French packaging company Verallia has reported a strong first quarter despite a €19 million impact on revenue due to new revenue recognition standard IFRS 15.
Verallia said that its reported revenues for the quarter were stable year on year, but increased by 6.5% at constant foreign exchange rates. It said revenue growth was mainly driven by robust volumes as well as price and mix improvement.
In Europe, reported revenue grew by 0.8%, and by 5% excluding IFRS 15 and at constant exchange rates.
Optimistic Outlook
Adjusted EBITDA was up 9.2% (+14.1% at constant exchange rates), driven by a robust top-line growth associated with overall improvements in manufacturing. In Europe, it increased by 12.1%, and by +12.7% at constant exchange rates.
Looking forward the group said, ‘Our European markets should remain dynamic, driven by positive macroeconomics. The level of activity should also be good in South America in a challenging context.
‘For the rest of the year, Verallia confirms its objective of increases in revenue and adjusted EBITDA, further adjusted EBITDA margin improvement as well as continued deleveraging. Recurring capex in 2018 confirmed to be around 8% of revenue (€200 million).’
Verallia recently announced that it sold its operations in Algeria, which generated a revenue of €7 million last year.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
