Photo credit © Verallia
(Boursier.com) — Following the sharp devaluation of more than 50% of the Argentine peso on December 13, Verallia has updated its turnover forecasts for 2023 and estimates that the impact of converting its local turnover into euros will not allow it to achieve its annual growth objective of at least 20% of its turnover. business consolidated in 2023.
The Group is in fact required to apply the IAS 29 “Hyperinflation” standard to its activities in Argentina and must therefore convert in its 2023 accounts all of its local income statement for the year into euros on the basis of closing rate of the period and not, as is customary, on the basis of the average rate.
The prospect of Argentina’s contribution to 2023 consolidated turnover is therefore halved and this drop cannot be offset three weeks from the end of the financial year, despite the modest share that Argentina now represents, with approximately 2% of the Group’s turnover.
Verallia also confirms its objective of generating in 2023 an adjusted EBITDA 1 greater than 1.1 billion euros.
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