Ardagh Group sees first quarter revenue up 25%

Ardagh Group has reported a near 25% year-on-year increase in its first quarter revenues to just over €1.2bn.

The Luxembourg-based glass and packaging group, which traces its origins to Irish Glass, also posted an underlying pre-tax profit of €6m for the period, up from a loss of €14m for the same period last year. After income tax charges, the company posted a loss of €10m for the quarter, down on the €18m first quarter loss posted last year.

The group saw revenues rise by 17%, last year, to €4.7bn, with earnings growing by 27% to €792m.

On a divisional basis, Ardagh’s glass division recorded quarterly revenues of €735m — up 10% on a pro-forma/year-on-year basis, but down 1% in constant currency terms.

The metal container arm, which is tipped for a €2bn-€3bn IPO this year, grew revenues by 9% proforma, and 7% constant currency, to €472m. Revenue in this division primarily reflected an initial contribution from the group’s new North American plants.

Earnings-wise, Ardagh’s glass arm saw an 18% year-on-year increase to €140m, while the metal division saw a 31% rise to €64m.

“The group remains focused on the achievement of further progress in 2015, through organic improvement and the development initiatives already in place in its glass and metal operations,” management said in its first quarter statement.

It also emerged yesterday that Ardagh was one of a number of companies that submitted first-round offers to acquire Verallia, the glass packaging division of French multinational Saint-Gobain.

Ardagh last year acquired the North American arm of Verallia in a long drawn-out €1.3bn deal.

However, it is understood that the Irish-founded firm is now effectively out of the running for the business, which is expected to fetch close to €3bn.

It was reported, yesterday, that Ardagh effectively was out-bid by private equity houses, Blackstone and Apollo.

Following the sale of existing plants to clear the way for last year’s Verallia North America deal, Ardagh now operates from just under 100 production facilities across more than 20 countries worldwide.

The takeover of Verallia North America is the Irish group’s biggest deal since its €1.7bn takeover of Impress five years ago.