Increase in revenue to €3.352Bn (+25.3%) Growth in net
income to €356m (+42.7%) Net debt ratio of 1.6x after the
acquisition of Allied Glass in November Reduction in CO2
emissions of 10.8% vs. 2019, in line with commitments
Regulatory News:
Verallia (Paris:VRLA):
HIGHLIGHTS
- Increase in revenue of +25.3% to €3.352Bn (+26.5% at
constant exchange rates and scope)1 compared with 2021
- Growth in adjusted EBITDA to €866m in 2022, from €678m
in 2021 (+27.6%)
- Improvement in adjusted EBITDA margin to 25.8% in 2022
compared with 25.4% in 2021 (+47 bps vs. 2021)
- Net income2 of €356m compared with €249m in 2021 (+42.7%
vs. 2021) and earnings per share2 of €2.92
- Acquisition of Allied Glass, UK market leader in premium
spirits closed in November
- Drop in net debt ratio to 1.6x adjusted 2022 EBITDA
compared with 1.9x at 31 December 2021, after the acquisition of
Allied Glass for an EV3 of £315m
- Reduction in Scope 1 & 2 CO2 emissions of -2.7% vs.
2021 (-10.8% vs. 2019) and increase in external cullet4
ratio of 55.7% (+0.7 points vs. 2021) in 2022
- Proposal to pay a dividend per share of €1.405
”I am very pleased with 2022 results, illustrating the relevance
of the Group’s strategy and the agility of its teams in a
particularly volatile environment. Verallia demonstrated its
flexibility and ability to generate a positive inflation spread
despite unprecedented cost inflation while continuing its
productivity plans. The Group also capitalised on a buoyant market
by optimising its production capacities and successfully lighting a
new furnace in Brazil. Verallia has also implemented all facets of
its capital allocation strategy through investment in its organic
growth and decarbonisation, a strategic acquisition in the UK and
the launch of a share buyback programme. Lastly, we are more
motivated than ever to maintain our decarbonisation trajectory,
while further delivering our profitable growth.” said Patrice
Lucas, CEO of Verallia.
REVENUE
Revenue breakdown by region
In €m
2022
2021
% Change
Organic growth 6
Southern and Western Europe
2,236.4
1,832.2
+22.1%
+21.9%
Northern and Eastern Europe
695.3
537.6
+29.3%
+22.7%
Latin America
419.8
304.2
+38.0%
+60.5% (+26.0% excl.
Argentina)
Group total
3,351.5
2,674.0
+25.3%
+26.5% (+22.4% excl.
Argentina)
Revenue in 2022 totalled €3.352Bn, a strong 25.3% increase on
a reported basis compared with last year.
The impact of exchange rates was negative at -1.8% in
2022 (-€47m), largely due to the recent depreciation of the
Argentinian peso and the Ukrainian hryvnia. In the fourth quarter,
the impact of exchange rates was negative at -€49m.
At constant exchange rates and scope, revenue grew by
+26.5% in the full year (and by +22.4% excluding Argentina),
with a fourth quarter in line with the third quarter (organic
growth of +32.9% in Q4 2022). The small drop in volumes seen in the
third quarter continued into the fourth quarter because of the
renovation of five furnaces in the second half of 2022, temporarily
reducing available production capacity. However, demand for glass
remained very dynamic throughout the year, as reflected in the
latest figures published by the European Federation of glass
packaging makers (FEVE), which show that domestic sales in Europe
increased by 8.2% in weight and by 9.4% in units in the first half
of 2022 compared with H1 2021 (annual figures are not yet
available).
Spirits recorded strong volume growth over the year in all
regions thanks to high consumption in Europe since the re-opening
of the on-trade channel and the dynamism of the US market, and
despite the impact of health restrictions in China during part of
the year. Sparkling wines also grew strongly, with volumes in
champagne even higher than in 2021 - already a record year - thanks
to solid domestic demand. Food jars also recorded solid momentum in
2022.
Sales price increases were implemented in Europe to compensate
for the sharp rise in production costs. The pricing and mix policy
in Latin America also remained highly dynamic throughout the year
amid high inflation in the region. Lastly, the product mix was
positive throughout the year.
Revenue breakdown by region for 2022:
- Southern and Western Europe saw
revenue grow by +22.1% on a reported basis and by +21.9% at
constant exchange rates and scope. Volumes were flat in 2022
despite four renovations of furnaces in the second half of the
year. Spirits posted strong annual growth. Sparkling wines reaped
the benefits of the dynamism of the champagne market, together with
a steady increase in Prosecco sales volumes in Italy and export
markets.
- In Northern and Eastern Europe,
revenue on a reported basis grew by +29.3% and by 22.7% at constant
exchange rates and scope. Exchange-rate variations had a positive
impact of +3.4% thanks to the appreciation of the Russian rouble
during the period. The region also benefited from a positive scope
effect (+3.2%) following the acquisition in November 2022 of Allied
Glass, a major player in premium spirits in the UK, renamed
Verallia UK since 1 January 2023. Sales volumes increased slightly
in 2022 thanks to the strong performance of still wines and
spirits. The beer and food jar markets also performed well in 2022.
Verallia’s situation in Ukraine is unchanged: one furnace was
emptied and cooled to keep it in good condition, while the second
mainly produces food jars for local market. As the situation in the
country remains uncertain, Verallia’s priority is the safety of its
teams and the service of its local customers.
- In Latin America, revenue showed a
strong reported increase of +38.0% and remarkable organic growth of
+60.5%. Sales volumes increased thanks to brisk growth in the beer,
spirits and sparkling wines segments. Significant price hikes
implemented in the region, particularly in Argentina to offset
local hyperinflation, also spurred revenue growth. The lighting of
the second furnace in Jacutinga, Brazil, took place on schedule in
November 2022 and production got off to a very satisfactory start
in early December; it is already operating at high capacity and
serves large customer orders. Construction of the second furnace at
the Campo Bom plant in southern Brazil is also progressing on
schedule for a start-up beginning of 2024.
ADJUSTED EBITDA
Breakdown of adjusted EBITDA by region
In €m
2022
2021
Southern and Western
Europe
Adjusted EBITDA7
554.5
452.8
Adjusted EBITDA margin
24.8%
24.7%
Northern and Eastern
Europe
Adjusted EBITDA7
146.5
117.0
Adjusted EBITDA margin
21.1%
21.8%
Latin America
Adjusted EBITDA7
164.6
108.2
Adjusted EBITDA margin
39.2%
35.6%
Group total
Adjusted EBITDA7
865.5
678.1
Adjusted EBITDA margin
25.8%
25.4%
Adjusted EBITDA increased by +27.6% in 2022 (and +31.7% at
constant exchange rates and scope) to €866m. The unfavourable
effect of exchange rates, mainly attributable to the depreciation
of the Argentinian peso and Ukrainian hryvnia, reached -€27m in
2022.
In 2022, Verallia generated a positive inflation spread8
at the Group level and in all divisions despite the sharp increase
in production costs.
The net reduction in cash production costs (PAP) once again
strongly contributed to the improvement in EBITDA of €34m (i.e.
2.1% of cash production costs).
The adjusted EBITDA margin increased to 25.8% from 25.4% in
2021, despite the mathematical dilutive effect of selling price
increases in 2022.
By region, adjusted EBITDA for 2022 breaks down as follows:
- Southern and Western Europe
reported adjusted EBITDA of €555m (vs. €453m in 2021) and a margin
of 24.8% compared with 24.7%. The product mix, combined with a
positive inflation spread over the year, despite the steep rise in
costs, as well as PAP drove EBITDA growth.
- In Northern and Eastern Europe,
adjusted EBITDA reached €147m (vs. €117m in 2021), lowering its
margin to 21.1% compared with 21.8%. The increase in EBITDA was
attributable to the generation of a positive inflation spread and
an industrial performance more than in line with the cost reduction
objective. Despite the complex backdrop in Ukraine, leading to a
steep drop in volumes, EBITDA remained positive in the country in
2022 thanks to the efforts and professionalism of our local
teams.
- In Latin America, adjusted EBITDA
was €165m (vs. €108m in 2021), taking the margin up to 39.2% from
35.6%. Once again, the region demonstrated its capacity to use all
the profitability improvement levers at the Group’s disposal:
operating leverage linked to sales volume growth, combined with a
positive inflation spread and an excellent industrial performance
(PAP).
The increase in net income to €356m (and €2.92 per share)
is mainly due to the improvement in adjusted EBITDA, which more
than offset the increase in financial expenses and income tax. Net
income for 2022 includes, as it does every year, an amortisation
expense for customer relationships, recognised upon the acquisition
of Saint-Gobain's packaging business in 2015 and will end in 2027,
of €44m et €0.38 per share (net of taxes). If this expense had
not been taken into account, net income would be €400m and €3.30
per share. This expense was €43m and €0.36 per share in
2021.
The capital expenditure recorded amounted to €367m (i.e.
10.9% of total revenue), compared with €256m in 2021. These
investments consisted of €270m in recurring investments (compared
with €218m in 2021) and €97m in strategic investments (vs. €38m in
2021), mainly for the building of the new Jacutinga furnace in
Brazil and the first investments linked to the construction of two
new furnaces in 2024 - Campo Bom (Brazil) and Pescia (Italy) - as
well as investments associated with CO2 emissions reductions.
Operating cash flow rose to €538m9, compared with €502m
in 2021, thanks to growth in adjusted EBITDA and despite higher
capex.
Free cash-flow10 totalled €364m, up from €329m in
2021.
VERY SOLID BALANCE SHEET
Verallia improved its net debt ratio in 2022 despite the
acquisition of Allied Glass (enterprise value of £315m).
At the end of December 2022, Verallia’s net debt totalled
€1.406Bn following an acquisition and the payment of €123m of
dividends in May. The debt ratio was 1.6x 2022 adjusted
EBITDA, compared with 1.9x at the end of December 2021.
The Group had liquidity11 of €680m at 31 December
2022.
INCREASE IN CAPACITY IN EUROPE IN 2025 AND 2026
Following the Investor Day (Capital Markets Day) in October
2021, during which Verallia announced the construction by 2024 at
existing sites of two new furnaces in Brazil (Jacutinga 2 and
Campon Bom 2) and a new furnace in Italy at the Pescia plant, the
Group is announcing capacity additions for the following two
years.
Verallia will build at its existing sites a new furnace in Spain
(Montblanc site) in 2025 and a new furnace in Italy in 2026.
This new production capacity addresses strong demand of local
customers in a European market with growing needs for glass
packaging products.
As a reminder, the Jacutinga 2 furnace was commissioned
successfully at the end of 2022, while construction of the second
furnace at Campo Bom (operational at the start of 2024) and the
second furnace at Pescia (operational in Q2 2024) is on track.
ACQUISITION OF ALLIED GLASS
In November 2022, Verallia announced and finalised the
acquisition of 100% of the capital of Allied Glass at an enterprise
value of £315m.
Headquartered in Leeds, Allied Glass is a leading player in the
premium glass packaging market in the United Kingdom, where it
generates over 95% of its revenues (£160m in 2022), with four
furnaces located in West Yorkshire and more than 600 employees.
With this acquisition, a key step in its external growth
strategy, Verallia intends to capitalise on Allied Glass’ expertise
in the production of premium glass bottles, particularly in the
Scotch Whisky and Gin sector, and take advantage of its established
position in the UK market.
The integration process is progressing as planned and Allied
Glass has adopted the name Verallia UK since 1 January 2023.
SQUEEZE-OUT OF VERALLIA DEUTSCHLAND MINORITY SHAREHOLDERS BY
VERALLIA PACKAGING
On 5 December 2022, Verallia Packaging finalized the
privatisation of its subsidiary Verallia Deutschland AG listed on
the regulated market of the Frankfurt Stock Exchange (and on the
regulated markets of the München and Stuttgart stock
exchanges).
Verallia Deutschland AG was valued at €620.06 per bearer share
by two independent valuers.
The resolution required to buy back minority shareholders’ stock
has been adopted during the Annual General Meeting of Verallia
Deutschland AG on 24 August 2022.
SHARE BUYBACK
As part of its capital allocation strategy and following the
finalisation of the acquisition of Allied Glass, Verallia has
decided to launch a share buyback program and has entrusted an
investment services provider with a share buyback mandate for a
maximum amount of €50m, over a period running from 7 December 2022
to November 2023.
Verallia intends to cancel all the shares bought back.
SUSTAINABLE DEVELOPMENT INDICATORS
Verallia's "Scope 1 and 2" CO2 emissions totalled 2,756 kt
CO2 for the year 2022, a decrease of -2.7% compared with 2021
emissions of 2,833 kt CO2 (i.e. -10.8% vs. 2019). Verallia is
therefore in line with its trajectory for reducing its "Scope 1 and
2" CO2 emissions12 by 46% in absolute terms by 2030 (reference year
2019).
In addition, the external cullet13 usage rate reached 55.7%
in 2022, compared with 55.0% in 2021: an outstanding
improvement of 0.7 points.
This ESG roadmap received several accolades in 2022.
- In March, the targets for reducing CO2 emissions by 2030,
aligned with the trajectory aiming to limit global warming to
+1.5°C, were validated by the Science Based Targets initiative
(SBTi). This is a world first for a company producing glass
packaging for the food market.
- In December, Verallia was recognised for the effectiveness of
its measures to tackle climate change, as well as the transparency
of its reporting. The Group received an A- rating from the CDP14,
Carbon Disclosure Project, a non-for-profit organisation and an
international reference in the field, in the “Climate Change”
category 15.
- Verallia has been awarded the platinum medal by Ecovadis,
placing the Group among the 1% of the 90 000 most virtuous
companies in terms of social and environmental responsibility in
the world.
- Verallia has received a rating upgrade to “BBB” in the 2022
MSCI environmental, social and governance (ESG) ratings
assessment.
As part of the deployment of its decarbonisation strategy, the
Group has announced the commissioning at the end of 2023 of its
first 100% electric plant in Cognac (France) and, to this end, the
signing of a partnership with Fives; this technology should make it
possible to lower CO2 emissions by 60% compared with a traditional
furnace. The first hybrid furnace is also set to become operational
in Saragossa (Spain) at the end of 2024, lowering CO2 emissions by
50% compared with a traditional furnace.
2022 DIVIDEND
During their meeting on 15 February 2023, the Verallia Board of
Directors decided to propose the payment of a dividend of €1.40 per
share in cash for the 2022 financial year. This amount will be
subject to approval of the Annual General Shareholders' meeting
which will take place on 25 April 2023.
2023 OUTLOOK
Despite the risk of a global macroeconomic slowdown, glass
market in Europe and Latin America should remain solid in 2023. The
Group will continue to invest in developing its production capacity
and in deploying its decarbonisation technologies for the coming
years.
Verallia intends to pursue its profitable growth strategy based
on regular organic growth, a positive inflation spread and an
annual reduction in cash production costs (PAP) of 2%. Verallia UK
will fully contribute to the results of the Northern and Eastern
Europe division in 2023, with revenue growth and a continued
accretive impact on EBITDA margin.
On the strength of all these success factors, Verallia has set
itself the objective of achieving revenue growth of more than 20%
and an adjusted EBITDA of approximately €1Bn in 2023.
In addition, Verallia will continue tirelessly to implement its
ESG roadmap, following on from the successes achieved in 2022.
The Verallia Group's consolidated financial statements for the
financial year ended 31 December 2022 were approved by the Board of
Directors on 15 February 2023. The consolidated financial
statements have been audited by the Statutory Auditors.
An analysts’ conference call will be held on 16 February 2023 at
9.30am (CET) via an audio webcast service (live and replay)
and the results presentation will be available on
www.verallia.com.
FINANCIAL CALENDAR
- 29 March 2023: start of the quiet period.
- 19 April 2023: financial results for Q1 2023 - Press release
after market close and conference call/presentation the next day at
9.00am CET.
- 25 April 2023: Annual General Shareholders' Meeting.
- 4 July 2023: start of the quiet period.
- 25 July 2023: results for H1 2023 - Press release after market
close and conference call/presentation the next day at 9.00am
CET.
- 28 September 2023: start of the quiet period.
- 19 October 2023: financial results for Q3 2023 - Press release
after market close and conference call/presentation the next day at
9.00am CET.
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
beneficial and sustainable new solutions for all.
With more than 10,000 employees and 34 glass production
facilities in 12 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 worldwide.
In 2022, Verallia produced close to 17 billion glass bottles and
jars and posted revenue of €3.4 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: CAC SBT 1.5°, STOXX600, SBF 120, CAC Mid 60, CAC Mid &
Small and CAC All-Tradable.
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. They involve known and unknown risks, uncertainties and
other factors, which may cause actual performance and results 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 4 "Risk Factors" in the
Universal Registration Document approved by the AMF and 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 no guarantee of future performance.
This press release includes only summary information and does
not purport to be comprehensive.
Personal data protection
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investors@verallia.com. Press releases will still be available to
access via the website https://www.verallia.com/investisseurs.
Verallia SA, as data controller, processes personal data for the
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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group and, where applicable, its subcontractors. Verallia SA
transfers personal data to its service providers located outside
the European Union, who are responsible for providing and managing
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Verallia SA ensures that the appropriate guarantees are obtained in
order to supervise these data transfers outside of the European
Union. Under the conditions defined by the applicable regulations
for the protection of personal data, you may access and obtain a
copy of the data concerning you, object to the processing of this
data and request for it to be rectified or erased. You also have a
right to restrict the processing of your data. To exercise one of
these rights, please contact the Group Financial Communication
Department at investors@verallia.com. If, after having contacted
us, you believe that your rights have not been respected or that
the processing does not comply with data protection regulations,
you may submit a complaint to CNIL (Commission nationale de
l'informatique et des libertés — French regulatory body).
APPENDICES - Key figures
In €m
2022
2021
Revenue
3,351.5
2,674.0
Reported growth
+25.3%
+5.4%
Organic growth
+26.5%
+6.8%
of which Southern and Western
Europe
2,236.4
1,832.2
of which Northern and Eastern
Europe
695.3
537.6
of which Latin America
419.8
304.2
Cost of sales
(2,527.1)
(2,042.4)
Selling, general and
administrative expenses
(194.4)
(173.9)
Acquisition-related items
(65.6)
(59.7)
Other operating income and
expenses
(6.1)
(4.9)
Operating profit
558.3
393.1
Finance costs
(80.7)
(56.8)
Profit before tax
477.6
336.3
Income tax
(122.1)
(89.4)
Share of net profit (loss) of
associates
0.2
2.4
Net income16
355.6
249.3
Earnings per share
€ 2.92
€ 2.01
Adjusted EBITDA17
865.5
678.1
Group Margin
25.8%
25.4%
of which Southern and Western
Europe
554.5
452.8
Southern and Western Europe
margin
24.8%
24.7%
of which Northern and Eastern
Europe
146.5
117.0
Northern and Eastern Europe
margin
21.1%
21.8%
of which Latin America
164.6
108.2
Latin America margin
39.2%
35.6%
Net borrowings at end of
period
1,406
1,268
Last 12 months adjusted
EBITDA
865.5
678.1
Net debt/last 12 months adjusted
EBITDA
1.6x
1.9x
Total Capex18
367.0
256.3
Cash conversion19
57.6%
62.2%
Change in operating working
capital requirement
39.4
80.5
Operating Cash flow20
537.9
502.3
Free cash flow21
363.8
329.3
Strategic
investments22
97.4
38.1
Recurring
investments23
269.6
218.2
Change in revenue by type in €m during 2022
In €m
2021 Revenue
2,674.0
Volume effect
+37.7
Price/Mix
+669.7
Exchange rates
(47.4)
Scope
+17.5
2022 Revenue
3,351.5
Change in adjusted EBITDA by type in €m during 2022
In €m
2021 adjusted EBITDA24
678.1
Activity contribution
+41.1
Price-mix/Cost spread
+135.7
Net productivity
+33.9
Exchange rates
(26.7)
Other
+3.4
2022 adjusted EBITDA
865.5
Key figures for the fourth quarter
In €m
Q4 2022
Q4 2021
Revenue
833.9
651.8
Reported growth
+27.9%
Organic growth
+32.9%
Adjusted EBITDA
211.3
150.5
Adjusted EBITDA margin
25.3%
23.1%
Reconciliation of operating profit to adjusted EBITDA
In €m
2022
2021
Operating profit
558.3
393.1
Depreciation and
amortisation25
295.9
281.1
Restructuring expenses
(0.8)
(2.7)
IAS 29, Hyperinflation
(Argentina)26
4.3
(4.8)
Management share ownership plan
and associated costs
6.2
10.1
Company acquisition costs and
earn-outs
5.1
0.0
Other
(3.5)
1.3
Adjusted EBITDA
865.5
678.1
Adjusted EBITDA and cash conversion are alternative performance
measures according to AMF Position n°2015-12.
Adjusted EBITDA and cash conversion are not standardised
accounting measures meeting a single definition generally accepted
by 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
definitions used by the Group.
IAS 29: Hyperinflation (Argentina)
The group has applied IAS 29 in Argentina since 2018. 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. These
restatements may lead to a gain or loss on the net monetary
position included in the finance costs.
Financial items for the Argentinian subsidiary are converted
into euro using the closing exchange rate for the relevant
period.
In 2022, the net impact on revenue was (€9.8)m. The
hyperinflation impact has been excluded from Group adjusted EBITDA
as shown in the table "Reconciliation of operating profit to
adjusted EBITDA".
Financial structure
In €m
Nominal amount or max. amount
drawable
Nominal rate
Final maturity
31 Dec. 2022
Sustainability-Linked bonds
May 202127
500
1.625%
May 2028
502.7
Sustainability-Linked Bond
November 202127
500
1.875%
Nov. 2031
493.7
Term loan A – TLA27
500
Euribor+1.25%
Oct. 2024
500.6
Revolving Credit Facility
RCF1
500
Euribor+0.85%
Oct. 2024
-
Negotiable commercial paper (NEU
CP)27
400
150.3
Other liabilities28
89.4
Total borrowings
1,736.6
Cash and cash equivalents
(330.8)
Net Debt
1,405.9
Consolidated income statement
In €m
2022
2021
Revenue
3,351.5
2,674.0
Cost of sales
(2,527.1)
(2,042.4)
Selling, general and
administrative expenses
(194.4)
(173.9)
Acquisition-related items
(65.6)
(59.7)
Other operating income and
expenses
(6.1)
(4.9)
Operating profit
558.3
393.1
Financial income
(loss)
(80.7)
(56.8)
Profit before tax
477.6
336.3
Income tax
(122.1)
(89.4)
Share of net profit (loss) of
associates
0.2
2.4
Net income 29
355.6
249.3
Attributable to shareholders of
the Company
342.0
242.6
Attributable to non-controlling
interests
13.6
6.7
Basic earnings per share (in
€)
2.92
2.01
Diluted earnings per share (in
€)
2.92
2.01
Consolidated balance sheet
In €m
31 Dec. 2022
31 Dec. 2021
ASSETS
Goodwill
783.9
530.2
Other intangible assets
313.1
372.2
Property, plant and equipment
1,609.0
1,351.1
Investments in associates
5.9
5.1
Deferred tax
27.5
64.7
Other non-current assets
186.3
152.1
Non-current assets
2,925.7
2,475.4
Current portion of non-current
assets and financial assets
1.3
1.3
Inventories
536.8
404.3
Trade receivables
250.4
121.6
Current tax receivables
5.4
1.2
Other current assets
392.3
318.5
Cash and cash equivalents
330. 8
494.6
Current assets
1,517.0
1,341.5
Total assets
4,442.7
3,816.9
LIABILITIES
Share capital
413.3
413.3
Consolidated reserves
590.1
333.1
Equity attributable to
shareholders
1,003.4
746.4
Non-controlling interests
64.0
53.3
Equity
1,067.4
799.7
Non-current financial liabilities
and derivatives
1,562.2
1,569.0
Provisions for pensions and other
employee benefits
87.4
117.5
Deferred tax
226.0
263.8
Provisions and other non-current
financial liabilities
23.2
21.3
Non-current
liabilities
1,898.8
1,971.6
Current financial liabilities and
derivatives
200.9
197.2
Current portion of provisions and
other non-current financial liabilities
54.3
39.5
Trade payables
740.6
521.4
Current tax liabilities
44.3
23.6
Other current liabilities
436.4
263.9
Current liabilities
1,476.5
1,045.6
Total equity and
liabilities
4,442.7
3,816.9
Consolidated cash flow statement
In €m
2022
2021
Net income
355.6
249.3
Depreciation, amortisation and
impairment of assets
295.9
281.1
Interest expense on financial
liabilities
29.4
32.0
Change in inventories
(92.8)
(16.9)
Change in trade receivables,
trade payables & other receivables & payables
50.9
107.2
Current tax expense
135.5
107.9
Taxes paid
(105.9)
(91.4)
Changes in deferred taxes and
provisions
0.8
(46.8)
other functions
29.8
19.1
Net cash flows from operating
activities
699.2
641.5
Acquisition of property, plant
and equipment and intangible assets
(367.0)
(256.3)
Increase (decrease) in debt on
fixed assets
75.2
(10.7)
Acquisitions of subsidiaries, net
of cash acquired
(247.9)
(0.2)
Other
(0.4)
(4.3)
Net cash flows from (used in)
investing activities
(540.1)
(271.5)
Capital increase (reduction)
13.0
15.7
Dividends paid
(122.7)
(114.2)
Increase (Reduction) in own
shares
(8.4)
(221.1)
Transactions with shareholders
of the parent company
(118.1)
(319.6)
Transactions with
non-controlling interests
(2.7)
(1.5)
Increase (decrease) in bank
overdrafts and other short-term borrowings
(1.7)
2.9
Increase in long-term debt
6.8
1,039.1
Reduction in long-term debt
(172.3)
(1,041.0)
Financial interest paid
(28.1)
(31.4)
Change in gross debt
(195.3)
(30.4)
Net cash flows from (used in)
financing activities
(316.1)
(351.5)
Increase (Reduction) in cash
and cash equivalents
(156.9)
18.5
Impact of changes in foreign
exchange rates on cash and cash equivalents
(6.9)
0.0
Opening cash and cash
equivalents
494.6
476.2
Closing cash and cash
equivalents
330.8
494.6
GLOSSARY
Activity: corresponds to the sum of the change in volumes
plus or minus the net change in inventories.
Organic growth: corresponds to revenue growth at constant
exchange rates and scope. Revenue growth at constant exchange rates
is calculated by applying the same exchange rates to financial
indicators presented in the two comparative periods (by applying
the exchange rates of the previous period to the indicators of the
current period).
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 income which are
non-recurring or liable to distort the company's performance.
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.
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
demand and to environmental, health and safety constraints. 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.
Since 2021 they have also included investments associated with the
implementation of the CO2 emissions reduction plan.
Cash conversion: refers to the ratio between cash flow
and adjusted EBITDA. Cash flow refers to adjusted EBITDA less
Capex.
Free Cash-Flow: Defined as the Operating Cash Flow -
Other operating impact - Interest paid & other financing costs
- Cash Tax.
The Southern and Western Europe segment comprises
production plants located in France, Spain, Portugal and Italy. It
is also designated by the abbreviation "SWE".
The Northern and Eastern Europe segment comprises
production plants located in Germany, UK, Russia, Ukraine and
Poland. It is also designated by the abbreviation "NEE".
The Latin America segment 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 recognised upon the acquisition of Saint-Gobain's
packaging business in 2015 (initial gross value of €740m over a
useful life of 12 years).
1 Growth in revenue at constant exchange rates and scope
excluding Argentina of +22.4% in 2022 compared with 2021. 2 Net
income for 2022 includes an amortisation expense for customer
relationships recognised upon the acquisition of Saint-Gobain's
packaging business in 2015, of €44m and €0.38 per share (net of
taxes). If this expense had not been taken into account, net income
would be €400m and €3.30 per share. This expense was €43m and €0.36
per share in 2021. 3 Enterprise value. 4 Recycled glass. 5 Subject
to the approval of the Annual General Shareholders' Meeting which
will take place on 25 April 2023. 6 Revenue growth at constant
exchange rates is calculated by applying the same exchange rates to
financial indicators presented in the two comparative periods (by
applying the exchange rates of the previous period to the
indicators of the current period). Growth in revenue at constant
exchange rates and scope excluding Argentina of +22.4% in 2022
compared with 2021. 7 Adjusted EBITDA is calculated on the basis of
operating income 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. 8 The spread corresponds to the
difference between (i) the increase in selling prices and the mix
applied by the Group after passing any increase in production costs
onto these selling prices and (ii) the increase in 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). 9 Operating cash flow
represents adjusted EBITDA less capex, plus changes in operating
working capital requirements including changes in payables to fixed
asset suppliers. 10 Defined as Operating cash flow – Other
operating impact – Interest paid & other financing costs –
Taxes paid. 11 Calculated as the Cash + Undrawn Revolving Credit
Facilities – Outstanding Commercial Paper. 12 SCOPE 1 “Direct
emissions” = CO2 emissions within the physical perimeter of the
plant, in other words, carbonated raw materials, heavy and domestic
fuel oil, and natural gas (melting and non-melting activities).
SCOPE 2 “Indirect emissions” = emissions related to electricity
consumption required for the operation of the plant. 13 Recycled
glass. 14 The Carbon Disclosure Project (CDP) is an international
not-for-profit organisation that evaluates the actions of companies
to reduce their environmental impact throughout their value chains.
The CDP uses a detailed methodology with grades ranging from “A” to
“D-“. 15 There are three CDP ratings: Climate Change, Water
security and Forests. 16 Net income for 2022 includes an
amortisation expense for customer relationships recognised upon the
acquisition of Saint-Gobain's packaging business in 2015, of €44m
and €0.38 per share (net of taxes). If this expense had not been
taken into account, net income would be €400m and €3.30 per share.
This expense was €43m and €0.36 per share in 2021. 17 Adjusted
EBITDA is calculated on the basis of operating income 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. 18
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. 19 Cash conversion is
defined as adjusted EBITDA less capex, divided by adjusted EBITDA.
20 Operating cash flow represents adjusted EBITDA less capex, plus
changes in operating working capital requirements including changes
in payables to fixed asset suppliers. 21 Defined as Operating cash
flow – Other operating impact – Interest paid & other financing
costs – Taxes paid. 22 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.
Since 2021, they also include the investments related to the
implementation of the plan to reduce CO2 emissions. 23 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. They mainly include furnace renovation and
maintenance of IS machines. 24 Adjusted EBITDA is calculated on the
basis of operating income 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. 25 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 26 The Group has applied IAS 29 (Hyperinflation) since
2018. 27 Including accrued interest. 28 o/w IFRS16 leasing
(€53.5m), local debts (€41.9m), factoring recourse and double cash
(€18.4m). 29 Net income for 2022 includes an amortisation expense
for customer relationships recognised upon the acquisition of
Saint-Gobain's packaging business in 2015, of €44m and €0.38 per
share (net of taxes). If this expense had not been taken into
account, net income would be €400m and €3.30 per share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230215005653/en/
Verallia press service Annabel Fuder & Stéphanie
Piere verallia@wellcom.fr | +33 (0)1 46 34 60 60
Verallia investor relations contact Alexandra Baubigeat
Boucheron | alexandra.baubigeat-boucheron@verallia.com
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