Vidrala reports financial results for the nine months ended September 30, 2022.
- Sales during the first nine months 2022 amounted to EUR 1,017.0 million, showing an organic growth of 23.3 percent.
- Operating profit, EBITDA, was EUR 158.9 million representing an operating margin of 15.6 percent.
- Net debt at September 30, 2022 stood at 0.8 times last twelve months EBITDA, reflecting a year-on-year increase of 68.8 percent.
Earnings performance
Sales
Sales reported by Vidrala during the first nine months 2022 amounted to EUR 1,017.0 million, an increase of 24.0 percent over the previous year. On a constant currency basis, sales reflected an organic growth of 23.3 percent.
Operating results
Operating profit –EBITDA– obtained in the first nine months 2022 reached EUR 158.9 million, a variation of -29.9 percent over the figure reported last year. On a constant currency basis, EBITDA reflected an organic change of -30.0 percent.
Over sales, EBITDA margin stood at 15.6 percent.
Results and financial position
Net profit in the first nine months amounted to EUR 78.2 million. As a result, earnings reached EUR 2.65 per share, a decrease of -37.4 percent over the previous year.
Net debt at September 30, 2022 stood at EUR 165.1 million, reflecting a leverage
ratio of 0.8 times last twelve months EBITDA.
Business outlook
Demand for glass packaging across Vidrala’s regions of activity remains solid, grounded on the strong underlying fundamentals for consumption of food and beverages, and the continuous support from packagers, brand owners and consumers to glass as the ultimate sustainable packaging material.
Under this market context, the company’s ambitious capex program initiated in 2019 is progressing well, including specific investment plans directed to better serve customers, grow the business, offer differential services, selectively enhance manufacturing facilities and improve the sustainability of operations. In return, the industrial footprint ot the company is today stronger and the way it serves customers evolves at comparable good levels even though inventories are tight across the industry.
However, as it had been anticipated in the last release, under the grounds of the highly inflationary context, the renewed tensions in natural gas prices seen during the summer, given their abnormal intensity, caused a temporary deterioration of margins in the third quarter of the year. Operational margins will progressively recover in the last quarter of the year based on energy cost mitigation actions and a progressive adaptation of our sales prices.
In any case, the structural fundamentals of the business will remain strong and the strategic guidelines firmly committed to long-term priorities: customer, competitiveness and capital. Vidrala will invest to grow and to improve competitiveness with its customers in mind and the aim to supply its services and make its products in the most sustainable way.
Vidralawill gradually adapt management priorities to guarantee the profitability of sales, supported by a naturally solid demand structure. The company we will do it securing a strict capital discipline and an attractive shareholder remuneration policy.