Letter from our chairman
Letter from our chairman
2023 was a year in which Vidrala overcame adversity to reaffirm the strength of our company.
Chairman's
letter
2023 was a year in which Vidrala overcame adversity to reaffirm the strength of our company.
Chairman's
letter
Dear shareholders,
Once again, it is an honor to address you to look over the achievements made during the year 2023. Despite the challenges we faced due to a more moderate demand environment, business margins recovered, profits grew, and cash generation reached expected levels.
Thus, sales exceeded EUR 1,558 million. Operating profit -EBITDA- amounted to EUR 393.7 million, equivalent to a margin of 25.3% over sales. Net profit increased by +53.5% compared to the previous year, reaching EUR 7.23 per share. Consequently, the Board of Directors has proposed an annual dividend of EUR 1.4455 per share, representing a 20% increase considering the effect of the recent bonus share issue.
More importantly, in the past year, we made significant progress in our strategic realignment plan. Since early 2023, our subsidiary in the United Kingdom integrated the beverages filling facilities and the logistic infrastructure previously operated by Accolade Wines in Bristol, known as The Park. This acquisition has further reinforced Encirc’s unparalleled fundamentals as the only company to offer a full 360 approach to the beverage supply chain.
Furthermore, at the end of 2023, we completed the purchase of Vidroporto, a renowned competitive Brazilian manufacturer of glass containers. This represents a very deliberate strategic move, diversifying the business towards a region that presents interesting growth opportunities and complements our more mature activity in Europe, the United Kingdom, and Ireland.
Finally -as evidence of our renewed strategic vision- at the beginning of 2024, we announced an agreement to sell the Italian subsidiary, a divestment that comes after deep reflection and will help us focus on core regions and crystallise the opportunity to materialise the value created in Italy.
In conclusion, our business is now stronger than ever, and we face the future with ambition and enthusiasm, aware of the importance of maintaining a healthy balance between financial discipline, shareholder remuneration, reinvestment in growth, and the sustainability of our operations. On behalf of the entire Vidrala team, I want to express my sincerest gratitude for your support and trust.
Carlos Delclaux
Chairman of Vidrala