HIGHLIGHTS
- 30.7% increase in revenue to €2,143 million (+28.6% at
constant exchange rates and scope1) compared with H1 2022
- Strong growth in adjusted EBITDA to €659 million in H1
2023, compared with €425 million in H1 2022 (+54.9%)
- Significant improvement in adjusted EBITDA margin to
30.8% in H1 2023 from 26.0% in H1 2022 (+480 bp vs H1
2022)
- Net income2 attributable to shareholders of €311
million, compared with €174 million in H1 2022 (+78.8% vs H1
2022), and earnings per share2 of €2.65
- The net debt ratio eased to 1.3x adjusted EBITDA for the
last 12 months, compared with 1.3x at the end of March 2023 and
1.5x at the end of June 2022
Regulatory News:
Verallia (Paris:VRLA):
“Our first-half results are excellent and demonstrate our
ability to continue to sustainably improve our profitability and
EBITDA, regardless of the economic environment. This remarkable
performance stems from the agility and entrepreneurial spirit of
our teams, our ability to generate a positive price-mix / cost
spread in any circumstances and our operational excellence
programme geared towards reducing expenses. These strengths are
part of the Group’s business model and will continue to spur the
regular improvement in Verallia’s results. On the strength of
another quarter of improvement, we are raising our adjusted EBITDA
guidance for 2023. We are also continuing to implement our
decarbonisation action plan through innovative and pioneering
projects such as the electric and hybrid furnaces currently under
construction.” said Patrice Lucas, CEO of Verallia.
REVENUE
Revenue breakdown by region
In € million
H1 2023
H1 2022
% Change
Of which organic
growth
Southern and Western
Europe
1,404.8
1,136.3
+23.6%
+24.5% 3
Northern and Eastern Europe
514.6
307.8
+67.2%
+34.4%
Latin America
223.3
194.8
+14.6%
+42.9% (+15.1% excl.
Argentina)
Group total
2,142.7
1,638.9
+30.7%
+28.6% (+25.7% excl.
Argentina)
Revenue for the first half of 2023 totalled €2,143
million, a significant increase of 30.7% on a reported basis
compared with the same period last year.
Exchange rates had a negative impact of 4.8% over the
half-year (-€79 million). This largely reflected the
depreciation of the Argentinian peso and, to a lesser extent, the
Ukrainian hryvnia.
Change in scope, linked to the acquisition of Allied
Glass in November 2022 (renamed Verallia UK in January 2023), had a
positive impact of €114 million (+7.0%). The spirits segment
grew strongly, driven by a good performance from Verallia UK.
At constant exchange rates and scope, revenue increased by
28.6% (+25.7% excluding Argentina).
Group sales volumes declined slightly in the first half, mainly
as a result of weak beer sales in Europe since the start of the
year, as well as a decrease in still wine sales. This trend may be
partly attributable to inventory destocking in the value chain.
Sales of sparkling wines and soft drinks are holding up well.
The production cost inflation was lower than initially expected
in the first half of 2023. As a result, Verallia was able to make
moderate and selective price reductions in Europe in the second
quarter, after having increased its selling prices at the beginning
of 2023. Lastly, the product mix was positive over the
half-year.
Revenue breakdown by region:
- Southern and Western Europe saw
revenue grow by 23.6% on a reported basis and by 24.5% at constant
exchange rates and scope. Volumes were down slightly over the
half-year, mainly in beer and still wine. It should be noted that
the decrease in volumes observed in the second quarter slowed down
compared to the first quarter.
- In Northern and Eastern Europe,
revenue grew by 67.2% on a reported basis and by 34.4% at constant
exchange rates and scope. Exchange rates had a negative impact of
4.3% due to the depreciation of the Ukrainian hryvnia. Change in
scope linked to the acquisition of the UK business in November 2022
increased revenue by 37.1% or €114 million. Sales volumes were down
over the half-year, affected by the weakness of the beer market in
Germany and, to a lesser extent, of still wine. As announced in
April, the remarkable commitment of the local teams has allowed the
second furnace at the Ukraine plant to be restarted.
- In Latin America, revenue showed a
strong reported increase of 14.6% and remarkable organic growth of
+42.9%. Sales volumes rose slightly over the half-year. Argentina
continues to be affected by political uncertainty and economic
instability. Volumes were down sharply in Chile, a market still
penalised by high inventories held by distributors and customers,
and a fall in the exports of local customers. Brazil continues to
perform well. The plan to build a new furnace at Campo Bom in
Southern Brazil is proceeding to plan, with commissioning scheduled
for the first half of 2024.
ADJUSTED EBITDA
Breakdown of adjusted EBITDA by region
In € million
H1 2023
H1 2022
Southern and Western Europe
Adjusted EBITDA
436.5
286.1
Adjusted EBITDA margin
31.1%
25.2%
Northern and Eastern Europe
Adjusted EBITDA
141.5
59.9
Adjusted EBITDA margin
27.5%
19.5%
Latin America
Adjusted EBITDA
81.0
79.4
Adjusted EBITDA margin
36.3%
40.8%
Group total
Adjusted EBITDA4
659.0
425.4
Adjusted EBITDA margin
30.8%
26.0%
Adjusted EBITDA increased strongly by 54.9% in H1 2023 (and
by 57.2% at constant exchange rates and scope) to €659 million.
Exchange rates had an adverse impact of €32 million over the
half-year, mainly attributable to the depreciation of the
Argentinian peso and Ukrainian hryvnia.
In addition, inventory rebuild over the half-year positively
contributed to the Activity pillar.
This performance was made possible by a net reduction of €27
million in cash production costs (Performance Action Plan) over the
half-year (i.e. 2.0% of cash production costs). The success of this
approach is once again making a major contribution to improving the
Group’s profitability.
In addition, the price-mix / cost spread5 remained positive
across the Group, amounting to €231 million over the half-year.
The Group also managed to significantly improve its adjusted
EBITDA margin, which rose to 30.8% from 26.0% in H1 2022.
Adjusted EBITDA breakdown by region:
- Southern and Western Europe posted
adjusted EBITDA of €437 million (vs €286 million in H1 2022) and a
margin of 31.1% (vs 25.2%). A particularly well oriented product
mix in Italy and a positive inflation spread contributed to the
increase in adjusted EBITDA. The Performance Action Plan (PAP) also
generated cost savings in line with targets.
- In Northern and Eastern Europe,
adjusted EBITDA came to €142 million (vs €60 million in H1 2022),
lifting the margin to 27.5% from 19.5%. The increase in EBITDA was
attributable to the generation of a positive inflation spread and
an industrial performance more than in line with the cost reduction
objective.
- In Latin America, adjusted EBITDA
grew only slightly to €81 million (vs €79 million in H1 2022) due
to negative exchange rate impacts. The margin was 36.3%, compared
with 40.8%. Lower volumes in Chile weighed on fixed cost absorption
and industrial performance.
The increase in net income attributable to shareholders to
€311 million (€2.65 per share) was mainly attributable to the
improvement in adjusted EBITDA, which more than offset the increase
in financial expense and income tax. First-half net income
includes, as it does every year until 2027, an amortisation expense
for customer relationships, recognised upon the acquisition of
Saint-Gobain’s packaging business in 2015, in the amounts of €22
million and €0.19 per share (net of taxes). This expense will
remain in place until 2027. If it had not been taken into
account, net income attributable to shareholders would have been
€333 million and €2.84 per share. It was €23 million and €0.20 per
share in H1 2022.
Capital expenditure amounted to €150 million (i.e. 7.0%
of total revenue), compared with €96 million in H1 2022. This
increase reflects the planned rollout of the Group’s investment
plan, with more balanced timing this year than last. These
investments comprise €93 million in recurring investments (compared
with €69 million in H1 2022) and €57 million in strategic
investments (vs €27 million in H1 2022).
Cash flow from operations6 rose to €316 million in
line with the H1 2022 figure of €314 million as the increase in
adjusted EBITDA was offset by higher capital expenditure and an
increase in inventory levels.
Free cash-flow7 totalled €248 million, up from €226
million in H1 2022.
SOUND FINANCIAL POSITION LEADING TO AN INVESTMENT GRADE
RATING FROM THE TWO RATING AGENCIES
At the end of June 2023, Verallia’s net debt stood at €1,401
million, bringing its debt ratio to 1.3x adjusted EBITDA for the
last 12 months, compared with 1.3x at the end of March 2023 and
1.5x at the end of June 2022.
The Group had liquidity8 of €837 million at 30 June
2023.
On 5 May 2023, Verallia announced that Standard & Poor’s had
upgraded the Group’s long-term credit rating to BBB- with a
positive outlook. The credit ratings of the two Sustainability
Linked bonds of €500 million each, issued in May and November 2021
respectively, were also upgraded from BB+ to BBB-.
The previous month, Moody’s had also upgraded the Group’s
long-term credit rating to Baa3 with a stable outlook.
These upgrades reflect full recognition of the Group’s financial
strength and the robustness of its profitable growth model.
Verallia is now rated Baa3 by Moody’s with a stable outlook and
BBB- by Standard & Poor’s with a positive outlook.
RESULTS OF VOTES AT THE 25 APRIL 2023 GENERAL MEETING
With holders of 84.29% of Verallia’s share capital present or
represented, the Annual General Meeting of 25 April 2023 approved
all resolutions put to the vote.
Shareholders approved the parent company and consolidated
financial statements for the year ended 31 December 2022, as well
as the payment of a cash dividend of €1.40 per share, paid in full
on Wednesday 10 May 2023.
The General Meeting also approved the renewal of the terms of
office of Brasil Warrant Administração De Bens e Empresas S.A
(BWSA), BW Gestão de Investimentos Ltda (BWGI) and Bpifrance
Investissement, and Marie-José Donsion, Michel Giannuzzi, Virginie
Hélias, Cécile Tandeau de Marsac and Pierre Vareille as
directors.
Following the renewal of his term of office, Michel Giannuzzi
remains Chairman of the Board of Directors for a term equivalent to
that of his directorship, i.e. for a period of four years expiring
at the close of the Annual General Meeting called to approve the
financial statements for the year ending 31 December 2026, to be
held in 2027.
FURTHER SUCCESS FOR THE EIGHTH EMPLOYEE SHAREHOLDING OFFER IN
2023 Proof of the success of its strategy and its resolute CSR
ambitions, Verallia has completed an outstanding eighth edition of
its employee shareholding offer. At the close of trading on 22 June
2023, more than 3,600 employees (i.e. 41% of eligible employees
across 9 countries) had invested in the Group, benefiting from an
attractive unit subscription price of €30.45.9 The total amount
invested by the Group’s employees (including the company’s matching
contribution) accordingly amounts to more than €18.6 million.
At closing, 611,445 new ordinary shares, representing 0.5% of
the share capital and voting rights, were issued by the Company. As
in previous years, in order to offset the dilutive effect of this
transaction, Verallia at the same time completed a capital
reduction via the cancellation of 611,445 treasury shares acquired
under the share buyback programme.10
In just eight years, these transactions have already enabled
more than 48% of Group employees to become Verallia shareholders,
as well as 88% of French employees, directly and through the
Verallia FCPE (employee investment fund). Employees now hold 4.2%11
of Verallia’s capital.
2023 OUTLOOK
We remain confident in our various markets, which benefit from
solid fundamentals for the coming semesters and over the long
term.
The very good results for the first half of 2023 illustrate more
than ever the strength and validity of Verallia’s profitable growth
model, based on regular organic growth, a positive inflation spread
and a 2% annual reduction in cash production costs (PAP).
In line with its excellent first-half performance, the Group
accordingly expects to achieve an adjusted EBITDA of between €1.100
billion and €1.250 billion over the full year.
Verallia also confirms its revenue growth target of more than
20% in 2023.
Lastly, the Group is continuing to deploy its decarbonisation
technologies, in particular with the construction of electric and
hybrid furnaces, which are essential in the implementation of its
CSR roadmap.
The Verallia Group’s consolidated financial statements for the
six months to 30 June 2023 were approved by the Board of Directors
on 25 July 2023 and will be available on www.verallia.com.
An analysts’ conference call will be held on Wednesday, 26 July
2023 at 9.00 am (CET) via an audio webcast service (live and
replay) and the results presentation will be available on
www.verallia.com.
FINANCIAL CALENDAR
- 28 September 2023: start of the quiet period.
- 19 October 2023: financial results for Q3 2023 – Press release
after market close and conference call/presentation the next day at
9.00 am 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 are joining forces with our customers,
suppliers and other partners across the value chain to develop
beneficial and sustainable new solutions for all.
With more than 10,000 employees and 34 glass production
facilities in 12 countries, we are the European leader and the
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.
In 2022, Verallia produced close to 17 billion glass bottles and
jars and posted revenue of €3.4 billion. Verallia is listed on
compartment A of the regulated market of Euronext Paris (Ticker:
VRLA – ISIN: FR0013447729) and is included in the following
indices: CAC SBT 1.5°, STOXX600, SBF 120, CAC Mid 60, CAC Mid &
Small and CAC All-Tradable.
After more than four years in the Financial Communication and
Investor Relations Department, Alexandra is leaving the Verallia
Group at the end of this month. She will be replaced by David
Placet (david.placet@verallia.com), who has been in charge of
development and strategy since the end of 2018.
Disclaimer
Certain information included in this press release are not
historical facts but are forward-looking statements. These
forward-looking statements are based on current beliefs,
expectations and assumptions, including, without limitation,
assumptions regarding Verallia’s present and future business
strategies and the economic environment in which Verallia operates.
They involve known and unknown risks, uncertainties and other
factors, which may cause actual performance and results to be
materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include
those discussed and identified in Chapter 4 “Risk Factors” in the
Universal Registration Document approved by the AMF and available
on the Company’s website (www.verallia.com and the AMF’s website
(www.amf-france.org . These forward-looking information and
statements are no guarantee of future performance.
This press release includes only summary information and does
not purport to be comprehensive.
Personal data protection
You can unsubscribe from our press release distribution list at
any time by sending your request to the following email address:
investors@verallia.com. Press releases will still be available to
access via the website https://www.verallia.com/investisseurs.
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 one 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 CNIL (Commission nationale de
l'informatique et des libertés — French regulatory body).
APPENDICES – Key figures
In € million
H1 2023
H1 2022
Revenue
2,142.7
1,638.9
Reported growth
+30.7%
+23.4%
Organic growth
+28.6%
+22.8%
of which Southern and Western
Europe
1,404.8
1,136.3
of which Northern and Eastern
Europe
514.6
307.8
of which Latin America
223.3
194.8
Cost of sales
(1,499.7)
(1,235.0)
Commercial, general and
administrative expenses
(118.9)
(97.5)
Acquisition-related items
(34.5)
(31.9)
Other operating income and
expenses
0.7
2.9
Operating income
490.3
277.4
Financial income and
expense
(55.7)
(30.2)
Profit (loss) before
tax
434.6
247.2
Income tax
(118.0)
(68.9)
Share of net profit (loss) of
associates
0.6
0.5
Net income attributable to the
shareholders of the company12
310.8
173.8
Earnings per share
€2.65
€1.49
Adjusted EBITDA13
659.0
425.4
Group margin
30.8%
26.0%
of which Southern and Western
Europe
436.5
286.1
Southern and Western Europe
margin
31.1%
25.2%
of which Northern and Eastern
Europe
141.5
59.9
Northern and Eastern Europe
margin
27.5%
19.5%
of which Latin America
81.0
79.4
Latin America margin
36.3%
40.8%
Net debt at end of
period
1,401.4
1,146.6
Last 12 months adjusted
EBITDA
1,099.1
758.8
Net debt/last 12 months adjusted
EBITDA
1.3x
1.5x
Total Capex14
150.1
96.3
Cash conversion15
77.2%
77.4%
Change in operating working
capital
(192.6)
(15.4)
Operating cash flow16
316.3
313.7
Free cash flow17
247.8
226.4
Strategic
investments18
56.7
27.3
Recurring
investments19
93.4
69.0
Change in revenue by type in € million during H1 2023
In € million
H1 2022 revenue
1,638.9
Volumes
(76.2)
Price/Mix
+544.3
Exchange rates
(78.6)
Scope
+114.3
H1 2023 revenue
2,142.7
Change in adjusted EBITDA by type in € million during H1
2023
In € million
H1 2022 adjusted EBITDA20
425.4
Activity contribution
(13.9)
Price-mix/Cost spread
+231.1
Net productivity
+26.7
Exchange rates
(31.7)
Other
+21.4
H1 2023 adjusted EBITDA
659.0
Key figures by quarter
In € million
Q1 2023
Q1 2022
Revenue
1,051.6
749.9
Reported growth
+40.2%
Organic growth
+34.7%
Adjusted EBITDA21
307.4
182.7
Group margin
29.2%
24.4%
In € million
Q2 2023
Q2 2022
Revenue
1,091.1
889.0
Reported growth
+22.7%
Organic growth
+23.4%
Adjusted EBITDA
351.6
242.7
Group margin
32.2%
27.3%
Reconciliation of operating profit (loss) to adjusted EBITDA
In € million
H1 2023
H1 2022
Operating income
490.3
277.4
Depreciation and
amortisation22
162.9
142.3
Restructuring costs
2.0
0.5
IAS 29, Hyperinflation
(Argentina)23
(1.0)
(0.3)
Management share ownership plan
and associated costs
4.6
4.5
Company acquisition costs and
earn-outs
0.2
0.0
Other
-
1.0
Adjusted EBITDA
659.0
425.4
Adjusted EBITDA and cash conversion are alternative performance
measures according to AMF Position n°2015-12.
Adjusted EBITDA and cash conversion are not standardised
accounting measures meeting a single definition generally accepted
by IFRS. They must not be considered as a substitute for operating
income and cash flows from operating activities, which are measures
defined by IFRS, or as a measure of liquidity. Other issuers may
calculate adjusted EBITDA and cash conversion differently from the
definitions used by the Group.
IAS 29: Hyperinflation (Argentina)
Since 2018, the Group has applied IAS 29 in Argentina. The
adoption of this standard requires the restatement of non-monetary
assets and liabilities and of the statement of income to reflect
changes in purchasing power in the local currency. These
restatements may lead to a gain or loss on the net monetary
position included in the financial income and expense.
Financial items for the Argentinian subsidiary are converted
into euro using the closing exchange rate for the relevant
period.
In H1 2023, the net impact on revenue was (€1.8) million.
The hyperinflation impact has been excluded from consolidated
adjusted EBITDA as shown in the table “Reconciliation of operating
profit (loss) to adjusted EBITDA”.
Financial structure
In € million
Nominal amount or max. amount
drawable
Nominal rate
Final maturity
30 June 2023
Sustainability-linked
bonds
May 202124
500
1.625%
May 2028
498.8
Sustainability-linked bond
November 202124
500
1.875%
Nov. 2031
498.8
Term loan – TL24
550
Euribor +1.50%
Apr. 2027 + 1-year extension
549.0
Revolving credit facility RCF1
550
Euribor +1.00%
Apr. 2028 +1-year + 1-year
extension
-
Negotiable commercial paper (Neu CP)24
400
175.3
Other liabilities25
142.8
Total borrowings
1,864.8
Cash and cash equivalents
463.4
Net debt
1,401.4
Consolidated statement of income
In € million
H1 2023
H1 2022
Revenue
2,142.7
1,638.9
Cost of sales
(1,499.7)
(1,235.0)
Commercial, general and
administrative expenses
(118.9)
(97.5)
Acquisition-related items
(34.5)
(31.9)
Other operating income and
expenses
0.7
2.9
Operating income
490.3
277.4
Financial income and
expense
(55.7)
(30.2)
Profit (loss) before
tax
434.6
247.2
Income tax
(118.0)
(68.9)
Share of net profit (loss) of
associates
0.6
0.5
Net income
317.3
178.8
Attributable to shareholders of
the Company 26
310.8
173.8
Attributable to non-controlling
interests
6.5
5.0
Basic earnings per share (in
€)
2.65
1.49
Diluted earnings per share (in
€)
2.65
1.49
Consolidated balance sheet
In € million
30 June 2023
31 Dec. 202227
ASSETS
Goodwill
672.1
664.6
Other intangible assets
453.4
482.4
Property, plant and equipment
1,667.0
1,609.0
Investments in associates
6.7
5.9
Deferred tax
22.0
27.5
Other non-current
assets
65.9
186.3
Non-current assets
2,887.1
2,975.7
Current portion of non-current
and financial assets
1.4
1.3
Inventories
647.4
536.8
Trade receivables
279.2
250.4
Current tax receivables
3.4
5.4
Other current assets
184.5
392.3
Cash and cash equivalents
463.4
330.8
Current assets
1,579.3
1,517.0
Total assets
4,466.4
4,492.7
LIABILITIES
Share capital
413.3
413.3
Consolidated reserves
475.5
590.1
Equity attributable to
shareholders
888.8
1,003.4
Non-controlling interests
68.4
64.0
Equity
957.2
1,067.4
Non-current financial liabilities
and derivatives
1,617.9
1,562.2
Provisions for pensions and other
employee benefits
86.2
87.4
Deferred tax
174.2
276.8
Provisions and other non-current
financial liabilities
48.2
23.2
Non-current
liabilities
1,926.5
1,949.6
Current financial liabilities and
derivatives
272.1
200.9
Current portion of provisions and
other non-current financial liabilities
58.7
54.3
Trade payables
674.2
740.6
Current tax liabilities
86.3
44.3
Other current liabilities
491.4
435.6
Current liabilities
1,582.7
1,475.7
Total Equity and
Liabilities
4,466.4
4,492.7
Consolidated cash flow statement
In € million
H1 2023
H1 2022
Net income
317.3
178.8
Depreciation, amortisation and
impairment of assets
162.9
142.3
Interest expense on financial
liabilities
23.8
14.3
Change in inventories
(117.7)
(17.0)
Change in trade receivables,
trade payables & other receivables & payables
4.1
24.0
Current tax expense
125.6
64.1
Taxes paid
(57.5)
(44.8)
Changes in deferred taxes and
provisions
15.3
(1.0)
Other
28.1
12.7
Net cash flows from operating
activities
501.9
373.4
Acquisition of property, plant
and equipment and intangible assets
(150.1)
(96.3)
Increase (decrease) in debt on
fixed assets
(77.6)
(29.8)
Acquisitions of subsidiaries,
takeovers, net of cash acquired
(8.0)
(2.0)
Other
3.1
0.7
Net cash flows from (used in)
investing activities
(232.6)
(127.4)
Capital increase (reduction)
18.6
13.0
Dividends paid
(163.8)
(122.7)
Increase (reduction) of own
shares
(38.1)
(0.5)
Transactions with shareholders
of the parent company
(183.3)
(110.2)
Transactions with
non-controlling interests
(3.1)
(0.6)
Increase (decrease) in bank
overdrafts and other short-term borrowings
69.1
50.1
Increase in long-term debt
561.7
4.0
Reduction in long-term debt
(536.5)
(20.4)
Financial interest paid
(22.1)
(14.0)
Change in gross debt
72.2
19.7
Net cash flows from (used in)
financing activities
(114.2)
(91.1)
Increase (reduction) in cash
and cash equivalents
155.2
154.9
Impact of changes in foreign
exchange rates on cash and cash equivalents
(22.4)
2.8
Opening cash and cash
equivalents
330.8
494.6
Closing cash and cash
equivalents
463.4
652.3
GLOSSARY
Activity: corresponds to the sum of the change in volumes
plus or minus the net change in inventories.
Organic growth: corresponds to revenue growth at constant
exchange rates and scope. Revenue growth at constant exchange rates
is calculated by applying the average exchange rates of the
comparative period to revenue for the current period of each Group
entity, expressed in its reporting currency.
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 based on 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 contingencies, plant closure costs and other items.
Capex: short for “capital expenditure”, this represents
purchases of property, plant and equipment and intangible assets
necessary to maintain the value of an asset and/or adapt to market
demand or to environmental and health and safety constraints, or to
increase the Group’s capacity. It excludes the purchase of
securities.
Recurring investments: Recurring Capex represents
purchases of property, plant and equipment and intangible assets
necessary to maintain the value of an asset and/or adapt to market
demand and environmental, health and safety constraints. It mainly
includes furnace renovation and maintenance of IS machines.
Strategic investments: Strategic investments represent
the acquisitions 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 have also included investments related to the
implementation of 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 the Operating cash flow –
Other operating impact – Interest paid & other financing costs
– Cash Tax.
The Southern and Western Europe segments 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 plants located in Germany, UK, 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.
Liquidity: calculated as the Cash +Undrawn Revolving
Credit Facilities–Outstanding Neu Commercial Paper.
Amortisation of intangible assets acquired through business
combinations: corresponds to the amortisation of
customer relations recognis
1 Excluding Argentina, revenue growth at constant exchange rates
and scope was 25.7% in H1 2023 compared with H1 2022.
2 Net income for H1 2023 includes an amortisation expense for
customer relationships, recognised upon the acquisition of
Saint-Gobain’s packaging business in 2015, in the amounts of €22
million and €0.19 per share (net of taxes). This expense will
remain in place until 2027. If it had not been taken into account,
net income attributable to shareholders would have been €333
million and €2.84 per share. It was €23 million and €0.20 per share
in H1 2022.
3 Perimeter effect linked to the internal reorganisation of a
commercial activity.
4 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 plans,
subsidiary disposal-related effects and contingencies, plant
closure costs and other items.
5 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 sales 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
production gap and taking into consideration the impact of the
Performance Action Plan (PAP).
6 Operating cash flow represents adjusted EBITDA less capex,
plus changes in operating working capital requirements including
changes in payables to fixed asset suppliers.
7 Defined as the Operating cash flow – Other operating impact –
Interest paid & other financing costs – Taxes paid.
8 Calculated as the Cash + Undrawn Revolving Credit Facilities –
Outstanding Commercial Paper.
9 This represents a discount of 20% compared to the average
Verallia share price on the regulated market of Euronext Paris over
the 20 trading days preceding 29 April 2023.
10 A capital increase in a nominal value of €2,066,684.10, with
an issue premium of €16,551,816.15. The 611,445 new ordinary shares
immediately qualify for dividends, have the same rights and
obligations as shares outstanding, and have equal rights to any
dividends distributed, with no restrictions or conditions. Capital
reduction via the cancellation of 611,445 treasury shares acquired
under the share buyback programme of 6 December 2022. The Company’s
share capital remains unchanged, with the number of shares issued
corresponding to the number of shares cancelled. It amounts to
€413,337,438.54 and is composed of 122,289,183 ordinary shares with
a nominal value of €3.38 each.
11 After the 2023 employee share offering and the capital
increase and reduction.
12 Net income for H1 2023 includes an amortisation expense for
customer relationships, recognised upon the acquisition of
Saint-Gobain’s packaging business in 2015, in the amounts of €22
million and €0.19 per share (net of taxes). This expense will
remain in place until 2027. If it had not been taken into account,
net income attributable to shareholders would have been €333
million and €2.84 per share. It was €23 million and €0.20 per share
in H1 2022.
13 Adusted 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 plans,
subsidiary disposal-related effects and contingencies, plant
closure costs and other items.
14 Capex (capital expenditure) represents purchases of property,
plant and equipment and intangible assets necessary to maintain the
value of an asset and/or adapt to market demand or to environmental
and health and safety constraints, or to increase the Group’s
capacity. It excludes the purchase of securities.
15 Cash conversion is defined as adjusted EBITDA less capex,
divided by adjusted EBITDA.
16 Operating cash flow represents adjusted EBITDA less capex,
plus changes in operating working capital requirements including
changes in payables to fixed asset suppliers.
17 Defined as the Operating cash flow – Other operating impact –
Interest paid & other financing costs – Taxes paid.
18 Strategic investments represent the acquisitions 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 related to the implementation of the plan to reduce CO2
emissions.
19 Recurring investments represent acquisitions of property,
plant and equipment and intangible assets necessary to maintain the
value of an asset and/or adapt to market demands and to
environmental, health and safety requirements. It mainly includes
furnace renovation and maintenance of IS machines.
20 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 plans,
subsidiary disposal-related effects and contingencies, plant
closure costs and other items.
21 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 plans,
subsidiary disposal-related effects and contingencies, plant
closure costs and other items.
22 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.
23 The Group has applied IAS 29 (Hyperinflation) since 2018.
24 Including accrued interest.
25 Including IFRS 16 lease liabilities (€59.5 million), local
debts (€15.5 million), Engie collateral (€41.5 million).
26 Net income for H1 2023 includes an amortisation expense for
customer relationships, recognised upon the acquisition of
Saint-Gobain’s packaging business in 2015, in the amounts of €22
million and €0.19 per share (net of taxes). This expense will
remain in place until 2027. If it had not been taken into account,
net income attributable to shareholders would have been €333
million and €2.84 per share. It was €23 million and €0.20 per share
in H1 2022.
27 In accordance with IFRS 3R, the balance sheet published as of
December 31, 2022 has been restated for the value adjustments of
the assets acquired and liabilities assumed from the Allied group
acquired in 2022 that occurred during the acquisition price
allocation period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230725741239/en/
Verallia press Annabel Fuder & Stéphanie Piere
verallia@wellcom.fr | +33 (0)1 46 34 60 60
Verallia investor relations contact Alexandra Baubigeat
Boucheron | alexandra.baubigeat-boucheron@verallia.com
Grafico Azioni VERALLIA (EU:VRLA)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni VERALLIA (EU:VRLA)
Storico
Da Mag 2023 a Mag 2024