Verallia, Saint-Gobain’s packaging segment, reported 30% growth compared to 2010, with a ‘favourable’ sale price increase of 2.7% for the year and strong sales in countries such as Brazil, Argentina and Chile driving the increase.
Glass packaging provider Saint-Gobain will continue to focus on emerging market development after strong Latin American sales spurred organic growth.
Verallia, the France-based company’s packaging segment, reported 30% growth compared to 2010 – with a ‘favourable’ sale price increase of 2.7% for the year and strong sales in countries such as Brazil, Argentina and Chile driving the increase.
The firm recorded EBITDA (earnings before interest, taxes, depreciation and amortization) at EUR 418 million for 2011 – surpassing the EUR 400 million predicted in the first half of the year.
The US, France, Italy, Spain and Germany continue to drive Verallia in terms of sales, but investments, developments and acquisitions in emerging nations have become a priority for the company.
The company said it expects packaging segment results to remain stable across all regions in 2012.
“The packaging sector has benefit from the strength of Latin America; activity has been very dynamic in Brazil but also in Argentina and Chile, where our clients (wine producers) have enjoyed very strong exports,” a Verallia spokesperson said, adding that packaging segment acquisitions have helped the company establish itself in these emerging high-growth regions.
“In June 2011, Verallia acquired the public company Alver, one of Algeria’s leading glass packaging manufacturers and distributors. This acquisition confirmed Verallia’s growth strategy.”
“It established Verallia’s first industrial presence in the south of the Mediterranean Area, a market which offers an important potential for filling of food jars and beverage bottles,” the spokesperson added.
Development was boosted in high-growth countries, which involved investments of almost EUR 300 million to cover 13 acquisitions.
“For the packaging sector, we will focus on Latin America where we are in the process of building a third furnace in Argentina,” said the Verallia spokesperson.
“We may also look for opportunities in India, which is a very big consumer of spirits, in the Mediterranean Basin (where we acquired Alver in Algeria) and in the new world wine regions.”
The company recorded an overall sales increase of 5% on 2010, with sales increasing to EUR 42.1 billion from EUR 40.1 billion.
“All of the Group’s geographic areas and Business Sectors contributed to this performance, led by vigorous momentum in emerging countries and Asia as well as further advances in markets related to industrial output in both North America and Western Europe,” a results statement said.