Ardagh Group S.A. – Second Quarter 2020 Results
Ardagh Group S.A. (NYSE: ARD) today announced its results for the second quarter ended June 30, 2020.
Paul Coulson, Chairman and Chief Executive, said “The Group performed well in the quarter, reflecting strong execution and the defensive end markets we serve. Earnings grew in Metal Beverage Packaging, while Glass Packaging’s performance was very resilient. Demand for sustainable packaging remains strong and we continue to progress our growth investment projects. We also availed of favourable markets to improve our capital structure and ended the quarter with total liquidity of $1.6 billion. Overall trading trends in June were positive and we are well-positioned to benefit from further improvements in market demand.”
- Revenue for the quarter of $1,606 million was 5% lower than the prior year at constant currency, with growth of 3% in Metal Beverage Packaging offset by a 7% reduction in Glass Packaging.
- Volume/mix for the Group declined by 3%, as growth of 1% in Metal Beverage Packaging was offset by an 8% reduction in Glass Packaging.
- Adjusted EBITDA of $271 million for the quarter, a reduction of 11% at constant currency on the prior year.
- Global beverage can shipments increased by 3% in the quarter, led by strength in Europe. Total beverage can shipments increased by 2% in the year to date, with specialty can shipment growth of 7%.
- Metal Beverage Packaging performed strongly, reflecting continued strong demand and good operational execution. Adjusted EBITDA of $139 million, representing 51% of Group Adjusted EBITDA, increased by 2% at constant currency, with growth of 5% in the Americas and a stable outturn in Europe.
- Resilient performance in Glass Packaging, with strength in food end markets mitigating the impact of on-premise closures. Adjusted EBITDA of $132 million, a margin of 17.0%, reflected lower volume/mix and under absorption of fixed overheads.
- Business Growth Investment projects continued to progress during the period, to support growth in demand for sustainable packaging.
- Total liquidity of $1.6 billion at June 30, 2020, including $1.45 billion in cash.
- Capital structure further improved during the quarter, with an average debt maturity of six years and no bond maturities before 2025.
(1)Continuing Operations results unless stated otherwise. For a reconciliation to the most comparable GAAP measures, see page 13.
(2)Adjusted earnings per share and Adjusted profit for the three and six months ended June 30, 2020 includes the Group’s share of the Adjusted profit of its material equity accounted joint venture, Trivium Packaging B.V. which is further set out on page 12. The comparative periods include the results of the divested Food & Specialty business which have been presented as a Discontinued Operation.
(3)Payable on October 1, 2020 to shareholders of record on September 17, 2020.
23 July 2020