Verallia Société Anonyme (VRLA.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Verallia Société Anonyme produces and sells glass packaging products for beverages and food industry worldwide.It provides bottles and jars for still and sparkling wines, spirits, food products, beers, soft drinks, and mineral water.The company was founded in 1827 and is headquartered in Courbevoie, France.

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1.b. Last Insights on VRLA

Verallia Société Anonyme faces challenges, including a revenue decline and strategic restructuring in Europe. The company is adapting its industrial footprint amid slowing demand, assessing site closures and production adjustments in Germany, France, and the UK. A furnace shutdown in Yorkshire may result in around 40 job losses. Despite doubling free cash flow, Verallia's Q4 2025 earnings call highlights challenges. The company advances decarbonization efforts, but faces new dynamics in glass packaging demand, prompting a review of European sites.

1.c. Company Highlights

Last Price	18.62
Change Percentage	-0.59%
Open	18.7
Previous Close	18.73
Market Cap ( Millions)	2194
Volume	43483
Year High	29.92
Year Low	18.41
M A 50	22.1
M A 200	24.56

FCF Yield	11.56%
Dividend Yield	9.13%
ROE	10.50%
Debt / Equity	258.85%
Net Debt / EBIDTA	243.78%
Price To Book	2.5
Price Earnings Ratio	24.12
Price To FCF	8.65
Price To sales	0.66
EV / EBITDA	5.3

2. Transcript Summary

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3. NewsRoom

Verallia Cuts 2025 Dividend As Undervalued Shares Face Weak Momentum

Mar -03

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Verallia (WBO:VRLA) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Feb -25

Source:

Verallia - 2025 Annual Results: Organic Volume Growth, Free Cash Flow Generation up Twofold

Feb -24

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Verallia initiates review of European sites amid demand slowdown

Feb -18

Source:

Verallia is Considering Adapting Its Industrial Footprint in Europe to Respond to New Dynamics in Glass Packaging Demand

Feb -17

Source:

Verallia UK to cut jobs as Yorkshire furnace shuts down

Feb -16

Source:

Italian competition watchdog clears Verallia of collusion charges

Jan -09

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Half-yearly report on Verallia liquidity agreement

Jan -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.77%)

6. Segments

Still Wines

Expected Growth: 9%

Verallia Société Anonyme's 9% growth in Still Wines is driven by increasing demand for premiumization, rising popularity of wine-based cocktails, and expanding distribution channels in emerging markets. Additionally, the company's focus on sustainable packaging and eco-friendly practices resonates with environmentally conscious consumers, contributing to its growth momentum.

Food

Expected Growth: 8%

Verallia Société Anonyme's 8% growth in the Food segment is driven by increasing demand for sustainable and eco-friendly packaging, expansion into emerging markets, and strategic partnerships with major food and beverage companies. Additionally, the company's focus on innovation, such as the development of lightweight and recyclable glass packaging, has contributed to its growth.

Spirits

Expected Growth: 10%

Verallia Société Anonyme's 10% growth in Spirits is driven by increasing demand for premiumization, craft spirits, and e-commerce sales. Additionally, the company's strategic expansion into emerging markets, innovative packaging solutions, and partnerships with major spirits brands contribute to its growth momentum.

Sparkling Wines

Expected Growth: 12%

Verallia Société Anonyme's 12% growth in Sparkling Wines is driven by increasing demand for premiumization, rising popularity of champagne and prosecco, expansion in emerging markets, and strategic partnerships with wine producers. Additionally, innovative packaging and sustainable practices contribute to the segment's growth.

Beers

Expected Growth: 7%

Verallia Société Anonyme's 7% growth in beer packaging is driven by increasing demand for craft beer, premiumization, and sustainability. Rising consumption in emerging markets, particularly in Latin America and Asia, also contributes to growth. Additionally, the company's focus on innovative packaging solutions, such as lightweight bottles and eco-friendly designs, appeals to environmentally conscious consumers.

Soft Drinks

Expected Growth: 6%

The 6% growth of Soft Drinks from Verallia Société Anonyme is driven by increasing health consciousness, premiumization, and sustainability trends. Consumers are opting for low-calorie and natural ingredients, boosting demand for specialty glass packaging. Additionally, the rise of e-commerce and at-home consumption is fueling growth in the soft drinks market.

Others

Expected Growth: 8%

Verallia Société Anonyme's 8% growth is driven by increasing demand for sustainable packaging, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, cost savings initiatives, and strong relationships with key customers contribute to its growth momentum.

7. Detailed Products

Glass Packaging for Food and Beverages

Verallia offers a wide range of glass packaging solutions for food and beverages, including jars, bottles, and containers for products such as jams, honey, sauces, and beverages.

Glass Packaging for Pharmaceuticals and Cosmetics

Verallia provides specialized glass packaging solutions for pharmaceuticals and cosmetics, including vials, ampoules, and jars for storing and dispensing medications and personal care products.

Glass Packaging for Perfumery and Luxury Goods

Verallia offers premium glass packaging solutions for perfumery and luxury goods, including bespoke bottles and containers for high-end fragrances and cosmetics.

Glass Packaging for Wine and Spirits

Verallia provides a range of glass packaging solutions for wine and spirits, including bottles and containers for wine, champagne, and spirits.

Glass Packaging for Dairy and Baby Food

Verallia offers specialized glass packaging solutions for dairy and baby food products, including jars and containers for yogurt, milk, and baby food.

8. Verallia Société Anonyme's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Verallia Société Anonyme is moderate due to the presence of alternative packaging solutions, but the company's focus on sustainable and innovative products helps to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is relatively low due to Verallia's strong relationships with its clients and the customized nature of its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the company's dependence on raw materials, but Verallia's diversified supplier base and long-term contracts help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is relatively low due to the high barriers to entry in the glass packaging industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in the glass packaging industry is high due to the presence of established competitors and the need for continuous innovation to stay competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	66.44%
Debt Cost	6.66%
Equity Weight	33.56%
Equity Cost	8.96%
WACC	7.43%
Leverage	197.98%

11. Quality Control: Verallia Société Anonyme passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Vidrala

A-Score: 5.9/10

Value: 5.6

Growth: 7.4

Quality: 7.2

Yield: 3.8

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

Verallia

A-Score: 5.6/10

Value: 6.2

Growth: 5.3

Quality: 3.8

Yield: 8.8

Momentum: 3.0

Volatility: 6.3

1-Year Total Return ->

Viscofan

A-Score: 5.5/10

Value: 4.4

Growth: 5.1

Quality: 7.3

Yield: 6.2

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

Huhtamaki

A-Score: 5.2/10

Value: 6.1

Growth: 4.9

Quality: 4.1

Yield: 5.6

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

DS Smith

A-Score: 4.9/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 3.8

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Smurfit Kappa

A-Score: 3.2/10

Value: 2.2

Growth: 3.7

Quality: 3.0

Yield: 3.1

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.59%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.43%

Verallia Société Anonyme - FR0013447729

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on VRLA

1.c. Company Highlights

Higher Yield

Medium Volatility

Average Quality

Revenues Beats

Stable Momentum

Fairly Valued

Average Growth

Weak Momentum

Less Volatile

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.77%)

6. Segments

Still Wines

Expected Growth: 9%

Food

Expected Growth: 8%

Spirits

Expected Growth: 10%

Sparkling Wines

Expected Growth: 12%

Beers

Expected Growth: 7%

Soft Drinks

Expected Growth: 6%

Others

Expected Growth: 8%

7. Detailed Products

Glass Packaging for Food and Beverages

Glass Packaging for Pharmaceuticals and Cosmetics

Glass Packaging for Perfumery and Luxury Goods

Glass Packaging for Wine and Spirits

Glass Packaging for Dairy and Baby Food

8. Verallia Société Anonyme's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Verallia Société Anonyme passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.62$

Current Price

18.62$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA