Ardagh Group, led by Paul Coulson, has once again revised down its yearly earnings predictions for its glass bottle division, adding yet another issue for the packaging behemoth as it strategises to reduce its substantial debt of $12.4 billion (around €11.5 billion). This revisal comes owing to a decrease in the sales volume of glass bottles across North America due to a regional downturn in beer and wine markets, alongside a languid sales rebound in Europe post the slump in the previous year.
Ardagh Group, a multi-national manufacturer of glass and metal containers for the beverage industry, has been developed and expanded by Irish businessman Paul Coulson over the past two and a half decades. Recently, the expected full-year earnings before depreciation, amortisation, interest, and tax (ebitda) for its glass bottle division was reduced to $600 million from its previous forecast of $680 million, made in July. Before this, an even more optimistic figure of up to $780 million had been projected.
These updates were conveyed by Herman Troskie, group chairman, during a discussion with debt investors after the company’s quarterly figures were reported. That said, the Ardagh Metal Packaging (AMP), Ardagh’s unit which is listed on the New York Stock Exchange and in which the group has a 75 per cent stake, is showing improved confidence in its yearly outlook and estimates its ebitda will fall within $650 million and $660 million. The lower end of their previous prediction was increased by $10million. However, AMP shares slipped by 10 percent to $3.77.
Troskie, who assumed the role of chairman last year when Coulson relinquished the position, confirmed that they are exploring ways to alleviate its debt. Coulson continues to serve on the board and maintains a significant 36% stake in the group.
Furthermore, the group’s operating business, Ardagh Group, had total borrowings of $10.8 billion at the end of September. Nevertheless, the ultimate parent company atop the Ardagh corporate hierarchy, Luxembourg-based ARD Holdings SA, is believed to have a debt totalling $12.4 billion.