Ardagh CFO Departs Following Successful Bond Deal Completion

Ardagh Group has confirmed that Chief Financial Officer John Sheehan will resign at the end of the year. This announcement follows a challenging third quarter for the company, which reported a notable financial loss.

Upcoming CFO Departure and Bond Deal

John Sheehan’s decision to step down comes shortly after Ardagh finalized a recapitalization deal with its bondholders. The company had recently transitioned ownership structure, enabling a significant financial reset. Sheehan had previously informed the board about his departure plans earlier this year.

Details of the Recapitalization

• Ardagh’s unsecured bondholders, who were owed $2.4 billion, exchanged their bonds for a 92.5% stake in the company.
• Executive chairman Mark Porto expressed gratitude toward Sheehan for remaining until the recapitalization was successful.
• Paul Coulson, the previous chairman, exited with a pay-out of $108 million after leading the company for over two decades.
• 7.5% of the company shares will be allocated to holders of Ardagh’s riskiest bonds, known as payment-in-kind notes.
• Approximately 80% of the $1.9 billion in PIK note holders approved the plan, accepting substantial losses in their investments.

Financial Performance Overview

In the third quarter, Ardagh reported a substantial after-tax loss of $335 million, compared to a $36 million loss the previous year. The increase was mainly attributed to exceptional costs associated with the recapitalization process.

Quarterly Financial Highlights

• Revenue increased to $2.5 billion, up from $2.4 billion in 2022.
• Adjusted earnings before interest, tax, depreciation, and amortization (Ebitda) grew from €362 million to €394 million year-on-year.

Year-to-Date Financial Results

For the nine months ending September, Ardagh’s sales rose from $6.9 billion to $7.2 billion. However, the loss after tax increased to $535 million from $377 million during the same period.

Challenges Facing Ardagh Group

The company has faced sustainability issues linked to rising inflation, increased interest rates, and reduced consumer demand, particularly post-Covid-19. Although the metal containers division has shown recovery, the glass bottles unit continues to experience difficulties.

The upcoming leadership transition could signal a shift in strategy as Ardagh aims to stabilize its operations and navigate the challenging market landscape.