Ardagh : Poor results and refinancing concerns prompt caution

Ardagh Group SA (AGSA) reported poor Q3 results. The glass packaging division endures large destocking, higher than peers, leading to cash burn and releveraging. Q4 is expected to be worse, before a potential turnaround in 2024 but the latter could be slow at a time when the 2025 and 2026 bonds need to be refinanced. Managing the debt wall will be a headache, knowing that the heavy capital structure cannot bear the coupons currently offered by the market. We switch our recommenda...