+4.2% increase in revenue
Robust growth in adjusted EBITDA to €345
million (+15.4%) and adjusted EBITDA margin to 26.0% (+260
bps)
Strong business recovery in Q2: +14.8% vs.
Q2 2020
2021 Adjusted EBITDA target raised
Regulatory News:
Verallia (Paris:VRLA):
Highlights
- H1 2021 revenue up +4.2% to €1,328 million (+7.7% at
constant exchange rates and scope)(1) vs. H1 2020
- In Q2 2021, strong revenue growth of +14.8% to €723
million (+17.6% at constant exchange rates and scope)
vs. Q2 2020
- Increase in adjusted EBITDA to €345 million in H1 2021,
from €299 million in H1 2020 (+15.4%)
- Sharp increase in adjusted EBITDA margin to 26.0% in
H1 2021 (+260 bps)
- Net income(2) of €133 million versus €79 million in H1
2021
- Reduction in net debt leverage to 1.9x adjusted EBITDA
for the last 12 months, against 2.1x as of 31 March 2021
- Verallia proceeded with two share buybacks during the
first half for €109 million and therefore holds 1.7% of
the share capital (after cancelling 1.6 million
shares)
(1) Revenue growth at constant exchange rates and scope
excluding Argentina was +5.6% in H1 2021 compared with H1 2020. (2)
Net income for H1 2021 includes an amortisation expense for
customer relations, recognised upon the acquisition of
Saint-Gobain’s packaging business in 2015, of €22 million (net of
taxes). Excluding this expense, the net income would be €155
million. This expense was €22 million in H1 2020.
“After a first quarter still adversely affected by the health
restrictions, the reopening of Cafés, Hotels and Restaurants in the
second quarter allowed Verallia to record robust organic revenue
growth over the six-month period. Adjusted EBITDA rose sharply in
the first half, with a full contribution from the Group’s three
main pillars for improvement – namely the increase in business
activity (operational lever), positive spread and mix, and improved
industrial efficiency (PAP). In view of these solid results,
Verallia can raise its adjusted EBITDA forecasts for 2021,"
commented Michel Giannuzzi, Chairman and CEO of
Verallia.
Revenue
Revenue breakdown by region
In € million
H1 2021
H1 2020
% Change
Of which is
organic
growth (i)
Southern and Western Europe
927.9
880.3
+5.4%
+5.5%
Northern and Eastern Europe
257.9
283.3
-9.0%
-5.6%
Latin America
141.9
111.0
+27.9%
+58.9%
Group Total
1,327.7
1,274.6
+4.2%
+7.7%
(i) Revenue growth at constant exchange rates and scope. Revenue
growth at constant exchange rates is calculated by applying the
average exchange rates of the comparative period to revenue for the
current period of each Group entity, expressed in its reporting
currency. Revenue growth at constant exchange rates and scope
excluding Argentina was +5.6% in H1 2021 compared with H1 2020.
Revenue in the first half of 2021 totalled €1,328
million, a 4.2% increase on a reported basis
compared with the same period in the previous year.
The impact of exchange rates was -3.5% in H1 2021 (-€45
million), mostly linked to the depreciation of the Argentine peso
and Brazilian real, and to a lesser extent, the depreciation of the
Ukrainian hryvnia and the Russian rouble.
At constant scope and exchange rates, revenue grew
+7.7% in the first half of the year (+5.6% excluding
Argentina). This was due to a strong performance in the second
quarter, with organic growth of +17.6% (+15.2% excluding
Argentina). After a slow start to the year, still adversely
affected by numerous lockdowns, business trends improved
dramatically in the second quarter, which saw a strong recovery in
all countries. The gradual reopening of the on-trade channel
(HoReCa - Hotels, Restaurants and Cafés) during the second quarter
of 2021 contributed significantly to growth.
All product categories posted strong sales in the second quarter
compared with last year, except for food jars, which were
particularly buoyant in 2020 during the lockdowns in the second
quarter. Spirits rebounded sharply in the second quarter as exports
to Asia and the United States picked up.
An increase in sales prices at the start of the year and an
excellent product mix at Group level also boosted first-half
revenue.
By region, revenue for H1 2021 breaks down as follows:
- Southern and Western Europe saw
revenue grow by +5.4% on a reported basis and +5.5% at constant
exchange rates and scope in H1 2021. All countries and product
categories recorded growth in the first half, except food jars.
Sales of spirits rocketed after being hit hard in the first half of
2020. Sales of still wine and beer also recorded strong growth.
Sparkling wines picked up thanks to Italy and brisk sales of
Prosecco rosé. Sales prices remained stable in the region.
- In Northern and Eastern Europe,
revenue on a reported basis was down -9.0% compared with H1 2020,
which had proved more resilient than in Southern and Western
Europe. The decrease was smaller at constant exchange rates and
scope, at -5.6%; exchange rates’ fluctuations had a negative impact
of -3.4% due to the depreciation of the Ukrainian hryvnia and the
Russian rouble. The fall in volumes in the first half was mainly
concentrated in the first quarter, as volumes improved in the
second quarter across all product categories. Sales prices also
remained stable in the region.
- In Latin America, the Group reaped
the benefits of having increased capacities in 2020. Revenue rose
sharply: +27.9% increase on a reported basis and +58.9% excluding
the effect of local currency depreciation (+51.7% organic growth
excluding Argentina). Over the six months, volumes increased in all
countries and product categories, except food jars. In addition,
previous increases in selling prices in the region – particularly
in Argentina in response to local hyperinflation – were another
contributing factor.
Adjusted EBITDA
Breakdown of adjusted EBITDA by region
In € million
H1 2021
H1 2020
Southern and Western Europe
Adjusted EBITDA (i)
231.8
195.8
Adjusted EBITDA margin
25.0%
22.2%
Northern and Eastern Europe
Adjusted EBITDA (i)
58.3
68.9
Adjusted EBITDA margin
22.6%
24.3%
Latin America
Adjusted EBITDA (i)
54.6
33.9
Adjusted EBITDA margin
38.5%
30.6%
Group Total
Adjusted EBITDA (i)
344.7
298.7
Adjusted EBITDA margin
26.0%
23.4%
(i) Adjusted EBITDA is calculated based on operating profit
adjusted for depreciation, amortisation and impairment,
restructuring costs, acquisition and M&A costs,
hyperinflationary effects, management share ownership plans,
subsidiary disposal‐related effects and contingencies, plant
closure costs and other items.
Adjusted EBITDA increased by +15.4% in H1 2021 (and
+20.8% at constant exchange rates and scope) to €345
million. The unfavourable exchange rates effect amounted
to -€16 million, mainly due to the depreciation of Latin American
currencies as well as the depreciation of the Ukrainian hryvnia and
the Russian rouble.
Verallia generated a positive spread1 in all regions,
with prices remaining stable in Europe and increasing in Latin
America to offset cost inflation. A particularly favourable product
mix and a net reduction in production costs of €21 million (or 2.7%
of cash production costs) also made a significant contribution to
the improvement in adjusted EBITDA. These positive developments
largely offset the slight dip in activity attributed to continued
destocking in the context of five furnace repairs and the
successful start-up of two new furnaces (in Spain and Italy) during
the first half.
The adjusted EBITDA margin increased to 26.0% from
23.4% in H1 2020.
By region, adjusted EBITDA for H1 2021 breaks down as
follows:
- Southern and Western Europe
reported an adjusted EBITDA of €232 million (vs €196 million in H1
2020) and a margin of 25.0%, up from 22.2%. This solid performance
was due to the positive spread on sales and the excellent
contribution of the product mix. The region’s industrial
performance was also good, despite the difficulties encountered by
France in Q1 due to social movements linked to the transformation
plan, which affected production.
- In Northern and Eastern Europe,
adjusted EBITDA was €58 million (vs €69 million in H1 2020), taking
its margin to 22.6%, compared with 24.3% previously. This fall is
due to the decline in volumes associated with a strong negative
exchange rates’ impact and maintenance costs linked to the
rebuilding of two furnaces.
- In Latin America, adjusted EBITDA
amounted to €55 million (vs €34 million in H1 2020), representing a
margin of 38.5% compared with 30.6% previously. This excellent
performance is due to the strong growth in sales volumes in a
highly dynamic market, combined with a positive spread and solid
industrial performance. In addition, Brazil benefited from the
positive impact of the Brazilian Supreme Federal Court’s decision
on the ICMS tax.
The increase in net income to €133 million is
mainly the result of the improvement in adjusted EBITDA, that is
more than compensating for the increase in the net financial
expense and in the income taxes. The net income includes an
amortisation expense for customer relations, recognised upon the
acquisition of Saint-Gobain’s packaging business in 2015 of €22
million (net of taxes). Excluding this expense, the net income
would be €155 million. This expense was €22 million in H1
2020.
The booked capital expenditure stood at €109
million, compared with €92 million in H1 2020. These
investments consist of €98 million of recurring investments (i.e.
7.4% of consolidated revenue), compared with €64 million in H1
2020, and €11 million of strategic investments (vs €27 million in
H1 2020).
Operating cash flow2 came in higher at €212
million, compared with €138 million in H1 2020, thanks to the
growth in adjusted EBITDA and the significant improvement in
working capital requirement. Based on number of days’ sales
compared with 30 June 2020, inventories remained at a very low
level while late payments continue to be well managed (stable at a
very low level).
Very solid balance sheet
Verallia improved its net debt ratio in the first half: net
debt amounted to €1,266 million at 30 June 2021 after
two share buybacks by the Group for €109 million (in March and June
2021). This corresponds to a net debt ratio of 1.9x adjusted
EBITDA for the last 12 months, compared with 2.1x at 31 March
2021, down from 2.5x at 30 June 2020.
In addition, Verallia decided not to extend its additional
credit facility of €250 million (RCF2), implemented in April
2020.
Lastly, to diversify its funding sources and in line with its
ESG strategy unveiled in January 2021, on 14 May 2021 Verallia
successfully placed its inaugural “Sustainability‐Linked” bond
issue for a total of €500 million, maturing in seven years and
with a coupon of 1.625%. The net proceeds of the issue were used to
repay some of the Group’s debt. This landmark transaction allows
Verallia to (i) diversify its funding sources by tapping the bond
market, (ii) extend the average maturity of its debt, and (iii)
strengthen visibility of its sustainability commitment.
The Group still had significant liquidity3 of €848
million as of 30 June 2021.
Share buyback
On 9 June 2021, Verallia repurchased 1.6 million shares for
€48.8 million. This coincided with the sale by Apollo4 of its stake
of around 10% in Verallia via an accelerated private placement. The
shares were cancelled on 24 June 2021 (see below).
In addition, on 5 March 2021, the Group also participated in an
accelerated private placement of Apollo by acquiring 2.1 million
shares for €60 million. These repurchased shares have been and will
be used to cover employee share ownership programmes (the sixth of
which ended on 24 June 2021 – see below) and Group performance
share plans.
Results of voting at the Annual General
Shareholders' Meeting of 15 June 2021
With a quorum of more than 85%, the Annual General Shareholders'
Meeting of the Company on 15 June 2021 adopted, with approval rates
ranging from 84.8% to 99.9%, all the resolutions put to the
vote.
The Annual General Shareholders' Meeting also voted for a cash
dividend of €0.95 per share, with an ex-dividend date of 1 July
2021 and a payment date of 5 July 2021.
Success of the 2021 employee
shareholding offer
Almost 3,200 employees (i.e. 41% of eligible persons worldwide)
took part in the Group’s sixth employee shareholding offer at a
unit subscription price of €25.525. In France, the operation was
well received, with nearly 75% of eligible employees
subscribing.
As a result, employee shareholders now hold 3.54% of Verallia’s
share capital, directly and through Verallia’s FCPE (corporate
mutual fund). The percentage of employee shareholders is
approximately 41%.
On 24 June 2021, following this transaction (which was
oversubscribed), the Company issued 616,364 new ordinary shares
representing 0.5% of the share capital and voting rights. To
counter the dilutive effect of this transaction, the Company
simultaneously reduced its share capital by cancelling 1.6 million
treasury shares acquired under the share buyback programme6.
2021 Outlook
Provided there are no new widespread Covid lockdowns, the strong
business performance in the first half of 2021 means that
Verallia’s net sales should reach around €2.6 billion with volumes
in 2021 returning to 2019 level.
Verallia also expects 2021 adjusted EBITDA to increase
significantly on the previous year. The adjusted EBITDA should be
higher than initially expected at around €675 million (compared
with €650 million forecast in February 2021).
About Verallia – At Verallia, our purpose is to
re-imagine glass for a sustainable future. We want to redefine how
glass is produced, reused and recycled, to make it the world’s most
sustainable packaging material. We are joining forces with our
customers, suppliers and other partners across the value chain to
develop new, healthy and sustainable solutions for all.
With around 10,000 employees and 32 glass production facilities
in 11 countries, we are the European leader and the world's
third-largest producer of glass packaging for beverages and food
products. We offer innovative, customised and environmentally
friendly solutions to over 10,000 businesses around the world.
In 2020, Verallia produced more than 16 billion glass bottles
and jars and posted revenue of €2.5 billion. Verallia is listed on
compartment A of the regulated market of Euronext Paris (Ticker:
VRLA – ISIN: FR0013447729) and is included in the following
indices: SBF 120, CAC Mid 60, CAC Mid & Small et CAC
All-Tradable.
For more information, visit www.verallia.com
Follow us on LinkedIn , Twitter , Facebook and YouTube
The consolidated financial statements of the Verallia Group for
the financial year ended 30 June 2021, which were subject to a
limited review by the Group’s Statutory Auditors, were approved by
the Board of Directors on 28 July 2021 and will be available on
www.verallia.com.
An analysts’ conference call will be held on Thursday, 29 July
2021 at 9.00 am (CET) via an audio webcast service (live and
replay) and the results presentation will be available on
www.verallia.com.
Financial calendar
- 07 October 2021: Digital
Investor Day – Press release and virtual presentation at 3.00 pm
(CET).
- 28 October 2021: Financial results
for Q3 2021 – Press release before the market opening
and conference call/presentation at 9.00 am (CET) on that day.
Disclaimer
Certain information included in this press release does not
constitute historical data but constitutes forward-looking
statements. These forward-looking statements are based on current
beliefs, expectations and assumptions, including, without
limitation, assumptions regarding Verallia's present and future
business strategies and the economic environment in which Verallia
operates, and involve known and unknown risks, uncertainties and
other factors, which may cause actual results, performance or
achievements, or industry results or other events, to be materially
different from those expressed or implied by these forward-looking
statements. These risks and uncertainties include those discussed
and identified in Chapter 3 “Risk Factors” in the Universal
Registration Document approved by the AMF, available on the
Company’s website (www.verallia.com) and the AMF’s website
(www.amf-france.org). These forward-looking information and
statements are not guarantees of future performances.
This press release includes only summary information and does
not purport to be comprehensive.
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access via the website https://www.verallia.com/en/investors/.
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purpose of implementing and managing its internal and external
communication. This processing is based on legitimate interests.
The data collected (last name, first name, professional contact
details, profiles, relationship history) is essential for this
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Verallia SA ensures that the appropriate guarantees are obtained in
order to supervise these data transfers outside of the European
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right to restrict the processing of your data. To exercise one of
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you may submit a complaint to CNIL (Commission nationale de
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APPENDICES
Key figures
In € million
H1 2021
H1 2020
Revenue
1,327.7
1,274.6
Reported growth
+4.2%
-4.1%
Organic growth
+7.7%
-0.9%
of which Southern and Western Europe
927.9
880.3
of which Northern and Eastern Europe
257.9
283.3
of which Latin America
141.9
111.0
Cost of sales
(1,006.0)
(1,002.9)
Selling, general and administrative
expenses
(86.9)
(80.1)
Acquisition-related items
(29.9)
(30.4)
Other operating revenue and expenses
2.2
(27.1)
Operating profit
207.1
134.1
Net financial income (expense)
(32.3)
(19.5)
Profit (loss) before tax
174.8
114.6
Income tax
(43.5)
(35.3)
Share of net profit (loss) of
associates
1.2
0.0
Net profit (loss) for the year
(i)
132.5
79.3
Earnings per share
€1.07
€0.64
Adjusted EBITDA (ii)
344.7
298.7
Group Margin
26.0%
23.4%
of which Southern and Western Europe
231.8
195.8
Southern and Western Europe margin
25.0%
22.2%
of which Northern and Eastern Europe
58.3
68.9
Northern and Eastern Europe margin
22.6%
24.3%
of which Latin America
54.6
33.9
Latin America margin
38.5%
30.6%
Net debt at the end of the
period
1,266.2
1,475.7
Last 12 months adjusted EBITDA
671.7
601.1
Net debt/last 12 months adjusted
EBITDA
1.9x
2.5x
Total capex (iii)
109.4
91.5
Cash conversion (iv)
68.3%
69.4%
Change in operating working capital
(23.7)
(69.0)
Operating cash flow (v)
211.6
138.2
Strategic investments (vi)
11.2
27.2
Recurring investments (vii)
98.2
64.4
(i) Net income for H1 2021 includes an amortisation expense for
customer relations, recognised upon the acquisition of
Saint-Gobain’s packaging business in 2015, of €22 million (net of
taxes). Excluding this expense, the net income would be €155
million. This expense was €22 million in H1 2020. (ii) Adjusted
EBITDA is calculated on the basis of operating profit adjusted for
depreciation, amortisation and impairment, restructuring costs,
acquisition and M&A costs, hyperinflationary effects,
management share ownership plans, subsidiary disposal-related
effects and contingencies, plant closure costs and other items.
(ii) Capex (capital expenditure) represents purchases of property,
plant and equipment and intangible assets necessary to maintain the
value of an asset and/or adapt to market demand or to environmental
and health and safety constraints, or to increase the Group’s
capacity. It excludes the purchase of securities. (iv) Cash
conversion represents adjusted EBITDA less capex, divided by
adjusted EBITDA. (v) Operating cash flow represents adjusted EBITDA
less capex, plus changes in operating working capital requirement
including changes in payables to fixed asset suppliers. (vi)
Strategic investments represent the acquisitions of strategic
assets that significantly enhance the Group's capacity or its scope
(for example, the acquisition of plants or similar facilities,
greenfield or brownfield investments), including the building of
additional new furnaces. From 2021 onwards, they will also include
investments related to the implementation of the plan to reduce CO2
emissions. (vii) Recurring investments represent acquisitions of
property, plant and equipment and intangible assets necessary to
maintain the value of an asset and/or adapt to market demands and
to environmental, health and safety requirements. It mainly
includes furnace renovation and maintenance of IS machines.
Change in revenue by type in € million
during H1 2021
In € million
Revenue H1 2020
1,274.6
Volumes
+44.6
Price/Mix
+53.3
Exchange rates
(44.8)
Revenue H1 2021
1,327.7
Change in adjusted EBITDA by type in €
million during H1 2021
In € million
Adjusted EBITDA H1 2020 (i)
298.7
Activity contribution
(6.0)
Spread price-mix/costs
+45.4
Net productivity
+21.3
Exchange rates
(16.0)
Other
+1.4
Adjusted EBITDA H1 2021 (i)
344.7
(i) Adjusted EBITDA is calculated based on operating profit
adjusted for depreciation, amortisation and impairment,
restructuring costs, acquisition and M&A costs,
hyperinflationary effects, management share ownership plans,
subsidiary disposal‐related effects and contingencies, plant
closure costs and other items.
Comparison between Q1 and
Q2
In € million
Q1
Q2
2021
2020
2021
2020
Revenue
604.9
644.8
722.9
629.9
Reported growth
-6.2%
+14.8%
Organic growth
-2.0%
+17.6%
Adjusted EBITDA
151.7
151.3
193.0
147.4
Adjusted EBITDA margin
25.1%
23.5%
26.7%
23.4%
Reconciliation of operating profit to
adjusted EBITDA
In € million
H1 2021
H1 2020
Operating profit
207.1
134.1
Depreciation and amortisation (i)
136.2
139.6
Restructuring costs (ii)
(2.7)
19.1
IAS 29 Hyperinflation (Argentina)
(iii)
(0.7)
0.7
Management share ownership plan and
associated costs
4.4
1.8
Other
0.4
3.4
Adjusted EBITDA
344.7
298.7
(i) Includes depreciation and amortisation of intangible assets
and property, plant and equipment, amortisation of intangible
assets acquired through business combinations and impairment of
property, plant and equipment, including those linked to the
transformation plan implemented in France in 2020. (ii) Corresponds
mainly to the transformation plan in France. (iii) The Group has
applied IAS 29 (Hyperinflation) since the second half of 2018.
Reconciliation of Cash conversion to
adjusted EBITDA
In € million
H1 2021
H1 2020
Adjusted EBITDA
344.7
298.7
Capex
(109.4)
(91.5)
Cash flows (adjusted EBITDA -
Capex)
235.3
207.2
Cash conversion
68.3%
69.4%
Adjusted EBITDA and Cash conversion are alternative performance
indicators within the meaning of AMF position no. 2015-12.
Adjusted EBITDA and cash conversion are not standardised
accounting measures that meet a single, generally accepted
definition as per IFRS. They must not be considered as a substitute
for operating income and cash flow from operating activities which
are measures defined by IFRS, or as a measure of liquidity. Other
issuers may calculate adjusted EBITDA and Cash conversion
differently from the definition used by the Group.
Financial structure
In € million
Nominal amount
or max. drawable
amount
Nominal rate
Final
maturity
30 June
2021
Sustainability-Linked Bond (i)
500
1.625%
14 May 28
496.8
Term Loan A (i)
1,000
Euribor +1.50%
07 Oct. 24
993.9
Revolving credit facility 1
500
Euribor +1.10%
07 Oct. 24
-
Commercial Papers Neu CP
400
149.2
Other borrowings (ii)
123.5
Total borrowings
1,763.4
Cash and cash equivalents
(497.2)
Net borrowings
1,266.2
(i) Excluding accrued interest. (ii) o/w IFRS16 leasing
(€53.6m), local debts (€31.4m), factoring recourse (€14.4m), margin
call on commodities derivatives (€15.6m).
IAS 29: Hyperinflation in
Argentina
Since the second half of 2018, the Group has applied IAS 29 in
Argentina. The adoption of this standard requires the restatement
of non‐monetary assets and liabilities and of the income statement
to reflect changes in purchasing power in the local currency,
leading to a gain or loss on the net monetary position included in
the finance costs.
Financial information of the Argentinian subsidiary is converted
into euros using the closing exchange rate for the relevant
period.
In H1 2021, the net impact on revenue was +€2.1 million.
The hyperinflation impact has been excluded from Group adjusted
EBITDA as shown in the table “Reconciliation of operating profit to
adjusted EBITDA”.
Consolidated income
statement
In € million
H1 2021
H1 2020
Revenue
1,327.7
1,274.6
Cost of sales
(1,006.0)
(1,002.9)
Selling, general and administrative
expenses
(86.9)
(80.1)
Acquisition-related items
(29.9)
(30.4)
Other operating revenue and expenses
2.2
(27.1)
Operating profit
207.1
134.1
Net financial income (expense)
(32.3)
(19.5)
Profit (loss) before tax
174.8
114.6
Income tax
(43.5)
(35.3)
Share of net profit (loss) of
associates
1.2
0.0
Net profit (loss) for the year
(i)
132.5
79.3
Attributable to shareholders of the
Company
130.9
76.0
Attributable to non-controlling
interests
1.6
3.3
Basic earnings per share (in €)
1.07
0.64
Diluted earnings per share (in
€)
1.07
0.64
(i) Net income for H1 2021 includes an amortisation expense for
customer relations, recognised upon the acquisition of
Saint-Gobain’s packaging business in 2015, of €22 million (net of
taxes). Excluding this expense, the net income would be €155
million. This expense was €22 million in H1 2020.
Consolidated balance
sheet
In € million
30 June 2021
31 Dec. 2020
ASSETS
Goodwill
533.9
529.7
Other intangible assets
402.4
430.9
Property, plant and equipment
1,321.7
1,288.5
Investments in associates
3.2
2.0
Deferred tax
38.0
27.1
Other non-current assets
32.7
30.8
Non-current assets
2,331.9
2,309.0
Inventories
358.4
386.9
Trade receivables and other current
assets
292.0
158.7
Current tax receivables
0.8
5.0
Cash and cash equivalents
497.2
476.2
Current assets
1,148.4
1,026.8
Total Assets
3,480.3
3,335.8
EQUITY & LIABILITIES
Share capital
413.3
416.7
Consolidated reserves
137.8
121.6
Equity attributable to
shareholders
551.1
538.3
Non-controlling interests
44.3
39.5
Equity
595.4
577.8
Non-current financial liabilities and
derivatives
1,566.3
1,569.1
Provisions for pensions and other employee
benefits
127.1
134.0
Deferred tax
163.7
146.0
Provisions and other non-current financial
liabilities
21.8
24.1
Non-current liabilities
1,878.9
1,873.2
Current financial liabilities and
derivatives
197.1
185.7
Current portion of provisions and other
non-current financial liabilities
33.7
59.8
Trade payables
398.1
367.5
Current tax liabilities
36.2
21.8
Other current liabilities
340.9
250.0
Current liabilities
1,006.0
884.8
Total Equity and Liabilities
3,480.3
3,335.8
Consolidated cash flow
statement
In € million
H1 2021
H1 2020
Net profit (loss) for the year
132.5
79.3
Depreciation, amortisation and impairment
of assets
136.2
139.6
Interest expense on financial
liabilities
17.1
18.6
Change in inventories
29.9
4.9
Change in trade receivables, trade
payables & other receivables & payables
(17.3)
(23.4)
Current tax expense
61.5
40.0
Taxes paid
(36.9)
(16.5)
Changes in deferred taxes and
provisions
(48.8)
13.8
Other
11.9
3.6
Net cash flows from operating
activities
286.1
259.9
Acquisition of property, plant and
equipment and intangible assets
(109.4)
(91.5)
Increase (decrease) in debt on fixed
assets
(38.7)
(50.4)
Other
(1.7)
(0.4)
Net cash flows from (used in) investing
activities
(149.8)
(142.3)
Capital increase (reduction)
15.7
20.1
Dividends paid
-
-
Increase (decrease) in treasury stock
(109.2)
-
Transactions with shareholders
(93.5)
20.1
Transactions with non-controlling
interests
(1.2)
(0.6)
Increase (reduction) in bank overdrafts
and other short-term borrowings
14.3
(129.9)
Increase in long-term debt
501.9
201.2
Reduction in long-term debt
(515.6)
(13.1)
Financial interest paid
(21.1)
(13.4)
Change in gross debt
(20.5)
44.8
Net cash flows from (used in) financing
activities
(115.2)
64.3
Increase (reduction) in cash and cash
equivalents
21.1
181.9
Impact of changes in foreign exchange
rates on cash and cash equivalents
(0.1)
(12.9)
Opening cash and cash
equivalents
476.2
219.2
Closing cash and cash
equivalents
497.2
388.2
GLOSSARY
Activity category: corresponds to
the sum of the volumes variations plus or minus changes in
inventories variation.
Organic growth: corresponds to
revenue growth at constant exchange rates and scope. Revenue growth
at constant exchange rates is calculated by applying the average
exchange rates of the comparative period to revenue for the current
period of each Group entity, expressed in its reporting
currency.
Adjusted EBITDA: This is a non-IFRS
financial measure. It is an indicator for monitoring the underlying
performance of businesses adjusted for certain expenses and/or
non-recurring items liable to distort the company’s performance.
The Adjusted EBITDA is calculated based on operating profit
adjusted for depreciation, amortisation and impairment,
restructuring costs, acquisition and M&A costs,
hyperinflationary effects, management share ownership plans,
subsidiary disposal-related effects and contingencies, plant
closure costs and other items.
Capex: Short for “capital
expenditure”, this represents purchases of property, plant and
equipment and intangible assets necessary to maintain the value of
an asset and/or adapt to market demand or to environmental and
health and safety constraints, or to increase the Group’s capacity.
It excludes the purchase of securities.
Recurring investments: Recurring
Capex represent acquisitions of property, plant and equipment and
intangible assets necessary to maintain the value of an asset
and/or adapt to market demands and to environmental, health and
safety requirements. It mainly includes furnace renovation and
maintenance of IS machines.
Strategic investments: Strategic
investments represent the acquisitions of strategic assets that
significantly enhance the Group's capacity or its scope (for
example, the acquisition of plants or similar facilities,
greenfield or brownfield investments), including the building of
additional new furnaces. From 2021 onwards, they will also include
investments related to the implementation of the plan to reduce CO2
emissions.
Cash conversion: refers to the
ratio between cash flow and adjusted EBITDA. Cash flow refers to
adjusted EBITDA less Capex.
The segment Southern and Western
Europe comprises production plants located in France, Spain,
Portugal and Italy. It is also denominated as “SWE”.
The segment Northern and Eastern
Europe comprises production plants located in Germany,
Russia, Ukraine and Poland. It is also denominated as “NEE”.
The segment Latin America comprises
production plants located in Brazil, Argentina and Chile.
Liquidity: calculated as the Cash +
Undrawn Revolving Credit Facilities – Outstanding Neu Commercial
Paper.
Amortisation of intangible assets acquired
through business combinations: Corresponds to the
amortisation of customer relations recorded during the acquisition
of the Saint-Gobain packaging business in 2015 (initial gross value
of €740 million over a useful life of 12 years).
1 Spread represents the difference between (i) the increase in
sales prices and mix applied by the Group after passing the
increase in its production costs on to these prices, if required,
and (ii) the increase in its production costs. The spread is
positive when the increase in sales prices applied by the Group is
greater than the increase in its production costs. The increase in
production costs is recorded by the Group at constant production
volumes and before production gap and the impact of the Performance
Action Plan (PAP). 2 Operating cash flow represents adjusted EBITDA
less capex, plus changes in operating working capital requirement
including changes in payables to fixed asset suppliers. 3
Calculated as the Cash + Undrawn Revolving Credit Facilities –
Outstanding Neu Commercial Paper. 4 Acting through Horizon
Investment Holdings S.à.r.l., a company owned by Horizon Parent
Holdings S.à.r.l., itself owned by AIF VIII Euro Leverage, L.P., an
investment fund managed by an affiliate of Apollo Global
Management, Inc. 5 This represents a discount of approximately 20%
compared with the average Verallia share price on the Euronext
Paris regulated market over the 20 trading days prior to 30 April
2021. 6 Capital increase for a total nominal amount of
€2,083,310.32 and a share premium of €13,646,298.96. The 616,364
new ordinary shares immediately qualify for dividends, have the
same rights and obligations as shares outstanding, and have equal
rights to any dividends distributed, with no restrictions or
conditions. Capital reduction by cancelling 1,600,000 own shares
acquired on 11 June 2021 under the share buyback programme. The
Company’s share capital following the completion of these capital
increase and capital reduction operations is €413,337,438.54. It is
composed of 122,289,183 ordinary shares with a par value of €3.38
each.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210728005923/en/
Media contacts Verallia –
Florence de Nadaï – florence.de-nadai@ext.verallia.com
Brunswick - Benoit Grange, Hugues Boëton, Tristan Roquet
Montegon - verallia@brunswickgroup.com - +33 1 53 96 83
83
Verallia Investor Relations
contact Alexandra Baubigeat Boucheron -
alexandra.baubigeat-boucheron@verallia.com
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