In This Article:
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Revenue: EUR1,588.3 million, reflecting a 0.2% increase at constant currency and comparable scope.
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EBITDA: EUR454 million, with an organic increase of 10.5% and reported growth of 15.6%.
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EBITDA Margin: 28.6%, expanding by 330 basis points compared to last year.
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Net Income: EPS of EUR8.85, affected by a EUR50 million capital gain from the sale of Italian operations.
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Net Debt: EUR248 million, with a leverage ratio of 0.6 times annual EBITDA.
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Free Cash Flow: EUR206 million, equivalent to 13% of sales.
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Volume Growth: Nearly 8%, offset by a negative price/mix effect.
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Vidrala SA (XMAD:VID) reported a revenue of almost EUR1.6 billion for 2024, with an EBITDA of EUR454 million, reflecting a strong financial performance.
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The company achieved an EBITDA margin of 28.6%, expanding by 330 basis points compared to the previous year.
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Free cash flow generation stood at 13% of sales, equivalent to EUR206 million, highlighting strong cash flow management.
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Net debt was significantly reduced to EUR248 million, with a leverage ratio of 0.6 times annual EBITDA, indicating a solid financial position.
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The strategic refocus on core regions, including divestment from Italy and expansion in Brazil, has strengthened Vidrala SA's market position.
Negative Points
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Total sales growth was modest at 0.2% at constant currency and comparable scope, with volume growth largely offset by a negative price/mix effect.
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The demand environment remains soft, with no significant signs of recovery, impacting volume growth potential.
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Price reductions in Iberia led to a modest decline in absolute figures year-on-year, despite resilient volumes.
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The company faces challenges from hyper-regulation in the UK and Europe, which could impact profitability.
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The competitive dynamics in Iberia are tough, with a need to maintain a disciplined approach to protect margins amidst a weak demand context.
Q & A Highlights
Q: Can you provide an update on demand trends and pricing discussions with customers? A: Raul Gomez Merino, CEO: The demand context is more stable compared to last year, with no significant recovery but also no further declines. We see minor signs of potential recovery in the consumer space. Pricing is largely determined by long-term agreements with strategic customers, and our prices are competitive. Utilization rates are slightly above 90%, indicating modest improvement in demand.