Verallia Q1 revenues edge lower by 2.4% to US$934M as debt rises

FRANCE – Verallia has posted first-quarter revenue of €798 million (approximately US$934 million), a 2.4 percent decrease from 2025 due to lower selling prices, while adjusted EBITDA rose to €159 million (US$ 185.8 million) with margin up 197 basis points.

Net financial debt at the end of March 2026 stood at €1.89 billion (approximately US$2.21 billion), compared with €1.82 billion (approximately US$2.13 billion) a year earlier. 

The net debt ratio was 2.7 times adjusted EBITDA over the last 12 months, unchanged from December 2025 and above the 2.3 times recorded at the end of March 2025.

Regional Performance Varies

In Southern and Western Europe, volumes increased, continuing the 2025 trend. 

Beer provided the main support, while food jars showed solid performance, especially in Italy following the start-up of the new furnace in Pescia. 

Sparkling wine remained weaker, though most segments added to the region’s result.

In Northern and Eastern Europe, volumes fell mainly due to Germany. 

Spirits recorded growth across the region, while the UK returned to growth after several challenging quarters. Beer and soft drinks declined, in line with recent patterns.

In Latin America, volumes were flat, with strong spirits activity in Brazil balancing declines in beer and wine. In Argentina, business levels stabilised despite a still volatile macroeconomic setting.

Outlook and Strategic Response

Verallia maintained its 2026 outlook while noting higher uncertainty tied to the Middle East conflict. 

The company expects adjusted EBITDA of approximately €700 million (approximately US$819 million) and free cash flow of approximately €220 million (approximately US$257 million), excluding restructuring cash outflows.

Patrice Lucas, Verallia group CEO, explained that the profitability improvement marks a first stage in the recovery of Verallia’s performance. 

In an environment tense due to the Middle East conflict, the group is focusing primarily on internal levers. 

He noted that industrial footprint optimisation plans are progressing and should support performance from the second half of the year, while the Performance Action Plan continues to deliver solid results and energy hedging covers more than 80 percent of needs for the year.

When Glass Gets Leaner

A glass bottle maker facing soft demand cannot change consumer preferences, but it can change its cost structure. 

Verallia’s margin improvement despite falling revenue proves that internal levers work. 

The question for the rest of the year is whether external headwinds, Middle East conflict, soft demand, overwhelm them.

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