LUXEMBOURG, April 29, 2021 /PRNewswire/ -- Ardagh Group
S.A. (NYSE: ARD) today announced its results for the first quarter
ended March 31, 2021.
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
March 31,
2020
|
|
Change
|
|
Constant
Currency
|
|
|
($'m except per
share data)
|
|
|
|
|
Revenue
|
|
1,774
|
|
1,622
|
|
9%
|
|
5%
|
Profit for the
period
|
|
3
|
|
83
|
|
|
|
|
Earnings per
share
|
|
0.01
|
|
0.35
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
300
|
|
273
|
|
10%
|
|
5%
|
Adjusted earnings per
share (1)(2)
|
|
0.37
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend per share
declared (3)
|
|
0.15
cents
|
|
0.15
cents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31,
2021
|
|
At December 31,
2020
|
|
|
|
|
Net debt to LTM
Adjusted EBITDA (4)
|
|
5.0x
|
|
4.9x
|
|
|
|
|
Paul Coulson, Chairman and Chief
Executive, said: "We have made an excellent start to 2021, with
strong earnings growth in Metal Packaging and a robust performance
in Glass Packaging Europe. Our $2.1
billion investment program is fully on track and we are
well-placed to deliver further growth over the course of the
year."
- Revenue increased by 9% to $1,774
million, reflecting increased shipments in both Metal
Packaging and Glass Packaging, the pass through of higher input
costs and favorable currency translation effects.
- Metal Packaging shipments increased by 8% in the quarter.
Speciality can volumes increased by 16% and represented c.45% of
total shipments.
- Glass Packaging shipments increased by 2%, led by growth in
North America. Shipments in
Europe were in line with the prior
year, despite continuing lockdowns in much of Europe during the quarter.
- Adjusted EBITDA of $300 million
increased by 10% at actual exchange rates and by 5% on a constant
currency basis.
- Metal Packaging Adjusted EBITDA increased by 23%, with growth
of 34% and 12% in the Americas and Europe respectively. Glass Packaging Adjusted
EBITDA decreased by 8%, due to a lower outturn in Glass Packaging
North America, which was impacted by severe weather and higher
operating costs. Glass Packaging Europe Adjusted EBITDA increased
by 9% and was in line with the prior year at constant currency
rates.
- Metal Packaging to list separately on NYSE as Ardagh Metal
Packaging ("AMP"), a pure-play beverage can producer with leading
market positions in the Americas and Europe. On completion of the transaction with
Gores Holdings V Inc., expected in the second quarter of 2021,
Ardagh Group will hold a stake of ~80% in AMP and will receive up
to $3.4 billion in cash.
- Business Growth Investment program progressing on plan, with
two new sleek lines commissioned and ramping up in Olive Branch, Mississippi. First quarter
growth investment spending of $162
million is on track, with multiple other projects under
way.
- Cash and available liquidity of $1.6
billion at March 2021.
- Sustainability agenda further progressed during the quarter,
with advances in implementing our SBTI based emissions reduction
and social sustainability strategies. The Furnace for the Future
project is advancing and, in AMP, a $2.8
billion Green Bond was issued in March.
- Re-iterating 2021 Guidance: Adjusted EBITDA of $1.28 - $1.30
billion in 2021 with end of year reported net leverage of
around 5x LTM Adjusted EBITDA. Second quarter Adjusted EBITDA is
expected to be $325 - $330 million.
Financial
Performance Review Bridge of 2020 to 2021 Revenue and
Adjusted EBITDA Three months ended March 31,
2021
|
|
|
|
Revenue
|
|
Metal Beverage
Packaging Europe
|
|
Metal Beverage
Packaging Americas
|
|
Glass Packaging
Europe
|
|
Glass Packaging
North America
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
2020
|
|
385
|
|
444
|
|
384
|
|
409
|
|
1,622
|
Organic
|
|
19
|
|
59
|
|
(7)
|
|
16
|
|
87
|
FX
translation
|
|
32
|
|
—
|
|
33
|
|
—
|
|
65
|
Revenue
2021
|
|
436
|
|
503
|
|
410
|
|
425
|
|
1,774
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
Metal Beverage
Packaging Europe
|
|
Metal Beverage
Packaging Americas
|
|
Glass Packaging
Europe
|
|
Glass Packaging
North America
|
|
Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Adjusted EBITDA
2020
|
|
54
|
|
61
|
|
89
|
|
69
|
|
273
|
Organic
|
|
7
|
|
21
|
|
—
|
|
(14)
|
|
14
|
FX
translation
|
|
5
|
|
—
|
|
8
|
|
—
|
|
13
|
Adjusted EBITDA
2021
|
|
66
|
|
82
|
|
97
|
|
55
|
|
300
|
|
|
|
|
|
|
|
|
|
|
|
2021 margin
%
|
|
15.1%
|
|
16.3%
|
|
23.7%
|
|
12.9%
|
|
16.9%
|
2020 margin
%
|
|
14.0%
|
|
13.7%
|
|
23.2%
|
|
16.9%
|
|
16.8%
|
Group Performance
Revenue in the three months ended March
31, 2021 increased by $152
million, or 9%, to $1,774
million, compared with $1,622
million in the three months ended March 31, 2020. The increase in revenue is
primarily driven by favorable volume/mix effects, which includes an
impact of the Group's business growth investment program, the pass
through to customers of higher input costs and favorable foreign
currency translation effects of $65
million.
Adjusted EBITDA in the three months ended March 31, 2021 increased by $27 million, or 10%, to $300 million, compared with $273 million in the three months ended
March 31, 2020. The increase was
primarily driven by volume/mix growth in Metal Packaging, including
from the impact of the Group's business growth investment program,
and favorable foreign currency translation effects of $13 million.
Metal Beverage Packaging Europe
Revenue increased by $51 million,
or 13%, to $436 million in the three
months ended March 31, 2021, compared
with $385 million in the three months
ended March 31, 2020. Excluding
favorable foreign currency translation effects of $32 million, revenue increased by $19 million, mainly due to favorable volume/mix
effects, which includes an impact of the Group's business growth
investment program, and by the pass through of higher metal
costs.
Adjusted EBITDA increased by $12
million, or 22%, to $66
million in the three months ended March 31, 2021, compared with $54 million in the three months ended
March 31, 2020. Excluding favorable
foreign currency translation effects of $5
million, Adjusted EBITDA increased by $7 million, principally due to favorable
volume/mix effects, which includes an impact of the Group's
business growth investment program.
Metal Beverage Packaging Americas
Revenue increased by $59 million,
or 13%, to $503 million in the three
months ended March 31, 2021, compared
with $444 million in the three months
ended March 31, 2020. The increase in
revenue principally reflected favorable volume/mix effects, which
includes an impact of the Group's business growth investment
program, and the pass through of higher input costs.
Adjusted EBITDA increased by $21
million, or 34%, to $82
million in the three months ended March 31, 2021, compared with $61 million in the three-month period ended
March 31, 2020. The increase was
mainly driven by favorable volume/mix effects, which includes an
impact of the Group's business growth investment program, and lower
operating costs.
Glass Packaging Europe
Revenue increased by $26 million,
or 7%, to $410 million in the three
months ended March 31, 2021, compared
with $384 million in the three months
ended March 31, 2020. Excluding
favorable foreign currency translation effects of $33 million, revenue decreased by $7 million, mainly arising from lower engineering
activity.
Adjusted EBITDA increased by $8
million, or 9%, to $97 million
in the three months ended March 31,
2021, compared with $89
million in the three months ended March 31, 2020. At constant exchange rates,
Adjusted EBITDA was in line with the same period last year.
Glass Packaging North America
Revenue increased by $16 million,
or 4%, to $425 million in the three
months ended March 31, 2021, compared
with $409 million in the three months
ended March 31, 2020. The increase in
revenue reflected favorable volume/mix effects of 3% and the pass
through of higher input costs.
Adjusted EBITDA decreased by $14
million, to $55 million in the
three months ended March 31, 2021,
compared with $69 million in the
three months ended March 31, 2020.
The decrease was as a result of increased operating costs,
principally due to freight and severe weather events.
Combination of Ardagh Metal Packaging with Gores Holdings
V
On February 22, 2021, the Group
entered into a business combination agreement with Gores Holdings
V, a special purpose acquisition company sponsored by an affiliate
of The Gores Group for the purpose of effecting a merger,
acquisition, or similar business combination, under which Gores
Holdings V will combine with Ardagh's metal packaging business that
will be held by an Ardagh wholly owned subsidiary, AMP, to create
an independent, pure-play beverage can business, public company.
AMP also announced its intention to apply to list its shares on the
NYSE.
Additional investors have committed to participate in the
proposed business combination by subscribing an aggregate
$600 million in a private placement
at $10.00 per share. In connection
with the transactions,on March 12,
2021, two affiliates of the Ardagh Group (the "Co-Issuers")
issued green bonds of $2.8 billion
equivalent (the "AMP Notes Issuance"). Assuming no share
redemptions by the public stockholders of Gores Holdings V,
approximately $525 million in cash
held in Gores Holdings V's trust account, together with the
$600 million in private placement
proceeds and approximately $2.3
billion of the new debt raised by AMP, will be used to pay
up to $3.4 billion in cash to the
Group, as well as to pay transaction expenses with the remainder of
the AMP Notes issuance used for general corporate purposes. Upon
closing of the transactions, assuming no redemptions by Gores
Holdings V's public stockholders, the Group will retain an equity
interest in AMP of approximately 80%, the investors in the private
placement will hold approximately 10% and Gores Holdings V's
stockholders and its sponsor will hold approximately 10%.
The proposed business combination, which has been approved by
the boards of directors of both Ardagh and Gores Holdings V, is
expected to close in the second quarter of 2021, subject to receipt
of Gores Holdings V stockholder approval, approval of AMP's shares
for listing on the NYSE, the satisfaction of the condition to
Ardagh's obligations that it receives at least $3 billion in cash from the transactions and the
satisfaction or waiver of other customary closing conditions.
On April 1, 2021, the transfer of
Ardagh's metal packaging business to AMP was completed and
$2.3 billion was paid to Ardagh on
the release of the proceeds of the AMP Notes Issuance from
escrow.
In connection with the AMP Notes Issuance, the Group has
designated the Co-Issuers and the AMP entities as unrestricted
subsidiaries under its existing bond indentures and the Global
Asset Based Loan Facility.
On April 1, 2021, the Group
reduced the size of Global Asset Based Loan Facility from
$700 million to $500 million as a result of the transaction
between Ardagh Metal Packaging and Gores Holdings V.
Earnings Webcast and Conference Call Details
Ardagh Group S.A.
Ardagh Group S.A. (NYSE: ARD) will hold its first quarter 2021
earnings webcast and conference call for investors at 3 p.m. BST (10 a.m.
ET) on April 29, 2021. Please
use the following webcast link to register for this call:
Webcast registration and access:
https://globalmeet.webcasts.com/viewer/event.jsp?ei=1456544&tp_key=8c7d661a79
Conference call dial in:
United States: +1
323-794-2423
International: +44 (0) 330 336 9105
Participant pin code: 8160622
Slides and quarterly report
Supplemental slides to accompany this release are available at
http://www.ardaghgroup.com/investors.
The 2021 interim report for ARD Finance S.A., issuer of the
Senior Secured Toggle Notes due 2027, will be published in due
course and available at http://www.ardholdings-sa.com/.
Ardagh Metal Packaging
Ardagh Metal Packaging will hold a first quarter 2021 update
webcast and conference call for investors at 3 p.m. BST (10 a.m.
ET) on April 30, 2021. Please
use the following webcast link to register for this call:
Webcast registration and access:
https://globalmeet.webcasts.com/starthere.jsp?ei=1456585&tp_key=84de8f5e23
Conference call dial in:
United States: +1
323-794-2551
International: +44 (0) 330 336 9105
Participant pin code: 8053286
About Ardagh Group
Ardagh Group is a global supplier of infinitely recyclable metal
and glass packaging for the world's leading brands. Ardagh operates
57 metal and glass production facilities in 12 countries, employing
more than 16,000 people with sales of approximately $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 financial measures such
as Adjusted EBITDA, working capital, Adjusted 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.
Unaudited
Consolidated Condensed Income Statement for the three months ended
March 31, 2021 and 2020
|
|
|
|
|
|
|
|
Three months ended
March 31, 2021
|
|
Three months ended
March 31, 2020
|
|
|
Before Exceptional items
|
|
Exceptional items
|
|
Total
|
|
Before
exceptional items
|
|
Exceptional items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
1,774
|
|
—
|
|
1,774
|
|
1,622
|
|
—
|
|
1,622
|
Cost of
sales
|
|
(1,496)
|
|
(3)
|
|
(1,499)
|
|
(1,360)
|
|
—
|
|
(1,360)
|
Gross
profit
|
|
278
|
|
(3)
|
|
275
|
|
262
|
|
—
|
|
262
|
Sales, general and
administration expenses
|
|
(100)
|
|
(5)
|
|
(105)
|
|
(98)
|
|
(3)
|
|
(101)
|
Intangible
amortization
|
|
(61)
|
|
—
|
|
(61)
|
|
(58)
|
|
—
|
|
(58)
|
Operating
profit
|
|
117
|
|
(8)
|
|
109
|
|
106
|
|
(3)
|
|
103
|
Net finance
expense
|
|
(69)
|
|
(5)
|
|
(74)
|
|
(34)
|
|
—
|
|
(34)
|
Share of post-tax
loss in equity accounted joint venture
|
|
(5)
|
|
(13)
|
|
(18)
|
|
1
|
|
(4)
|
|
(3)
|
Profit before
tax
|
|
43
|
|
(26)
|
|
17
|
|
73
|
|
(7)
|
|
66
|
Income tax
charge
|
|
(16)
|
|
2
|
|
(14)
|
|
(24)
|
|
14
|
|
(10)
|
Profit from
continuing operations
|
|
27
|
|
(24)
|
|
3
|
|
49
|
|
7
|
|
56
|
Profit from
discontinued operation, net of tax
|
|
—
|
|
—
|
|
—
|
|
–
|
|
27
|
|
27
|
Profit for the
period
|
|
27
|
|
(24)
|
|
3
|
|
49
|
|
34
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
$0.01
|
|
|
|
|
|
$0.35
|
Unaudited
Consolidated Condensed Statement of Financial
Position
|
|
|
At March 31,
2021
|
|
At December 31,
2020
|
|
$'m
|
|
$'m
|
|
|
|
|
Non-current
assets
|
|
|
|
Intangible
assets
|
2,650
|
|
2,756
|
Property, plant and
equipment
|
3,105
|
|
2,945
|
Other non-current
assets
|
657
|
|
717
|
|
6,412
|
|
6,418
|
Current
assets
|
|
|
|
Inventories
|
957
|
|
923
|
Trade and other
receivables
|
1,015
|
|
869
|
Cash and cash
equivalents
|
921
|
|
1,267
|
Restricted cash in
escrow
|
2,764
|
|
—
|
Other current assets
including contract assets
|
219
|
|
175
|
|
5,876
|
|
3,234
|
TOTAL
ASSETS
|
12,288
|
|
9,652
|
|
|
|
|
TOTAL
EQUITY
|
(264)
|
|
(361)
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
9,484
|
|
6,764
|
Other non-current
liabilities
|
1,094
|
|
1,261
|
|
10,578
|
|
8,025
|
Current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
100
|
|
97
|
Payables and other
current liabilities
|
1,874
|
|
1,891
|
|
1,974
|
|
1,988
|
TOTAL
LIABILITIES
|
12,552
|
|
10,013
|
TOTAL EQUITY and
LIABILITIES
|
12,288
|
|
9,652
|
Unaudited
Consolidated Condensed Statement of Cash Flows
|
|
|
|
Three months ended
March 31,
|
|
|
2021
|
|
2020
|
|
|
$'m
|
|
$'m
|
Cash flows used in
operating activities
|
|
|
|
|
Cash used in
operations
|
|
(12)
|
|
(191)
|
Interest
paid
|
|
(19)
|
|
(84)
|
Income tax
paid
|
|
(4)
|
|
(12)
|
Cash flows used
in operating activities
|
|
(35)
|
|
(287)
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
Capital
expenditure
|
|
(247)
|
|
(126)
|
Other investing cash
flows
|
|
(13)
|
|
–
|
Cash flows used
in investing activities
|
|
(260)
|
|
(126)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Changes in
borrowings, net
|
|
(6)
|
|
814
|
Lease
payments
|
|
(27)
|
|
(22)
|
Other financing cash
flows
|
|
(9)
|
|
(5)
|
Net cash
(ouflow)/inflow from financing activities
|
|
(42)
|
|
787
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents
|
|
(337)
|
|
374
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
1,267
|
|
614
|
Foreign exchange
losses on cash and cash equivalents
|
|
(9)
|
|
(26)
|
Cash and cash
equivalents at end of period
|
|
921
|
|
962
|
Financial assets
and liabilities At March 31, 2021, the Group's net debt and
available liquidity was as follows:
|
|
|
|
Drawn
amount
|
|
Undrawn
amount
|
|
|
$'m
|
|
$'m
|
Senior Secured and
Senior Notes
|
|
6,523
|
|
—
|
Senior Secured and
Senior Notes - Ardagh Metal Packaging
|
|
2,764
|
|
—
|
Global Asset Based
Loan Facility
|
|
—
|
|
663
|
Lease
obligations
|
|
434
|
|
—
|
Other
borrowings/credit lines
|
|
8
|
|
1
|
Total borrowings /
undrawn facilities
|
|
9,729
|
|
664
|
Deferred debt issue
costs and bond discounts / bond premium
|
|
(145)
|
|
—
|
Net borrowings /
undrawn facilities
|
|
9,584
|
|
664
|
Cash and cash
equivalents
|
|
(921)
|
|
921
|
Restricted cash in
escrow
|
|
(2,764)
|
|
—
|
Derivative financial
instruments used to hedge foreign currency and interest rate
risk
|
|
66
|
|
—
|
Net debt /
available liquidity
|
|
5,965
|
|
1,585
|
Reconciliation of
profit for the period to Adjusted profit
|
|
|
|
Three months ended
March 31,
|
|
|
2021
|
|
2020
|
|
|
$'m
|
|
$'m
|
Profit for the
period
|
|
3
|
|
83
|
Share of post-tax
loss in equity accounted joint venture
|
|
18
|
|
3
|
|
|
21
|
|
86
|
Exceptional items,
net of tax
|
|
11
|
|
(38)
|
Intangible
amortization, net of tax
|
|
47
|
|
44
|
Gains on derivative
financial instruments and foreign currency
|
|
(4)
|
|
(20)
|
|
|
75
|
|
72
|
Share of Adjusted
profit in equity accounted joint venture
|
|
12
|
|
1
|
Adjusted profit
for the period
|
|
87
|
|
73
|
|
|
|
|
|
Weighted average
common shares
|
|
236.37
|
|
236.36
|
|
|
|
|
|
Earnings per
share
|
|
0.01
|
|
0.35
|
|
|
|
|
|
Adjusted earnings
per share
|
|
0.37
|
|
0.31
|
Reconciliation of
profit from continuing operations for the period to Adjusted
EBITDA, Adjusted operating cash flow and Adjusted free cash
flow
|
|
|
|
Three months ended
March 31,
|
|
|
2021
|
|
2020
|
|
|
$'m
|
|
$'m
|
Profit from
continuing operations
|
|
3
|
|
56
|
Income tax
charge
|
|
14
|
|
10
|
Net finance
expense
|
|
74
|
|
34
|
Depreciation and
amortization
|
|
183
|
|
167
|
Exceptional operating
items
|
|
8
|
|
3
|
Share of post-tax
loss in equity accounted joint venture
|
|
18
|
|
3
|
Adjusted
EBITDA
|
|
300
|
|
273
|
Movement in working
capital
|
|
(290)
|
|
(409)
|
Exceptional
restructuring paid
|
|
—
|
|
(1)
|
Capital expenditure
(5)
|
|
(247)
|
|
(126)
|
Lease
payments
|
|
(26)
|
|
(22)
|
Adjusted operating
cash outflow
|
|
(263)
|
|
(285)
|
Interest
paid
|
|
(19)
|
|
(84)
|
Income tax
paid
|
|
(4)
|
|
(12)
|
Adjusted free cash
outflow
|
|
(286)
|
|
(381)
|
|
|
|
|
|
|
|
|
Related
Footnotes
|
(1)
|
A reconciliation to
the most comparable GAAP measures can be found at the back of this
release.
|
(2)
|
Adjusted earnings per
share and Adjusted profit for the three months ended March 31, 2021
include the Group's share of the Adjusted profit/(loss) of its
material equity accounted joint venture, Trivium Packaging
B.V..
|
(3)
|
Payable on June 16,
2021 to shareholders of record on June 2, 2021.
|
(4)
|
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 and restricted cash held in escrow. Net borrowings
comprises non-current and current borrowings including lease
obligations.
|
(5)
|
Capital expenditure
for the three months ended March 31, 2021, includes $162 million
(2020: $41 million) relating to the Group's Business Growth
Investment program.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ardagh-group-sa--first-quarter-2021-results-301280047.html
SOURCE Ardagh Group S.A.