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%
|
Group Total | 3,456.1 | 3,903.8 | -11.5% | -11.5%
|
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 theinflationspread9was negative by €(165) million for the year (€(200) million excluding Argentina), impacted by a carry-over effecton 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.
Protection of personal data
You may unsubscribe from the distribution list of our press releases at any time by sending your request to the following email address: investors@verallia.com. Press releases will still be available via the website https://www.verallia.com/en/investors/.
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 processing and is used by the relevant departments of the Verallia 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 technical solutions related to the aforementioned processing. 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 any 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 the CNIL (Commission nationale de l'informatique et des libertés - France's regulatory body).
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 |
SustainabilityLinked 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
| Dividends: CAGR +17% 40 |
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/
Contacts:
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
