2025 third quarter results: continued volume growth but profitability down in a more difficult market than expected leading to an adjustment to 2025 outlook
HIGHLIGHTS
- Continued volume growth in Q3 in a context of declining consumption: revenue was €846 million (-2.8% compared to Q3 2024) due to lower prices and a deterioration in mix. Adjusted EBITDA[1] reached €181 million or a 21.3% margin, compared to €210 million and a 24.1% margin in Q3 2024
- Profitability down over 9 months: adjusted EBITDA stood at €531 million in 9M 2025, with a 20.7% margin compared to 24.3% in 9M 2024 as slower glass demand in August and September derailed the strong Q2 momentum
- Solid free cash flow generation in Q3, continuing the improvement already noted in H1. Net debt ratio was stable compared to June 30 at 2.6x last 12-month adjusted EBITDA
- Strengthened shareholding structure following BWGI’s tender offer, enabling the Group to continue deploying its long-term strategy
- Verallia’s Net Zero 2040 trajectory validated by the SBTi, making it the first global producer of food and beverage glass packaging to commit to this trajectory for 2040
- 2025 outlook revised down, with adjusted EBITDA now expected around €700 million (previously around €800 million) and free cash flow around €150 million (previously more than €200 million)
Patrice Lucas, Group Chief Executive Officer, said: “Verallia delivered continued organic volume growth in the third quarter. Volumes however fell short of our expectations following a sharp drop in consumption in August and September. Profitability declined after rebounding in Q2, with a still adverse mix. We remain focused on cost control and cash generation which continued to improve in Q3. Nevertheless, given the delay in market conditions recovery, we are revising our 2025 outlook while remaining confident in Verallia’s strong fundamentals.”
[1] Adjusted EBITDA is calculated based on operating profit adjusted for depreciation, amortisation and impairment, restructuring costs, acquisition and M&A costs, hyperinflationary effects, management share ownership plans, disposal related effects and subsidiary contingencies, site closure costs, and other items.