Following the Argentinian Peso Devaluation, Verallia Will Record Year-on-year Revenue Growth Below the Announced 20 % but Confirms Its Adjusted EBITDA Target of More Than €1.1 bn in 2023
December 19 2023 - 11:25AM
Business Wire
Regulatory News:
Following the sharp Argentinian peso devaluation of more than 50
% on December 13, Verallia (Paris:VRLA) has reviewed its 2023
revenue outlook and it now believes that the conversion impact of
its local turnover into euros will prevent it from reaching its
year-on-year consolidated revenue growth target of at least 20 % in
2023.
The Group is indeed required to apply the IAS 29
“Hyperinflation” accounting rule to is Argentinian activities and
thus has to convert its entire local income statement of the year
into euros in its 2023 accounts based on the period’s closing rate
rather than the customary average rate.
The projected contribution of Argentina to the Group’s 2023
revenue is therefore reduced by half and this decline cannot be
offset with only three weeks to go before year end, despite the now
minor share -around 2 %- of Argentina in the Group’s revenue.
Verallia confirms its 2023 adjusted EBITDA 1 target of more than
€1.1 billion.
About Verallia
At Verallia, our purpose is to re-imagine glass for a
sustainable future. We want to redefine how glass is produced,
reused and recycled, to make it the world’s most sustainable
packaging material. We are joining forces with our customers,
suppliers and other partners across the value chain to develop
beneficial and sustainable new solutions for all.
With around 10,000 employees and 34 glass production facilities
in 12 countries, we are the European leader and the world's
third-largest producer of glass packaging for beverages and food
products. We offer innovative, customised and environmentally
friendly solutions to over 10,000 businesses worldwide.
In 2022, Verallia produced more than 17 billion glass bottles
and jars and posted revenue of €3.4 billion. Verallia is listed on
compartment A of the regulated market of Euronext Paris (Ticker:
VRLA – ISIN: FR0013447729) and is included in the following
indices: CAC SBT 1.5°, STOXX600, SBF 120, CAC Mid 60, CAC Mid &
Small and CAC All-Tradable indices.
Disclaimer
Certain information included in this press release comprises not
historical facts but forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties, which may cause actual performance and results to be
materially different from those presented by these forward-looking
statements.
____________
1 Adjusted EBITDA is calculated based on operating profit (loss)
adjusted for depreciation, amortisation and impairment,
restructuring costs, acquisition and M&A costs,
hyperinflationary effects, management share ownership plans,
subsidiary disposal-related effects and contingencies, plant
closure costs and other items.
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Press contacts Annabel Fuder & Anne Mauvieux
verallia@wellcom.fr | +33 (0)1 46 34 60 60
Investor relation contacts David Placet |
david.placet@verallia.com
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