Ardagh weighing 'all options' to lower debt burden as earnings drop

• Published date: 25 April 2024
• Author: Joe Brennan
• Publication title: Irish Times: Web Edition Articles (Dublin, Ireland)

The net debt mountain of a company at the top of Ardagh's corporate tree, ARD Finance, increased from $11.9 billion at the end of December

The debt figure expanded to 9.6 times earnings before interest, tax, depreciation and amortisation (Ebitda) from 8.7 times over months, driven by a decline in earnings.

Ardagh, which traces its roots to the long-since closed glass bottle factory in Dublin's Ringsend, has been turned by Irish financier Paul Coulson into one of the world's largest glass and metal container makers over the past 25 years through a series of debt-fuelled acquisitions.

Mr Coulson stood down as executive chairman late last year but remains on the board and holds an effective 36 per cent stake in the group.

"All options are being considered at this stage" to lower the debt burden, the new chairman told analysts on a call on Thursday. He said the company is still assessing what would be "sustainable" capital structure.

Group revenue declined to $2.17 billion in the first quarter from $2.27 billion for the same period last year, while Ebitda fell to $254 million from $339, driven by declines in its glass bottle making business as drinks companies cut back orders to run down packaging supplies.

Ardagh's drink cans business, Ardagh Metal Packaging (AMP), delivered earnings growth in the first quarter. The group is targeting earnings growth for the year as a...