Verallia (VRLA) Q4 2024 earnings summary

Executive summary

• Maintained global leadership in glass packaging, ranking #1 in Europe, #2 in LatAm, and #3 globally, with diversified end-markets and continued investment, innovation, and strategic acquisitions in 2024.

• 2024 revenue declined 11.5% year-over-year to €3,456 million, with volumes down 1.3% but organic growth returning in Q4.

• Robust profitability maintained with adjusted EBITDA margin above 24% despite revenue and net income declines, supported by strong LatAm performance and disciplined cost control.

• Significant progress on ESG, including CO2 emissions reduction by 9.4% and increased use of recycled glass, with the commissioning of the first 100% electric furnace in Cognac.

• Board proposes a €1.70 per share dividend for 2024, subject to AGM approval.

Financial highlights

• FY 2024 revenue: €3,456 million, down 11.5% year-over-year; Q4 revenue: €821 million, down 1% year-over-year.

• Adjusted EBITDA: €842 million (24.4% margin), down 24% year-over-year; Q4 adjusted EBITDA: €201 million (24.5% margin).

• Net income: €239 million, down 49.8% year-over-year; EPS (excluding PPA): €2.38.

• Free cash flow: €82.6 million, down from €365.3 million in 2023, due to lower EBITDA and adverse capex working capital.

• Net debt: €1,797 million (2.1x adjusted EBITDA); liquidity €953 million at year-end.

Outlook and guidance

• 2025 expected to be a year of normalization with continued market uncertainties and soft European demand.

• Guidance for 2025: adjusted EBITDA close to 2024 level; free cash flow generation targeted at ~€200 million, more than double 2024.

• CapEx to normalize around 9% of sales; focus on free cash flow generation.

• Slight demand increase expected in Europe, strong demand in Latin America; negative price-cost spread mainly in H1 2025.

• Capital Markets Day planned for September 2025 to present new mid-term roadmap.