Ardagh Group S.A. - Fourth Quarter and Full Year 2018 Results
LUXEMBOURG, Feb. 21, 2019 /PRNewswire/ -- Ardagh Group S.A. (NYSE: ARD) today announced its results for the fourth quarter and year ended December 31, 2018.
December 31, | December 31, | Change | ||||
($m except per share data) | ||||||
Full Year | ||||||
Revenue | 9,097 | 8,596 | 6% | |||
Adjusted EBITDA 1 | 1,478 | 1,508 | (2%) | |||
Adjusted earnings per share 1 | 1.69 | 1.84 | ||||
Fourth Quarter | ||||||
Revenue | 2,136 | 2,105 | 1% | |||
Adjusted EBITDA 1 | 338 | 335 | 1% | |||
Adjusted earnings per share 1 | 0.33 | 0.36 | ||||
Net debt to LTM Adjusted EBITDA | 5.0x | 5.2x | ||||
Dividend per share declared 2 | 0.14 | 0.14 | ||||
Paul Coulson, Chairman and Chief Executive, said "Revenue and Adjusted EBITDA increased in the quarter, despite an adverse currency headwind, with volume growth in three of our four divisions. Metal packaging performed well in the quarter, with Adjusted EBITDA growth of 12% and notable strength in beverage can demand during both the quarter and full year. Glass packaging in Europe delivered another strong performance in 2018, with broad-based volume growth. Adjusted EBITDA for the quarter increased by 5% and market conditions are positive. In Glass North America, our ongoing initiatives to improve financial performance are proceeding as planned."
- Revenue increased by 6% to $9.1 billion for the full year, with constant currency growth of 3%;
- Adjusted EBITDA for the full year of $1,478 million (2017: $1,508 million);
- Loss per share of $0.40 for the year, with Adjusted earnings per share of $1.69 (2017: $1.84);
- Revenue and Adjusted EBITDA growth of 4% for the fourth quarter at constant currency;
- Volume/mix growth of 1% for the full year and 2% for the fourth quarter;
- Global beverage can volume growth of 8% for the quarter and 5% for the year;
- Glass packaging volume/mix growth of 2% in Europe for the quarter, offset by a 3% decline in North America;
- Beverage can strategic projects completed on plan; short payback project spending of $65 million in 2018;
- Adjusted free cash flow of $441 million in 2018 3;
- Leverage reduced to 5.0x at December 2018, with no maturities before late-2022;
- 2019 outlook: Full year Adjusted EBITDA of at least $1.5 billion, with Adjusted free cash flow of approximately $450 million3 and Adjusted earnings per share of $1.60 – $1.75. First quarter Adjusted EBITDA of approximately $350 million.
Summary Financial Information
Three months ended December 31, | Year ended December 31, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
(in $ millions, except EPS, ratios and percentages) | ||||||||
Revenue | 2,136 | 2,105 | 9,097 | 8,596 | ||||
(Loss)/profit for the period | (144) | 33 | (94) | 63 | ||||
Adjusted profit for the period 4 | 78 | 86 | 400 | 423 | ||||
Adjusted EBITDA 4 | 338 | 335 | 1,478 | 1,508 | ||||
Adjusted EBITDA margin | 15.8% | 15.9% | 16.2% | 17.5% | ||||
(Loss)/earnings per share ($) | (0.61) | 0.14 | (0.40) | 0.27 | ||||
Adjusted earnings per share ($) 4 | 0.33 | 0.36 | 1.69 | 1.84 | ||||
Cash generated from operations | 659 | 572 | 1,376 | 1,523 | ||||
Operating cash flow 4 | 540 | 438 | 895 | 1,105 | ||||
Adjusted free cash flow 4 | 365 | 254 | 376 | 546 | ||||
At December 31, | At December 31, | |||||||
2018 | 2017 | |||||||
$m | $m | |||||||
Net debt 5 | 7,462 | 7,825 | ||||||
Cash and available liquidity | 1,170 | 1,598 | ||||||
Net debt to LTM Adjusted EBITDA | 5.0x | 5.2x | ||||||
Financial Performance Review
Bridge of 2017 to 2018 Revenue and Adjusted EBITDA
Three months ended December 31, 2018 | ||||||||||
Metal | Metal | Glass | Glass | Group | ||||||
$m | $m | $m | $m | $m | ||||||
Revenue 2017 | 805 | 512 | 392 | 396 | 2,105 | |||||
Organic | 32 | 27 | 10 | (5) | 64 | |||||
IFRS 15 | 18 | (7) | — | — | 11 | |||||
FX translation | (29) | — | (15) | — | (44) | |||||
Revenue 2018 | 826 | 532 | 387 | 391 | 2,136 | |||||
Metal | Metal | Glass | Glass | Group | ||||||
$m | $m | $m | $m | $m | ||||||
Adjusted EBITDA 2017 | 115 | 68 | 80 | 72 | 335 | |||||
Organic | 14 | 15 | 8 | (23) | 14 | |||||
IFRS 15 | (1) | (1) | — | — | (2) | |||||
FX translation | (5) | — | (4) | — | (9) | |||||
Adjusted EBITDA 2018 | 123 | 82 | 84 | 49 | 338 | |||||
Adjusted EBITDA 2018 margin | 14.9% | 15.4% | 21.7% | 12.5% | 15.8% | |||||
Adjusted EBITDA 2017 margin | 14.3% | 13.3% | 20.4% | 18.2% | 15.9% | |||||
Year ended December 31, 2018 | ||||||||||
Metal | Metal | Glass | Glass | Group | ||||||
$m | $m | $m | $m | $m | ||||||
Revenue 2017 | 3,339 | 1,931 | 1,549 | 1,777 | 8,596 | |||||
Organic | 99 | 255 | 11 | (82) | 283 | |||||
IFRS 15 | (3) | 1 | — | — | (2) | |||||
FX translation | 157 | — | 63 | — | 220 | |||||
Revenue 2018 | 3,592 | 2,187 | 1,623 | 1,695 | 9,097 | |||||
Metal | Metal | Glass | Glass | Group | ||||||
$m | $m | $m | $m | $m | ||||||
Adjusted EBITDA 2017 | 554 | 265 | 340 | 349 | 1,508 | |||||
Organic | (10) | 32 | 7 | (92) | (63) | |||||
IFRS 15 | (3) | 1 | — | — | (2) | |||||
FX translation | 24 | — | 11 | — | 35 | |||||
Adjusted EBITDA 2018 | 565 | 298 | 358 | 257 | 1,478 | |||||
Adjusted EBITDA 2018 margin | 15.7% | 13.6% | 22.1% | 15.2% | 16.2% | |||||
Adjusted EBITDA 2017 margin | 16.6% | 13.7% | 21.9% | 19.6% | 17.5% |
Full Year
Revenue increased by $501 million, or 6% to $9,097 million in 2018, compared with $8,596 million in the year ended December 31, 2017. Revenue growth reflected higher selling prices driven by the pass through of higher input costs, increased volume/mix effects of 1% and favorable currency translation effects of $220 million.
Adjusted EBITDA declined by $30 million, or 2%, to $1,478 million in the year ended December 31, 2018. The decline principally reflected lower Adjusted EBITDA in Glass Packaging North America, which was impacted by lower volumes, in particular in the beer end-market, as well as by increased freight and logistics costs. This was partly offset by Adjusted EBITDA growth in Metal Packaging and in Glass Packaging Europe, and by favorable translation effects of $35 million.
Fourth Quarter
Group
Revenue of $2,136 million for the quarter ended December 31, 2018 represented an increase of 1% at actual exchange rates and, 4% at constant currency, compared with the same period last year. The increase in revenue reflected the pass through of increased input costs, volume/mix growth of 2%, including IFRS 15 effects, partly offset by unfavorable currency translation effects of $44 million. Fourth quarter Adjusted EBITDA of $338 million increased by 1% at actual exchange rates, compared with the same period last year. On a constant currency basis, Adjusted EBITDA increased by 4%, with growth in three of our four divisions, partly offset by lower earnings in Glass Packaging North America.
Metal Packaging Europe
Revenue of $826 million increased by 3% in the three-month period ended December 31, 2018, compared with the same period last year. On a constant currency basis, revenue increased by 6%, due mainly to volume/mix growth, including IFRS 15 effects and the pass through of higher input costs. Adjusted EBITDA for the quarter of $123 million increased by 12%, at constant currency, compared with same period last year. Growth reflected reduced operating costs including a pension-related credit of $12 million, partly offset by higher input costs.
Metal Packaging Americas
Revenue increased by 4% to $532 million in the fourth 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, partly offset by IFRS 15 effects. Adjusted EBITDA of $82 million increased by 21% 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 $387 million decreased by 1% at actual currency rates and increased by 3% at constant exchange rates, in the three-month period ended December 31, 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 $84 million increased by 11% at constant exchange rates, compared with the same period last year, mainly due to favorable volume/mix effects in glass packaging.
Glass Packaging North America
Revenue decreased by 1% to $391 million in the fourth quarter, compared with the same period last year, principally reflecting lower volumes in the beer end-market, partly offset by the pass through of higher input costs. Adjusted EBITDA decreased by 32% to $49 million in the fourth quarter, compared with the same period in 2017, mainly as a result of lower volume/mix effects and the cost of planned production downtime.
Earnings Webcast and Conference Call Details
Ardagh Group S.A. (NYSE: ARD) will hold its fourth quarter 2018 earnings webcast and conference call for investors at 3 p.m. GMT (10 a.m. ET) on February 21, 2019. Please use the following webcast link to register for this call:
Webcast registration and access:
https://event.on24.com/wcc/r/1912939-1/689100224E03D568780CD46B2907F188
Conference call dial in:
United States: +1855 85 70686
International: +44 33 3300 0804
Participant pin code: 24927617#
Slides and annual report
Supplemental slides to accompany this release are available at http://www.ardaghgroup.com/investors.
The Group's 2018 annual report on Form 20-F is expected to be filed in March 2019.
The 2018 annual report on Form 20-F for ARD Finance S.A., issuer of the Senior Secured Toggle Notes due 2023, will also be filed in March 2019 and will be 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 $9.1 billion.
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 consolidated financial measures such as Adjusted EBITDA, working capital, 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.
Consolidated Financial Statements
Consolidated Income Statement | ||||||||||||||
Unaudited, re-presented (i) | ||||||||||||||
Three months ended December 31, 2018 | Three months ended December 31, 2017 | |||||||||||||
Before | Before | |||||||||||||
exceptional | Exceptional | exceptional | Exceptional | |||||||||||
items | Items | Total | items | Items | Total | |||||||||
$m | $m | $m | $m | $m | $m | |||||||||
Revenue | 2,136 | — | 2,136 | 2,105 | — | 2,105 | ||||||||
Cost of sales | (1,815) | (14) | (1,829) | (1,787) | (84) | (1,871) | ||||||||
Gross profit/(loss) | 321 | (14) | 307 | 318 | (84) | 234 | ||||||||
Sales, general and administration expenses | (96) | (7) | (103) | (95) | (18) | (113) | ||||||||
Intangible amortization and impairment | (65) | (186) | (251) | (67) | — | (67) | ||||||||
Operating profit/(loss) | 160 | (207) | (47) | 156 | (102) | 54 | ||||||||
Net finance expense | (106) | (2) | (108) | (131) | — | (131) | ||||||||
Profit/(loss) before tax | 54 | (209) | (155) | 25 | (102) | (77) | ||||||||
Income tax (charge)/credit | (18) | 29 | 11 | 7 | 103 | 110 | ||||||||
Profit/(loss) for the period | 36 | (180) | (144) | 32 | 1 | 33 | ||||||||
(Loss)/profit attributable to: | ||||||||||||||
Equity holders | (144) | 33 | ||||||||||||
Non-controlling interests | — | — | ||||||||||||
(Loss)/profit for the period | (144) | 33 | ||||||||||||
(Loss)/profit per share: | ||||||||||||||
Basic (loss)/profit for the period attributable to equity holders | ($0.61) | $0.14 | ||||||||||||
(i) The consolidated income statement for the three months ended 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. | ||||||||||||||
Consolidated Income Statement | ||||||||||||||
Re-presented (ii) | ||||||||||||||
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||
Before | Before | |||||||||||||
exceptional | Exceptional | exceptional | Exceptional | |||||||||||
items | Items | Total | items | Items | Total | |||||||||
$m | $m | $m | $m | $m | $m | |||||||||
Revenue | 9,097 | — | 9,097 | 8,596 | — | 8,596 | ||||||||
Cost of sales | (7,654) | (124) | (7,778) | (7,110) | (100) | (7,210) | ||||||||
Gross profit/(loss) | 1,443 | (124) | 1,319 | 1,486 | (100) | 1,386 | ||||||||
Sales, general and administration expenses | (414) | (19) | (433) | (401) | (49) | (450) | ||||||||
Intangible amortization and impairment | (265) | (186) | (451) | (264) | — | (264) | ||||||||
Operating profit/(loss) | 764 | (329) | 435 | 821 | (149) | 672 | ||||||||
Net finance expense | (463) | (22) | (485) | (517) | (132) | (649) | ||||||||
Profit/(loss) before tax | 301 | (351) | (50) | 304 | (281) | 23 | ||||||||
Income tax (charge)/credit | (98) | 54 | (44) | (98) | 138 | 40 | ||||||||
Profit/(loss) for the year | 203 | (297) | (94) | 206 | (143) | 63 | ||||||||
(Loss)/profit attributable to: | ||||||||||||||
Equity holders | (94) | 63 | ||||||||||||
Non-controlling interests | — | — | ||||||||||||
(Loss)/profit for the year | (94) | 63 | ||||||||||||
(Loss)/profit per share: | ||||||||||||||
Basic (loss)/profit for the year attributable to equity holders | ($0.40) | $0.27 | ||||||||||||
(ii) The consolidated income statement for the year ended 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. | ||||||||||||||
Consolidated Statement of Financial Position | |||
At December 31, | At December 31, | ||
2018 | 2017 | ||
$m | $m | ||
Re-presented (iii) | |||
Non-current assets | |||
Intangible assets | 3,601 | 4,104 | |
Property, plant and equipment | 3,388 | 3,368 | |
Derivative financial instruments | 11 | 7 | |
Deferred tax assets | 254 | 221 | |
Other non-current assets | 24 | 25 | |
7,278 | 7,725 | ||
Current assets | |||
Inventories | 1,284 | 1,353 | |
Trade and other receivables | 1,053 | 1,274 | |
Contract asset | 160 | — | |
Derivative financial instruments | 9 | 16 | |
Cash and cash equivalents | 530 | 784 | |
3,036 | 3,427 | ||
TOTAL ASSETS | 10,314 | 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 | 45 | (21) | |
Retained earnings | (3,355) | (3,152) | |
(1,510) | (1,375) | ||
Non-controlling interests | 1 | 1 | |
TOTAL EQUITY | (1,509) | (1,374) | |
Non-current liabilities | |||
Borrowings | 7,761 | 8,306 | |
Employee benefit obligations | 957 | 997 | |
Derivative financial instruments | 107 | 301 | |
Deferred tax liabilities | 543 | 583 | |
Provisions | 38 | 44 | |
9,406 | 10,231 | ||
Current liabilities | |||
Borrowings | 118 | 2 | |
Interest payable | 81 | 71 | |
Derivative financial instruments | 38 | 2 | |
Trade and other payables | 1,983 | 1,988 | |
Income tax payable | 114 | 162 | |
Provisions | 83 | 70 | |
2,417 | 2,295 | ||
TOTAL LIABILITIES | 11,823 | 12,526 | |
TOTAL EQUITY and LIABILITIES | 10,314 | 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. | |||
Consolidated Statement of Cash Flows | ||||
Year ended December 31, | ||||
2018 | 2017 | |||
$m | $m | |||
Re-presented (iv) | ||||
Cash flows from operating activities | ||||
Cash generated from operations | 1,376 | 1,523 | ||
Interest paid | (416) | (458) | ||
Income tax paid | (105) | (103) | ||
Net cash from operating activities | 855 | 962 | ||
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (555) | (476) | ||
Purchase of intangible assets | (32) | (22) | ||
Proceeds from disposal of property, plant and equipment | 12 | 6 | ||
Net cash used in investing activities | (575) | (492) | ||
Cash flows from financing activities | ||||
Repayment of borrowings | (443) | (4,385) | ||
Proceeds from borrowings | 114 | 3,730 | ||
Dividends paid | (132) | (165) | ||
Consideration (paid)/received on termination of derivative financial instruments | (44) | 46 | ||
Deferred debt issue costs paid | (5) | (38) | ||
Finance lease payments | (4) | — | ||
Early redemption premium paid | (7) | (91) | ||
Proceeds from share issuance | — | 326 | ||
Net cash outflow from financing activities | (521) | (577) | ||
Net decrease in cash and cash equivalents | (241) | (107) | ||
Cash and cash equivalents at the beginning of the year | 784 | 813 | ||
Exchange (losses)/gains on cash and cash equivalents | (13) | 78 | ||
Cash and cash equivalents at the end of the year | 530 | 784 | ||
(iv) The consolidated statement of cash flows for the year ended 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. | ||||
Financial assets and liabilities | ||||||||||||||
At December 31, 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 | 859 | — | |||||||
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 | 504 | — | |||||||
4.250% Senior Secured Notes | USD | 715 | 15-Sep-22 | Bullet | 715 | 715 | — | |||||||
4.750% Senior Notes | GBP | 400 | 15-Jul-27 | Bullet | 400 | 512 | — | |||||||
6.000% Senior Notes | USD | 1,700 | 15-Feb-25 | Bullet | 1,700 | 1,685 | — | |||||||
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 | 859 | — | |||||||
Global Asset Based Loan Facility | USD | 739 | 07-Dec-22 | Revolving | – | 100 | 639 | |||||||
Finance Lease Obligations | USD/GBP/EUR | Amortizing | – | 36 | — | |||||||||
Other borrowings/credit lines | EUR/USD | – | Rolling | Amortizing | – | 15 | 1 | |||||||
Total borrowings / undrawn facilities | 7,935 | 640 | ||||||||||||
Deferred debt issue costs and bond premium | (56) | — | ||||||||||||
Net borrowings / undrawn facilities | 7,879 | 640 | ||||||||||||
Cash and cash equivalents | (530) | 530 | ||||||||||||
Derivative financial instruments used to hedge foreign currency and interest rate risk | 113 | — | ||||||||||||
Net debt / available liquidity | 7,462 | 1,170 | ||||||||||||
Reconciliation of (loss)/profit for the period to Adjusted profit | ||||||||
Three months ended December 31, | Year ended December 31, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
$m | $m | $m | $m | |||||
(Loss)/profit for the period | (144) | 33 | (94) | 63 | ||||
Total exceptional items 6 | 209 | 102 | 351 | 281 | ||||
Tax credit associated with exceptional items | (29) | (103) | (54) | (138) | ||||
Intangible amortization | 65 | 67 | 265 | 264 | ||||
Tax credit associated with intangible amortization | (13) | (19) | (58) | (75) | ||||
(Gain)/loss on derivative financial instruments | (10) | 6 | (10) | 28 | ||||
Adjusted profit for the period | 78 | 86 | 400 | 423 | ||||
Weighted average common shares | 236.3 | 236.3 | 236.3 | 229.6 | ||||
(Loss)/earnings per share ($) | (0.61) | 0.14 | (0.40) | 0.27 | ||||
Adjusted earnings per share ($) | 0.33 | 0.36 | 1.69 | 1.84 | ||||
Reconciliation of (loss)/profit for the period to Adjusted EBITDA, cash generated from operations, operating cash flow and Adjusted free cash flow | ||||||||
Three months ended December 31, | Year ended December 31, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
$m | $m | $m | $m | |||||
(Loss)/profit for the period | (144) | 33 | (94) | 63 | ||||
Income tax (credit)/charge | (11) | (110) | 44 | (40) | ||||
Net finance expense | 108 | 131 | 485 | 649 | ||||
Depreciation and amortization | 178 | 179 | 714 | 687 | ||||
Exceptional operating items | 207 | 102 | 329 | 149 | ||||
Adjusted EBITDA | 338 | 335 | 1,478 | 1,508 | ||||
Movement in working capital | 351 | 265 | 24 | 99 | ||||
Transaction-related, start-up and other exceptional costs paid | (24) | (24) | (94) | (74) | ||||
Exceptional restructuring paid | (6) | (4) | (32) | (10) | ||||
Cash generated from operations | 659 | 572 | 1,376 | 1,523 | ||||
Transaction-related, start-up and other exceptional costs paid | 24 | 24 | 94 | 74 | ||||
Capital expenditure 7 | (143) | (158) | (575) | (492) | ||||
Operating cash flow | 540 | 438 | 895 | 1,105 | ||||
Interest 8 | (135) | (146) | (414) | (456) | ||||
Income tax paid | (40) | (38) | (105) | (103) | ||||
Adjusted free cash flow | 365 | 254 | 376 | 546 | ||||
1. A reconciliation to the most comparable GAAP measures can be found at the back of this release. |
2. Payable on March 13, 2019 to shareholders of record on February 27, 2019. |
3. Before short payback projects. |
4. A reconciliation to the most comparable GAAP measures can be found at the back of this release. |
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. |
6. Total exceptional items before tax for the three months ended December 31, 2018 of $209 million include $186 million impairment charge to goodwill, start-up related costs ($9 million) and past service costs ($8 million), partly offset by a release of impairment on property, plant and equipment ($4 million). These costs were incurred in Glass Packaging North America ($192 million), Glass Packaging Europe ($9 million) and Metal Packaging Europe ($11 million), partly offset by a release in Metal Packaging Americas ($3 million). Total exceptional items for the three months ended December 31, 2018 also include $7 million of integration and transaction-related costs and $3 million debt refinancing and settlement costs. |
Total exceptional items before tax for the year ended December 31, 2018 of $351 million include $186 million impairment charge to goodwill, $116 million related to the Group's capacity realignment programs, comprising restructuring costs ($57 million), start-up related costs ($48 million) and property, plant and equipment impairment charges ($11 million) and past service costs ($8 million). These costs were incurred in Glass Packaging North America ($267 million), Glass Packaging Europe ($39 million), Metal Packaging Europe ($34 million) and Metal Packaging Americas ($11 million). Total exceptional items for the year ended December 31, 2018 also include $19 million of integration and transaction-related costs and $22 million debt refinancing and settlement costs. |
7. Capital expenditure for the three and twelve months ended December 31, 2018, includes $46 million and $65 million, relating to spend on short payback projects. |
8. Interest paid in the year ended December 31, 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 year ended December 31, 2017, excludes $2 million of interest paid in lieu of notice, relating to the 6.750% Senior Notes due 2021, redeemed in April 2017. |
SOURCE Ardagh Group S.A.
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