The following is a summary of the Vidrala, S.A. (VDRFF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Vidrala S.A. reported Q1 2024 revenues of €419 million and EBITDA of €110 million, a -4.7% organic YoY variation.
Earnings per share (EPS) of €1.64.
A net debt of €530 million was reported, equivalent to a leverage ratio of 1.2x debt pro-forma EBITDA.The EBITDA margin was 26.2%, a fall from 26.6% of the previous year.
They forecast an EBITDA value above EUR 450 million and an annual free cash flow generation of over EUR 180 million for 2024.
Business Progress:
Vidrala's growth was driven by a 1.4% increase (at constant currency and comparable scope), primarily offset by a -9% price mix effect.
Varied performance across the three business units: Iberia negatively impacted by price adaptations and lower production; U.K. showing high performance supported by new demand for glass containers; Brazil displayed positive effects from expansion operations.
Vidrala plans a high level of organic capital expenditure for the future along with its free cash flow guidance above EUR 180 million.
Expansion of facilities in Brazil, UK, and Ireland through organic growth prospects and M&A activities is expected.
Despite negative price mix effect due to deflationary trends, Vidrala maintains its 2024 EBITDA guidance of EUR 450 million.
Vidrala is catering to the premium beer brand market where demand is increasing and plans on deploying solar photovoltaic units in some locations as part of sustainable initiatives.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
