2023 annual results: Verallia recorded an excellent financial performance amid weaker market conditions and aims to generate an EBITDA of around EUR 1 billion in 2024.
Highlights
- +16.5 percent increase in revenue to EUR 3,904 million in 2023 (+21.4 percent at constant scope and exchange rates) compared with 2022
- Growth in adjusted EBITDA to EUR 1,108 million in 2023, 28.0 percent higher than in 2022 (EUR 866 million)
- Improvement in adjusted EBITDA margin to 28.4 percent in 2023 compared with 25.8 percent in 2022 (+256 bps), reaching the margin target set out in the 2022-24 plan (28-30 percent) a year in advance
- Sharply higher net profit at EUR 475 million compared with EUR 356 million in 2022 (+33.7 percent) and earnings per share of EUR 4.02 (+37.7 percent versus 2022)
- Robust cash generation, with free cash flow reaching EUR 365 million after an already strong 2022 (EUR 364 million)
- Decrease in net debt ratio to 1.2x 2023 adjusted EBITDA compared with 1.6x at 31 December 2022
- -5.6 percent reduction in scope 1 & 2 co2 emissions compared with 2022 (i.e. -15.8 percent versus 2019) despite a lower external cullet rate of 54.1 percent in 2023 (-1.6 point versus 2022)
- Proposed dividend per share of EUR 2.15
“Verallia delivered an excellent performance in 2023 amid weaker market conditions, especially in the second half,” noted Patrice Lucas, Chief Executive Officer of Verallia. “The Group’s financial performance was remarkable, with a very strong surge in EBITDA and robust cash generation. This performance was made possible by the exceptional commitment of our teams and the continued roll out of the Performance Action Plan (PAP), despite the decision to adjust our production capacity in order to manage our inventories.
“Verallia enters 2024 in good conditions and should benefit from a gradual rebound in activity. Meanwhile we maintain a strict cost discipline. We are confident in our ability to generate an adjusted EBITDA of around Eur 1 billion in 2024.
“We also continue to push forward with our decarbonisation roadmap by introducing new, lighter products, tightly managing our cullet supply chain and continuing work to start up our first electric (Cognac) and hybrid (Zaragoza) furnaces in 2024.”
To read the full report click here.