Ardagh Group (ARD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $2,388m, down 4% year over year; Adjusted EBITDA was $362m, up 8% reported and 9% on a constant-currency basis.

• Nine-month revenue was $6,909m, down 4%, and Adjusted EBITDA was $999m, down 5%.

• Q3 net loss was $36m versus $26m in Q3 2023; nine-month net loss widened to $377m from $170m.

• Nine-month exceptional items totaled $220m, including significant restructuring and impairment costs, mainly in North America.

Financial highlights

• Q3 Adjusted EBITDA margin improved to 15.2% from 13.4%; nine-month margin was 14.5%.

• Net debt was $10,057m at September 30, 2024, up from $9,497m at year-end 2023; net debt to LTM Adjusted EBITDA rose to 8.1x from 7.3x.

• Cash and cash equivalents were $751m; available liquidity was $1,342m at quarter-end.

• Working capital increased to $827m from $433m at year-end; nine-month net finance expense was $440m.

• Nine-month maintenance capex was $257m and growth capex was $366m.

Outlook and guidance

• FY2024 Glass Packaging Adjusted EBITDA forecast was reduced to ~$600m from ~$680m, mainly due to weaker European demand and additional production curtailments.

• FY2024 consolidated Adjusted EBITDA was projected at ~$1.25bn versus $1.3bn in 2023; AMP guidance increased to $650m-$660m from $640m-$660m.

• FY cash outlook: ~$50m working-capital outflow, ~$310m capex, $340m cash interest, ~$30m cash taxes, $50m-$60m restructuring and $100m-$110m lease payments.

• Sufficient liquidity was expected for at least the next twelve months, supported by cash, operating cash flow and credit facilities.