EX-99.1 2 ex-99d1.htm EX-99.1 Earnings Press Release

Exhibit 99.1

Picture 1

 

Ardagh Group S.A. – Third Quarter 2018 Results

 

Ardagh Group S.A. (NYSE: ARD) today announced its financial results for the third quarter ended September 30, 2018.

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Change

 

 
2018

 
2017

 

 

 

 

($m except per share data)

 

 

Revenue

 

2,390

 

2,319

 
3%

Adjusted EBITDA 1

 

400

 

440

 
(9%)

Adjusted earnings per share 1

 
0.52

 
0.57

 
(9%)

 

 

 

 

 

 

 

Dividend per share declared 2

 
0.14

 
0.14

 

 

 

Paul Coulson, Chairman and Chief Executive, said “In a period marked by high levels of cost inflation,  third quarter earnings reflected strong growth in Metal Packaging Americas, with all parts of that business performing very well. In Europe, we recorded good growth in glass packaging during the quarter, while our metal packaging business was adversely impacted by a weak food harvest. In Glass Packaging North America, our footprint adjustments and other initiatives to rebuild profitability continued against a challenging market backdrop. We remain focused on cash generation and de-leveraging over the final quarter and into 2019.”

·

Revenue of $2,390 million increased by 3%;

·

Adjusted EBITDA of $400 million, declined by 9%;

·

Beverage can integration completed, with global volume/mix growth of 4% in the quarter;

·

Continued growth in glass container volume/mix in Europe;

·

Earnings per share of  $0.03 (2017: $0.26);

·

Adjusted earnings per share of $0.52 (2017: $0.57);

·

Quarterly cash dividend of $0.14 per common share, payable on November  30, 2018;

·

2018 outlook: Full year Adjusted EBITDA of approximately $1,450 - $1,475 million, with Adjusted free cash flow of approximately $475 million3 and Adjusted earnings per share of $1.60 – $1.70.       

 

 

 

 

 

 

1. For a reconciliation to the most comparable GAAP measures, see page 11.

2. Payable on November 30, 2018 to shareholders of record on November  16, 2018.

3. Before short payback capex projects.

 

 

 

 

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Picture 3

 

 

Exhibit 99.1

 

Summary Financial Information

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 
2018

 
2017

 
2018

 
2017

 

 

(in $ millions, except EPS, ratios and percentages)

Revenue

    

2,390

 

2,319

 

6,961

 

6,491

Profit for the period

 

 7

 

61

 

50

 

30

Adjusted profit for the period 4

 

123

 

135

 

322

 

337

Adjusted EBITDA 4

 

400

 

440

 

1,140

 

1,173

Adjusted EBITDA margin

 
16.7%

 
19.0%

 
16.4%

 
18.1%

Earnings per share ($)

 

0.03

 

0.26

 

0.21

 

0.13

Adjusted earnings per share ($) 4

 
0.52

 

0.57

 

1.36

 

1.48

 

 

 

 

 

 

 

 

 

Cash generated from operations

 

385

 

498

 

717

 

951

Operating cash flow 4

 

300

 

400

 

355

 

667

Adjusted free cash flow 4

 

210

 

296

 

11

 

292

 

 

 

 

 

 

 

 

 

At September 30,

 

At December 31,

 

 
2018

 
2017

 

 

$m

 

$m

Net debt 5

 

7,858

 

7,825

Cash and available liquidity

 

934

 

1,598

Net debt to LTM Adjusted EBITDA

 

5.3x

 

5.2x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4. For a reconciliation to the most comparable GAAP measures, see page 11.

5. 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.

 

 

 

 

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Picture 3

 

 

Exhibit 99.1

Financial Performance Review

Bridge of 2017 to 2018 Revenue and Adjusted EBITDA

Three months ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

$m

 

$m

 

$m

 

$m

 

$m

Revenue 2017

 

943

 

513

 

417

 

446

 

2,319

Organic

 

28

 

74

 

 6

 

(13)

 

95

IFRS 15

 

(19)

 

(2)

 

 —

 

 —

 

(21)

FX translation

 

 —

 

 —

 

(3)

 

 —

 

(3)

Revenue 2018

 

952

 

585

 

420

 

433

 

2,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

$m

 

$m

 

$m

 

$m

 

$m

Adjusted EBITDA 2017

 

181

 

75

 

104

 

80

 

440

Organic

 

(28)

 

 5

 

 —

 

(13)

 

(36)

IFRS 15

 

(2)

 

(1)

 

 —

 

 —

 

(3)

FX translation

 

 —

 

 —

 

(1)

 

 —

 

(1)

Adjusted EBITDA 2018

 

151

 

79

 

103

 

67

 

400

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA 2018 margin

 
15.9%

 
13.5%

 
24.5%

 
15.5%

 
16.7%

Adjusted EBITDA 2017 margin

 
19.2%

 
14.6%

 
24.9%

 
17.9%

 
19.0%

 

 

Nine months ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

$m

 

$m

 

$m

 

$m

 

$m

Revenue 2017

 

2,534

 

1,419

 

1,157

 

1,381

 

6,491

Organic

 

67

 

228

 

 1

 

(77)

 

219

IFRS 15

 

(21)

 

 8

 

 —

 

 —

 

(13)

FX translation

 

186

 

 —

 

78

 

 —

 

264

Revenue 2018

 

2,766

 

1,655

 

1,236

 

1,304

 

6,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal Packaging Europe

 

Metal Packaging Americas

 

Glass Packaging Europe

 

Glass Packaging North America

 

Group

 

 

$m

 

$m

 

$m

 

$m

 

$m

Adjusted EBITDA 2017

 

439

 

197

 

260

 

277

 

1,173

Organic

 

(24)

 

17

 

(1)

 

(69)

 

(77)

IFRS 15

 

(2)

 

 2

 

 —

 

 —

 

 —

FX translation

 

29

 

 —

 

15

 

 —

 

44

Adjusted EBITDA 2018

 

442

 

216

 

274

 

208

 

1,140

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA 2018 margin

 
16.0%

 
13.1%

 
22.2%

 
16.0%

 
16.4%

Adjusted EBITDA 2017 margin

 
17.3%

 
13.9%

 
22.5%

 
20.1%

 
18.1%

 

 

 

 

 

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Picture 3

 

 

Exhibit 99.1

Group

Revenue of $2,390 million for the quarter ended September 30, 2018 represented an increase of 3%,  compared with the same period last year. The increase in revenue reflected the pass through of increased input costs and favorable volume/mix growth of 1%, partly offset by IFRS 15 effects.  Third quarter Adjusted EBITDA of $400 million decreased by 9%, compared with the same period last year. Strong growth in Metal Packaging Americas and continued strength in Glass Packaging Europe were offset by lower earnings in Glass Packaging North America and Metal Packaging Europe. 

Metal Packaging Europe

Revenue of $952 million increased by 1% in the three-month period ended September 30, 2018, compared with the same period last year. The increase principally reflected the pass through of higher input costs and marginally favorable volume/mix growth, partly offset by IFRS 15 effects. Adjusted EBITDA for the quarter of $151 million decreased by 17%, compared with same period last year. This decrease reflected a weak food harvest as well as increased costs compared with the third quarter of 2017, which included a pension-related credit of $10 million.

Metal Packaging Americas

Revenue increased by 14%  to $585 million in the third quarter of 2018,  compared with the same period last year. The increase was attributable to favorable volume/mix effects and the pass through of higher input costs. Adjusted EBITDA of $79 million increased by 5% compared with the same period last year, reflecting favorable volume/mix effects and ongoing cost reductions, partly offset by higher input costs.

Glass Packaging Europe

Revenue of $420 million increased by 1% at constant currency rates, in the three-month period ended September 30, 2018, compared with the same period last year. Revenue growth principally reflected favorable glass packaging volume/mix effects and the pass through of higher input costs, partly offset by lower glass engineering activity. Adjusted EBITDA for the quarter of $103 million was unchanged at constant exchange rates, compared with the same period last year.

Glass Packaging North America

Revenue decreased by 3% to $433 million in the third quarter, compared with the same period last year, principally reflecting lower volumes. Adjusted EBITDA decreased by 16% to $67 million in the third quarter,  compared with the same period in 2017, mainly as a result of lower volume/mix effects,  as well as higher freight and logistics costs and the cost of planned production downtime.

 

 

 

 

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Picture 3

 

 

Exhibit 99.1

Earnings Webcast and Conference Call Details

Ardagh Group S.A. (NYSE: ARD) will hold its third quarter 2018 earnings webcast and conference call for investors at 3 p.m. BST (10 a.m. ET) on October  25, 2018. Please use the following webcast link to register for this call:

Webcast registration and access:

https://event.on24.com/wcc/r/1840498-1/CC2D10652294994A59A5E3AB65C199E6

Conference call dial in:

United States: 1866 928 7517
International: +44 20 3139 4830

Participant pin code: 52524482#

Slides and quarterly report

Supplemental slides to accompany this release are available at http://www.ardaghgroup.com/investors. 

Third quarter results for ARD Finance S.A., issuer of the Senior Secured Toggle Notes due 2023, are available at http://www.ardholdings-sa.com/.

About Ardagh Group

 

Ardagh is a global leader in metal and glass packaging solutions, producing packaging for most of the world's leading food, beverage and consumer brands. It operates over 100 facilities in 22 countries across 5 continents, employing approximately 23,000 people and has global sales of approximately $8.6 billion.

 

Forward-Looking Statements

 

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the 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 consolidated financial measures such as Adjusted EBITDA, working capital, 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.

 

Contacts:

 

Investors:
Email: john.sheehan@ardaghgroup.com

Media:

 

Pat Walsh, Murray Consultants
Tel.: +1 646 776 5918 / +353 87 2269345
Email: pwalsh@murrayconsult.ie

 

 

 

 

 

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Picture 3

 

 

Exhibit 99.1

Consolidated Interim Financial Statements

Consolidated Interim Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited, re-presented (i)

 

 

Three months ended September 30, 2018

 

Three months ended September 30, 2017

 

    

Before

    

 

    

 

 

    

Before

    

 

    

 

 

 

 

exceptional

 

Exceptional

 

 

 

 

exceptional

 

Exceptional

 

 

 

 

 

items

 

Items

 

Total

 

items

 

Items

 

Total

 

 

$m

 

$m

 

$m

 

$m

 

$m

 

$m

Revenue

 

2,390

 

 —

 

 

2,390

 

2,319

 

 —

 

 

2,319

Cost of sales

 

(1,999)

 

(45)

 

 

(2,044)

 

(1,897)

 

(7)

 

 

(1,904)

Gross profit/(loss)

 

391

 

(45)

 

 

346

 

422

 

(7)

 

 

415

Sales, general and administration expenses

 

(101)

 

(2)

 

 

(103)

 

(94)

 

(12)

 

 

(106)

Intangible amortization

 

(66)

 

 —

 

 

(66)

 

(65)

 

 —

 

 

(65)

Operating profit/(loss)

 

224

 

(47)

 

 

177

 

263

 

(19)

 

 

244

Net finance expense

 

(128)

 

(20)

 

 

(148)

 

(138)

 

 —

 

 

(138)

Profit/(loss) before tax

 

96

 

(67)

 

 

29

 

125

 

(19)

 

 

106

Income tax (charge)/credit

 

(32)

 

10

 

 

(22)

 

(48)

 

 3

 

 

(45)

Profit/(loss) for the period

 

64

 

(57)

 

 

 7

 

77

 

(16)

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to:

 

  

 

  

 

 

  

 

  

 

  

 

 

  

Equity holders

 

  

 

  

 

 

 7

 

  

 

  

 

 

61

Non‑controlling interests

 

  

 

  

 

 

 —

 

  

 

  

 

 

 —

Profit for the period

 

  

 

  

 

 

 7

 

  

 

  

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

  

 

  

 

 

  

 

  

 

  

 

 

  

Basic earnings for the period attributable to equity holders

 

  

 

  

 

$
0.03

 

  

 

  

 

$
0.26

 

 

 

 

 

 

 

 

(i)

The consolidated interim income statement for the three months ended September 30, 2017 has been re-presented to reflect the Group’s change in presentation currency from euro to U.S. dollar on January 1, 2018.

 

 

 

 

 

 

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Picture 5

 

 

Exhibit 99.1

Consolidated Interim Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited, re-presented (ii)

 

 

Nine months ended September 30, 2018

 

Nine months ended September 30, 2017

 

 

Before

 

 

 

 

 

 

Before

 

 

 

 

 

 

 

exceptional

 

Exceptional

 

 

 

 

exceptional

 

Exceptional

 

 

 

 

 

items

 

Items

 

Total

 

items

 

Items

 

Total

 

 

$m

 

$m

 

$m

 

$m

 

$m

 

$m

Revenue

 

6,961

 

 —

 

 

6,961

 

6,491

 

 —

 

 

6,491

Cost of sales

 

(5,839)

 

(110)

 

 

(5,949)

 

(5,323)

 

(16)

 

 

(5,339)

Gross profit/(loss)

 

1,122

 

(110)

 

 

1,012

 

1,168

 

(16)

 

 

1,152

Sales, general and administration expenses

 

(318)

 

(12)

 

 

(330)

 

(306)

 

(31)

 

 

(337)

Intangible amortization

 

(200)

 

 —

 

 

(200)

 

(197)

 

 —

 

 

(197)

Operating profit/(loss)

 

604

 

(122)

 

 

482

 

665

 

(47)

 

 

618

Net finance expense

 

(357)

 

(20)

 

 

(377)

 

(386)

 

(132)

 

 

(518)

Profit/(loss) before tax

 

247

 

(142)

 

 

105

 

279

 

(179)

 

 

100

Income tax (charge)/credit

 

(80)

 

25

 

 

(55)

 

(105)

 

35

 

 

(70)

Profit/(loss) for the period

 

167

 

(117)

 

 

50

 

174

 

(144)

 

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity holders

 

 

 

 

 

 

50

 

 

 

 

 

 

30

Non‑controlling interests

 

 

 

 

 

 

 —

 

 

 

 

 

 

 —

Profit for the period

 

 

 

 

 

 

50

 

 

 

 

 

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings for the period attributable to equity holders

 

 

 

 

 

$
0.21

 

 

 

 

 

$
0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii)

The consolidated interim income statement for the nine months ended September 30, 2017 has been re-presented to reflect the Group’s change in presentation currency from euro to U.S. dollar on January 1, 2018.

 

 

 

 

 

 

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Picture 5

 

 

Exhibit 99.1

Consolidated Interim Statement of Financial Position

 

 

 

 

 

 

Unaudited

 

Audited

 

At September 30,

 

At December 31,

 
2018

 
2017

 

$m

 

$m

 

 

 

Re-presented (iii)

Non-current assets

 

 

 

Intangible assets

3,863

 

4,104

Property, plant and equipment

3,311

 

3,368

Derivative financial instruments

 3

 

 7

Deferred tax assets

209

 

221

Other non-current assets

24

 

25

 

7,410

 

7,725

Current assets

 

 

 

Inventories

1,268

 

1,353

Trade and other receivables

1,506

 

1,274

Contract asset

151

 

 —

Derivative financial instruments

 9

 

16

Cash and cash equivalents

409

 

784

 

3,343

 

3,427

TOTAL ASSETS

10,753

 

11,152

Equity attributable to owners of the parent

 

 

 

Issued capital

23

 

23

Share premium

1,292

 

1,290

Capital contribution

485

 

485

Other reserves

22

 

(21)

Retained earnings

(3,098)

 

(3,152)

 

(1,276)

 

(1,375)

Non-controlling interests

 1

 

 1

TOTAL EQUITY

(1,275)

 

(1,374)

Non-current liabilities

 

 

 

Borrowings

7,779

 

8,306

Employee benefit obligations

872

 

997

Derivative financial instruments

170

 

301

Deferred tax liabilities

551

 

583

Related party borrowings

 —

 

 —

Provisions

39

 

44

 

9,411

 

10,231

Current liabilities

 

 

 

Borrowings

298

 

 2

Interest payable

107

 

71

Derivative financial instruments

28

 

 2

Trade and other payables

1,930

 

1,988

Income tax payable

160

 

162

Provisions

94

 

70

 

2,617

 

2,295

TOTAL LIABILITIES

12,028

 

12,526

TOTAL EQUITY and LIABILITIES

10,753

 

11,152

 

 

 

 

 

 

 

 

 

 

 

 

(iii)

The consolidated statement of financial position at December 31, 2017 has been re-presented to reflect the Group’s change in presentation currency from euro to U.S. dollar on January 1, 2018.

 

 

 

 

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Picture 9

 

 

Exhibit 99.1

 

Consolidated Interim Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2018

 

2017

 

2018

 

2017

 

 

$m

 

$m

 

$m

 

$m

 

 

 

 

Re-presented (iv)

 

 

 

Re-presented (iv)

Cash flows from operating activities

 

  

 

  

 

  

 

 

Cash generated from operations

 

385

 

498

 

717

 

951

Interest paid

 

(74)

 

(83)

 

(281)

 

(312)

Income tax paid

 

(18)

 

(21)

 

(65)

 

(65)

Net cash generated from operating activities

 

293

 

394

 

371

 

574

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

  

 

  

 

  

 

 

Purchase of property, plant and equipment

 

(107)

 

(107)

 

(413)

 

(325)

Purchase of software and other intangibles

 

(9)

 

(5)

 

(24)

 

(11)

Proceeds from disposal of property, plant and equipment

 

 1

 

 1

 

 5

 

 2

Net cash used in investing activities

 

(115)

 

(111)

 

(432)

 

(334)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

  

 

  

 

  

 

 

Repayment of borrowings

 

(440)

 

(484)

 

(442)

 

(4,397)

Proceeds from borrowings

 

295

 

 —

 

295

 

3,742

Dividends paid

 

(33)

 

(33)

 

(99)

 

(133)

Consideration (paid)/received on termination of derivative financial instruments

 

(44)

 

 —

 

(44)

 

46

Deferred debt issue costs paid

 

 —

 

(3)

 

(5)

 

(26)

Finance lease payments

 

(1)

 

 —

 

(3)

 

 —

Net (costs)/proceeds from share issuance

 

 —

 

(3)

 

 —

 

327

Early redemption premium paid

 

(7)

 

(10)

 

(7)

 

(91)

Net cash outflow from financing activities

 

(230)

 

(533)

 

(305)

 

(532)

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(52)

 

(250)

 

(366)

 

(292)

Cash and cash equivalents at the beginning of the period

 

465

 

823

 

784

 

813

Exchange (losses)/gains on cash and cash equivalents

 

(4)

 

10

 

(9)

 

61

Cash and cash equivalents at the end of the period

 

409

 

583

 

409

 

582

`

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iv)

The consolidated interim statement of cash flows for the three and nine months ended September 30, 2017 has been re-presented to reflect the Group’s change in presentation currency from euro to U.S. dollar on January 1, 2018.

 

 

 

 

one brandone vision

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Picture 9

 

 

Exhibit 99.1

 

Financial assets and liabilities

 

 

At September 30, 2018, the Group’s net debt and available liquidity was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maximum

 

Final

 

 

 

 

 

 

 

 

 

 

 

 

amount

 

maturity

 

Facility

 

 

 

 

 

Undrawn

Facility

 

Currency

 

drawable

 

date

 

type

 

Amount drawn

 

amount

 

    

  

    

Local

    

  

    

  

    

Local

    

$m

    

$m

 

 

 

 

currency

 

 

 

 

 

currency

 

 

 

 

 

 

 

 

m

 

 

 

 

 

m

 

 

 

 

2.750% Senior Secured Notes

 

EUR

 
750

 

15-Mar-24

 

Bullet

 

750

 

868

 

 —

4.625% Senior Secured Notes

 

USD

 
1,000

 

15-May-23

 

Bullet

 

1,000

 

1,000

 

 —

4.125% Senior Secured Notes

 

EUR

 
440

 

15-May-23

 

Bullet

 

440

 

509

 

 —

4.250% Senior Secured Notes 

 

USD

 
715

 

15-Sep-22

 

Bullet

 

715

 

715

 

 —

4.750% Senior Notes

 

GBP

 
400

 

15-Jul-27

 

Bullet

 

400

 

522

 

 —

6.000% Senior Notes

 

USD

 
1,700

 

15-Feb-25

 

Bullet

 

1,700

 

1,671

 

 —

7.250% Senior Notes

 

USD

 
1,650

 

15-May-24

 

Bullet

 

1,650

 

1,650

 

 —

6.750% Senior Notes

 

EUR

 
750

 

15-May-24

 

Bullet

 

750

 

868

 

 —

Global Asset Based Loan Facility

 

USD

 
809

 

07-Dec-22

 

Revolving

 

285

 

285

 

524

Finance Lease Obligations

 

USD/GBP/EUR

 

  

 

 

 

Amortizing

 

36

 

36

 

 —

Other borrowings/credit lines

 

EUR

 
11

 

Rolling

 

Amortizing

 

11

 

12

 

 1

Total borrowings / undrawn facilities

 

  

 

  

 

  

 

  

 

  

 

8,136

 

525

Deferred debt issue costs and bond premium

 

  

 

  

 

  

 

  

 

  

 

(59)

 

 —

Net borrowings / undrawn facilities

 

  

 

  

 

  

 

  

 

  

 

8,077

 

525

Cash and cash equivalents

 

  

 

  

 

  

 

  

 

  

 

(409)

 

409

Derivative financial instruments used to hedge foreign currency and interest rate risk

 

  

 

  

 

  

 

  

 

  

 

190

 

 —

Net debt / available liquidity

 

  

 

  

 

  

 

  

 

  

 

7,858

 

934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Picture 9

 

 

Exhibit 99.1

 

 

Reconciliation of profit for the period to Adjusted profit

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 
2018

 
2017

 
2018

 
2017

 

 

$m

 

$m

 

$m

 

$m

Profit for the period

 

 7

 

61

 

50

 

30

Total exceptional items 6

 

67

 

19

 

142

 

179

Tax credit associated with exceptional items

 

(10)

 

(3)

 

(25)

 

(35)

Intangible amortization

 

66

 

65

 

200

 

197

Tax credit associated with intangible amortization

 

(15)

 

(19)

 

(45)

 

(56)

Loss on derivative financial instruments

 

 8

 

12

 

 —

 

22

Adjusted profit for the period

 

123

 

135

 

322

 

337

 

 

 

 

 

 

 

 

 

Weighted average common shares

 
236.3

 
236.3

 
236.3

 
227.3

 

 

 

 

 

 

 

 

 

Earnings per share ($)

 

0.03

 

0.26

 
0.21

 

0.13

 

 

 

 

 

 

 

 

 

Adjusted earnings per share ($)

 
0.52

 
0.57

 
1.36

 
1.48

 

Reconciliation of profit for the period to Adjusted EBITDA, cash generated from operations, operating cash flow and Adjusted free cash flow 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 
2018

 
2017

 
2018

 
2017

 

 

$m

 

$m

 

$m

 

$m

Profit for the period

 

 7

 

61

 

50

 

30

Income tax charge

 

22

 

45

 

55

 

70

Net finance expense

 

148

 

138

 

377

 

518

Depreciation and amortization

 

176

 

177

 

536

 

508

Exceptional operating items

 

47

 

19

 

122

 

47

Adjusted EBITDA

 

400

 

440

 

1,140

 

1,173

Movement in working capital

 

23

 

72

 

(327)

 

(166)

Transaction-related, start-up and other exceptional costs paid

 

(30)

 

(13)

 

(70)

 

(50)

Exceptional restructuring paid

 

(8)

 

(1)

 

(26)

 

(6)

Cash generated from operations

 

385

 

498

 

717

 

951

Transaction-related, start-up and other exceptional costs paid

 

30

 

13

 

70

 

50

Capital expenditure

 

(115)

 

(111)

 

(432)

 

(334)

Operating cash flow

 

300

 

400

 

355

 

667

Interest 7

 

(72)

 

(83)

 

(279)

 

(310)

Income tax paid

 

(18)

 

(21)

 

(65)

 

(65)

Adjusted free cash flow

 

210

 

296

 

11

 

292

 

 

6. Total exceptional items before tax for the three months ended September 30, 2018 of $67 million include $45 million related to the Group’s capacity realignment programs comprising start-up related costs ($25 million), restructuring costs ($11 million) and property, plant and equipment impairment charges ($9 million).  These costs were incurred in Glass Packaging North America ($34 million), Glass Packaging Europe ($5 million) and Metal Packaging Europe ($6 million). Total exceptional items for the three months ended September 30, 2018 also include $2 million of integration and transaction-related costs and $20 million debt refinancing and settlement costs.

Total exceptional items before tax for the nine months ended September 30, 2018 of $142 million include $110 million related to the Group’s capacity realignment programs, comprising start-up related costs ($39 million), restructuring costs ($57 million) and property, plant and equipment impairment charges ($14 million).  These costs were incurred in Glass Packaging North America ($69 million), Glass Packaging Europe ($5 million), Metal Packaging Europe ($22 million) and Metal Packaging Americas ($14 million). Total exceptional items for the nine months ended September 30, 2018 also include $12 million of integration and transaction-related costs and $20 million debt refinancing and settlement costs.

7. Interest paid in the three and nine months ended September 30, 2018, excludes $2 million in respect of the redemption in July 2018, of the Group’s $440 million 6.000% Senior Notes due 2021,  related to the interest from the date the Notes were called for redemption to the redemption date. Interest paid in the nine months ended September 30, 2017, excludes $2 million of interest paid in lieu of notice, relating to the 6.750% Senior Notes due 2021, redeemed in April 2017.    

 

 

 

 

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Picture 9

 

 

Exhibit 99.1

Picture 18

www.ardaghgroup.com

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