Ardagh can see earnings topping €1.4bn
Ardagh Group says it's now well positioned to hit earnings of €1.4bn by next year. In the six months to the end of June, the company made a pre-tax profit of €5m, and a loss after tax of €22m.
On a call with analysts, Ardagh chairman Paul Coulson said his packaging group expects €1.33bn proforma of earnings before interest, tax, depreciation and amortization for this year.
In a review of its performance in the three months to the end of June, Ardagh said revenue was €1.281bn, down 2pc at actual exchange rates but at constant currencies, in line with the same period in 2015.
Net debt was €7.36bn at the end of June, boosted by €3.9bn of bonds issued in May to finance the acquisition of a Metal Beverage business from Ball Corporation and Rexam that completed on 30 June 2016.
Income from the new assets is not captured by the latest quarterly results.
These show revenue in Ardagh's Glass Packaging unit was €800mn in the quarter, 2pc lower than the same period last year - reflecting currency moves.
In Metal Packaging, the company's other main division, sales were €481m in the second quarter. Second quarter operating cash flow of €184m increased by €40m, up 28pc, the company said.
Cash and available liquidity at 30 June was €819m.