Verallia Sas · EURONEXT:VRLA
Verallia Sas — Verallia,Courbevoie — FY 2024 Earnings Presentation
37 slides from Verallia Sas's earnings presentation, Feb 20, 2025
Slide 1: FY 2024 results
FY 2024 results 20 February 2025
Slide 2: Summary
Summary 01 Introduction 02 Key 03 FY 2024 04 2025 guidance highlights financial results FY 2024 RESULTS 20.02.25 2
Slide 3: Introduction
INTRODUCTION Patrice LUCAS CEO FY 2024 RESULTS 20.02.25 3
Slide 4: A global leader in glass packaging
A global leader in glass packaging customers DIVERSIFIED AND BALANCED END-MARKETS 2024 Glass packaging(1) sales split by end-market(2) ~10,000 Food Countries(5) 12 ~11,000 employees 17% Still wine 32% Soft drinks 11% 2024 decoration 16+ bottles/jars plants 6 billion p.a. 12% Beer 12% 16% Sparkling w
Slide 5: Key highlights
KEY HIGHLIGHTS Patrice LUCAS CEO FY 2024 RESULTS 20.02.25 5
Slide 6: Verallia has continued to invest and innovate through 2024 in a challenging context
Verallia has continued to invest and innovate through 2024 in a challenging context 1 2 3 4 5 VERALLIA COMMISSIONING VERALLIA AIR AS A COMMITTED VERALLIA COMPLETES THE THE FIRST 100% RANGE: MOVING ESG PLAYER, ANNOUNCES A ACQUISITION OF ELECTRIC FURNACE FORWARD IN VERALLIA HAS SUCCESSFUL NEW VIDRALA’
Slide 7: CO2 emissions progressing towards our 2030 target
CO2 emissions progressing towards our 2030 target 2024 "Scope 1 and 2" CO2 emissions down -9.4% to 2,357 kt (-23.7% vs. 2019)(1) In line with our trajectory to reduce CO2 emissions by 46% in absolute terms by 2030 vs 2019 Intensity down by -6.4 % from External cullet usage : 56.7 % in 0.47 tCO2/TPG(
Slide 8: Action plan in place to offset continued soft market conditions
Action plan in place to offset continued soft market conditions 2024 MARKET TRENDS: KEY HIGHLIGHTS • Soft consumption in Europe through the year, confirmed by recent customer comments • Destocking at play for most of the year (and still ongoing in spirits) • Growing trade tensions creating uncertain
Slide 9: Robust profitability in 2024 with EBITDA margin above 24% in a challenging market
Robust profitability in 2024 with EBITDA margin above 24% in a challenging market; organic volume growth confirmed in Q4 REVENUE ADJUSTED EBITDA NET INCOME & EPS (2) Q4 2024: Q4 2024: • Net Income: €239m • -1.0% yoy to €821m • €201m, +4.3% vs. Q4 2023 (-49.8% vs. 2023) • -21.9% yoy organic growth (1
Slide 10: FY 2024 Financial results
FY 2024 FINANCIAL RESULTS Nathalie DELBREUVE CFO FY 2024 RESULTS 20.02.25 10
Slide 11: Q4 2024 Consolidated Revenue Variance Analysis
Q4 2024 Consolidated Revenue Variance Analysis REPORTED REVENUE (IN €M) (1) • Organic growth: -21.9% in Q4 24 18.3 829 (-9.1% excluding Argentina) 821 • Volumes up organically in Q4 (low single-digit growth) like in Q3, also benefiting from the 94.4 55.6 positive contribution of the Vidrala Italy op
Slide 12: FY 2024 Consolidated Revenue Variance Analysis
FY 2024 Consolidated Revenue Variance Analysis REPORTED REVENUE (IN €M) • Organic growth: -11.5% in FY 24 (-14.0% excluding 3 904 Argentina) • Volumes down in full year but up organically in 166.7 H2, showing signs of recovery > Europe: Volumes down yoy, mostly in spirits and wine, but positive cont
Slide 13: FY 2024 SWE Revenue Evolution
FY 2024 SWE1 Revenue Evolution REPORTED REVENUE (IN €M) • Revenue down yoy in 2024, primarily driven by price 2 527 -10.2% and to a lesser extent volume impact in H1. Sales volumes back to slight organic growth in H2 2 269 • Strong performance in beer, stable demand in spirits FY 2023 FY 2024 and sl
Slide 14: FY 2024 NEE Revenue Evolution
FY 2024 NEE1 Revenue Evolution REPORTED REVENUE (IN €M) -22.5% • Revenue decline mainly in Germany and in the UK 980 759 • Volumes down in Germany, with main impact from beer and despite strong pickup in food jars in Q4 FY 2023 FY 2024 • UK volumes down significantly, impacted by still low REVENUE A
Slide 15: FY 2024 LATAM Revenue Evolution
FY 2024 LATAM1 Revenue Evolution REPORTED REVENUE (IN €M) • Revenue up in 2024 driven primarily by higher volumes +7.9% 428 • Strong volume growth especially in Brazil (beer 397 volumes up, supported by new Jacutinga furnace) FY 2023 FY 2024 and Chile, with positive momentum in Q4 across the region
Slide 16: Q4 2024 Consolidated Adjusted EBITDA Variance Analysis
Q4 2024 Consolidated Adjusted EBITDA Variance Analysis ADJUSTED EBITDA (IN €M) +125bps Q4 2024 Q4 2023 Adjusted EBITDA margin 24.5% 23.3% • Activity / Operating leverage 35.6 201 Positive activity contribution in all regions - organic volumes up 193 6.3 17.4 > 63.7 4.5 yoy in Q4 and positive impact
Slide 17: FY 2024 Consolidated Adjusted EBITDA Variance Analysis
FY 2024 Consolidated Adjusted EBITDA Variance Analysis ADJUSTED EBITDA (IN €M) -401bps 1,108 FY 2024 FY 2023 Adjusted EBITDA margin 24.4% 28.4% 165.7 • Activity / Operating leverage > Sales volumes down yoy in H1 especially in Europe. Volumes rebound in H2 especially in LatAm > Negative impact from
Slide 18: 2024 SWE Adjusted EBITDA Evolution
2024 SWE1 Adjusted EBITDA Evolution ADJUSTED EBITDA (IN €M) -455bps -24.5% 2024 2023 725 548 Adjusted EBITDA margin 24.1% 28.7% • Activity down YoY in a soft market environment, despite organically growing volumes in Q4 across the region FY 2023 FY 2024 • Negative price/cost spread for the year comb
Slide 19: 2024 NEE Adjusted EBITDA Evolution
2024 NEE1 Adjusted EBITDA Evolution ADJUSTED EBITDA (IN €M) -553bps 2024 2023 -39.7% 244 Adjusted EBITDA margin 19.4% 24.9% 147 • EBITDA is impacted by the decline in activity in Germany (beer) and the UK (spirits) and by the negative spread 2023 2024 (mainly Germany) ADJUSTED EBITDA AT CONSTANT FX
Slide 20: 2024 LATAM Adjusted EBITDA Evolution
2024 LATAM1 Adjusted EBITDA Evolution ADJUSTED EBITDA (IN €M) -49bps +6.4% 2024 2023 147 Adjusted EBITDA margin 34.4% 34.9% 139 • Activity is up in all the countries, with Brazil benefiting from strong beer volumes and additional capacity 2023 2024 • Strong PAP performance ADJUSTED EBITDA AT CONSTAN
Slide 21: FY 2024 Capex Evolution
FY 2024 Capex Evolution TOTAL BOOKED CAPEX AS % OF SALES AND IN €M • FY 2024 total booked capex down €(95)m vs. 10.7% 2023 (-23%) reflecting strict control on capex spend 9.4% 184 • Capex to sales ratio down well below 10% at 4.7% 9.4% (10.7% in 2023) 3.4% 117 418 323 • Strategic capex down from 4.7
Slide 22: 2024 Group Cash-flow Generation
2024 Group Cash-flow Generation • Decline in FCF driven by a mix of lower adjusted EBITDA and adverse capex working capital variation In € million FY 2024 FY 2023 - Substantial capex payments made in Q1 2024 Adjusted EBITDA 842.5 1,108.0 in relation to bookings made in late 2023 Total Capex 323.4 41
Slide 23: December 2024 Group Net Debt Evolution and Leverage
31 December 2024 Group Net Debt Evolution and Leverage • Net debt at €1,797m including rights-of-use for €75m In € million 31.12.2024 30.09.2024 30.06.2024 31.12.2023 • Dividend payment in May for Net Debt 1,797.4 1,888.0 1,645.7 1,364.5 €252m & Corsico acquisition in July 100% financed by debt for
Slide 24: December 2024 Financial Structure and Liquidity
31 December 2024 Financial Structure and Liquidity In € million Nominal amount or Maturity Nominal rate 31 December max. Amount drawable 2024 Sustainability-Linked Bond – May 2021(1) 500.0 May 2028 1.625% 503.6 Sustainability-Linked Bond – November 2021(1) 500.0 November 2031 1.875% 495.5 Bond – Nov
Slide 25: 2025 Guidance
2025 GUIDANCE Patrice LUCAS CEO FY 2024 RESULTS 20.02.25 25
Slide 26: Solid performance since IPO despite challenging 2024
Solid performance since IPO despite challenging 2024 2019-24 ADJUSTED EBITDA (m€ and % of sales) 2019-24 DPS (€) (1) 1 200 60,00% 1 108 2,15 1 000 50,00% 866 842 1,70(2) 800 40,00% 678 1,40 615 626 600 30,00% 1,05 28.4% 0,95 0,85 24.7% 25.4% 25.8% 24.4% 400 23.8% 20,00% 200 10,00% 0 0,00% 2019 2020
Slide 27: Normalization still at play in 2025 before structural trends take over again
Normalization still at play in 2025 before structural trends take over again CUSTOMER QUOTES “Wines and spirits. We can see that demand “For 2025, we're expecting a relatively stable “Medium-term guidance has been removed is normalizing. Champagne still fared well, consumer environment, although due
Slide 28: 2025 outlook: maintain solid EBITDA and focus on cash generation
2025 outlook: maintain solid EBITDA and focus on cash generation Assumptions 2025 Guidance Despite... … We aim to: • An uncertain environment, with still soft • Achieve an adjusted EBITDA close to European consumption and rising that of 2024 geopolitical and trade tensions • More than double free ca
Slide 29: Q&A
Q&A FY 2024 RESULTS 20.02.25 29
Slide 30: Appendix
APPENDIX FY 2024 RESULTS 20.02.25 30
Slide 31: Consolidated Revenue Variance Analysis – Former presentation
Consolidated Revenue Variance Analysis – Former presentation REPORTED REVENUE (IN €M) (1) Q4 2024 FY 2024 11.6 829 3,904 821 23.3 173.2 169.9 149.9 274.5 3,456 61.1 61.1 Q4 2023 Volumes Price/Mix Exchange Rates Perimeter Q4 2024 FY 2023 Volumes Price/Mix Exchange Rates Perimeter FY 2024 (1) Bridges
Slide 32: Consolidated EBITDA Variance Analysis – Former presentation
Consolidated EBITDA Variance Analysis – Former presentation ADJUSTED EBITDA (IN €M AND % OF SALES) (1) Q4 2024 FY 2024 1,108 34.0 201 164.9 193 90.3 43.6 19.6 6.0 165.1 19.3 842 14.9 64.3 Q4 2023 Activity Spread price- Net Productivity Other Exchange Q4 2024 9M 2023 Activity Spread price- Net Produc
Slide 33: Mid-term financial guidance 2022-2023-2024
Mid-term financial guidance 2022-2023-2024 as presented during the October 2021 investor day SITUATION 2022-2023-2024 ASSUMPTIONS AS OF END 2024 From ca half volume and half price/mix ORGANIC SALES +4-6 % CAGR Moderate inflation in raw material and +18.4 % CAGR GROWTH 1 energy costs after 2022 Posit
Slide 34: Reconciliation of operating profit to adjusted EBITDA
Reconciliation of operating profit to adjusted EBITDA In €m 12.2024 12.2023 Operating profit 459.2 761.3 Depreciation and amortisation(1) 356.6 326.7 Restructuring costs 14.1 3.4 IAS 29 Hyperinflation (Argentina)(2) (4.4) 5.8 Management share ownership plan and associated costs 2.5 6.2 Company acqui
Slide 35: Glossary
Glossary • Activity category: corresponds to the sum of the or to increase the Group’s capacity. It excludes • The segment Northern and Eastern Europe comprises volumes variations plus or minus changes in the purchase of securities. production plants located in Germany, UK, Russia, inventories varia
Slide 36: Disclaimer
Disclaimer Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding Verallia's present and future bu
Slide 37: Thank you
Thank you