2024 annual results: Robust profitability with an EBITDA margin exceeding 24% in a challenging market; organic volume growth confirmed in Q4
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 rates[1], with adjusted EBITDA[2] of €842.5 million (2023: €1,108.0 million) and adjusted EBITDA margin of 24.4% (2023: 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); liquidity[3] of €953 million at 31 December 2024.
- Proposal for the payment of a dividend of €1.70 per share[4] for the 2024 financial year.
- Ongoing decarbonization actions: in 2024, reduction in Scope 1 & 2 CO2 emissions[5] 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).
“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.
[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.