Q3 2024 Vidrala SA Earnings Call Transcript
Key Points
- Vidrala SA (FRA:VIR) reported revenues above EUR1.2 billion for the first nine months of 2024, indicating a stable financial performance.
- The company achieved an EBITDA of almost EUR338 million, reflecting a 7% year-on-year increase and an expansion of operating margins by 140 basis points.
- Free cash flow generation is close to 13% of sales, with expectations to exceed EUR180 million for the full year, marking a record level for the company.
- The UK market is performing well, driven by the integration of the filling business and improved glass volume performance.
- Vidrala SA (FRA:VIR) maintains a strong balance sheet with a net debt of EUR299 million and a leverage ratio of 0.7 times net pro forma EBITDA.
- The company experienced a negative price mix effect, which nearly offset the 9% volume increase.
- Demand in Europe, particularly in mature markets like Iberia, remains weak, with a significant drop over the last two years.
- EBITDA performance is weaker due to price adjustments and a soft demand context, although improvements are expected in Q4.
- There is no immediate plan to increase capacity in Brazil despite running at full capacity, indicating potential limitations in meeting future demand.
- The company is forced to adapt capacity in Continental Europe due to a significant drop in demand, running at 85% capacity utilization.
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Good morning, everyone, and thank you for the time to join this call. As previously announced, Vidrala has released its 2024 third quarter results earlier today, and we have also published a results presentation that will serve as the supporting material for this conference call. In line with the presentation, we will begin by briefly reviewing the key figures disclosed today, and then we will dedicate ample time to discussing business performance in the Q&A session.
So starting with the main magnitudes in the first nine months of 2024, we achieved as most relevant business figures, revenues above EUR1.2 billion, an EBITDA of almost EUR338 million and a net income equivalent to an EPS of EUR7.22. Net debt at the end of the period stood at EUR299 million, which is equivalent to a leverage ratio of 0.7 times net pro forma EBITDA, which considers the contribution of the last 12 months from Vidroporto.
Moving to slide 4. We look at the top line performance by analyzing the annual revenue variation categorized by
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