Verallia, global producer of glass packaging for food and beverages, has reported a 23.4% year-on-year increase in revenue in the first half of its financial year.
The group implemented two successive sales price increases in Europe in the first and second quarter to offset the significant inflation in production costs seen since the end of 2021.
Verallia H1 Performance
At constant exchange rates and scope, revenue rose 22.8% (+21.5% excluding Argentina) in the first half of the year, driven by higher volumes.
This increase was particularly strong in the first quarter, but volumes declined slightly in the second quarter due to a less favourable comparative basis, as volumes in this period in 2021 saw considerable growth as cafés, hotels, and restaurants reopened.
All product categories reported an increase in sales volumes over the first half of the year, with particularly strong momentum in spirits, food jars, and sparkling wines.
The price-mix effect accounted for around 20% of sales in the first six months, Verallia noted.
Positive growth in revenues was recorded in all regions in which the company operates in Europe and Latin America.
The adjusted EBITDA margin reached 26.0% over the first half of the year, despite the dilutive effect of the marked increases in sales prices implemented in the first half of the year.
Verallia continued to improve its net debt ratio with net debt amounting to €1,147 million at the end of June 2022.
Annual General Meeting
Following the conclusion of the group's Annual General Meeting in May, Michel Giannuzzi stepped down as chief executive officer of the company.
Giannuzzi will continue to serve as chairman of the board of directors and Patrice Lucas, who joined the group on 1 February 2022 as a deputy chief executive officer, has been appointed as chief executive officer. He will also join the board as a director.
The group has forecast a double-digit growth in its annual revenue with markets that remain promising in the absence of significant energy rationing for the company in Europe.
The company sees production costs increasing over the rest of the year.
The group has increased its adjusted EBITDA target to a range between €750 million and €800 million for 2022.