Irish-based metal and glass packager, Ardagh Group, reported revenues of €2,220 million (€1,989 million) in the first quarter of its fiscal 2019. The group’s revenue increased by 4%, or $77 million (€69 million), mainly due to increased volume/mix effects of 2% and the pass-through of increased input costs.
Paul Coulson, chairman and chief executive officer, said that the group’s first quarter performance was “good, with growth in volumes, earnings and cash generation.”
“Demand for our sustainable packaging solutions is generally strong and we grew volume in both our Americas and European metal packaging divisions notably in beverage cans, as well as in glass packaging in Europe,” he explained.
Glass and metal performance
In the three-month period ending 31 March 2019, the group reported an Adjusted EBITDA increase of 4% to $363 million (€325 million) compared to the same period in 2018. On a constant currency basis, Adjusted EBITDA increased by 9%. The group’s metal packaging businesses in Europe and in the Americas earned revenues of $873 million (€782 million) and $539 million (€483 million) respectively.
The negative 1% growth in Europe and the low 2% growth in the Americas reflected the pass-through of higher input costs, the group said. Its glass packaging businesses in Europe and North Americas reported revenues of $392 million (€351 million) and $416 million (€372 million) respectively.
Once again, the performance in Europe fell by 1% compared to the same period last year. Its North American arm’s revenues increased by 1%. The group said that it’s full-year 2019 outlook remains unchanged, with second quarter Adjusted EBITDA of $390-400 million (€349 – €358 million) to be expected.
Poor momentum
The Ardagh Group struggled last year, taking a $94 million hit in 2018 compared to profits of $63 million in 2017. The group said that its performance was impacted by lower volumes, particularly in the beer end-market, as well as by increased freight and logistics costs. However, the total sum of exceptional items for the year came to $351 million.
The group was held back by poor performances in its North American glass packaging business, which drove the company to embark on a restructuring plan, which has led to the closures of some plants. The group has since launched an online product catalog with a lifelike 360° 3D feature allowing us to drag, flip, turn and even look inside each glass container.
The firm is using the latest 3D CAD system to allow customers to interact with its packaging products, with the goal to enable customers to visualize how products might look on the shelf. Around 600 glass bottle and jar designs have been remodelled in the new, interactive format, which goes live on 17 April.