Verallia tracks best day in 15 months on 'strong' H1, outlook hike

Verallia SA

26/07/2023 08:23

** Verallia  VRLA.PA  shares jump 10.1% after the French
glass packaging producer posted better-than-expected H1 results
and guidance hike
    ** The shares are heading for their biggest single-day gain
in 15 months     
    ** Its H1 revenue rises to 2.14 billion euros  ($2.37
billion), adj EBITDA to 659.0 million euros
    ** On the back of the results, the company also hikes its
adj. EBITDA guidance for the year to 1.10-1.25 billion euros
    ** "Sales came 5% above consensus thanks to better pricing
(+28% in Q2) and despite weak volumes (-4%, a bit better than
Q1)," BNP Paribas Exane says 
    ** It raises its rating to "outperform" from "neutral",
pointing to "better" cost control and the company's ability to
maximise price/cost spread as the main surprise
    ** BNP expects Verallia to achieve margin targets despite
inflationary pressures 
    ** Credit Suisse attributes Verallia's revenue growth to
very strong product mix and strong prices offsetting lower
volumes
    ** "We see a positive reaction to another strong beat and
raised adj. EBITDA guidance, mid-point 12% ahead of consensus" -
CS
    
($1 = 0.9038 euros)

 (Reporting by Laura Lenkiewicz)
 ((Laura.lenkiewicz@thomsonreuters.com))