2024 first half results
- Recovery in activity confirmed but at a slower pace than expected
- Verallia delivers solid profitability with 24.4% adjusted EBITDA margin
HIGHLIGHTS
- Revenue down to €1,765 million in H1 2024, or -17.6% compared to H1 2023 (-10.4% at constant scope and exchange rates)[1]
- Adjusted EBITDA[2] at €431 million (24.4% margin, in line with Q1 2024) compared to €659 million in H1 2023 (30.8% margin)
- Gradual recovery in volumes in Q2 2024, though slower than expected
- Net debt ratio up to 1.9x last 12-month adjusted EBITDA, compared to 1.2x at December 31, 2023 and 1.3x at June 30, 2023
- Success of the Group’s 9th employee share ownership offer in June 2024
- Completion of the acquisition of Vidrala’s glass business in Italy in early July 2024
- 2024 adjusted EBITDA target revised down and now expected around the same level as in 2022
“Verallia delivered solid profitability in the first half in a difficult market environment, thanks in particular to our actions to continuously improve our industrial performance (PAP) and despite the adaptation of our production capacities in order to keep a strict control over our inventories.
We saw a continued recovery in demand in the second quarter, but at a slower pace than expected. This has led us to revise our outlook for 2024, although we remain optimistic for the future given the still solid fundamentals of our business. In addition, we are pleased with the success of the recent acquisition of Vidrala’s glass business in Italy. The latter is part of our development strategy in an important market for the Group.” said 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 -17.8% in the first half of 2024 compared with the first half of 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.