Ardagh Group has reported a revenue of $2.39bn for the third quarter ended 30 September 2018, compared to $2.31bn for the same period last year.
Image: Ardagh's revenue increases 3% to $2.39bn in Q3. Photo: courtesy of Ardagh Group.
Ardagh Group chairman and chief executive Paul Coulson said: “In a period marked by high levels of cost inflation, third quarter earnings reflected strong growth in Metal Packaging Americas, with all parts of that business performing very well. In Europe, we recorded good growth in glass packaging during the quarter, while our metal packaging business was adversely impacted by a weak food harvest.
“In Glass Packaging North America, our footprint adjustments and other initiatives to rebuild profitability continued against a challenging market backdrop. We remain focused on cash generation and de-leveraging over the final quarter and into 2019.”
Group
Revenue of $2,390 million for the quarter ended September 30, 2018 represented an increase of 3%, compared with the same period last year. The increase in revenue reflected the pass through of increased input costs and favorable volume/mix growth of 1%, partly offset by IFRS 15 effects. Third quarter Adjusted EBITDA of $400 million decreased by 9%, compared with the same period last year. Strong growth in Metal Packaging Americas and continued strength in Glass Packaging Europe were offset by lower earnings in Glass Packaging North America and Metal Packaging Europe.
Metal Packaging Europe
Revenue of $952 million increased by 1% in the three-month period ended September 30, 2018, compared with the same period last year. The increase principally reflected the pass through of higher input costs and marginally favorable volume/mix growth, partly offset by IFRS 15 effects. Adjusted EBITDA for the quarter of $151 million decreased by 17%, compared with same period last year. This decrease reflected a weak food harvest as well as increased costs compared with the third quarter of 2017, which included a pension-related credit of $10 million.
Metal Packaging Americas
Revenue increased by 14% to $585 million in the third quarter of 2018, compared with the same period last year. The increase was attributable to favorable volume/mix effects and the pass through of higher input costs. Adjusted EBITDA of $79 million increased by 5% compared with the same period last year, reflecting favorable volume/mix effects and ongoing cost reductions, partly offset by higher input costs.
Glass Packaging Europe
Revenue of $420 million increased by 1% at constant currency rates, in the three-month period ended September 30, 2018, compared with the same period last year. Revenue growth principally reflected favorable glass packaging volume/mix effects and the pass through of higher input costs, partly offset by lower glass engineering activity. Adjusted EBITDA for the quarter of $103 million was unchanged at constant exchange rates, compared with the same period last year.
Glass Packaging North America
Revenue decreased by 3% to $433 million in the third quarter, compared with the same period last year, principally reflecting lower volumes. Adjusted EBITDA decreased by 16% to $67 million in the third quarter, compared with the same period in 2017, mainly as a result of lower volume/mix effects, as well as higher freight and logistics costs and the cost of planned production downtime.
Source: Company Press Release.