Ardagh see 9% revenue increase
Ardagh Group announced its results for the first quarter ended March 31, 2021.
Paul Coulson, Chairman and Chief Executive, said: “We have made an excellent start to 2021, with strong earnings growth in Metal Packaging and a robust performance in Glass Packaging Europe.
“Our $2.1 billion investment program is fully on track and we are well-placed to deliver further growth over the course of the year.”
Revenue increased by $152 million, or 9%, to $1,774 million, compared with $1,622 million in the three months ended March 31, 2020.
The increase in revenue is primarily driven by favourable volume/mix effects, which includes an impact of the Group’s business growth investment program, the pass through to customers of higher input costs and favourable foreign currency translation effects of $65 million.
Adjusted EBITDA increased by $27 million, or 10%, to $300 million, compared with $273 million.
Metal Packaging shipments increased by 8% in the quarter. Speciality can volumes increased by 16% and represented c.45% of total shipments.
Glass Packaging shipments increased by 2%, led by growth in North America. Shipments in Europe were in line with the prior year, despite continuing lockdowns in much of Europe during the quarter.
Metal Beverage Packaging Europe
Revenue increased by $51 million, or 13%, to $436 million compared with $385 million the previous year.
Adjusted EBITDA increased by $12 million, or 22%, to $66 million in the three months ended March 31, 2021, compared with $54 million.
Metal Beverage Packaging Americas
Revenue increased by $59 million, or 13%, to $503 million in Q1 of this year compared with $444 million last year.
Adjusted EBITDA increased by $21 million, or 34%, to $82 million in the three months ended March 31, 2021, compared with $61 million in the three-month period ended March 31, 2020.
The increase was mainly driven by favourable volume/mix effects, which includes an impact of the Group’s business growth investment program, and lower operating costs.
Combination of Ardagh Metal Packaging with Gores Holdings V
On February 22, 2021, Ardagh entered into a business combination agreement with Gores Holdings V, a special purpose acquisition company sponsored by an affiliate of The Gores Group for the purpose of effecting a merger, acquisition, or similar business combination.
Under this, Gores Holdings V will combine with Ardagh’s metal packaging business that will be held by an Ardagh wholly owned subsidiary, AMP, to create an independent, pure-play beverage can business, public company.
On April 1, 2021, the transfer of Ardagh’s metal packaging business to AMP was completed and $2.3 billion was paid to Ardagh on the release of the proceeds of the AMP Notes Issuance from escrow.
For Ardagh’s full results for the first quarter of 2021, visit the company’s website.
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