Ardagh Group, a provider of metal and glass packaging solutions, has reported revenue of $2.34bn for the second quarter ended 30 June 2018, compared to $2.21bn for the same period in 2017.
Image: Ardagh Group has reported financial results for the second quarter of 2018. Photo: courtesy of Ardagh Group S.A.
Ardagh Group chairman and chief executive Paul Coulson said: “Second quarter results reflected good performances in three of our four divisions. This was offset by a reduction in Glass Packaging North America, where multiple initiatives to improve profitability are expected to deliver benefits on a more gradual basis than previously expected.”
Revenue of $2,347 million increased by 6% and 1% on a reported and constant currency basis respectively;
Adjusted EBITDA of $392 million, declined by 6%, primarily driven by Glass Packaging North America;
Group volume/mix declined by 1% in the quarter and increased by 1% in the half year to June 30;
Earnings per share growth of 79% to $0.25 (2017: $0.14);
Adjusted earnings per share declined by 6% to $0.51 (2017: $0.54);
Quarterly cash dividend of $0.14 per common share, payable on August 31, 2018;
Investment projects at Rugby, UK and Manaus, Brazil, completed on schedule during the quarter;
$440 million 2021 Senior Notes called for redemption in July, $1.2 billion of cash/liquidity used to repay fixed term debt since January 2017;
No debt maturing before September 2022, over 90% of gross debt at fixed rates;
2018 outlook: Full year Adjusted EBITDA of approximately $1.5 billion, with Adjusted free cash flow of approximately $500 million4 and Adjusted earnings per share of $1.70 – $1.80.
Group
Revenue of $2,347 million for the quarter ended June 30, 2018 represented an increase of 6% and 1% at actual and constant currency exchange rates respectively, compared with the same period last year.
The increase in revenue reflected favorable currency translation effects of $113 million and the pass through of increased input costs, partly offset by a volume/mix reduction of 1%. Second quarter Adjusted EBITDA of $392 million decreased by 6% at actual exchange rates, compared with the same period last year. On a constant currency basis, Adjusted EBITDA decreased by 10%, reflecting a lower outturn in Glass Packaging North America.
Metal Packaging Europe
Revenue of $929 million, increased by 8% at actual exchange rates but decreased by 1% at constant exchange rates, in the three-month period ended June 30, 2018, compared with the same period last year. The increase reflected favorable currency translation effects of $80 million and the pass through of higher input costs, partly offset by unfavorable volume/mix effects.
Adjusted EBITDA for the quarter of $157 million increased by 7% compared with the same period last year, as favorable currency translation effects of $13 million and cost savings were partly offset by higher input costs and unfavorable volume/mix effects.
Metal Packaging Americas
Revenue increased by 14% to $541 million in the second quarter of 2018, compared with the same period last year. The increase was due mainly to favorable volume/mix effects and the pass through of higher input costs. Adjusted EBITDA of $74 million was in line with the same period last year, reflecting favorable volume/mix effects and ongoing cost reductions, offset by higher input and other costs.
Glass Packaging Europe
Revenue of $419 million increased by 4% in the three-month period ended June 30, 2018, compared with the same period last year, but decreased by 3% at constant exchange rates. Favorable currency translation effects of $33 million and the pass through of higher input costs were partly offset by lower volume/mix effects, which reflected lower glass engineering sales. Adjusted EBITDA for the quarter increased by 3% to $91 million, compared with the same period last year, as a result of favorable currency translation effects of $7 million, offset by lower volume/mix effects and higher input costs.
Glass Packaging North America
Revenue decreased by 4% to $458 million in the second quarter, compared with the same period last year principally reflecting lower volumes. Adjusted EBITDA decreased by 34% to $70 million in the second quarter, compared with the same period in 2017, mainly as a result of lower volumes, higher freight costs and the cost of planned production downtime.
Financing Activity
On July 9, 2018, the Group announced the redemption in full of its $440 million 6.000% Senior Notes due 2021. The redemption date will be July 31, 2018.
Source: Company Press Release.