Ardagh Group S.A. – Fourth Quarter and Full Year 2020 Results
Ardagh Group S.A. (NYSE: ARD) today announced its results for the fourth quarter and year ended December 31, 2020.
Paul Coulson, Chairman and Chief Executive, said “The Group performed well in the quarter, with strong earnings growth in Metal Beverage Packaging and volume growth in Glass Packaging. The resilience of our businesses, the adaptability of our teams and the outlook for our sustainable products was underlined in 2020. We remain focused on growth and have increased our 2021-2024 Business Growth Investment program from $1.8 billion to $2.1 billion due to additional beverage can opportunities. These highly accretive investments underpin accelerated growth, including a projected doubling in Metal Beverage Packaging Adjusted EBITDA by 2024. We look forward to further strong progress in 2021.”
- Revenue for the quarter of $1,703 million increased by 5% at constant currency, with Metal Beverage Packaging revenue increasing by 9% at constant currency, reflecting increased shipments, and Glass Packaging revenue increasing by 1%.
- Metal Beverage Packaging shipments increased by 7% in the quarter and by 5% for the year. Speciality can volumes increased by 13% for the year.
- Glass Packaging shipments increased by 1% in the quarter, with growth in Europe and North America.
- Fourth quarter Adjusted EBITDA increased by 5% to $281 million, led by growth of 27% in Metal Beverage Packaging. Glass Packaging Adjusted EBITDA declined, due to lower production, as well as higher direct COVID-19 costs.
- Business Growth Investment program on track in all regions, with new lines in Olive Branch, Mississippi, ramping up, Winston-Salem, North Carolina, expansion under way and new Huron, Ohio, plant under development. 2021-2024 investment program increased to $2.1 billion, due to additional Metal Beverage Packaging growth opportunities.
- Cash and available liquidity of $1.9 billion at December 2020; capital structure significantly enhanced in 2020.
- Sustainability commitments and actions advanced: Adopting Science Based Targets – resulting in our target of a 27% reduction in total carbon emissions by 2030. Leadership Class ratings achieved for Climate Change and Water Management from CDP in 2020.
- 2021 Guidance: Adjusted EBITDA of $1.28 - $1.30 billion, with end of year reported net leverage of around 5x LTM Adjusted EBITDA.
16 February 2021