Irish metal- and glass-packaging giant Ardagh Group has posted a 1% revenue growth to €7.64 billion at constant currency levels for 2017, compared to the year before.
The group’s full year and Q4 2017 results reveal an adjusted EBITDA growth of 2% at constant currency levels to €1.34 billion, which was helped along by the successful beverage can integration and deleverage as a result of strong free cash generation, according to the group’s CEO and chairman, Paul Coulson.
“In 2017, we delivered pro forma constant currency Adjusted EBITDA growth of 2%, helped by the successful beverage can integration and de-levered as a result of strong free cash generation,” Coulson said.
Earnings per share increased to €1.63 (+44%) during the year.
The company reported adjusted free cash flow of €465 million, contributing to deleveraging of 0.57x during 2017.
Further, the group said it used over US$ 750 million of cash and IPO proceeds to repay debt during the year. It has put an enhanced capital structure in place with available liquidity of €1.3 billion and anticipates no debt maturities before 2021.
Q4 Decreases
Fourth quarter revenue decreased year-on-year by 1% to €1.789 billion, along with reduced EBITDA of €285 million (-3%) and a drop in earnings per share to €0.31, down from €0.32 in 2016 (-4%).
“Fourth quarter results were in line with our expectations, with constant currency revenue up 1% and Adjusted EBITDA advancing in three of our four divisions,” Coulson said.
2018 Outlook
For the coming year, the company will adopt reporting in US dollar as opposed to Euro.
It anticipates full year adjusted EBITDA of approximately US$ 1.6 billion (€1.304 billion), which would mark a decrease of around 3% at current exchange rates.
The company forecasts adjusted free cash flow in the region of US$550 – US$575 million and adjusted earnings per share of US$1.90 – US$2.10.
During Q1 2018, the company expects adjusted EBITDA to be approximately US$345 million.
© 2018 - Checkout Magazine by Kevin Duggan
