Vidrala reports that demand for glass packaging across its regions of activity is growing solidly, grounded on the strong underlying fundamentals for consumption of food and beverages, and the continuous support from packagers, brand owners and consumers to glass as the ultimate sustainable packaging material.
Under this market context, the company’s ambitious Capital Expenditure (CapEx) program initiated in 2019 is progressing well, including specific investment plans directed to better serve customers, grow the business, offer differential services, selectively enhance manufacturing facilities, realign capacity and improve the sustainability of operations. In return, the industrial footprint is today stronger and the way Vidrala serves customers evolves at comparable good levels even though external conditions along overall supply chains remain challenging and inventories are tight across the industry.
However, as it had been anticipated in recent releases, the abnormal external inflation in industrial manufacturing costs had an impact on the operating margins. That should gradually recover over the coming quarters as sales prices re-adapt to the context or energy markets stabilise.
In any case, the structural business fundamentals will remain strong and the company’s strategic guidelines firmly committed to our long-term priorities: customer, competitiveness and capital. Vidrala will invest to grow and to improve its levels of competitiveness with customers in mind, expanding capabilities and diversifying business with the aim to supply services and make products in the most sustainable way. And Vidrala will do it securing a strict capital discipline.