HIGHLIGHTS
- Continued solid profitability in 2024 despite volumes under
pressure (-1.3% vs. 2023): 2024 revenue of €3,456 million, down
-11.5% compared to 2023 on a reported basis and at constant scope
and exchange rates1, with adjusted EBITDA2 of €842.5 million (2023:
€1,108.0 million) and adjusted EBITDA margin of 24.4% (2023:
28.4%).
- Confirmed recovery in activity in Q4: organic volume
growth and adjusted EBITDA up +4.3% to €201.2 million (2023: €192.9
million) with a 24.5% margin (2023: 23.3%).
- Robust balance sheet: net debt ratio on 31 December 2024
at 2.1x last 12-month adjusted EBITDA compared to 2.3x on 30
September 2024 (1.2x at 31 December 2023); liquidity3 of €953
million at 31 December 2024.
- Proposal for the payment of a dividend of €1.70 per
share4 for the 2024 financial year.
- Ongoing decarbonization actions: in 2024, reduction in
Scope 1 & 2 CO2 emissions5 by -9.4% vs. 2023 (-23.7% vs.
2019)6, in line with our 2030 target validated by the SBTi
initiative.
- 2025, return to solid free cash flow generation: 2025
objectives of generating adjusted EBITDA close to 2024 and more
than doubling free cash flow generation (around €200 million)
compared to 2024 in a still uncertain market environment.
- Organization of a Capital Markets Day in September
during which the Group will present its new mid-term roadmap
(strategy, financial and CSR targets and capital allocation
policy).
Regulatory News:
Verallia (Paris:VRLA):
"Following an exceptional year in 2023, Verallia successfully
adapted to the uncertainties of 2024, marked by ongoing destocking
effects that weighed on demand recovery. The Group continues to
demonstrate robust profitability, underpinned by solid
fundamentals. We have maintained stringent cost and investment
management while advancing our strategic initiatives, including the
inauguration of the first 100% electric furnace in Cognac and the
completion of a new acquisition in Italy. In the face of a still
uncertain market environment, our priority for 2025 will be cash
generation, with strict cost control and the continued positive
impact of the Performance Improvement Plan (PAP)", commented
Patrice Lucas, Chief Executive Officer of Verallia.
REVENUE
Revenue breakdown by region
in millions of euros
2024
2023
% change
Of which organic
growth7
Southern and Western Europe
2,268.6
2,527.2
-10.2%
-12.7 %
Northern and Eastern Europe
759.2
979.8
-22.5%
-21.6 %
Latin America
428.3
396.8
+7.9%
+21.1% (-0.5% excluding
Argentina)
Group Total
3,456.1
3,903.8
-11.5%
-11.5% (-14.0% excluding
Argentina)
In 2024, the group generated revenue of €3,456.1 million,
down -11.5% on a reported basis compared to last year. In Q4
2024 alone, revenue amounted to €820.9 million, down -1.0% on a
reported basis compared to Q4 2023.
Foreign exchange effect amounted to -1.6%, or € (61.1)
million in 2024 and +18.1%, or +€149.9 million in Q4 2024. It is
mainly linked to the depreciation of the Argentine peso in 2024
(even if its impact is much lower than in 2023), and to a lesser
extent to that of the Brazilian real.
Scope effect, related to the acquisition of Vidrala's
glass activities in Italy in July 2024 as well as the acquisition
of cullet processing centers in Iberia in Q4 2023, contributed
€61.1 million or +1.6% in 2024. In Q4, this contribution amounted
to €23.3 million, or +2.8%.
At constant scope and exchange rates, 2024 revenue decreased
by -11.5% (-14.0% excluding Argentina), and revenue in Q4 2024
by -21.9% (significant impact of the devaluation of the Argentine
peso in Q4 2023) and -9.1% excluding Argentina. As anticipated in
July, demand was subdued at Group level for the year 2024. Beer
volumes are improving, benefiting from the gradual end of
destocking and a fairly low basis of comparison for the year 2023.
Spirits posted the largest decline in volume. The other segments
posted a slight year-on-year decline despite a rebound in the
second half of the year.
In Q4 2024, as in Q3, volumes grew organically, driven by good
momentum in still wines, beer and food jars.
2024 revenue was also affected by lower selling prices in
Europe, with H1 price negotiations fully impacting H2. Mix
contribution was slightly negative for the year, with a
normalization observed in the second half.
By geographical area:
- In Southern and Western Europe,
revenue was down -10.2% on a reported basis and -12.7% at constant
exchange rates and scope for the full year 2024, primarily due to
lower selling prices. Sales volumes remain stable, bolstered by the
significant contribution from Italy, which benefits from the
strategic acquisition of Vidrala Italia (Corsico site) in July
2024. On a like-for-like basis, the beer segment is growing again
after a disappointing 2023. Other segments experienced moderate
declines, but showed improved momentum in Q4 for still wines and
spirits.
- In Northern and Eastern Europe,
revenue decreased by -22.5% on a reported basis and by -21.6% at
constant exchange rates and scope in 2024. Activity slowed down
significantly. The most challenging segments are spirits in the
United Kingdom and beer in Germany. Food jar volumes are on the
rise again in Q4 2024. Situation in Ukraine remains uncertain;
Verallia's top priority continues to be the safety of its teams and
serving its local customers.
- In Latin America, revenue grew by
+7.9% on a reported basis and by +21.1% at constant exchange rates
and scope in 2024. The beer segment was the most dynamic throughout
the year and in Q4, driven by a very active Brazilian market and
the full-year impact of the new furnace at our Jacutinga site.
Additionally, still wines experienced positive trends across all
countries in the region, more than offsetting the decline in
sparkling wine volumes.
ADJUSTED EBITDA
Breakdown of adjusted EBITDA by region
in millions of euros
2024
2023
Southern and Western Europe
Adjusted EBITDA8
547.8
725.2
Adjusted EBITDA margin
24.1%
28.7%
Northern and Eastern Europe
Adjusted EBITDA8
147.3
244.2
Adjusted EBITDA margin
19.4%
24.9%
Latin America
Adjusted EBITDA8
147.4
138.5
Adjusted EBITDA margin
34.4%
34.9%
Group Total
Adjusted EBITDA8
842.5
1,108.0
Adjusted EBITDA margin
24.4%
28.4%
Adjusted EBITDA was €842 million in 2024, representing an
adjusted EBITDA margin of 24.4% (2023: 28.4%). In Q4, adjusted
EBITDA was €201 million with a margin of 24.5% (24.3% in the first
9 months of the year).
Unfavorable foreign exchange effect reached €(19) million in
2024 (+€44 million in Q4 2024), primarily due to the
depreciation of the Argentine peso and the Brazilian real.
Scope effect is positive and largely linked to the
six-month consolidation of Vidrala Italia, acquired in July
2024.
Activity declined over the year, impacting adjusted
EBITDA by €(165) million (despite a positive contribution of +€34
million in Q4). This year-on-year decrease is primarily linked to
inventory variation effects, as the positive impact of inventory
increases seen in 2023 did not recur.
The contribution of the inflation spread9 was negative by
€(165) million for the year (€(200) million excluding
Argentina), impacted by a carry-over effect on the sales prices
adjusted in 2023 and by the price reductions applied during the
year. Spread remains negative in Q4 at €(90) million (€(64) million
excluding Argentina).
The net reduction in cash production costs (PAP) again
strongly contributed to the improvement in EBITDA by €64 million
(or 2.8% of cash production costs), above the 2% target set by the
Group.
By geographic region, 2024 adjusted EBITDA break down as
follows:
- In Southern and Western Europe,
adjusted EBITDA reached €548 million for the year (vs. €725 million
in 2023) and a margin of 24.1% compared to 28.7% in 2023. The
negative impact on the region's adjusted EBITDA is due to the
combined effect of lower volumes and the absence in 2024 of the
positive inventory increase effect seen in 2023. Lower selling
prices also weighed on the region's margin, with a negative
inflation spread not offset by the PAP. However, the consolidation
of Vidrala Italia over the last six months contributed to volume
stability during the period.
- Northern and Eastern Europe posted
adjusted EBITDA of €147 million (vs. €244 million in 2023),
bringing its margin to 19.4%, compared to 24.9% in 2023. Activity
was down due to lower volumes and the negative spread was not
offset by cost-cutting actions.
- In Latin America, adjusted EBITDA
grew in 2024 to €147 million (vs. €139 million in 2023), posting a
solid margin of 34.4% compared to 34.9% in 2023. Activity was
positive, driven by dynamic volumes, particularly in Brazil, and
the cost reduction plan (PAP) also contributed.
The decrease in net profit to €239 million (EPS10: €2.01
per share) is mainly due to the decrease in adjusted EBITDA and, to
a lesser extent, to the increase in financial expenses. Like every
year, 2024 net profit includes a charge of €44 million and €0.37
per share (net of tax), which was recorded at the time of the
acquisition of Saint-Gobain's packaging business in 2015 and will
expire in 2027. Excluding this charge, net profit would be €283
million and €2.38 per share. This charge was €45 million and
€0.38 per share in 2023.
Booked capital expenditure reached €323 million (i.e.
9.4% of total revenue), compared to €418 million in 2023. These
investments consist of €206 million in recurring capex (vs. €234
million in 2023) and €117 million in strategic capex (vs. €184
million in 2023) mainly corresponding to investments related to
the construction of the new furnaces in Campo Bom in Brazil and
Pescia in Italy, the Cognac electric furnace in France, as well as
investments related to CO2 emission reductions.
Operating cash flow11 was down to €399 million compared
to €582 million in 2023. The reduction in capital expenditure
failed to fully offset the decline in adjusted EBITDA and the
increase in working capital (including the strong cash outflows at
the beginning of the year related to investments booked at the end
of 2023).
Free cash flow12 amounted to €82.6 million, down compared
to 2023 but steadily improving over the quarters thanks to strict
expense control.
ROBUST BALANCE SHEET
At the end of December 2024, Verallia's net financial debt
amounted to €1,797 million, up €433 million compared to 2023,
mainly due to the acquisition of Vidrala Italia in July 2024.
The net debt ratio thus amounted to 2.1x 2024 adjusted
EBITDA, compared with 2.3x at the end of September 2024 and
1.2x at the end of December 2023.
In November 2024, Verallia successfully issued new Euro senior
bonds for a total amount of €600.0 million with an 8-year maturity
and a fixed annual coupon of 3.875%. These bonds are rated BBB- by
S&P, in line with Verallia's long-term ratings (Baa3/BBB-
stable outlook at Moody's/S&P). The proceeds were allocated to
(i) the full repayment of the €250.0 million loan implemented to
acquire Vidrala Italia, (ii) the partial early repayment of €350.0
million of the term loan implemented in April 2023 and (iii) the
financing of the Group's general corporate purposes.
In December 2024, Verallia set up a revolving credit facility
(RCF) with an initial principal amount of €250 million, undrawn as
of December 31, 2024. This RCF has a 3-year maturity and two 1-year
extension options.
As a result, the Group had liquidity13 of €953 million as
of December 31, 2024 and had no significant debt maturing before
2028.
START-UP OF THE 100% ELECTRIC FURNACE IN COGNAC, A WORLD
FIRST IN THE FOOD GLASS PACKAGING INDUSTRY
Verallia inaugurated the 100% electric furnace in Cognac on
September 10, 2024. This furnace, with a capacity of 180 tons per
day, is a world first in the glass packaging industry.
It produces flint glass bottles and has now made its first
deliveries.
This furnace will make it possible, thanks to a 60% reduction in
its CO2 emissions, to contribute to the industrial decarbonization
of Verallia France. With this investment, Verallia takes on a
leadership role in the supply chain, with the aim of decarbonizing
the glass industry.
ACQUISITION OF THE GLASS ACTIVITIES OF THE VIDRALA GROUP IN
ITALY
On February 28, 2024, Verallia entered into an agreement to
acquire Vidrala's glass business in Italy.
Verallia completed the acquisition of all the subsidiary's
shares on July 4, 2024 after the approval of the Competition
Authorities, for a price of €142.5 million (€230 million in
enterprise value).
The acquisition of Vidrala Italia was financed through a term
loan agreement with a three-year maturity, totaling €250.0 million.
The full amount was made available to the company on July 1, 2024.
The latter was fully refinanced on November 7, 2024, with a new
€600 million bond issuance, maturing in 8 years.
Equipped with two recently renovated furnaces, the Corsico-based
plant benefits from modern production facilities and enjoys a
strong positioning, particularly in the beer, food and spirits
markets. This acquisition allows the Group to expand its industrial
footprint in the strategic Italian market and to develop its glass
packaging offering for beverages and food products for the benefit
of all its customers.
SUSTAINABLE DEVELOPMENT INDICATORS
Scope 1 and 2 CO2 emissions amounted to 2,357 kt CO2 for the
year 2024, a decrease of -9.4% compared to 2023 emissions of
2,603 kt CO2 (i.e. -23.7% vs. 2019). Verallia is therefore in line
with its trajectory of reducing its "Scope 1 and 214 CO2 emissions
by 46% in absolute terms by 2030 (reference year 2019)15. Scope
1 and 2 emissions intensity has also decreased this year from
0.47 tCO2/TPG16 in 2023 at 0.44 tCO2/TPG16 in 2024.
In addition, our cullet utilization rate15 reached 56.7% in
2024, up 2.6 points compared to 2023 (54.1%).
As part of the deployment of its decarbonization strategy, the
Group started up its first 100% electric furnace in Cognac (France)
in March, with a confirmed 60% reduction in CO2 emissions compared
to a traditional furnace. In 2025, we will continue to implement
our CSR roadmap with the start-up of our first hybrid furnace in
Zaragoza (Spain).
2024 DIVIDEND
Verallia’s Board of Directors decided during their meeting on 19
February 2025 to propose the payment of a €1.70 cash dividend per
share for the 2024 financial year. This amount will be subject to
the approval of the Annual General Shareholders' Meeting which will
take place on 25 April 2025.
OUTLOOK 2025
The year 2025 begins in an uncertain environment, marked by
continued subdued European consumption and an upsurge in
geopolitical and trade tensions that could affect our customers'
exports.
We expect demand in Europe to increase very slightly, as seen in
recent quarters, and to remain strong in Latin America.
In this context, Verallia has set itself the following
objectives:
- achieve an adjusted EBITDA in 2025 close to that of 2024 by
offsetting the negative impact of the carry-over effect of 2024
price reductions through continued cost control and a renewed
positive impact of the PAP
- more than double its free cash flow generation (around €200
million).
Verallia is planning to present its strategy and the Group's
mid-term outlook as well as its capital allocation policy during a
Capital Markets Day (CMD) in September 2025.
UNSOLICITED PROPOSAL RECEIVED FOR THE ACQUISITION OF THE
GROUP'S STAKE IN ITS ARGENTINIAN SUBSIDIARY
The Group has received an unsolicited proposal to acquire its
59.9% stake in the Argentinian company Rayen-Cura, which generated
sales of €144 million17 in 2024 and operates an industrial site
with two furnaces. Verallia is currently reviewing this proposal,
which will only be pursued if it fully values the Group's
Argentinian activities.
FOLLOW-UP TO THE PRESS RELEASE OF BW GESTÃO DE INVESTIMENTOS
LTDA ("BWGI")18 AND SET UP OF AN AD HOC COMMITTEE
On February 3, 2025, BWGI issued a press release confirming that
it is reviewing a potential takeover bid for Verallia shares
(without delisting)19. As of today, this intention has not been
confirmed.
In order to monitor the work of the Company's Board of Directors
in the context of this project and pending the submission of a
proposal including the detailed terms of the offer, the Board met
on February 4 and set up an ad hoc committee from among its
members, composed exclusively of independent members of the Board
of Directors within the meaning of the Afep-Medef corporate
governance Code, namely:
- Ms. Marie-José Donsion in her capacity as President of the said
ad hoc committee,
- Mr. Didier Debrosse, and
- Mr. Pierre Vareille.
The ad hoc committee will be in charge of (i) proposing to the
Board of Directors the appointment of an independent expert, (ii)
monitoring the works of the independent expert that will be
appointed by the Board of Directors, and (iii) issuing a
recommendation to the Board of Directors regarding the interest for
all of the Company’s stakeholders of the offer that may be
submitted by BWGI.
The Board of Directors, during its meeting on February 19, 2025,
decided, in this context and on the recommendation of the ad hoc
committee, to approve the appointment of Cabinet Ledouble to act as
independent expert.20
A shareholder of Verallia since its IPO in 2019, BWGI,
controlled by Brazil’s Moreira Salles family, is Verallia's
reference shareholder, holding 28.8% of the share capital and 27.9%
of the voting rights to date.
The Verallia Group consolidated financial statements for the
financial year ended 31 December 2024 were approved by the Board of
Directors on 19 February 2025. The consolidated financial
statements have been audited by the Statutory Auditors.
An analysts’ conference call will be held at 9.00am (CET)
on Thursday, 20 February 2025 via an audio webcast service (live
and replay) and the earnings presentation will be available on
www.verallia.com.
FINANCIAL CALENDAR
- 2 April 2025: Beginning of the quiet period.
- 23 April 2025: Q1 2025 financial results - Press release after
market close and conference call/presentation the next day at
9.00am CET.
- 25 April 2025: Annual General Shareholders’ Meeting.
- 8 July 2025: Beginning of the quiet period.
- 29 July 2025: H1 2025 financial results - Press release after
market close and conference call/presentation the next day at
9.00am CET.
- September 2025: Capital markets day.
- 1 October 2025: Beginning of the quiet period.
- 22 October 2025: Q3 2025 financial results - Press release
after market close and conference call/presentation the following
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 work together with our customers, suppliers
and other partners across the value chain to develop new,
beneficial and sustainable solutions for all.
With almost 11,000 employees and 35 glass production facilities
in 12 countries, we are the European leader and 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. Verallia
produced more than 16 billion glass bottles and jars and recorded
revenue of €3.5 billion in 2024.
Verallia's CSR strategy has been awarded the Ecovadis Platinum
Medal, placing the Group in the top 1% of companies assessed by
Ecovadis. Our CO2 emissions reduction target of -46% on scopes 1
and 2 between 2019 and 2030 has been validated by SBTi (Science
Based Targets Initiative). It is in line with the trajectory of
limiting global warming to 1.5° C set by the Paris Agreement.
Verallia is listed on compartment A of the regulated market of
Euronext Paris (Ticker: VRLA – ISIN: FR0013447729) and trades on
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 is not
historical data but forward-looking statements. These
forward-looking statements are based on estimates, forecasts and
assumptions including, but not limited to, assumptions about
Verallia's present and future strategy and the economic environment
in which Verallia operates. They involve known and unknown risks,
uncertainties and other factors, which may cause Verallia's actual
results and performance to differ materially from those expressed
or implied in such forward-looking statements. These risks and
uncertainties include those detailed and identified in Chapter 4
"Risk Factors" of the universal registration document filed with
the Autorité des marchés financiers ("AMF") and available on the
Company’s website (www.verallia.com) and that of the AMF
(www.amf-france.org). These forward-looking statements and
information are not guarantees of future performance. This press
release includes summarized information only and does not purport
to be exhaustive.
This press release does not contain, nor does it constitute, an
offer of securities or a solicitation to invest in securities in
France, the United States, or any other jurisdiction.
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APPENDIX - Key figures
in millions of euros
2024
2023
Revenue
3,456.1
3,903.8
Reported growth
-11.5 %
+16.5%
Organic growth
-11.5 %
+21.4%
of which Southern and Western Europe
2,268.6
2 527.2
of which Northern and Eastern Europe
759.2
979.8
of which Latin America
428.3
396.8
Cost of sales
(2,739.4)
(2,853.5)
Selling, general and administrative
expenses
(168.7)
(212.4)
Acquisition-related items
(75.6)
(71.3)
Other operating income and expenses
(13.1)
(5.2)
Operating profit/(loss)
459.2
761.3
Financial income/(expense)
(135.3)
(119.0)
Profit (loss) before tax
324.0
642.4
Income tax
(84.5)
(167.4)
Share of net profit (loss) of
associates
(0.9)
0.3
Net profit/(loss)21
238.6
475.3
Net profit/(loss) excluding PPA
282.6
520.2
Net profit/(loss) attributable to the
shareholders of the company 21
235.7
470.0
Net profit/(loss) attributable to the
shareholders of the company excluding PPA
279.7
514.9
Earnings per share
€2.01
€4.02
Earnings per share excluding
PPA
€2.38
€4.40
Adjusted EBITDA22
842.5
1,108.0
Group margin
24.4%
28.4%
of which Southern and Western Europe
547.8
725.2
Southern and Western Europe margin
24.1%
28.7%
of which Northern and Eastern Europe
147.3
244.2
Northern and Eastern Europe margin
19.4%
24.9%
of which Latin America
147.4
138.5
Latin America margin
34.4%
34.9%
Net debt at end of period
1,797.4
1,364.5
Last 12 months adjusted EBITDA
842.5
1,108.0
Net debt/last 12 months adjusted
EBITDA
2.1x
1.2x
Total capex23
323.4
418.0
Cash conversion24
61.6%
62.3%
Change in operating working capital
(120.2)
(108.3)
Operating cash flow25
398.9
581.7
Free cash flow26
82.6
365.3
Strategic capex27
117.2
183.6
Recurring capex28
206.2
234.4
New presentation of the bridges (Argentina impact)
The group has, up until H1 2024, presented its financial bridges
including the impact of Argentina under each heading as represented
below in the column "Group analysis".
Due to Argentina's economic situation (hyper-inflation and sharp
currency devaluation) and in order to present the group's
performance more clearly, we outline below a second version (since
Q3 2024) of the bridges isolating in a separate section the net
impact of Argentina on changes in revenue and adjusted EBITDA from
one period to the next ("Analysis excluding Argentina" column).
This new presentation makes it easier to understand Verallia's
performance in terms of volume, price/mix, spread, etc.
Change in revenue by type in millions of euros in Q4
In millions of euros
Group analysis
Analysis excluding
Argentina29
Q4 2023 revenue
829.2
Volumes
-11.6
+18.3
Price / Mix
-169.9
-94.4
Foreign exchange impact
+149.9
-11.1
Scope effect
+23.3
+23.3
Argentina
+55.6
Q4 2024 revenue
820.9
Change in revenue by type in millions of euros during 2024
In millions of euros
Group analysis
Analysis excluding
Argentina29
2023 revenue
3,903.8
Volumes
-173.2
-166.7
Price / Mix
-274.5
-366.3
Foreign exchange impact
-61.1
-32.4
Scope effect
+61.1
+61.1
Argentina
+56.7
2024 revenue
3,456.1
Change in adjusted EBITDA by type in millions of euros in Q4
In millions of euros
Group analysis
Analysis excluding
Argentina30
Q4 2023 Adjusted EBITDA
192.9
Activity contribution
+34.0
+35.6
Price-mix /Cost spread
-90.3
-63.7
Net productivity
+14.9
+17.2
Foreign exchange impact
+43.6
-4.5
Other
+6.0
+6.3
Argentina
+17.4
Q4 2024 Adjusted EBITDA
201.2
Change in adjusted EBITDA by type in millions of euros during
2024
In millions of euros
Group analysis
Analysis excluding
Argentina30
2023 Adjusted EBITDA
1,108.0
Activity contribution
-164.9
-165.7
Price-mix /Cost spread
-165.1
-200.4
Net productivity
+64.3
+61.9
Foreign exchange impact
-19.3
-10.8
Other
+19.6
+38.1
Argentina
+11.4
2024 Adjusted EBITDA
842.5
Change in last 12 months adjusted EBITDA since 2017
[Graphic omitted]
Key figures for the fourth quarter
in millions of euros
Q4 2024
Q4 2023
Revenue
820.9
829,2
Reported growth
-1.0%
-0.6%
Organic growth
-21.9%
(-9.1% excluding Argentina)
+18.1%
(+1.6% excluding Argentina)
Adjusted EBITDA
201.2
192.9
Adjusted EBITDA margin
24.5%
23.3 %
Reconciliation of operating profit/(loss) to adjusted EBITDA
in millions of euros
2024
2023
Operating profit/(loss)
459.2
761.3
Depreciation and amortisation31
356.6
326.7
Restructuring costs
14.1
3.4
IAS 29 Hyperinflation (Argentina)32
(4.4)
5.8
Management share ownership plan and
associated costs
2.5
6.2
Company acquisition costs and
earn-outs
3.5
0.7
Other
11.0
3.9
Adjusted EBITDA
842.5
1,108.0
Adjusted EBITDA and cash conversion are alternative performance
indicators within the meaning of AMF position n°2015-12.
Adjusted EBITDA and cash conversion are not standardized
accounting aggregates that meet a single definition generally
accepted by IFRS. They should not be considered as a substitute for
operating income, cash flows from operating activities that are
measures defined by IFRS or a liquidity measure. Other issuers may
calculate adjusted EBITDA and cash conversion differently from the
Group's definition.
IAS 29: Hyperinflation in Argentina
Since 2018, the Group has been applying IAS 29 in Argentina. The
application of this standard requires the revaluation of non-cash
assets and liabilities and the income statement to reflect changes
in purchasing power in the local currency. These remeasurements may
lead to a gain or loss on the net money position included in the
financial result.
In addition, the financial assets of the Argentine subsidiary
are translated into euros at the closing exchange rate of the
relevant period.
In 2024, the net impact on revenue was €14.3 million. The
impact of hyperinflation is excluded from consolidated adjusted
EBITDA as presented in the "Operating income to adjusted EBITDA
transition table".
Financial structure
In millions of euros
Nominal or max. drawable
amount
Nominal rate
Final maturity
December 31, 2024
Sustainability-Linked Bond
May 202133
500
1.625 %
May 2028
503.6
Sustainability-Linked Bond
November 202133
500
1.875 %
Nov. 2031
495.5
Bond November 202433
600
3.875 %
Nov. 2032
595.6
Term Loan B – TLB33
200
Euribor +1.50%
Apr. 2028
201.9
Revolving credit facility – RCF
2023
550
Euribor +1.00%
Apr. 2029 + one-year
extension
-
Revolving credit facility – RCF 2027
250
Euribor +0.80%
Dec. 2027 + 2x one-year
extension
-
Negotiable commercial paper (Neu CP)33
500
317.3
Other debt34
153.6
Total debt
2,267.4
Cash and cash equivalents
(470.0)
Net debt
1,797.4
As of 31/12/2024, total financial debts35 amounted to €2,254.8
million, compared to €2,380.2 million as of 30/09/2024 and €1,838.7
million as of 31/12/2023.
Consolidated statement of income
in millions of euros
2024
2023
Revenue
3,456.1
3,903.8
Cost of sales
(2,739.4)
(2,853.5)
Selling, general and administrative
expenses
(168.7)
(212.4)
Acquisition-related items
(75.6)
(71.3)
Other operating income and expenses
(13.1)
(5.2)
Operating profit/(loss)
459.2
761.3
Financial income/(expense)
(135.3)
(119.0)
Profit (loss) before tax
324.0
642.4
Income tax
(84.5)
(167.4)
Share of net profit (loss) of
associates
(0.9)
0.3
Net profit/(loss) 36
238.6
475.3
Attributable to shareholders of the
Company
235.7
470.0
Attributable to non-controlling
interests
2.9
5.3
Net profit/(loss) excluding PPA
282.6
520.2
Attributable to shareholders of the
Company
279.7
514.9
Attributable to non-controlling
interests
2.9
5.3
Basic earnings per share (in
euros)
2.01
4.02
Basic earnings per share excluding PPA
(in euros)
2.38
4.40
Diluted earnings per share (in
euros)
2.00
4.01
Diluted earnings per share excluding
PPA (in euros)
2.37
4.39
Consolidated balance sheet
in millions of euros
31 Dec. 2024
31 Dec. 2023
ASSETS
Goodwill
733.5
687.8
Other intangible assets
390.9
416.2
Property, plant and equipment
1,956.7
1,795.6
Investments in associates
6.4
6.7
Deferred tax
21.0
33.6
Other non-current assets
49.4
57.8
Non-current assets
3,157.9
2,997.7
Current portion of non-current and
financial assets
7.5
1.4
Inventories
727.0
711.5
Trade receivables
175.3
144.3
Current tax receivables
23.1
15.1
Other current assets
114.3
115.7
Cash and cash equivalents
470.0
474.6
Current assets
1,517.2
1,462.6
Total assets
4,675.1
4,460.3
LIABILITIES
Share capital
408.3
413.3
Consolidated reserves
588.5
494.6
Equity attributable to
shareholders
996.8
907.9
Non-controlling interests
70.2
50.6
Equity
1,067.0
958.5
Non-current financial liabilities and
derivatives
1,885.5
1,610.5
Provisions for pensions and other employee
benefits
90.1
88.9
Deferred tax
162.6
141.9
Provisions and other non-current financial
liabilities
30.4
45.5
Non-current liabilities
2,168.6
1,886.8
Current financial liabilities and
derivatives
393.8
249.2
Current portion of provisions and other
non-current financial liabilities
48.6
49.8
Trade payables
590.6
627.1
Current tax liabilities
7.9
66.3
Other current liabilities
398.6
622.6
Current liabilities
1,439.5
1,615.0
Total equity and liabilities
4,675.1
4,460.3
Consolidated cash flow statement
in millions of euros
2024
2023
Net profit/(loss)
238.6
475.3
Depreciation, amortisation and impairment
of assets
356.6
326.7
Interest expense on financial
liabilities
74.0
53.2
Change in inventories
20.9
(191.8)
Change in trade receivables, trade
payables & other receivables & payables
(67.2)
92.7
Current tax expense
88.1
176.8
Cash tax paid
(148.1)
(131.4)
Changes in deferred taxes and
provisions
(26.0)
0.2
Other
50.7
56.2
Net cash flow from (used in) operating
activities
587.6
857.9
Acquisition of property, plant and
equipment and intangible assets
(323.4)
(418.0)
Increase (decrease) in debt on fixed
assets
(75.0)
(1.5)
Acquisitions of subsidiaries, net of cash
acquired
(137.8)
(35.5)
Other
(4.2)
(4.6)
Net cash flow from (used in) investing
activities
(540.4)
(459.6)
Capital increase (decrease)
18.1
18.6
Dividends paid
(251.9)
(163.8)
Increase (decrease) in own shares
(1.0)
(41.7)
Transactions with shareholders of the
parent company
(234.8)
(186.9)
Transactions with non-controlling
interests
(3.1)
(3.1)
Increase (decrease) in bank overdrafts and
other short-term borrowings
142.2
34.5
Increase in long-term debt
889.3
569.7
Decrease in long-term debt
(761.4)
(565.0)
Financial interest paid
(68.9)
(51.2)
Change in gross debt
201.2
(12.0)
Net cash flow from (used in) financing
activities
(36.7)
(202.0)
Increase (decrease) in cash and cash
equivalents
10.5
196.3
Impact of changes in foreign exchange
rates on cash and cash equivalents
(15.1)
(52.6)
Opening cash and cash
equivalents
474.6
330.8
Closing cash and cash
equivalents
470.0
474.6
Mid-Term Objectives (2022-24) (announced in 2021)
2022-2023-2024
Assumptions
Situation as of end
2024
Organic sales growth37
+4-6% CAGR
From ca half volume and half
price/mix
Moderate inflation in raw
material and energy costs after 2022
+18.4% CAGR
Adjusted EBITDA margin
28% - 30% in 2024
Positive price/cost spread
Net PAP > 2% of production
cash cost (i.e. > 35m per annum)
24.4% in 2024
(2023: 28.4%)
Cumulative Free
Cash-Flow38
ca €900m over 3 years
Recurring and strategic capex @
ca 10% of sales, including CO2-related capex and 3 new furnaces by
2024
€812 million in total since
2022
Earnings per share (excl.
PPA)39
ca €3 in 2024
Average cost of financing
(pre-tax) @ ca 2%
Effective tax rate @ ca 27%
€2.38 in 2024
(2023: 4.40€)
Shareholder return
policy
DPS growth > 10% +
Accretive share buy-backs
Net income growth > 10% per
annum
Investment grade trajectory (Net
debt ratio < 2x)
Dividends: CAGR +17% 40
Share buyback: €50 million
GLOSSARY
Activity: corresponds to the sum of the change in volumes
plus or minus the change in inventories.
Organic growth: corresponds to revenue growth at constant
scope and exchange rates. Revenue growth at constant exchange rates
is calculated by applying the same exchange rates to the financial
indicators presented for the two periods being compared (by
applying the exchange rates of the previous period to the financial
indicators for 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 subsidiary contingencies,
site closure costs, and other items.
Capex: short for “capital expenditure”, this corresponds
to purchases 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 requirements, or to
increase the Group’s capacity. The acquisition of securities is
excluded from this category.
Recurring capex: recurring capex corresponds to purchases
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 requirements. It mainly includes
furnace renovations and maintenance of IS machines.
Strategic capex: strategic capex corresponds to purchases
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 it has also
included investments associated with implementing 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.
Free cash flow: defined as operating cash flow - other
operating impacts - interest paid & other financing costs -
taxes paid.
The Southern and Western Europe segment comprises
production sites located in France, Spain, Portugal and Italy. It
is also designated by its acronym “SWE”.
The Northern and Eastern Europe segment comprises
production sites located in Germany, the United Kingdom, Russia,
Ukraine and Poland. It is also designated by its acronym “NEE”.
The Latin America segment comprises production sites
located in Brazil, Argentina and Chile and, since January 1, 2023,
Verallia’s operations in the USA.
Liquidity: calculated as available cash + undrawn
revolving credit facilities – outstanding negotiable commercial
paper (Neu CP).
Amortisation of intangible assets acquired through business
combinations: corresponds to the amortisation of customer
relationships recognised upon acquisition.
Net debt ratio (leverage): is calculated as net debt
divided by adjusted EBITDA for the last 12 months.
Net financial debt: includes all financial liabilities
and derivatives on current and non-current financial liabilities,
minus the amount of cash and cash equivalents.
Earnings per share (EPS): net profit/(loss) attributable
to Group ordinary shareholders divided by the weighted average
number of ordinary shares outstanding excluding treasury shares
over the period.
1 Revenue growth at constant scope and exchange rates. Revenue
growth at constant exchange rates is calculated by applying the
same exchange rates to the financial indicators presented for the
two periods being compared (by applying the exchange rates of the
previous period to the financial indicators for the current
period). Growth in revenue at constant scope and exchange rates
excluding Argentina was -14.0% in 2024 compared with 2023.
2 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 plan costs,
disposal-related effects and subsidiary contingencies, site closure
costs, and other items.
3 Calculated as available cash + undrawn revolving credit
facilities – outstanding commercial paper (Neu CP).
4 Subject to approval of the Annual General Meeting of
Shareholders to be held on April 25, 2025.
5 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.
6 CO2 emissions are expressed on a like-for-like basis and
exclude, for reasons of comparability with respect to the 2019
starting point, the contribution of Allied Glass / Verallia UK and
Vidrala Italia / Verallia Corsico.
7 Revenue growth at constant scope and exchange rates. Revenue
growth at constant exchange rates is calculated by applying the
same exchange rates to the financial indicators presented for the
two periods being compared (by applying the exchange rates of the
previous period to the financial indicators for the current
period). Growth in revenue at constant scope and exchange rates
excluding Argentina was -14.0% in 2024 compared with 2023.
8 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 plan costs,
disposal-related effects and subsidiary contingencies, site closure
costs, and other items.
9 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 selling 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, before industrial variance and taking into consideration
the impact of the Performance Action Plan (PAP).
10 Net profit/(loss) attributable to Group ordinary shareholders
divided by the weighted average number of ordinary shares
outstanding excluding treasury shares over the period.
11 Cash flow from operations represents adjusted EBITDA less
Capex, plus the change in operating working capital including
changes in payables to fixed asset suppliers.
12 Defined as operating cash flow - other operating impacts -
interest paid & other financing costs - taxes paid.
13 Calculated as available cash + undrawn revolving credit
facilities – outstanding commercial paper (Neu CP).
14 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.
15 Cullet = recycled glass; CO2 emissions are expressed on a
like-for-like basis and exclude, for reasons of comparability with
respect to the 2019 starting point, the contribution of Allied
Glass / Verallia UK and Vidrala Italia / Verallia Corsico.
16 TPG: Tonne of Packed Glass.
17 The turnover here is calculated on the basis of the Argentine
peso/euro conversion using the closing rate of 2024.
18 BWGI, whose controlling shareholder is Brasil Warrant
Administração de Bens e Empresas S.A., acts as the management
company of Kaon V, a sub-fund of Kaon Investment Fund ICAV and a
direct shareholder of Verallia.
19 See press release dated February 3, 2025 issued by BWGI.
20 It is specified that BWGI, represented by Mr. João Salles,
and BWSA, represented by Mrs. Marcia Freitas, did not participate
in the relevant deliberation and vote, and Mr. Guilherme Bottura
did not participate in the relevant deliberation.
21 Net profit and net profit attributable to the shareholders of
the company for 2024 includes an amortisation expense for customer
relationships, recognised upon the acquisition of Saint-Gobain's
packaging business in 2015, of €44 million or €0.37 per share (net
of taxes). If this expense had not been taken into account, net
profit would be €283 million or €2.38 per share. This expense was
€45 million or €0.38 per share in 2023.
22 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 plan costs,
disposal-related effects and subsidiary contingencies, site closure
costs, and other items.
23 Capex (capital expenditure) corresponds to purchases 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 requirements, or to increase the
Group’s capacity. The acquisition of securities is excluded from
this category.
24 Cash conversion is defined as adjusted EBITDA less capex,
divided by adjusted EBITDA.
25 Operating cash flow corresponds to adjusted EBITDA less
capex, plus changes in operating working capital requirements
including changes in payables to fixed asset suppliers.
26 Defined as operating cash flow - other operating impacts -
interest paid & other financing costs - taxes paid.
27 Strategic capex corresponds to purchases 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 implementing the plan to reduce CO2
emissions.
28 Recurring capex corresponds to purchases 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 requirements. They mainly include furnace
renovations and maintenance of IS machines.
29 The column "Analysis excluding Argentina" presents all the
data in the bridge excluding Argentina, its net impact over the
period being reported in the "Argentina" row only.
30 The column "Analysis excluding Argentina" presents all the
data in the bridge excluding Argentina, its net impact over the
period being reported in the "Argentina" row only.
31 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.
32 The Group has applied IAS 29 (Hyperinflation) since 2018.
33 Including accrued interest.
34 o/w IFRS16 leasing (€75.0m).
35 Total debt of €2,267.4m includes €12.5m of financing
derivatives, thus a total financial debt of €2,254.8m€.
36 Net profit for 2024 includes an amortisation expense for
customer relationships, recognised upon the acquisition of
Saint-Gobain's packaging business in 2015, of €44 million or €0.37
per share (net of taxes). If this expense had not been taken into
account, net profit would be €283 million or €2.38 per share. This
expense was €45 million or €0.38 per share in 2023.
37 At constant FX and excluding changes in perimeter.
38 Defined as the Operating Cash Flow - Other operating impact -
Interest paid & other financing costs – Cash Tax.
39 Earnings excl. amortization expense for customer relations
(PPA) recognized upon the acquisition from Saint-Gobain, of ca 0.38
/ share (net of taxes).
40 At its meeting held on February 19, 2025, Verallia's Board of
Directors decided to propose the payment of a dividend of €1.70 per
share in cash for the 2024 financial year. This amount will be
subject to the approval of the Annual General Meeting of
Shareholders to be held on April 25, 2025.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219853613/en/
Press Benoit Grange | +33 (0)6 14 45 09 26 Tristan
Roquet-Montégon | +33 (0)6 37 00 52 57
verallia@brunswickgroup.com
Sara Natij & Laurie Dambrine verallia@comfluence.fr | +33
(0)7 68 68 83 22
Investor relations David Placet |
david.placet@verallia.com Michele Degani |
michele.degani@verallia.com
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