(Boursier.com) — Verallia rose by 3.5% to 34.40 euros, while the 2023 annual turnover of the glass group amounted to 3.904 billion euros, showing an increase in published data of +16.5% compared to last year. At constant exchange rates and scope, turnover increased by +21.4% over the year (+14.3% excluding Argentina). In the 4th quarter alone, turnover was stable (-0.6% vs Q4 2022) with strong organic growth of +18.1% entirely offset by the currency effect (Argentine peso).
Adjusted Ebitda increased by +28% in 2023 (+32.5% at constant exchange rates and scope) to exceed the one billion euro mark for the first time in the Group’s history, and reach €1.108 billion. . The adjusted Ebitda margin increased to +28.4% (+25.8% in 2022).
The increase in net profit at 475 ME (i.e. 4.02 euros per share) mainly results from the improvement in adjusted Ebitda, which more than offsets the increase in financial costs and income tax. The 2023 net result includes, as every year, an amortization charge for customer relationships, noted during the acquisition of the Saint-Gobain packaging activity in 2015 and which will expire in 2027, of 45 ME and 0.38 euros per share (amount net of taxes). Excluding this charge, the net result would be 520 ME and 4.40 euros per share. This charge was 44 ME and 0.38 euros per share in 2022.
A dividend of 2.15 euros per share
The investment expenses recorded amounted to 418 ME (i.e. 10.7% of total turnover), compared to 367 ME in 2022. These investments are made up of 234 ME of recurring investments (270 ME in 2022) and 184 ME of strategic investments (97 ME in 2022).
The cash flow from operations is up at 582 ME compared to 538 ME in 2022. The free cash flow amounts to 365 ME, in line with an already very strong year 2022 (364 ME).
The Group benefits from liquidity of €866 million as of December 31, 2023 and has no significant maturity before 2027.
Quoting…
The Board of Directors of Verallia has decided to propose the payment of a dividend of 2.15 euros per share in cash for the 2023 financial year.
Perspectives displayed
After a year 2023 marked by a sharp decline in demand in Europe, under the combined effect of a drop in final consumption and destocking downstream of the value chain, Verallia forecasts a gradual recovery in activity during 2024 In this context and despite limited visibility, Verallia has set itself the objective of achieving an adjusted EBITDA of around E1 billion in 2024 with a result lower than 2023 in the first half (high 2023 basis of comparison) and higher in the second ( rebound in volumes). This objective will be achieved thanks to the expected increase in activity, combined with a new annual reduction in cash production costs (PAP) of 2%.
Among the latest broker opinions, Citigroup is buying Verallia but with a slider lowered from 51 to 49 euros.