Glass packaging firm Verallia has posted a 0.9% decrease in reported revenue for the second quarter of its financial year, of €650.1 million.
However, if exchange rate impacts are excluded, the group posted a 6.3% increase in revenue in the period, compared to the same period last year. The group said that this growth was driven by 'robust volumes as well as price and mix improvements'.
Divisional Performance
The group's European division, which was impacted by the weakening of currencies in Russia and Ukraine, posted reported revenue of 0.8%, with higher prices and volumes in Germany, Eastern Europe and Iberia, it said.
EBITDA in Europe was up 9.1% (+9.7% at constant exchange rates), driven by a 'robust level of activity, improvements of price and mix, and productivity at plant level'.
In South America, reported revenue slumped 13.7%, again due to negative exchange rates, in particular the Argentinian Peso. However, if exchange rate fluctuations are excluded, the business actually saw a 18.1% increase, with higher prices due to market inflation.
EBITDA in South America remained stable, the company said, posting 0.5% growth on the previous year.
Strong Start
"The results of the first half of the year have been very strong," commented Michel Giannuzzi, CEO of Verallia.
"Verallia has reached 22.2% of adjusted EBITDA margin, up 190 bps compared to last year, driven by a favorable market environment and improvements in our operational efficiency."
The group recently signed an agreement to raise a €550 million term loan bullet facility with a 2025 maturity. In addition, the Group has launched a €250 million Neu CP program, of which €80 million was drawn as of June 30th, 2018. [Picture ©Verallia, ph. Franck Dunouau]
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
