Spanish bottle maker Vidrala said on Friday its net profit increased 25% from January to September compared to one year ago amid a gradual demand recovery and after entering into new markets following the acquisition of Brazil's Vidroporto.
Vidrala posted a net profit €232.1 million over the period compared to €184.6 million one year ago.
Following more than one year of destocking, demand has been stabilising among glassmakers' clients, although at a slow pace, as the European economy struggles to get out of stagnation.
Brazilian Market
In its third quarter results, Vidrala reiterated its full-year core profit guidance of over €450 million announced in April.
From January to September, sales increased 2% from one year ago to €1.22 billion on a reported basis, driven by growth in the Brazilian market.
The Iberia region and the rest of Europe - including Britain - still accounted for around 85% of the group's sales.
Diversified Business
The results for the first nine months of 2024 reported that "Vidrala is today a different, more solid and diversified
business".
"Although the recovery in demand is being slower than expected in some of our most mature regions, the business continues to progressively reflect the benefits of our recent strategic actions, which have been aimed at diversifying and refocusing our operations, offering differential services, selectively realigning our industrial footprint and improving our production facilities," said the company.
"Despite the global environment of moderate growth, our margins remain strong, cash generation exceeds expectations, and our financial position continues strengthening.
"All this sets us in a favourable position to face the current context, supported by the integration of Vidroporto in Brazil, the optimisation of our industrial capacity in Iberia and the expansion of our unique packaging services in the United Kingdom."
Additional reporting from ESM
