- Sales during the first nine months 2020 amounted to 749.8 million EUR, showing an organic change of -1.5%.
- Operating profit, EBITDA, was 203.6 million EUR representing an operating margin of 27.2%.
- Net debt at September 30, 2020 declines by 21% versus the previous year, reflecting a leverage ratio of 1.0 times last twelve months EBITDA.
EARNINGS PERFORMANCE
Sales
Sales reported by Vidrala during the first nine months 2020 amounted to 749.8 million EUR, a change of -1.6% over the previous year. On a constant currency basis, sales reflected an organic change of -1.5%.
Operating results
Operating profit –EBITDA– obtained in the first nine months 2020 reached 203.6 million EUR, a change of -1.3% over the figure reported last year. Organic change, on a constant currency basis, was -1.1%.
Over sales, EBITDA margin stood at 27.2%.
Results and financial position
Net profit in the first nine months amounted to 111.0 million EUR. As a result, earnings reached 4.11 EUR per share, an increase of 3.0% over the previous year.
Net debt at September 30, 2020 stood at 262.6 million EUR, reflecting a leverage ratio of 1.0 times last twelve months EBITDA.
BUSINESS OUTLOOK
The pandemic is causing substantial effects on lifestyles and consumption habits. Under such extraordinary social context, packaging plays a crucial role. It protects, preserves and allows the distribution of products ensuring their availability. Among the different alternative materials, glass arises as the packaging of choice. Infinitely recyclable and inert, glass secures the highest standards of health, preservation, hygiene and sanitization while standing as the unbeatable alternative for a more environmentally sustainable world.
Under the grounds on these solid fundamentals, demand for Vidrala’s products, unavoidably affected by the restriction of activities and the strong impact on the economy, has gradually normalised from the lows seen at the beginning of the second quarter. Operational margins have performed accordingly, supported by strong levels of manufacturing efficiency and the benefits of our ambitious investment plan.
As a result of the above, Vidrala now expects full year 2020 sales figure to be at the high end of the previously announced guidance. Consequently, operating margins would consolidate at current levels.
In any case, the business context is far from normal. The global economic framework remains difficult and new restrictions being rolled out to curb the pandemic will increase uncertainty for companies and families. Today, more than ever, Vidrala’s mid-term strategic guidelines will remain intact, firmly committed to our three priorities: customer, cost and capital.