Capital Markets Day 2021: Reaching Its Previous Mid-term Objectives One Year in Advance, Verallia Sets New Ambitious Goals With Its 2022-2024 Strategic Roadmap
07 Oktober 2021 - 2:00PM
Business Wire
Regulatory News:
Verallia (Paris:VRLA), the leading European and third-largest
global producer of glass containers for food and beverages, is
hosting today at 2.00pm CET its virtual Capital Markets Day to
announce its updated strategic roadmap with new objectives running
into 2024. The new plan, which includes ambitious environmental and
financial goals, will be presented by Group Chairman and CEO Michel
Giannuzzi and other members of the Executive Committee.
Having weathered the COVID-19 crisis and delivered a strong
financial and industrial performance since its 2019 IPO, Verallia
is opening a new chapter that builds on its successful last
strategic plan. This roadmap comprises four key pillars:
- Pursue disciplined growth: Improving customer experience
to grow the business; achieving a positive inflation spread; and
seeking actively value-accretive acquisitions or new
greenfield/brownfield projects.
- Increase operational excellence: Addressing unsafe
behaviors to achieve zero accident; ongoing implementation of
Performance Action Plans to reduce production cash cost by more
than 2% annually; and deploying Verallia Industrial Management
system.
- Invest wisely for a sustainable future: Improving
working conditions; reducing CO2 emissions and energy consumption;
increasing Process Control by leveraging Data Analytics and
Artificial Intelligence.
- Anchor a strong entrepreneurial culture: Strengthening
Corporate Purpose and Values across the organization; increasing
accountability, speed and agility; improving learning ability; and
reinforcing the talent pool with increased diversity.
Verallia Chairman and CEO Michel Giannuzzi said:
“Verallia can benefit from significant market opportunities
including premiumization and plastic substitution that both favour
glass, in a growing demand environment, and market consolidation
prospects. Benefiting from strong leadership positions with a large
and diversified customer base in its own key markets and
geographies, Verallia is perfectly positioned to capture these
opportunities. To this end, we have updated our strategy that
combines the constant pursuit of disciplined growth and operational
excellence with increased investment in sustainability and the
reinforcement of our already strong entrepreneurial culture.
Reflecting our determination to make Verallia a leader in its
industry, we have also upgraded our environmental commitments to
reach carbon neutrality and contribute meaningfully to the
limitation of global warming.”
Responding to the environmental challenges the planet is facing
and changing consumption patterns, Verallia unveiled in October
2020 its purpose to "re-imagine glass for a sustainable
future" and set out its ESG roadmap in January 2021,
with several important targets. Today Verallia takes the further
step of setting new ambitious goals aligned with the objective of
limiting global warming to 1.5°C set by the Science Based
Targets Initiative (SBTi):
- 46% reduction by 2030 of Scope 1 & 2 emissions in
absolute terms (base year 2019)1
- Scope 3 emissions maintained below 40%of total emissions
in 2030
- Net Zero in 2050 for Scope 1 & 2 emissions
The Group has also set new Mid-term Financial targets for the
years 2022-2024:
2022-2023-2024
Assumptions
Organic Sales Growth2
+4-6% CAGR
- From ca half volume and half price/mix
- Moderate inflation in raw material and energy costs after
2022
Adj. EBITDA margin
28%-30% in 2024
- Positive price/cost spread
- Net PAP > 2% of production cash cost (i.e. > €35m per
annum)
Cum. Free Cash Flow3
ca €900m over 3 years
- Recurring and strategic Capex @ ca 10% of sales,
- including CO2-related capex and 3 new furnaces by 2024
Earnings per Share
(excl. PPA4)
ca €3 in 2024
- Average cost of financing (pre-tax) @ ca 2%
- Effective tax rate @ ca 27%
Shareholder Return
Policy
Dividend / share growth > 10%
per annum +
Accretive share buy-backs
- Net income growth > 10% per annum
- Investment grade trajectory (leverage < 2x)
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 new, healthy and sustainable solutions for all. With around
10,000 employees and 32 glass production facilities in 11
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 around the world. In 2020, Verallia
produced more than 16 billion glass bottles and jars and posted
revenue of €2.5 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: SBF 120,
CAC Mid 60, CAC Mid & Small et CAC All-Tradable. For more
information, visit www.verallia.com Follow us on LinkedIn , Twitter
, Facebook and YouTube
***
Verallia will hold today at 2:00 p.m. CET a virtual investor and
analyst conference. Live webcast link:
https://channel.royalcast.com/landingpage/verallia/20211007_1/ The
presentation will be available on www.verallia.com at the end of
the event.
Disclaimer
Certain information included in this press release does not
constitute historical data but constitutes forward-looking
statements. These forward-looking statements are based on current
beliefs, expectations and assumptions, including, without
limitation, assumptions regarding Verallia's present and future
business strategies and the economic environment in which Verallia
operates, and involve known and unknown risks, uncertainties and
other factors, which may cause actual results, performance or
achievements, or industry results or other events, to be materially
different from those expressed or implied by these forward-looking
statements. These risks and uncertainties include those discussed
and identified in Chapter 3 “Risk Factors” in the Universal
Registration Document approved by the AMF, available on the
Company’s website (www.verallia.com) and the AMF’s website
(www.amf-france.org). These forward-looking information and
statements are not guarantees of future performances.
This press release includes only summary information and does
not purport to be comprehensive.
1 Target to be validated by SBT initiative. 2 At constant FX and
excluding changes in perimeter. 3 Defined as the Operating Cash
Flow - Other operating impact - Interest paid & other financing
costs - Cash Tax. 4 Earnings excl. amortization expense for
customer relations (PPA) recognized upon the acquisition from
Saint-Gobain, of ca €0.38 / share (net of taxes).
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version on businesswire.com: https://www.businesswire.com/news/home/20211007005467/en/
Media contacts Brunswick
- Benoit Grange, Hugues Boëton, Tristan Roquet Montegon
verallia@brunswickgroup.com - +33 1 53 96 83 83
Verallia Investor Relations
contact Alexandra Baubigeat Boucheron -
alexandra.baubigeat-boucheron@verallia.com
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