LUXEMBOURG, Feb. 20, 2020 /PRNewswire/ -- Ardagh Group S.A. (NYSE: ARD) today announced its results for the fourth quarter and year ended December 31, 2019.












December 31,
2019


December 31,
2018


Change


Change CCY



($'m except per share data)





Full Year









Revenue (1)


6,660


6,676


-


2%

Adjusted EBITDA (1)


1,173


1,115


5%


8%

Adjusted EBITDA margin (1)


17.6%


16.7%


+90 bps


+90 bps

Adjusted earnings per share - Group (1)


1.82


1.69


8%


10%

Earnings/(loss) per share - Group


6.17


(0.40)





Fourth Quarter









Revenue (1)


1,581


1,589


(1%)


1%

Adjusted EBITDA (1)


267


255


5%


6%

Adjusted EBITDA margin (1)


16.9%


16.0%


+90 bps


+80 bps

Adjusted earnings per share - Group (1)


0.39


0.33


18%


22%

Dividend per share declared (2)


0.14


0.14














Net debt to LTM Adjusted EBITDA


4.5x


5.0x





 

Paul Coulson, Chairman and Chief Executive, said "2019 was a year of significant progress for the Group. Metal Packaging demand was strong, notably in the Americas, and global beverage can shipments increased by 5%. Glass Packaging Europe delivered another excellent year of growth, while Glass Packaging North America successfully stabilized earnings. The sustainability-driven demand backdrop for our infinitely-recyclable products remains favorable and we look to further progress in 2020."

  • Revenue from Continuing Operations increased by 2% at constant currency, to $6.7 billion for the year;
  • Adjusted EBITDA from Continuing Operations increased by 8% at constant currency, to $1,173 million;
  • Adjusted earnings per share increased by 10% at constant currency to $1.82 (2018: $1.69);
  • Earnings per share of $6.17 for the year (2018: Loss per share of $0.40);
  • Fourth quarter revenue and Adjusted EBITDA growth of 1% and 6% respectively at constant currency;
  • Global beverage can shipments growth of 4% for the quarter and 5% for the year, with full year specialty can growth of 6%;
  • Glass Packaging revenue and Adjusted EBITDA growth of 2% and 20% respectively at constant currency in the quarter, reflecting continued strong delivery in Europe and stabilization in North America;
  • Food & Specialty Packaging divestment completed in October 2019, with proceeds used to repay debt;
  • Leverage reduced to 4.5x at year end, with further maturity and interest rate savings achieved during the year;
  • 2020 outlook: Adjusted EBITDA of approximately $1.2 billion; Adjusted free cash flow of $375 - $400 million, before Business Growth Investments of approximately $250 million; Adjusted earnings per share of $1.48 - $1.64 (3); First quarter Adjusted EBITDA of approximately $270 million.

Summary Financial Information












Three months ended December 31,


Year ended December 31,



2019


2018


2019


2018



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

Revenue  (4)


1,581


1,589


6,660


6,676

Adjusted EBITDA (4)


267


255


1,173


1,115

Adjusted EBITDA margin (4)


16.9%


16.0%


17.6%


16.7%

Operating cash flow (4)


399


359


687


616










Profit/(loss) for the period - Group


1,405


(144)


1,458


(94)

Adjusted profit for the period - Group (4)


92


78


431


400

Earnings/(loss) per share - Group


5.94


(0.61)


6.17


(0.40)

Adjusted earnings per share - Group  (4)


0.39


0.33


1.82


1.69










 

 








At December 31,


At December 31,



2019


2018



$'m


$'m

Net debt (5)


5,328


7,462

Cash and available liquidity


1,278


1,170

Net debt to LTM Adjusted EBITDA (6)


4.5x


5.0x

 

 

Financial Performance Review

Bridge of 2018 to 2019 Revenue and Adjusted EBITDA – Continuing Operations


Three months ended December 31, 2019












Revenue


Metal
Beverage
Packaging
Europe


Metal
Beverage
Packaging
Americas


Glass
Packaging
Europe


Glass
Packaging
North
America


Continuing
Operations



$'m


$'m


$'m


$'m


$'m

Revenue 2018


379


432


387


391


1,589

Organic


(25)


25


21


(3)


18

FX translation


(13)



(13)



(26)

Revenue 2019


341


457


395


388


1,581












Adjusted EBITDA


Metal
Beverage
Packaging
Europe


Metal
Beverage
Packaging
Americas


Glass
Packaging
Europe


Glass
Packaging
North
America


Continuing
Operations



$'m


$'m


$'m


$'m


$'m

Adjusted EBITDA 2018


53


69


84


49


255

Organic


(11)


(6)


9


(2)


(10)

IFRS 16


3


3


8


11


25

FX translation


(1)



(2)



(3)

Adjusted EBITDA 2019


44


66


99


58


267












2019 margin


12.9%


14.4%


25.1%


14.9%


16.9%

2018 margin


14.0%


16.0%


21.7%


12.5%


16.0%























Year ended December 31, 2019






















Revenue


Metal
Beverage
Packaging
Europe


Metal
Beverage
Packaging
Americas


Glass
Packaging
Europe


Glass
Packaging
North
America


Continuing
Operations



$'m


$'m


$'m


$'m


$'m

Revenue 2018


1,616


1,742


1,623


1,695


6,676

Organic


26


74


77


(20)


157

FX translation


(86)



(87)



(173)

Revenue 2019


1,556


1,816


1,613


1,675


6,660












Adjusted EBITDA


Metal
Beverage
Packaging
Europe


Metal
Beverage
Packaging
Americas


Glass
Packaging
Europe


Glass
Packaging
North
America


Continuing
Operations



$'m


$'m


$'m


$'m


$'m

Adjusted EBITDA 2018


270


230


358


257


1,115

Organic


(18)


11


28


(14)


7

IFRS 16


14


9


24


36


83

FX translation


(13)



(19)



(32)

Adjusted EBITDA 2019


253


250


391


279


1,173












2019 margin


16.3%


13.8%


24.2%


16.7%


17.6%

2018 margin


16.7%


13.2%


22.1%


15.2%


16.7%

 

Group Performance

On October 31, 2019, the Group completed the combination of its Food & Specialty Metal Packaging business, operating as part of the Metal Packaging Europe and Metal Packaging Americas segments, with the business of Exal, to form Trivium Packaging, a global leader in metal packaging. The Group holds a stake of approximately 42% in Trivium. As a result of the completion of the transaction, the composition of the Group's operating and reporting segments changed. The Food & Specialty Metal Packaging business has been reported as a discontinued operation.

The following are the Group's four operating and reportable segments:

  • Metal Beverage Packaging Europe
  • Metal Beverage Packaging Americas
  • Glass Packaging Europe
  • Glass Packaging North America

Full year

Continuing Operations

Revenue decreased by $16 million, to $6,660 million in 2019, compared with $6,676 million in the year ended 31 December 2018. On a constant currency basis, revenue increased by 2%, principally due to volume/mix growth in beverage cans and the pass through of increased input costs in Glass packaging.

Adjusted EBITDA increased by $58 million, or 5%, to $1,173 million in the year ended 31 December 2019. On a constant currency basis, Adjusted EBITDA increased by $90 million, or 8%, principally due to favorable volume/mix effects, lower input costs and the impact of IFRS 16, partly offset by higher operating costs.

Fourth Quarter

Continuing Operations

Revenue of $1,581 million for the quarter ended December 31, 2019 decreased by 1% at actual exchange rates and increased by $18 million or 1% at constant currency, compared with the same period last year. The increase in revenue is driven mainly by favorable volume/mix effects in Beverage Packaging Americas and higher selling prices in Glass Packaging, including the pass through of higher input costs.

Adjusted EBITDA increased by $12 million, or 5%, to $267 million in the three months ending December 31, 2019. On a constant currency basis, Adjusted EBITDA increased by 6%, principally due to favourable volume mix effects, the impact of IFRS 16, partly offset by higher operating costs.

Metal Beverage Packaging Europe

Revenue of $341 million decreased by 10% in the three-month period ended December 31, 2019, compared with the same period last year. On a constant currency basis, revenue decreased by 7%, principally due to unfavorable volume/mix effects and lower selling prices. Adjusted EBITDA for the quarter of $44 million decreased by 17% at actual exchange rates and 15% at constant currency, compared with the same period last year. The reduction in Adjusted EBITDA principally reflected increased operating costs and unfavorable volume/mix effects, partly offset by the impact of IFRS 16.

Metal Beverage Packaging Americas

Revenue increased by 6% to $457 million in the fourth quarter of 2019, compared with the same period last year. This was principally due to favorable volume/mix effects of 11%, partly offset by the pass through of lower input costs. Adjusted EBITDA of $66 million decreased by 4% compared with the particularly strong prior year period, principally reflecting other operating cost increases, partly offset by favorable volume/mix effects and the impact of IFRS 16.

Glass Packaging Europe

Revenue for the quarter of $395 million increased by 2% at actual exchange rates and by 5% at constant currency, compared with the same period last year. Revenue growth principally reflected increased selling prices, including to recover increased input costs. Adjusted EBITDA for the quarter of $99 million increased by 21%, at constant exchange rates, compared with the same period last year, mainly due to higher selling prices and the impact of IFRS 16, partly offset by increased input costs.

Glass Packaging North America

Revenue decreased by 1% to $388 million in the fourth quarter, compared with the same period last year. This  principally reflected unfavorable volume/mix effects, partly offset by increased selling prices to recover higher input costs. Adjusted EBITDA for the quarter of $58 million increased by 18%, compared with the same period last year, mainly due to the impact of IFRS 16 of $11 million, increased selling prices reflecting the pass through of higher input costs and lower freight and logistics costs, partly offset by unfavorable volume/mix effects.

Financing Activity

On October 31, 2019, the Group completed the combination of its Food & Specialty Metal Packaging business, operating as part of the Metal Packaging Europe and Metal Packaging Americas segments, with the business of Exal, to form Trivium Packaging, a global leader in metal packaging.        

Following the completion of the combination of its Food & Specialty business with the business of Exal, on October 31, 2019, the Group issued tender offers, at par, in respect of its $715 million 4.250% Senior Secured Notes due 2022 ("the 2022 Notes"), €750 million 2.750% Senior Secured Notes due 2024 ("the 2024 Notes"), €440 million 2.125% Senior Secured Notes due 2026 ("the 2026 Senior Secured Euro Notes") and $500 million 4.125% Senior Secured Notes due 2026 ("the 2026 Senior Secured Euro Notes"). Following the expiration of the offer on November 28, 2019 notice was given to repurchase the following amounts, $20 million of the 2022 Notes, €9 million of the 2024 Notes, and €1 million of the 2026 Senior Secured Euro Notes. On December 2, 2019, in accordance with the terms of the offer, the redemptions were completed.

On November 14, 2019, the Group redeemed $1,000 million 4.625% Senior Secured Notes due 2023 and €440 million 4.125% Senior Secured Notes due 2023, and paid the applicable redemption premiums and accrued interest. 

On November 29, 2019, the Group redeemed €750 million 6.750% Senior Notes due 2024 and paid the applicable redemption premium and accrued interest.

As at December 31, 2019, the Group had $663 million available under the Global Asset Based Loan Facility. During 2019, the Group reduced the facility size from $850 million to $700 million as a result of the Trivium transaction.

Earnings Webcast and Conference Call Details

Ardagh Group S.A. (NYSE: ARD) will hold its fourth quarter 2019 earnings webcast and conference call for investors at 3 p.m. GMT (10 a.m. ET) on February 20, 2020. Please use the following webcast link to register for this call:

Webcast registration and access:

https://event.on24.com/wcc/r/2168526/2003269CB850A7C26A442C9150B4952C

Conference call dial in:

United States: +1855 85 70686
International: +44 33 3300 0804

Participant pin code: 97848277#

Slides and annual report

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

The Group's 2019 annual report on Form 20-F is expected to be filed by March 2020.

The 2019 annual report for ARD Finance S.A., issuer of the Senior Secured Toggle Notes due 2027, will be published in March 2020 and available at http://www.ardholdings-sa.com/.

About Ardagh Group

Ardagh Group is a global supplier of infinitely recyclable, metal and glass packaging for the world's leading brands. Ardagh operates more than 50 metal and glass production facilities in 12 countries across three continents, employing over 16,000 people with sales of $6.7bn.

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 for the three months ended December 31, 2019




Unaudited


Unaudited



Three months ended December 31, 2019


Three months ended December 31, 2018



Before







Before








exceptional


Exceptional





exceptional


Exceptional






items


Items


Total


items


Items


Total



$'m


$'m


$'m


$'m


$'m


$'m

Revenue


1,581




1,581


1,589




1,589

Cost of sales


(1,347)


(4)



(1,351)


(1,343)


(9)



(1,352)

Gross profit


234


(4)



230


246


(9)



237

Sales, general and administration expenses


(77)


(9)



(86)


(82)


(6)



(88)

Intangible amortization and impairment


(57)




(57)


(58)


(186)



(244)

Operating profit/(loss)


100


(13)



87


106


(201)



(95)

Net finance expense


(101)


(91)



(192)


(106)


(2)



(108)

Share of post-tax losses in equity accounted joint venture


(10)


(39)



(49)





Loss before tax


(11)


(143)



(154)



(203)



(203)

Income tax charge


(18)


(31)



(49)


(41)


27



(14)

Loss from continuing operations


(29)


(174)



(203)


(41)


(176)



(217)

Profit from discontinued operation


71


1,537



1,608


77


(4)



73

Profit/(loss) for the period


42


1,363



1,405


36


(180)



(144)
















Profit/(loss) attributable to:















Equity holders







1,405







(144)

Non-controlling interests













Profit/(loss) for the period







1,405







(144)
















Earnings/(loss) per share:















Basic and diluted earnings/(loss) per share attributable to
equity holders







$5.94







($0.61)
















Loss per share from continuing operations:















Basic and diluted loss per share from continuing operations
attributable to equity holders







($0.86)







($0.92)

 

 

Consolidated Income Statement for the twelve months ended December 31, 2019








Year ended December 31, 2019


Year ended December 31, 2018



Before







Before








exceptional


Exceptional





exceptional


Exceptional






items


Items


Total


items


Items


Total



$'m


$'m


$'m


$'m


$'m


$'m

Revenue


6,660




6,660


6,676




6,676

Cost of sales


(5,595)


(2)



(5,597)


(5,623)


(108)



(5,731)

Gross profit


1,065


(2)



1,063


1,053


(108)



945

Sales, general and administration expenses


(311)


(51)



(362)


(300)


(17)



(317)

Intangible amortization


(233)




(233)


(237)


(186)



(423)

Operating profit


521


(53)



468


516


(311)



205

Net finance expense


(456)


(203)



(659)


(457)


(22)



(479)

Share of post-tax loss in equity accounted joint venture


(10)


(39)



(49)





Loss before tax


55


(295)



(240)


59


(333)



(274)

Income tax charge


(41)


(3)



(44)


(67)


49



(18)

Loss from continuing operations


14


(298)



(284)


(8)


(284)



(292)

Profit from discontinued operation


215


1,527



1,742


211


(13)



198

Profit/(loss) for the year


229


1,229



1,458


203


(297)



(94)
















Profit/(loss) attributable to:















Equity holders







1,458







(94)

Non-controlling interests













Profit/(loss) for the period







1,458







(94)
















Earnings/(loss) per share:















Basic and diluted earnings/(loss) per share attributable to
equity holders







$6.17







($0.40)
















Loss per share from continuing operations:















Basic and diluted loss per share from continuing operations
attributable to equity holders







($1.20)







($1.24)

 

 

Consolidated Statement of Financial Position






At December 31,


At December 31,


2019


2018


$'m


$'m





Non-current assets




Intangible assets

2,884


3,601

Property, plant and equipment

2,677


3,388

Derivative financial instruments

4


11

Deferred tax assets

204


254

Investment in material joint venture

375


Other non-current assets

68


24


6,212


7,278

Current assets




Inventories

964


1,284

Trade and other receivables

734


1,053

Contract assets

151


160

Derivative financial instruments

3


9

Cash and cash equivalents

614


530


2,466


3,036

TOTAL ASSETS

8,678


10,314

Equity attributable to owners of the parent




Issued capital

23


23

Share premium

1,292


1,292

Capital contribution

485


485

Other reserves

165


45

Retained earnings

(2,181)


(3,355)


(216)


(1,510)

Non-controlling interests

1


1

TOTAL EQUITY

(215)


(1,509)

Non-current liabilities




Borrowings

5,524


7,729

Lease obligations

291


32

Employee benefit obligations

716


957

Derivative financial instruments

44


107

Deferred tax liabilities

344


543

Provisions

29


38


6,948


9,406

Current liabilities




Borrowings

22


114

Lease obligations

73


4

Interest payable

60


81

Derivative financial instruments

17


38

Trade and other payables

1,628


1,983

Income tax payable

97


114

Provisions

48


83


1,945


2,417

TOTAL LIABILITIES

8,893


11,823

TOTAL EQUITY and LIABILITIES

8,678


10,314

 

 

Consolidated Statement of Cash Flows






Year ended December 31,



2019


2018



$'m


$'m

Cash flows from operating activities





Cash generated from continuing operations


1,179


991

Interest paid (7)


(417)


(414)

Income tax paid (7)


(64)


(97)

Net cash from operating activities - continuing operations


698


480

Net cash from operating activities - discontinued operation


141


375

Net cash from operating activities


839


855






Cash flows from investing activities





Purchase of property, plant and equipment


(498)


(465)

Purchase of intangible assets


(10)


(12)

Proceeds from disposal of property, plant and equipment


3


10

Investing cash flows used in continuing operations


(505)


(467)

Proceeds from disposal of discontinued operation, net of cash disposed of


2,539


Investing cash flows used in discontinued operation


(107)


(108)

Net cash from/(used in) investing activities


1,927


(575)






Cash flows from financing activities





Repayment of borrowings


(4,088)


(442)

Proceeds from borrowings


1,806


110

Dividends paid


(132)


(132)

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


9


(44)

Deferred debt issue costs paid


(14)


(5)

Lease payments


(78)


(4)

Early redemption premium paid


(165)


(7)

Financing cash flows from continuing operations


(2,662)


(524)

Financing cash flows from discontinued operation



3

Net cash outflow from financing activities


(2,662)


(521)






Net increase/(decrease) in cash and cash equivalents


104


(241)

Cash and cash equivalents at the beginning of the year


530


784

Foreign exchange losses on cash and cash equivalents


(20)


(13)

Cash and cash equivalents at the end of the year


614


530

 

 

Financial assets and liabilities


At December 31, 2019, 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









currency






currency


$'m


$'m





m






m





2.750% Senior Secured Notes


EUR


741


15-Mar-24


Bullet


741


832


4.250% Senior Secured Notes 


USD


695


15-Sep-22


Bullet


695


695


2.125% Senior Secured Notes


EUR


439


15-Aug-26


Bullet


439


493


4.125% Senior Secured Notes


USD


500


15-Aug-26


Bullet


500


500


4.750% Senior Notes


GBP


400


15-Jul-27


Bullet


400


528


6.000% Senior Notes


USD


1,700


15-Feb-25


Bullet


1,700


1,708


5.250% Senior Notes


USD


800


15-Aug-27


Bullet


800


800


Global Asset Based Loan Facility


USD


663


07-Dec-22


Revolving




663

Lease obligations


Various





Amortizing



364


Other borrowings/credit lines


EUR/USD



Rolling


Amortizing



22


1

Total borrowings / undrawn facilities












5,942


664

Deferred debt issue costs and bond premium












(32)


Net borrowings / undrawn facilities












5,910


664

Cash and cash equivalents












(614)


614

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












32


Net debt / available liquidity












5,328


1,278

 

 

Reconciliation of profit/(loss) for the period to Adjusted profit - Group












Three months ended December 31,


Year ended December 31,



2019


2018


2019


2018



$'m


$'m


$'m


$'m

Profit/(loss) for the period - Group


1,405


(144)


1,458


(94)

Total exceptional items (8)


(1,382)


209


(1,215)


351

Tax credit/(charge) associated with exceptional items (8)


19


(29)


(14)


(54)

Intangible amortization


57


65


249


265

Tax credit associated with intangible amortization


(12)


(13)


(56)


(58)

Gains/(loss) on derivative financial instruments


5


(10)


9


(10)

Adjusted profit for the period - Group


92


78


431


400










Weighted average common shares


236.36


236.35


236.36


236.35










Earnings/(loss) per share


5.94


(0.61)


6.17


(0.40)










Adjusted earnings per share


0.39


0.33


1.82


1.69

 

 

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












Three months ended December 31,


Year ended December 31,



2019


2018


2019


2018



$'m


$'m


$'m


$'m

Loss from continuing operations


(203)


(217)


(284)


(292)

Income tax charge


49


14


44


18

Net finance expense


192


108


659


479

Depreciation and amortization


167


149


652


599

Exceptional operating items


13


201


53


311

Share of post-tax loss in equity accounted joint venture


49



49


Adjusted EBITDA from continuing operations


267


255


1,173


1,115

Movement in working capital


257


212


105


(9)

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


(59)


(22)


(87)


(92)

Exceptional restructuring paid


(3)


(3)


(12)


(23)

Cash generated from continuing operations


462


442


1,179


991

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


59


22


87


92

Capital expenditure (9)


(101)


(105)


(505)


(467)

Lease payments due to the adoption of IFRS 16


(21)



(74)


Operating cash flow from continuing operations


399


359


687


616

Operating cash flow from discontinued operation


(25)


169


51


267

Operating cashflow - Group (10)


374


528


738


883

Interest (11)


(82)


(135)


(411)


(414)

Income tax paid


(26)


(40)


(79)


(105)

Adjusted free cash flow - Group (10)


266


353


248


364

________________________

(1). Continuing Operations results unless stated otherwise. A reconciliation to the most comparable GAAP measures can be found in the Bridge of 2018 to 2019 Revenue and Adjusted EBITDA and reconciliations at the back of this release.


(2). Payable on April 1, 2020 to shareholders of record on March 18, 2020.


(3). 2020 Adjusted EPS outlook excludes contribution from joint venture.


(4). Continuing Operations results unless stated otherwise. A reconciliation to the most comparable GAAP measures can be found in the Bridge of 2018 to 2019 Revenue and Adjusted EBITDA and reconciliations 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. Net borrowings at December 31, 2019 includes IFRS 16 leases.


(6). Net debt to LTM Adjusted EBITDA, at December 31, 2018, reflects the LTM Adjusted EBITDA for the Group, inclusive of the Food & Specialty business EBITDA of $363 million.


(7). Operating cash flows for discontinued operation for the year ended December 31, 2019, include interest and income tax payments of $6 million and $15 million respectively (2018: $2 million and $8 million).


(8).Total exceptional items before tax for the year ending December 31, 2019 of $1,215 million include $200 million debt refinancing and settlement costs related to the notes repaid in August, November and December 2019 including premium payable on the early redemption of the notes of $165 million, accelerated amortisation of deferred finance costs, interest charges from the call date to date of redemption and a charge related to the termination of derivative financial instruments. Total exceptional items for the year ending December 31, 2019 also include a $37 million pension service credit and a $15 million provision for a court award and related interest, net of the tax adjusted indemnity receivable in respect of the legal matter, recognized in Glass Packaging North America and $51 million transaction-related costs, primarily related to the combination of the Group's Food & Specialty Metal Packaging business with the business of Exal Corporation. Exceptional items of $1,527 million related to discontinued operation primarily relate to the gain recognised on divestment of the Group's Food & Specialty Metal Packaging business. $24 million relates to the Group's capacity realignment programs comprising start-up related costs ($13 million), restructuring costs ($6 million) and property, plant and equipment impairment charges ($5 million). These costs were incurred in Glass Packaging North America ($15 million), Glass Packaging Europe ($5 million), Metal Beverage Packaging Americas ($2 million) and Metal Beverage Packaging Europe ($2 million).


(9). Capital expenditure for the three and twelve months ended December 31, 2019, includes $20 million and $75 million respectively, relating to spend on short payback projects in continuing operations.


(10). Operating cash flow – Group and Adjusted Free cash flow – Group results for both the three months and year end December 31, 2019 reflect that the Group divested the Food & Specialty business as of October 31, 2019. As a result, the associated operating cash flow and free cash flow, which is typically received in the final months of the year, principally due to seasonality, in the Food & Specialty business, was not received by the Group in respect of November or December 2019, however the Group was compensated in this regard through the transaction consideration.


(11). Interest paid in the year ended December 31, 2019, excludes $12 million in respect of the redemption, in August 2019, of the Group's $1,650 million 7.250% Senior Notes due 2024 and redemptions, in November 2019, of the Group's $1,000 million 4.625% Senior Secured Notes due 2023, €440 million 4.125% Senior Secured Notes due 2023 and €750 million 6.750% Senior Notes due 2024, related to the interest payable from the date the Notes were called for redemption to the redemption date.


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 interest from the date the Notes were called for redemption to the redemption date.

 

Cision View original content:http://www.prnewswire.com/news-releases/ardagh-group-sa--fourth-quarter-and-full-year-2019-results-301008332.html

SOURCE Ardagh Group S.A.


Source: Ardagh Group S.A.