Verallia Sees Revenues Down 1.9% Due To COVID Impact
Glass packaging firm Verallia has reported a 1.9% decrease in revenue in its full-year 2020, although it saw growth in adjusted EBITDA to €626 million (+1.7%).
For the full year, in which it grappled with the ongoing COVID-19 pandemic, Verallia posted total revenue of €2,536 million
Michel Giannuzzi, chairman and CEO of Verallia, believes the group "demonstrated a remarkable resilience to this unprecedented global crisis".
Giannuzzi added that the packaging company's main priority "has been to protect the health and safety of our teams, who have shown exceptional commitment."
Verallia benefitted from increases in selling prices at the beginning of 2020, as well increased purchases of alcoholic beverages by consumers in the second half of the year.
Exchange rates have been credited with having a large negative impact on the business, due to the depreciation of Latin American currencies, and to a lesser extent, the Ukrainian hryvnia and the Russian rouble.
Adjusted EBITDA for the coming year is expected to increase to approximately €650 million, while adjusted EBITDA margin is expected to exceed the growth target of 25%.
As part of its growth strategy, Verallia has invested in the Brazilian market, which it believes has a large capacity for growth in 2021 and beyond.
An additional furnace at its plant in Jacutinga will be built to cement this strategy. This investment, totalling approximately €60 million, will be spread across 2021 and 2022.
The group will also place an increased spotlight on its environmental, social, and governance roadmap, outlining targets such as reducing CO2 emissions by 27.5% in line with the Science-Based Targets Initiative, with the global goal of limiting global warming to below 2°C above pre‐industrial levels.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.