Verallia, the French glass-packaging manufacturer, has reported impressive first-half results, leading to an upgrade in its full-year earnings expectations. This news has caused a surge in the company’s shares, which were up 7.7% at EUR37.90 as of 0907 GMT.
During the first half of the year, Verallia saw a significant increase in net profit, rising to 310.8 million euros ($343.6 million) compared to EUR173.8 million in the same period last year. This growth can be attributed to a rise in revenue, which reached EUR2.14 billion, up from EUR1.64 billion.
Verallia attributes its success to a reduction in production cost inflation, allowing the company to lower prices in Europe during the second quarter. This move follows an earlier increase in prices at the beginning of the year.
In addition to strong financial performance, Verallia also experienced growth in other key areas. Adjusted earnings before interest taxes depreciation and amortization (Ebitda) for the second quarter increased from EUR242.8 million to EUR351.6 million. Furthermore, organic revenue saw a remarkable 23% growth.
As a result of these positive developments, Verallia has raised its adjusted Ebitda expectations for the full year to a range of EUR1 billion to EUR1.25 billion. This surpasses its previous estimate of EUR1 billion. The company also remains confident in its revenue growth forecast of over 20% and aims to reduce cash production costs by 2%.
With a strong start to the year and positive indicators for future expansion, Verallia continues to establish itself as a leader in the glass-packaging industry.