Verallia Reports Sharp Decline in Operating Profitability for 2025
Verallia (-5.97% at 19.05 euros) is among the biggest losers on the SBF 120 following the release of its disappointing 2025 results. The glass packaging producer for beverages and food products posted a significant contraction in profitability over this period.
Net profit for 2025 stands at 93 million euros, translating to EPS of 0.77 EUR, down from 239 million euros or 2.01 EUR in 2024. This decline is mainly attributable to the contraction in adjusted EBITDA as well as the exceptional impact of asset impairments in Germany and England (-27 million euros non-cash, net of tax, or -0.23 EUR per share). The consensus had expected 165 million euros.
The glass packaging manufacturer's adjusted EBITDA came in at 692 million euros, representing a margin of 20.8% (compared to 24.4% in 2024). The market had anticipated 711 million euros. Revenue for 2025 was 3.331 billion euros, down 3.6% from 2024 due to a negative price effect. Expectations were for 3.426 billion euros.
Nevertheless, demand for the group's products remained solid in a persistently sluggish market marked by slow consumption. Volumes posted moderate but steady organic growth, with positive progression each quarter. This momentum was mainly driven by food jars and non-alcoholic beverages, which showed the strongest growth following a mixed 2024. All segments are up except for sparkling wines.
Free cash flow doubled to 166 million euros, exceeding the revised target of around 150 million euros.
Operating cash flow fell to 374 million euros compared to 399 million euros in 2024. "Efforts to control capital expenditure, however, are not enough to offset the decline in adjusted EBITDA and the increase in working capital requirements, mainly due to higher inventories," Verallia noted.
At the end of December 2025, Verallia's net financial debt reached 1.861 billion euros, up 63 million euros from 2024. The net debt ratio thus stands at 2.7x adjusted EBITDA for 2025, compared to 2.1x at the end of December 2024.
2026: Increase Expected in Adjusted EBITDA and Free Cash Flow
Following the annual release, the board of directors decided to propose a dividend payment of 1 EUR per share for the 2025 financial year, with an option for each shareholder to receive this dividend in cash or in new shares.
Based on current anticipated market conditions, Verallia is targeting adjusted EBITDA of around 700 million euros and free cash flow of around 220 million euros in 2026, excluding the impact of disbursements related to planned restructuring measures.
"Our priority in 2026 is to continue strengthening the group's competitiveness and financial structure in a still challenging environment. The planned measures to adapt our production capacity and the increased ambition of our Performance Improvement Plan (PAP) will reinforce our competitiveness. Furthermore, the commitment by BWGI and BPI France to receive their dividend in shares will help improve the group's debt ratio," said Patrice Lucas, CEO of Verallia.
Verallia is the world's third largest producer and the leading European producer of glass packaging for beverages and food products.
In 2025, the group produced nearly 18 billion glass bottles and jars.
At the end of 2025, the group has 35 glass production plants, 6 decoration plants and 19 cullet (used glass) treatment centres worldwide.
Net sales are distributed geographically as follows: France (24.1%), Italy (23.6%), Spain (15.8%), Germany (11.6%), Brazil (6.4%) and other (18.5%).
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