Verallia an independent Group, the third largest global manufacturer of glass containers for food and beverages, and proposes innovative, customized and environmentally-friendly solutions has released its 2018 annual results. Highlights of the 2018 annual Results reported revenue of 2,416 million euros in 2018, a solid 5.7% revenue growth at constant foreign exchange rates and excluding IFRS15 impact. A meaningful adjusted EBITDA growth at 544 million euros, for example, +7.8% year-on-year,14.4% at constant foreign exchange rates. The adjusted EBITDA margin expansion reaching 22.5%, up 210 bps compared to 2017, up 150 bps excluding IFRS15. Further deleveraging at 3.1x adjusted EBITDA through positive operating cash flow generation of 301 million euros and a good level of cash conversion at 58.6%
Michel Giannuzzi, CEO of Verallia commented “2018 has been a very good year for Verallia with improvements in the service provided to our customers and stronger productivity. This joint effort in sales contribution and costs base reduction has enabled a solid increase in adjusted EBITDA both in value and in the margin. We expect continuing improvements in 2019.”
In 2019, Verallia expects further top-line growth and margin expansion, in spite of the challenges that the glass packaging industry may face due to rising energy and raw material costs; and potential macro-economic and geopolitical uncertainties, in particular in South America.
Despite these headwinds, Verallia continues to roll-out its strategy with the following
Objectives. Positive organic sales growth and adjusted EBITDA increase, additional adjusted EBITDA margin expansion, disciplined CapEx spending with recurring CapEx amount around €200million (ca. 8% of revenue) and stronger cash flow generation.
The next results release will be first quarter results and are expected to be released on April 30th, 2019.