The color of anew memory
Vidrala has expanded its range of bottles manufactured in Spain with a new color, the dead leaf color, becoming the only national glassmaker that manufactures it.
Annual
Report 2023
About us
Vidrala is a consumer packaging company. We make glass containers for food and beverages products and offer a wide range of packaging services that include logistic solutions and beverages filling activities.
Chairman's letter
2023 was a year in which Vidrala overcame adversity to reaffirm the strength of our company.
Chairman's
letter
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
More than 50 years
Our history
Since 1965, the Vidrala Group has been working to incorporate the latest technological developments into the production of packaging so that it can contribute to society.
Geographical footprint
Vidrala has consolidated its position as the supplier of reference in the packaging industry.
1
AIALA VIDRIO
Llodio, Spain
2
CRISNOVA VIDRIO
Caudete, Spain
3
CASTELLAR VIDRIO
Castellar del Vallès, Spain
4
GALLO VIDRO
Marinha Grande, Portugal
5
SB VIDROS
Marinha Grande, Portugal
6
ENCIRC DERRYLIN
Fermanagh, Northern Ireland
7
ENCIRC ELTON
Elton Cheshire, England
8
BRISTOL BEVERAGES
Bristol, England
9
VIDROPORTOPORTO FERREIRA
São Paulo, Brazil
10
VIDROPORTO ESTÂNCIA
Sergipe, Brazil
Vidrala in numbers
2023 main figures
8
Manufacturing sites
21
Furnaces
2
Filling facilities
> 8,000
Billion containers
> 4,000
Employees
> 1,600
Customers
*Does not include the effect of the incorporation of Vidroporto, whose results are consolidated since December 1, 2023.
The lightest bottlein the world
Vidrala presents the lightest wine bottle in the world at 300 mm in height. 360 grams of sustainability, freedom and balance that adapt to the new times.
Bordelesa Nova Lite 75 cl.
4P Sustainability strategy
Glass made good
At Vidrala, we believe that having a sustainable business model has a direct impact on our social, environmental, and economic positioning. Therefore, for many years now, sustainability has been at the core of our operations. Sustainability may be a broad concept. But for Vidrala, everything we do - from the way we manufacture our glass containers to the transportation methods we choose, including how we act as individuals - is linked to our four pillars as a responsible company: Prosperity, People, Planet and Populations.
Recycling
Raw materials
Melting
Forming
Annealing lehr
Quality control
Packaging and expedition
Consumption
Planet
The perfect packaging for the circular economy
Glass packaging is safe, healthy and iner. It guarantees the highest protection and the most optimal preservation conditions. More important, glass can be recycled once and again. It is the ultimate sustainable packaging.
Recycling
Containers have infinite lives. Glass is recycled following the same manufacturing process, which allows it to be handled over and over again without losing any of its properties and advantages.
Raw materials
The core ingredients of silica sand, soda ash, and recycled glass, are mixed into a precise batch formulation. More ingredients can be added to create different colours of glass.
Melting
The prepared batch travels along a conveyor belt to the furnace, which melts the raw materials at 1,600ºC for 24 hours. Now ready for forming, the melted glass is distributed to a forehearth, where it is conditioned and equalised into a uniform temperature.
Forming
Streams of melted glass enter a feeder and are pushed down a narrow tube by a plunger. As they emerge, mechanical shears cut them into gobs, before going to blank moulds in the forming machine to create partially shaped melted glass called ‘parisons’.
Annealing lehr
Loaded into the annealing lehr, the bottles are heated again and then cooled to room temperature, relieving internal stress and improving durability.
Quality control
Moving along to the automated inspection area, careful monitoring involves a comprehensive range of electronic, mechanical and manual checks to ensure bottles are of the highest quality, and any that don’t pass the test are returned for recycling.
Packaging and expedition
All the bottles are automatically packed into pallets and wrapped hermetically so they can be delivered to customers in the best condition.
Consumption
Glass as a lifestyle. We produce the best packaging for society and meet the demands of consumers to bring us a little closer to the world we want to live in.
Sustainable Development
Sustainable Development Goals
The SDGs complement the 4P strategy, ensuring their alignment with the UN’s plan to attain a better, fairer, and more sustainable future. Below, we highlight the most relevant goals in our strategy:
SDG9 Industry, Innovation and Infrastructure
To face the challenges of the future and making sure we have a resilient infrastructure for the future, we have invested in incorporating innovating manufacturing equipment and alternative energy solutions into our activity. Developing sustainable industrial processes and incorporating clean technologies, such as electrostatic precipitation systems, will contribute to ensuring our sustainability in the long term.
SDG 7 Affordable and Clean Energy
Accelerating the use of renewable energies is key to facing the climate crisis, especially in industries that consume a lot of energy, as is the case of glass containers manufacturing. Therefore, we are committed to incorporating renewable energies into our industrial processes and also to improving our energy efficiency.
SDG13 Climate Action
The impact of climate change is already being seen and will worsen if appropriate measures are not taken. Reducing our carbon footprint and minimising our climate impact are key for us. We have therefore invested in more energy-efficient furnaces, and also in switching to renewable energy sources to reduce our dependency on fossil fuels. We have also recently presented a goal in line with the ambition to limit global warming to levels below 1.5 ºC to be validated by the Science-based Targets initiative (SBTi).
SDG5 Gender Equality
Maximising gender equality opportunities in the manufacturing industry is an important goal. We are committed to driving the hiring, training, development and professional career of both women and men in manufacturing positions and believe that by doing so, we are a stronger and more resilient organisation.
SDG12 Responsible Consumption and Production
The efficient use of natural resources and investing in new technologies to improve our sustainable glass packaging production methods is key. We work with organisations to increase the quantity and quality of recycled glass. This reduces our demand for new natural resources, minimising waste and contributing to a more circular economy.
SDG8 Decent Work and Economic Growth
We recognise the importance of sustainable economic development and creating high-quality working conditions for our staff. We are committed to offering our employees satisfactory full-time job positions, with a set of employee benefits and we drive a healthy work-life balance.
SDG15 Life on Land
Protecting our planet is one of our company's key values. We try to preserve natural resources, where possible, and also to contribute to developing and promoting biodiversity.
SDG4 Quality Education
Providing quality education is key to creating a peaceful and prosperous world. Education offers people the knowledge and skills they need to stay healthy, get a job and promote tolerance.
49%
recycled glass incorporation rate
-4%
of carbon dioxide equivalent emissions (CO2e) per ton of melted glass
FY 2023 Results
Sales
1,558.8
EUR million
EBITDA
393.7
EUR million
EBITDA margin
25.3%
EBIT
289.8
EUR million
Net profit
233.4
EUR million
Dividend *
1.2621
EUR per share
Net debt
472.2
EUR million
Leverage
1.1x
net debt / EBITDA
* Cash dividends, including AGM attendance bonus
Market capitalization
EUR 3,026 million
as of December 31, 2023
Share Price
EUR 93.80
as of December 31, 2023
Sales
EBITDA
Share Price Performance
Comparative performance in percentage terms, base 2014
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