2024 third quarter results: Verallia returns to moderate organic volume growth in a still challenging market environment
QUARTER HIGHLIGHTS
- Resumption of organic volume growth in the third quarter (Q3) compared to the previous year, complemented by the acquisition in Italy
- Revenue down to €871 million in Q3, down -6.6% compared to Q3 2023 on a reported basis (-4.7% at constant scope and exchange rates)[1]
- Q3 adjusted EBITDA[2] at €210 million (24.1% margin) compared to €256 million in Q3 2023 (27.5% margin)
- Net debt ratio up to 2.3x last 12 months adjusted EBITDA, compared to 1.9x at June 30, 2024 and 1.2x at December 31, 2023 (impact of the acquisition of Vidrala’s glass business in Italy for an enterprise value of €230 million)
- Inauguration of the 100% electric furnace in Cognac, a world first in the food packaging glass industry and a major step forward for the decarbonization of the sector with 60% less CO2 emissions compared to a traditional furnace
- 2024 adjusted EBITDA expected to be around the same level as in 2022
“In a still challenging market environment, Verallia continues to deliver solid profitability despite a very gradual recovery in demand as announced in July 2024. The group is continuing to implement its action plans, with strict discipline on operational management and cost control. Thus, the group is still targeting an adjusted EBITDA for 2024 around that of 2022.
In addition, the group continues to focus on the future and implement its CSR strategy with the recent inauguration of the Cognac electric furnace, a world first for the food glass packaging industry”, 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 -9.7% in the third quarter of 2024 compared with Q3 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.