Packaging Firm Verallia Sees 'Robust' Profit Growth In First Half
Packaging giant Verallia has reported 'robust growth' of 15.4% in adjusted EBITDA in the first half of its financial year, to €345 million.
The French group posted a 4.2% increase in first-half revenue, to €1.33 billion (+7.7% at constant exchange rates), boosted by the reopening of the HoReCa sector, its chief executive, Michel Giannuzzi, said.
Sharp Increase In EBITDA
“After a first quarter still adversely affected by the health restrictions, the reopening of cafés, hotels and restaurants in the second quarter allowed Verallia to record robust organic revenue growth over the six‐month period," he said.
"Adjusted EBITDA rose sharply in the first half, with a full contribution from the group’s three main pillars for improvement – namely the increase in business activity (operational lever), positive spread and mix, and improved industrial efficiency (PAP). In view of these solid results, Verallia can raise its adjusted EBITDA forecasts for 2021."
In terms of the main regions in which the group operates, its Southern and Western Europe division posted a 5.5% increase in revenue at constant exchange rates, with all its markets and product categories seeing growth, except food jars.
Sales of spirits 'rocketed' in the division during the period, while wine and beer also reported strong growth.
In Northern and Eastern Europe, revenue fell by 5.6% at constant exchange rates and 9.0% on a reported basis, due to the depreciation of currencies in Russia and Ukraine.
In Latin America, increased capacity helped boost revenue by 58.9% on a constant currency basis, as volumes increased across all product categories, except food jars.
Looking ahead, the group anticipates net sales reaching €2.6 billion at year-end, with volumes in 2021 returning to 2019 levels. EBITDA is also expected to 'increase significantly' on the previous year, it noted.