Ardagh Group (ARD) Q2 2024 earnings summary

Executive summary

• Q2 revenue was $2,350 million, down from $2,446 million a year earlier and 4% lower on a constant-currency basis; Adjusted EBITDA was $383 million, flat year over year.

• Six-month revenue was $4,521 million, down from $4,702 million; Adjusted EBITDA was $637 million, down 12% from $722 million.

• Q2 net loss was $205 million, compared with $97 million a year earlier; first-half net loss was $341 million versus $144 million.

• First-half exceptional items totaled $207 million, mainly restructuring and impairment charges in North America.

Financial highlights

• Q2 Adjusted EBITDA margin was 16.3%, up from 15.7%; first-half margin was 14.1%, down from 15.4%.

• Q2 net finance expense was $151 million, up from $100 million; first-half expense was $289 million, up from $243 million.

• First-half maintenance capex was $192 million versus $258 million; growth investment capex was $76 million versus $233 million.

• Cash and cash equivalents at June 30, 2024 were $791 million, up from $730 million at year-end 2023.

• Europe and Africa revenue was $696 million, down 9%, and Adjusted EBITDA was $160 million, down 12%; North America glass revenue was $395 million, down 7%, with EBITDA of $45 million, down $4 million.

Outlook and guidance

• FY2024 glass packaging Adjusted EBITDA guidance fell to ~$680 million from $750 million–$780 million; ~80% of the reduction stems from Europe.

• AMP raised FY2024 Adjusted EBITDA guidance to $640 million–$660 million from $630 million–$660 million.

• H2 glass EBITDA is expected to exceed H1, with recovery weighted toward Q4; H2 margins are expected well below Q2, with Europe and Africa at 15%–16%.

• FY shipment outlook: Europe up 8%–10% year over year, Africa broadly comparable with 2023, and North America down 0%–5%.

• H2 cash assumptions include ~$50 million working-capital use, capex of ~$310 million versus ~$340 million previously, cash interest of $340 million, leases of ~$100 million, and cash restructuring of ~$50 million.