LUXEMBOURG, Aug. 3, 2021 /PRNewswire/ -- Ardagh Group
S.A. (NYSE: ARD) today announced its results for the second quarter
ended June 30, 2021.
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June 30,
2021
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June 30,
2020
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Change
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Constant
Currency
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($'m except per
share data)
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Revenue
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1,874
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1,606
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17%
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11%
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Loss for the
period
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(25)
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(64)
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Loss per
share
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(0.10)
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(0.27)
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Adjusted EBITDA
(1)
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325
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271
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20%
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14%
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Adjusted earnings per
share (1)(2)
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0.45
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0.37
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Dividend per share
declared (3)
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0.15 cents
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0.15 cents
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At June 30,
2021
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At December 31,
2020
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Net debt to LTM
Adjusted EBITDA (4)
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5.0x
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4.9x
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Paul Coulson, Chairman and Chief
Executive, said "The Group performed very well in the quarter, with
strong Adjusted EBITDA growth led by advances of 18% in Ardagh
Metal Packaging ("AMP") and 36% in Glass Packaging Europe. Our
growth investments across our business are on track and we expect
to deliver further progress in the second half of the year."
- Revenue of $1.9 billion increased
by 11% at constant exchange rates, due to higher shipments in both
metal and glass, as well as the pass through of increased input
costs.
- Adjusted EBITDA increased by 14% at constant currency, with
strong growth in AMP and Glass Packaging Europe.
- AMP shipments increased by 3% in the quarter, after a cyber
incident impact of 4%, and measured against a strong comparable.
Specialty can volumes increased by 16%, with double-digit growth in
all regions, and represented 46% of total shipments. Adjusted
EBITDA increased by 18% at constant currency to $173 million. AMP LTM Adjusted EBITDA increased
to $613 million at June 30, 2021.
- Glass Packaging shipments increased by 7% in the quarter, led
by 10% growth in Europe. Adjusted
EBITDA increased by 19%, reflecting a 36% increase in Glass
Packaging Europe, where demand recovered strongly compared with the
same quarter in the prior year.
- Growth investment projects continued to progress across the
Group during the quarter and are fully on track.
- Separate listing of AMP on NYSE as a pure play beverage can
producer, via combination with Gores Holdings V Inc, is progressing
to completion.
- Cash and available liquidity of $4.0
billion at June 30, 2021.
- Commitment of $50 million in a
10-year partnership with Project Lead the Way, to promote STEM
education in all communities where Ardagh Group operates across the
US.
- 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. Third quarter Adjusted EBITDA is
expected to be $335-345 million.
Financial
Performance Review
Bridge of 2020 to
2021 Revenue and Adjusted EBITDA
Three months ended
June 30, 2021
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Revenue
|
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Ardagh Metal
Packaging Europe
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Ardagh Metal
Packaging Americas
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Ardagh Glass
Packaging Europe
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Ardagh Glass
Packaging North America
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Group
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$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
2020
|
|
395
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|
435
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|
368
|
|
408
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1,606
|
Organic
|
|
30
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|
92
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|
32
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|
37
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|
191
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FX
translation
|
|
39
|
|
—
|
|
38
|
|
—
|
|
77
|
Revenue
2021
|
|
464
|
|
527
|
|
438
|
|
445
|
|
1,874
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
Ardagh Metal
Packaging Europe
|
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Ardagh Metal
Packaging Americas
|
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Ardagh Glass
Packaging Europe
|
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Ardagh Glass
Packaging North America
|
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Group
|
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$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Adjusted EBITDA
2020
|
|
70
|
|
69
|
|
76
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|
56
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|
271
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Organic
|
|
8
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|
19
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|
30
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(3)
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54
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FX
translation
|
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7
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—
|
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8
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|
—
|
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15
|
Adjusted EBITDA
2021
|
|
85
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|
88
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|
114
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53
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|
340
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AMP
indemnification
|
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(15)
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Adjusted EBITDA
2021
|
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325
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2021 margin
%
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18.3%
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16.7%
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26.0%
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11.9%
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17.3%
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2020 margin
%
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17.7%
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15.9%
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20.7%
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13.7%
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16.9%
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Six months ended
June 30, 2021
|
Revenue
|
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Ardagh Metal
Packaging Europe
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Ardagh Metal
Packaging Americas
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Ardagh Glass
Packaging Europe
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Ardagh Glass
Packaging North America
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Group
|
|
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$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
2020
|
|
780
|
|
879
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|
752
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817
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3,228
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Organic
|
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49
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|
151
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25
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53
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278
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FX
translation
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71
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—
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71
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—
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142
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Revenue
2021
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900
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1,030
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848
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870
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3,648
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Adjusted
EBITDA
|
|
Ardagh Metal
Packaging Europe
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Ardagh Metal
Packaging Americas
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Ardagh Glass
Packaging Europe
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Ardagh Glass
Packaging North America
|
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Group
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Adjusted EBITDA
2020
|
|
124
|
|
130
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|
165
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125
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|
544
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Organic
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15
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|
40
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31
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(17)
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69
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FX
translation
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12
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—
|
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15
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|
—
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27
|
Adjusted EBITDA
2021
|
|
151
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|
170
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|
211
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108
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|
640
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AMP
indemnification
|
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(15)
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Adjusted EBITDA
2021
|
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|
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|
|
625
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|
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2021 margin
%
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16.8%
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16.5%
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24.9%
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12.4%
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17.1%
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2020 margin
%
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15.9%
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14.8%
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21.9%
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15.3%
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16.9%
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Review of the three months ended June
30, 2021
Group Performance
Revenue in the three months ended June
30, 2021 increased by $268
million, or 17%, to $1,874
million, compared with $1,606
million in the three months ended June 30, 2020. The increase in revenue is
primarily driven by favorable volume/mix effects, which includes an
impact of the Group's growth investment program, the pass through
to customers of higher input costs, and favorable foreign currency
translation effects of $77
million.
Adjusted EBITDA in the three months ended June 30, 2021 increased by $54 million, or 20%, to $325 million, compared with $271 million in the three months ended
June 30, 2020. The increase was
primarily driven by volume/mix growth in AMP and in Glass
Packaging, including from the impact of the Group's business growth
investment program, lower COVID-19 related costs and favorable
foreign currency translation effects of $15
million, partly offset by $15
milllion costs related to the cyber security incident
indemnification to AMP.
Ardagh Metal Packaging Europe
Revenue increased by $69 million,
or 17%, to $464 million in the three
months ended June 30, 2021, compared
with $395 million in the three months
ended June 30, 2020. Excluding
favorable foreign currency translation effects of $39 million, revenue increased by $30 million, mainly due to the pass through of
higher metal costs.
Adjusted EBITDA increased by $15
million, or 21%, to $85
million in the three months ended June 30, 2021, compared with $70 million in the three months ended
June 30, 2020. Excluding favorable
foreign currency translation effects of $7
million, Adjusted EBITDA increased by $8 million reflecting higher selling prices,
including to recover increased input costs and a positive impact
from the Group's business growth investment program.
Ardagh Metal Packaging Americas
Revenue increased by $92 million,
or 21%, to $527 million in the three
months ended June 30, 2021, compared
with $435 million in the three months
ended June 30, 2020. The increase in
revenue principally reflected favorable volume/mix effects and the
pass through of higher metal costs.
Adjusted EBITDA increased by $19
million, or 27%, to $88
million in the three months ended June 30, 2021, compared with $69 million in the three months ended
June 30, 2020. The increase was
mainly driven by favorable volume/mix effects, which includes an
impact of the Group's business growth investment program.
Glass Packaging Europe
Revenue increased by $70 million,
or 19%, to $438 million in the three
months ended June 30, 2021, compared
with $368 million in the three months
ended June 30, 2020. Excluding
favorable foreign currency translation effects of $38 million, revenue increased by $32 million, principally due to favourable
volume/mix growth.
Adjusted EBITDA increased by $38
million, or 50%, to $114
million in the three months ended June 30, 2021, compared with $76 million in the three months ended
June 30, 2020. Excluding favorable
foreign currency translation effects of $8
million, Adjusted EBITDA increased by $30 million, principally due to favourable
volume/mix effects, which includes an impact of the Group growth
investment program, as well as lower operating costs due to less
production downtime than in the same quarter of 2020.
Glass Packaging North America
Revenue increased by $37 million,
or 9%, to $445 million in the three
months ended June 30, 2021, compared
with $408 million in the three months
ended June 30, 2020. The increase in
revenue reflected favorable volume/mix effects.
Adjusted EBITDA decreased by $3
million, or 5%, to $53 million
in the three months ended June 30,
2021, compared with $56
million in the three months ended June 30, 2020. The decrease in Adjusted EBITDA
was mainly driven by increased freight costs and costs associated
with the cyber security incident.
Cyber Incident
On May 17, 2021, the Group
announced that it had experienced a cyber security incident, the
response to which included pro-actively shutting down certain IT
systems and applications used by the business. Key systems have now
been brought back online securely, in a phased manner and in line
with our plan. Production at all of our manufacturing facilities
continued to operate throughout this period, though we experienced
some shipping delays as a result of this incident.
While investigation of the incident is ongoing, we have already
taken various steps, including engaging leading industry
specialists to conduct a forensic investigation of our systems and
introducing additional protection tools across our network to
further enhance the security of our IT systems. We believe that our
existing information technology control environment is
appropriately robust and consistent with industry standards. In
addition to addressing any findings from these investigations and
assessments, we are reviewing our information technology roadmap
and accelerating planned IT investments to further improve the
effectiveness of our information security. We do not believe that
our growth investment program has been impacted by this incident.
During the three month ended June 30,
2021, the Group incurred $34
million of costs related to this incident, including
$16 million of exceptional costs. The
Ardagh Metal Packaging business incurred $16
million of the total Group costs, including $1 million exceptional related costs, due to this
incident, which the Company has agreed to indemnify under the
letter agreement dated May 21, 2021.
We maintain appropriate insurance in respect of a wide range of
risks, including in respect of IT incidents and expect to recover
costs in respect of this incident.
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
Inc., a special purpose acquisition company sponsored by an
affiliate of The Gores Group ("Gores Holdings V") under which Gores
Holdings V will combine with Ardagh's metal packaging business to
create an independent, pure-play beverage can public company,
Ardagh Metal Packaging S.A. ("Ardagh Metal Packaging" or "AMP").
AMP also announced its intention to apply to list its shares
on the NYSE.
Additional investors committed to participate in the proposed
business combination by purchasing 60 million shares of AMP for an
aggregate purchase price of $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, consisting of €450
million 2.000% Senior Secured Notes due 2028, $600 million 3.250% Senior Secured Notes due
2028, €500 million 3.000% Senior Notes due 2029 and $1,050 million 4.000% Senior Notes due 2029 (the
"AMP Notes Issuance").
On completion of the AMP transfer on April 1, 2021, $2.3
billion of the proceeds of the AMP Notes Issuance was paid
to the Group on their release from escrow. In addition to such cash
consideration, a promissory note in the amount of $1,085 million was issued by AMP to Ardagh Group
S.A. (the "AMP Promissory Note") and Ardagh Group S.A. also has a
contingent right to receive upon the achievement of certain
performance measures up to 60.73 million additional shares in AMP
(the "Earnout Shares").
In connection with the AMP Notes Issuance, the Group designated
the Co-Issuers and the AMP entities as unrestricted subsidiaries
under its 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 in connection with the designation
of the AMP entities as unrestricted subsidiaries.
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 will be used to settle the AMP
Promissory Note as well as to pay transaction expenses. Together
with the $2.3 billion cash payment
the Group received on April 1, 2021
from the AMP Notes Issuance, an amount up to $3.4 billion in cash will be paid in cash to the
Group, with the remainder of the AMP Notes issuance used to pay
transaction expenses and for general corporate purposes.
On July 7, 2021, the Securities
and Exchange Commission declared effective the registration
statement on Form F-4 filed by AMP with respect to the proposed
business combination. 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 August
2021, subject to receipt of Gores Holdings V stockholder
approval at a special meeting of stockholders on August 3, 2021, 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 including the
$2.3 billion it received on
April 1, 2021 from the AMP Notes
Issuance and the satisfaction or waiver of other customary closing
conditions.
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%, investors in the
private placement will hold approximately 10% and Gores Holdings
V's stockholders and its sponsor will hold approximately
10%.
Earnings Webcast and Conference Call Details
Ardagh Group S.A.
Ardagh Group S.A. (NYSE: ARD) will hold its second quarter 2021
earnings webcast and conference call for investors at 4 p.m. BST (11 a.m.
ET) on August 3, 2021. Please
use the following webcast link to register for this call:
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1480643&tp_key=25fe410375
Conference call dial in:
United States: +1 646 828
8199
International: +44 (0)330 336 9104
Participant pin code: 859043
Slides and quarterly report
Supplemental slides to accompany this release are available at
https://www.ardaghgroup.com/corporate/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 second quarter 2021 earnings
webcast and conference call for investors at 2 p.m. BST (9 a.m.
ET) on August 3, 2021. Please
use the following webcast link to register for this call:
Webcast registration and access:
https://event.webcasts.com/starthere.jsp?ei=1480554&tp_key=cca6fa6e83
Conference call dial in:
United States: +1 323 794
2095
International: +44 330 336 9104
Participant pin code: 182599
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
June 30, 2021 and 2020
|
|
|
|
Three months ended
June 30, 2021
|
|
Three months ended
June 30, 2020
|
|
|
Before
|
|
Exceptional
|
|
|
|
Before
|
|
Exceptional
|
|
|
|
|
exceptional
items
|
|
items
|
|
Total
|
|
exceptional
items
|
|
items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
1,874
|
|
—
|
|
1,874
|
|
1,606
|
|
—
|
|
1,606
|
Cost of
sales
|
|
(1,583)
|
|
(11)
|
|
(1,594)
|
|
(1,371)
|
|
(2)
|
|
(1,373)
|
Gross
profit
|
|
291
|
|
(11)
|
|
280
|
|
235
|
|
(2)
|
|
233
|
Sales, general and
administration expenses
|
|
(86)
|
|
(21)
|
|
(107)
|
|
(75)
|
|
(3)
|
|
(78)
|
Intangible
amortization
|
|
(60)
|
|
—
|
|
(60)
|
|
(58)
|
|
—
|
|
(58)
|
Operating
profit
|
|
145
|
|
(32)
|
|
113
|
|
102
|
|
(5)
|
|
97
|
Net finance
expense
|
|
(99)
|
|
(8)
|
|
(107)
|
|
(71)
|
|
(74)
|
|
(145)
|
Share of post-tax
loss in equity accounted joint venture
|
|
(14)
|
|
(5)
|
|
(19)
|
|
(13)
|
|
(4)
|
|
(17)
|
Profit/(loss)
before tax
|
|
32
|
|
(45)
|
|
(13)
|
|
18
|
|
(83)
|
|
(65)
|
Income tax
(charge)/credit
|
|
(13)
|
|
1
|
|
(12)
|
|
(8)
|
|
14
|
|
6
|
Profit/(loss) from
continuing operations
|
|
19
|
|
(44)
|
|
(25)
|
|
10
|
|
(69)
|
|
(59)
|
Loss from
discontinued operation, net of tax
|
|
—
|
|
—
|
|
—
|
|
–
|
|
(5)
|
|
(5)
|
Profit/(loss) for
the period
|
|
19
|
|
(44)
|
|
(25)
|
|
10
|
|
(74)
|
|
(64)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
($0.10)
|
|
|
|
|
|
($0.27)
|
Unaudited
Consolidated Condensed Income Statement for the six months ended
June 30, 2021 and 2020
|
|
|
|
Six months ended
June 30, 2021
|
|
Six months ended
June 30, 2020
|
|
|
Before
|
|
Exceptional
|
|
|
|
Before
|
|
Exceptional
|
|
|
|
|
exceptional
items
|
|
items
|
|
Total
|
|
exceptional
items
|
|
items
|
|
Total
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Revenue
|
|
3,648
|
|
—
|
|
3,648
|
|
3,228
|
|
—
|
|
3,228
|
Cost of
sales
|
|
(3,079)
|
|
(14)
|
|
(3,093)
|
|
(2,731)
|
|
(2)
|
|
(2,733)
|
Gross
profit
|
|
569
|
|
(14)
|
|
555
|
|
497
|
|
(2)
|
|
495
|
Sales, general and
administration expenses
|
|
(186)
|
|
(26)
|
|
(212)
|
|
(173)
|
|
(6)
|
|
(179)
|
Intangible
amortization
|
|
(121)
|
|
—
|
|
(121)
|
|
(116)
|
|
—
|
|
(116)
|
Operating
profit
|
|
262
|
|
(40)
|
|
222
|
|
208
|
|
(8)
|
|
200
|
Net finance
expense
|
|
(168)
|
|
(13)
|
|
(181)
|
|
(105)
|
|
(74)
|
|
(179)
|
Share of post-tax
loss in equity accounted joint venture
|
|
(19)
|
|
(18)
|
|
(37)
|
|
(12)
|
|
(8)
|
|
(20)
|
Profit before
tax
|
|
75
|
|
(71)
|
|
4
|
|
91
|
|
(90)
|
|
1
|
Income tax
charge
|
|
(29)
|
|
3
|
|
(26)
|
|
(32)
|
|
28
|
|
(4)
|
Profit/(loss) from
continuing operations
|
|
46
|
|
(68)
|
|
(22)
|
|
59
|
|
(62)
|
|
(3)
|
Profit from
discontinued operation, net of tax
|
|
—
|
|
—
|
|
—
|
|
–
|
|
22
|
|
22
|
Profit/(loss) for
the period
|
|
46
|
|
(68)
|
|
(22)
|
|
59
|
|
(40)
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings
per share:
|
|
|
|
|
|
($0.09)
|
|
|
|
|
|
$0.08
|
Unaudited
Consolidated Condensed Statement of Financial
Position
|
|
|
|
|
|
At June 30,
2021
|
|
At December 31,
2020
|
|
$'m
|
|
$'m
|
|
|
|
|
Non-current
assets
|
|
|
|
Intangible
assets
|
2,607
|
|
2,756
|
Property, plant and
equipment
|
3,238
|
|
2,945
|
Other non-current
assets
|
681
|
|
717
|
|
6,526
|
|
6,418
|
Current
assets
|
|
|
|
Inventories
|
1,024
|
|
923
|
Trade and other
receivables
|
1,245
|
|
869
|
Cash and cash
equivalents
|
3,541
|
|
1,267
|
Other current assets
including contract assets
|
232
|
|
175
|
|
6,042
|
|
3,234
|
TOTAL
ASSETS
|
12,568
|
|
9,652
|
|
|
|
|
TOTAL
EQUITY
|
(264)
|
|
(361)
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
9,538
|
|
6,764
|
Other non-current
liabilities
|
1,115
|
|
1,261
|
|
10,653
|
|
8,025
|
Current
liabilities
|
|
|
|
Borrowings including
lease obligations
|
100
|
|
97
|
Payables and other
current liabilities
|
2,079
|
|
1,891
|
|
2,179
|
|
1,988
|
TOTAL
LIABILITIES
|
12,832
|
|
10,013
|
TOTAL EQUITY and
LIABILITIES
|
12,568
|
|
9,652
|
Unaudited
Consolidated Condensed Statement of Cash Flows
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Cash generated from
operations
|
|
279
|
|
295
|
|
267
|
|
104
|
Interest
paid
|
|
(114)
|
|
(73)
|
|
(133)
|
|
(157)
|
Income tax
paid
|
|
(15)
|
|
(11)
|
|
(19)
|
|
(23)
|
Cash flows
from/(used in) operating activities
|
|
150
|
|
211
|
|
115
|
|
(76)
|
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
|
|
|
|
|
Capital
expenditure
|
|
(182)
|
|
(104)
|
|
(429)
|
|
(230)
|
Other investing cash
flows
|
|
–
|
|
–
|
|
(13)
|
|
–
|
Cash flows used
in investing activities
|
|
(182)
|
|
(104)
|
|
(442)
|
|
(230)
|
Proceeds from
disposal of discontinued operation
|
|
–
|
|
32
|
|
–
|
|
32
|
Net cash used
in investing activities
|
|
(182)
|
|
(72)
|
|
(442)
|
|
(198)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Changes in
borrowings, net
|
|
2,763
|
|
501
|
|
2,757
|
|
1,315
|
Early redemption
premium paid
|
|
–
|
|
(61)
|
|
–
|
|
(61)
|
Lease
payments
|
|
(28)
|
|
(23)
|
|
(55)
|
|
(45)
|
Other financing cash
flows
|
|
(97)
|
|
(86)
|
|
(106)
|
|
(91)
|
Net cash inflow
from financing activities
|
|
2,638
|
|
331
|
|
2,596
|
|
1,118
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
2,606
|
|
470
|
|
2,269
|
|
844
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
921
|
|
962
|
|
1,267
|
|
614
|
Foreign exchange
gains/(loss) on cash and cash equivalents
|
|
14
|
|
16
|
|
5
|
|
(10)
|
Cash and cash
equivalents at end of period
|
|
3,541
|
|
1,448
|
|
3,541
|
|
1,448
|
Financial assets
and liabilities
|
At June 30, 2021, the
Group's net debt and available liquidity was as follows:
|
|
|
|
Drawn
amount
|
|
Undrawn
amount
|
|
|
$'m
|
|
$'m
|
Senior Secured and
Senior Notes
|
|
6,547
|
|
–
|
Global Asset Based
Loan Facility
|
|
–
|
|
469
|
Lease
obligations
|
|
252
|
|
–
|
Other
borrowings/credit lines
|
|
–
|
|
1
|
Restricted Group
total borrowings / undrawn facilities
|
|
6,799
|
|
470
|
Senior Secured and
Senior Notes
|
|
2,779
|
|
–
|
Lease
obligations
|
|
194
|
|
–
|
Other
borrowings/credit lines
|
|
5
|
|
–
|
Unrestricted Group
total borrowings / undrawn facilities
|
|
2,978
|
|
–
|
Total borrowings /
undrawn facilities
|
|
9,777
|
|
470
|
Deferred debt issue
costs and bond discounts / bond premium
|
|
(139)
|
|
–
|
Net borrowings /
undrawn facilities
|
|
9,638
|
|
470
|
Cash and cash
equivalents
|
|
(3,541)
|
|
3,541
|
Derivative financial
instruments used to hedge foreign currency and interest rate
risk
|
|
79
|
|
–
|
Net debt /
available liquidity
|
|
6,176
|
|
4,011
|
Reconciliation of
(loss)/profit for the period to Adjusted profit
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
(Loss)/profit for
the period
|
|
(25)
|
|
(64)
|
|
(22)
|
|
19
|
Share of post-tax
loss in equity accounted joint venture
|
|
19
|
|
17
|
|
37
|
|
20
|
|
|
(6)
|
|
(47)
|
|
15
|
|
39
|
Exceptional items,
net of tax
|
|
39
|
|
70
|
|
50
|
|
32
|
Intangible
amortization, net of tax
|
|
46
|
|
45
|
|
93
|
|
89
|
Gains on derivative
financial instruments, foreign currency and other items
|
|
14
|
|
(1)
|
|
10
|
|
(21)
|
|
|
93
|
|
67
|
|
168
|
|
139
|
Share of Adjusted
profit in equity accounted joint venture
|
|
14
|
|
20
|
|
26
|
|
21
|
Adjusted profit
for the period
|
|
107
|
|
87
|
|
194
|
|
160
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
236.37
|
|
236.36
|
|
236.37
|
|
236.36
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
(0.10)
|
|
(0.27)
|
|
(0.09)
|
|
0.08
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share
|
|
0.45
|
|
0.37
|
|
0.82
|
|
0.68
|
Reconciliation of
loss from continuing operations for the period to Adjusted EBITDA,
Adjusted operating cash flow and Adjusted free cash
flow
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
$'m
|
|
$'m
|
|
$'m
|
|
$'m
|
Loss from
continuing operations
|
|
(25)
|
|
(59)
|
|
(22)
|
|
(3)
|
Income tax
charge/(credit)
|
|
12
|
|
(6)
|
|
26
|
|
4
|
Net finance
expense
|
|
107
|
|
145
|
|
181
|
|
179
|
Depreciation and
amortization
|
|
180
|
|
169
|
|
363
|
|
336
|
Exceptional operating
items
|
|
32
|
|
5
|
|
40
|
|
8
|
Share of post-tax
loss in equity accounted joint venture
|
|
19
|
|
17
|
|
37
|
|
20
|
Adjusted
EBITDA
|
|
325
|
|
271
|
|
625
|
|
544
|
Movement in working
capital
|
|
(30)
|
|
37
|
|
(320)
|
|
(372)
|
Exceptional
restructuring paid
|
|
—
|
|
—
|
|
—
|
|
(1)
|
Capital expenditure
(5)
|
|
(182)
|
|
(104)
|
|
(429)
|
|
(230)
|
Lease
payments
|
|
(27)
|
|
(21)
|
|
(53)
|
|
(43)
|
Adjusted operating
cash flow
|
|
86
|
|
183
|
|
(177)
|
|
(102)
|
Interest
paid
|
|
(114)
|
|
(73)
|
|
(133)
|
|
(157)
|
Income tax
paid
|
|
(15)
|
|
(11)
|
|
(19)
|
|
(23)
|
Adjusted free cash
flow
|
|
(43)
|
|
99
|
|
(329)
|
|
(282)
|
Related Footnotes
(1) For a reconciliation to the most comparable GAAP measures,
see the back of this release.
(2) Adjusted earnings per share and Adjusted profit for the
three and six months ended June 30,
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 October 1, 2021 to
shareholders of record on September 17,
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 and six months ended
June 30, 2021, includes $110 million and $272
million respectively (2020: $35
million and $76 million)
relating to the Group's Business Growth Investment program.
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SOURCE Ardagh Group S.A.