
|
|
(298)
|
|
|
(284)
|
|
(8)
|
|
(284)
|
|
|
(292)
|
Profit from
discontinued operation
|
|
215
|
|
1,527
|
|
|
1,742
|
|
211
|
|
(13)
|
|
|
198
|
Profit/(loss) for
the year
|
|
229
|
|
1,229
|
|
|
1,458
|
|
203
|
|
(297)
|
|
|
(94)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
holders
|
|
|
|
|
|
|
1,458
|
|
|
|
|
|
|
(94)
|
Non-controlling
interests
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
Profit/(loss) for
the period
|
|
|
|
|
|
|
1,458
|
|
|
|
|
|
|
(94)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings/(loss) per share attributable to
equity holders
|
|
|
|
|
|
|
$6.17
|
|
|
|
|
|
|
($0.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted loss per share from continuing operations
attributable to equity holders
|
|
|
|
|
|
|
($1.20)
|
|
|
|
|
|
|
($1.24)
|
Consolidated
Statement of Financial Position
|
|
|
|
|
|
At December
31,
|
|
At December
31,
|
|
2019
|
|
2018
|
|
$'m
|
|
$'m
|
|
|
|
|
Non-current
assets
|
|
|
|
Intangible
assets
|
2,884
|
|
3,601
|
Property, plant and
equipment
|
2,677
|
|
3,388
|
Derivative financial
instruments
|
4
|
|
11
|
Deferred tax
assets
|
204
|
|
254
|
Investment in
material joint venture
|
375
|
|
—
|
Other non-current
assets
|
68
|
|
24
|
|
6,212
|
|
7,278
|
Current
assets
|
|
|
|
Inventories
|
964
|
|
1,284
|
Trade and other
receivables
|
734
|
|
1,053
|
Contract
assets
|
151
|
|
160
|
Derivative financial
instruments
|
3
|
|
9
|
Cash and cash
equivalents
|
614
|
|
530
|
|
2,466
|
|
3,036
|
TOTAL
ASSETS
|
8,678
|
|
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
|
165
|
|
45
|
Retained
earnings
|
(2,181)
|
|
(3,355)
|
|
(216)
|
|
(1,510)
|
Non-controlling
interests
|
1
|
|
1
|
TOTAL
EQUITY
|
(215)
|
|
(1,509)
|
Non-current
liabilities
|
|
|
|
Borrowings
|
5,524
|
|
7,729
|
Lease
obligations
|
291
|
|
32
|
Employee benefit
obligations
|
716
|
|
957
|
Derivative financial
instruments
|
44
|
|
107
|
Deferred tax
liabilities
|
344
|
|
543
|
Provisions
|
29
|
|
38
|
|
6,948
|
|
9,406
|
Current
liabilities
|
|
|
|
Borrowings
|
22
|
|
114
|
Lease
obligations
|
73
|
|
4
|
Interest
payable
|
60
|
|
81
|
Derivative financial
instruments
|
17
|
|
38
|
Trade and other
payables
|
1,628
|
|
1,983
|
Income tax
payable
|
97
|
|
114
|
Provisions
|
48
|
|
83
|
|
1,945
|
|
2,417
|
TOTAL
LIABILITIES
|
8,893
|
|
11,823
|
TOTAL EQUITY and
LIABILITIES
|
8,678
|
|
10,314
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
Year ended December
31,
|
|
|
2019
|
|
2018
|
|
|
$'m
|
|
$'m
|
Cash flows from
operating activities
|
|
|
|
|
Cash generated from
continuing operations
|
|
1,179
|
|
991
|
Interest paid
(7)
|
|
(417)
|
|
(414)
|
Income tax paid
(7)
|
|
(64)
|
|
(97)
|
Net cash from
operating activities - continuing operations
|
|
698
|
|
480
|
Net cash from
operating activities - discontinued operation
|
|
141
|
|
375
|
Net cash from
operating activities
|
|
839
|
|
855
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(498)
|
|
(465)
|
Purchase of
intangible assets
|
|
(10)
|
|
(12)
|
Proceeds from
disposal of property, plant and equipment
|
|
3
|
|
10
|
Investing cash
flows used in continuing operations
|
|
(505)
|
|
(467)
|
Proceeds from
disposal of discontinued operation, net of cash disposed
of
|
|
2,539
|
|
—
|
Investing cash flows
used in discontinued operation
|
|
(107)
|
|
(108)
|
Net cash
from/(used in) investing activities
|
|
1,927
|
|
(575)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Repayment of
borrowings
|
|
(4,088)
|
|
(442)
|
Proceeds from
borrowings
|
|
1,806
|
|
110
|
Dividends
paid
|
|
(132)
|
|
(132)
|
Consideration
received/(paid) on extinguishment of derivative financial
instruments
|
|
9
|
|
(44)
|
Deferred debt issue
costs paid
|
|
(14)
|
|
(5)
|
Lease
payments
|
|
(78)
|
|
(4)
|
Early redemption
premium paid
|
|
(165)
|
|
(7)
|
Financing cash
flows from continuing operations
|
|
(2,662)
|
|
(524)
|
Financing cash flows
from discontinued operation
|
|
—
|
|
3
|
Net cash
outflow from financing activities
|
|
(2,662)
|
|
(521)
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
|
104
|
|
(241)
|
Cash and cash
equivalents at the beginning of the year
|
|
530
|
|
784
|
Foreign exchange
losses on cash and cash equivalents
|
|
(20)
|
|
(13)
|
Cash and cash
equivalents at the end of the year
|
|
614
|
|
530
|
Financial assets
and liabilities
|
|
At December 31, 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
|
|
|
|
|
|
|
|
|
currency
|
|
|
|
|
|
currency
|
|
$'m
|
|
$'m
|
|
|
|
|
m
|
|
|
|
|
|
m
|
|
|
|
|
2.750% Senior Secured
Notes
|
|
EUR
|
|
741
|
|
15-Mar-24
|
|
Bullet
|
|
741
|
|
832
|
|
–
|
4.250% Senior Secured
Notes
|
|
USD
|
|
695
|
|
15-Sep-22
|
|
Bullet
|
|
695
|
|
695
|
|
–
|
2.125% Senior Secured
Notes
|
|
EUR
|
|
439
|
|
15-Aug-26
|
|
Bullet
|
|
439
|
|
493
|
|
–
|
4.125% Senior Secured
Notes
|
|
USD
|
|
500
|
|
15-Aug-26
|
|
Bullet
|
|
500
|
|
500
|
|
–
|
4.750% Senior
Notes
|
|
GBP
|
|
400
|
|
15-Jul-27
|
|
Bullet
|
|
400
|
|
528
|
|
–
|
6.000% Senior
Notes
|
|
USD
|
|
1,700
|
|
15-Feb-25
|
|
Bullet
|
|
1,700
|
|
1,708
|
|
–
|
5.250% Senior
Notes
|
|
USD
|
|
800
|
|
15-Aug-27
|
|
Bullet
|
|
800
|
|
800
|
|
–
|
Global Asset Based
Loan Facility
|
|
USD
|
|
663
|
|
07-Dec-22
|
|
Revolving
|
|
–
|
|
–
|
|
663
|
Lease
obligations
|
|
Various
|
|
–
|
|
|
|
Amortizing
|
|
–
|
|
364
|
|
–
|
Other
borrowings/credit lines
|
|
EUR/USD
|
|
–
|
|
Rolling
|
|
Amortizing
|
|
–
|
|
22
|
|
1
|
Total borrowings /
undrawn facilities
|
|
|
|
|
|
|
|
|
|
|
|
5,942
|
|
664
|
Deferred debt issue
costs and bond premium
|
|
|
|
|
|
|
|
|
|
|
|
(32)
|
|
–
|
Net borrowings /
undrawn facilities
|
|
|
|
|
|
|
|
|
|
|
|
5,910
|
|
664
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
|
(614)
|
|
614
|
Derivative financial
instruments used to hedge
foreign currency and interest rate risk
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
–
|
Net debt /
available liquidity
|
|
|
|
|
|
|
|
|
|
|
|
5,328
|
|
1,278
|
Reconciliation of
profit/(loss) for the period to Adjusted profit -
Group
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Profit/(loss) for
the period - Group
|
|
1,405
|
|
(144)
|
|
1,458
|
|
(94)
|
Total exceptional
items (8)
|
|
(1,382)
|
|
209
|
|
(1,215)
|
|
351
|
Tax credit/(charge)
associated with exceptional items (8)
|
|
19
|
|
(29)
|
|
(14)
|
|
(54)
|
Intangible
amortization
|
|
57
|
|
65
|
|
249
|
|
265
|
Tax credit associated
with intangible amortization
|
|
(12)
|
|
(13)
|
|
(56)
|
|
(58)
|
Gains/(loss) on
derivative financial instruments
|
|
5
|
|
(10)
|
|
9
|
|
(10)
|
Adjusted profit
for the period - Group
|
|
92
|
|
78
|
|
431
|
|
400
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
236.36
|
|
236.35
|
|
236.36
|
|
236.35
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share
|
|
5.94
|
|
(0.61)
|
|
6.17
|
|
(0.40)
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share
|
|
0.39
|
|
0.33
|
|
1.82
|
|
1.69
|
Reconciliation of
loss for the period from Continuing Operations to Adjusted EBITDA,
cash
generated from operations, operating cash flow and Adjusted free
cash flow
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Loss from
continuing operations
|
|
(203)
|
|
(217)
|
|
(284)
|
|
(292)
|
Income tax
charge
|
|
49
|
|
14
|
|
44
|
|
18
|
Net finance
expense
|
|
192
|
|
108
|
|
659
|
|
479
|
Depreciation and
amortization
|
|
167
|
|
149
|
|
652
|
|
599
|
Exceptional operating
items
|
|
13
|
|
201
|
|
53
|
|
311
|
Share of post-tax
loss in equity accounted joint venture
|
|
49
|
|
—
|
|
49
|
|
—
|
Adjusted EBITDA
from continuing operations
|
|
267
|
|
255
|
|
1,173
|
|
1,115
|
Movement in working
capital
|
|
257
|
|
212
|
|
105
|
|
(9)
|
Transaction-related,
start-up and other exceptional costs paid
|
|
(59)
|
|
(22)
|
|
(87)
|
|
(92)
|
Exceptional
restructuring paid
|
|
(3)
|
|
(3)
|
|
(12)
|
|
(23)
|
Cash generated
from continuing operations
|
|
462
|
|
442
|
|
1,179
|
|
991
|
Transaction-related,
start-up and other exceptional costs paid
|
|
59
|
|
22
|
|
87
|
|
92
|
Capital expenditure
(9)
|
|
(101)
|
|
(105)
|
|
(505)
|
|
(467)
|
Lease payments due to
the adoption of IFRS 16
|
|
(21)
|
|
—
|
|
(74)
|
|
—
|
Operating cash
flow from continuing operations
|
|
399
|
|
359
|
|
687
|
|
616
|
Operating cash flow
from discontinued operation
|
|
(25)
|
|
169
|
|
51
|
|
267
|
Operating cashflow
- Group (10)
|
|
374
|
|
528
|
|
738
|
|
883
|
Interest
(11)
|
|
(82)
|
|
(135)
|
|
(411)
|
|
(414)
|
Income tax
paid
|
|
(26)
|
|
(40)
|
|
(79)
|
|
(105)
|
Adjusted free cash
flow - Group (10)
|
|
266
|
|
353
|
|
248
|
|
364
|
________________________
(1). Continuing
Operations results unless stated otherwise. 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 April
1, 2020 to shareholders of record on March 18, 2020.
|
|
(3). 2020 Adjusted
EPS outlook excludes contribution from joint venture.
|
|
(4). Continuing
Operations results unless stated otherwise. 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 December 31, 2019 includes
IFRS 16 leases.
|
|
(6). Net debt to LTM
Adjusted EBITDA, at December 31, 2018, reflects the LTM Adjusted
EBITDA for the Group, inclusive of the Food & Specialty
business EBITDA of $363 million.
|
|
(7). Operating cash
flows for discontinued operation for the year ended December 31,
2019, include interest and income tax payments of $6 million and
$15 million respectively (2018: $2 million and $8
million).
|
|
(8).Total exceptional
items before tax for the year ending December 31, 2019 of $1,215
million include $200 million debt refinancing and settlement costs
related to the notes repaid in August, November and December 2019
including premium payable on the early redemption of the notes of
$165 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 year ending December
31, 2019 also include a $37 million pension service credit and a
$15 million provision for a court award and related interest, net
of the tax adjusted indemnity receivable in respect of the legal
matter, recognized in Glass Packaging North America and $51 million
transaction-related costs, primarily related to the combination of
the Group's Food & Specialty Metal Packaging business with the
business of Exal Corporation. Exceptional items of $1,527 million
related to discontinued operation primarily relate to the gain
recognised on divestment of the Group's Food & Specialty Metal
Packaging business. $24 million relates to the Group's capacity
realignment programs comprising start-up related costs ($13
million), restructuring costs ($6 million) and property, plant and
equipment impairment charges ($5 million). These costs were
incurred in Glass Packaging North America ($15 million), Glass
Packaging Europe ($5 million), Metal Beverage Packaging Americas
($2 million) and Metal Beverage Packaging Europe ($2
million).
|
|
(9). Capital
expenditure for the three and twelve months ended December 31,
2019, includes $20 million and $75 million respectively, relating
to spend on short payback projects in continuing
operations.
|
|
(10). Operating cash
flow – Group and Adjusted Free cash flow – Group results for both
the three months and year end December 31, 2019 reflect that the
Group divested the Food & Specialty business as of October 31,
2019. As a result, the associated operating cash flow and free cash
flow, which is typically received in the final months of the year,
principally due to seasonality, in the Food & Specialty
business, was not received by the Group in respect of November or
December 2019, however the Group was compensated in this regard
through the transaction consideration.
|
|
(11). Interest paid
in the year ended December 31, 2019, excludes $12 million in
respect of the redemption, in August 2019, of the Group's $1,650
million 7.250% Senior Notes due 2024 and redemptions, in November
2019, of the Group's $1,000 million 4.625% Senior Secured Notes due
2023, €440 million 4.125% Senior Secured Notes due 2023 and €750
million 6.750% Senior Notes due 2024, related to the interest
payable from the date the Notes were called for redemption to the
redemption date.
|
|
Interest paid in the
year ended December 31, 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.
|
View original
content:http://www.prnewswire.com/news-releases/ardagh-group-sa--fourth-quarter-and-full-year-2019-results-301008332.html
SOURCE Ardagh Group S.A.