Verallia’s registers 24.5% growth in revenue in first three-quarters of FY22

FRANCE – French glass container manufacturing company, Verallia has reported a 24.5% growth in revenue for the first nine months of fiscal 2022 (FY22) to US$2.45 billion (€2.51bn) on a reported basis from the same period of fiscal 2021 (FY21).

At a constant exchange scope and rates, the company’s revenue increased by 24.4% during the nine months or 21.5% excluding its Argentinian operations.

Verallia saw its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rise by 24% to US$638.80 million (€654m) during the nine months.

Its adjusted EBITDA margin stood at 26% for the nine-month period, against 26.1% in the fiscal year 2021.

During the third quarter (Q3) of the year, Verallia recorded revenue of US$858.57 million (€879m), up by 26.5% on a reported basis and 27.5% at constant exchange rates and scope compared with Q3 2021.

The company’s adjusted EBITDA for Q3 was US$  €228.8 million, up from US$178.65 million (€182.9m) in the same period of FY21, while its adjusted EBITDA margin was 26% in Q3 2022, against 26.3% in Q3 2021.

Verallia CEO Patrice Lucas said: “These excellent third-quarter results follow on from a strong first half.

“Revenue growth remained high despite the slight expected decline in volumes due to less available capacity.

“Adjusted EBITDA also continued to grow thanks to a positive inflation spread over the period, the improved operational efficiency that resulted from our Performance Action Plan, and unprecedented momentum across Latin America.”

In response to higher year-end visibility and strong third-quarter results, Verallia has increased its adjusted EBITDA target for FY22 to more than €820 million, compared with its previous expectation of US$732.57 – 781.41 million (€750–800m).

The company plans to start lighting its new furnace in Jacutinga, Brazil, on 9 November.

Earlier this year, Verallia reported a 24% increase in revenue to US$732.57 million (€750m) for the first quarter (Q1) of FY22.

The company suspended production at its facility in Zorya, Ukraine, in March this year following Russia’s invasion.

Verallia stated that it had taken the decision after closely monitoring the situation for the past week prior to closure.

The company aimed to prioritize its employees’ security and preserve the investment so that the plant can be restarted later.

Currently, Verallia operates a network of 32 glass production facilities in 11 countries, with approximately 10,000 employees.

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