Glass bottle manufacturer Verallia has posted a 5.7% increase in reported revenue in full-year 2018, at constant exchange rates and if IFRS15 impact is excluded.
The Paris-based group posted revenue of €2.42 billion last year, which was down 2.3% on a reported basis.
The group said that its performance was driven by volume/mix improvement, supported by selling price increases necessary to mitigate rising energy costs and other inflationary impacts.
In its European operation, reported revenue was down 0.3%, or up 3.8% year-on-year excluding exchange rates and IFRS15 impact. In South America meanwhile, reported revenue dropped by 17.1%, due to negative exchange rate variations in Argentina, or an increase of 19.1% at constant rates.
The group posted adjusted EBITDA growth of 7.8% year-on-year (14.4% at constant foreign exchange rates), to €544 million.
Service Improvements
“2018 has been a very good year for Verallia with improvements in the service provided to our customers and stronger productivity," said Michel Giannuzzi, CEO of Verallia.
"This joint effort in sales contribution and costs base reduction has enabled a solid increase in adjusted EBITDA both in value and in margin. We expect continuing improvements in 2019.”
Among the strategic initiatives undertaken by the group were the sale of Alver, its Algerian subsidiary, which took place in May 2018, and the sale of its minority stake in the IVN joint venture in Brazil in October.
Looking ahead, Verallia said that it expects further top-line growth and margin expansion, despite 'challenges' such as rising energy and raw material costs, and potential macro-economic and geopolitical uncertainties.
'Despite these headwinds, Verallia continues to roll-out its strategy which translates into the following objectives: (i) positive organic sales growth and adjusted EBITDA increase; (ii) additional adjusted EBITDA margin expansion; (iii) disciplined capex spending with recurring capex amount around €200 million (ca. 8% of revenue) and (iv) stronger cash flow generation,' the company said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
