Analysis before buying or selling Verallia shares

If you are considering investing in Verallia's French share price, we recommend that you take the time to get to know this company well. To help you do so, we have devoted this article to this stock on the market and you will find complete information about Verallia, its activities and its sources of profit, but also its main competitors or partners on the market and some general stock market information. We will also show you how to perform a fundamental analysis of this stock in the best possible way and the advantages and disadvantages of this stock.

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Elements to consider before selling or buying Verallia shares

Analysis N°1

Firstly, we will have to follow with interest the various strategies implemented by the group to boost its growth and which are currently aimed at industrial and logistical performance as well as an increase in the margin and distribution rate.

Analysis N°2

The innovations carried out by the group will also be important and we will closely follow the developments carried out by the 13 research and development centres, particularly in the field of artificial intelligence.

Analysis N°3

The partnerships established by Verallia, particularly with its customers but also with other companies, may have an influence on its profitability and future growth. The implementation of this type of contract should be monitored.

Analysis N°4

We must also keep an eye on the various acquisitions that the group may make in both Europe and Latin America and that are planned in the operational plan for the coming years.

Analysis N°5

The group's environmental strategy may also be of interest to you and aims to reduce CO2 emissions by 27.5% by 2030. It will require investments of more than 220 million euros.

Analysis N°6

Of course, we will have to keep an eye on the group's main competitors, which are few in number but large and likely to take market share.

Analysis N°7

Finally, annual and quarterly financial results should be closely monitored against analyst expectations and targets.

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General presentation of Verallia

We now propose to tell you more about Verallia and its activities to help you better understand its sector and the segments in which it operates and how it generates profits.

Verallia SA is a French company specializing in the field of containers and packaging. More specifically, the company is currently the European leader in the field of glass packaging for beverages and food products. It is also number 3 in the world.

The products developed, manufactured and marketed by Verallia can be divided into three main categories:

  • Bottles for still wines
  • Bottles for sparkling wines
  • Bottles for spirits
  • Bottles for beer
  • Jars and bottles for food products

In addition to its traditional products, the Verallia Group has also developed two specific product brands with the Ecova brand, which is a range of eco-responsible products that are lighter in weight during manufacturing to reduce the consumption of raw materials, and the Selective Line brand, which is a series of high-end products.

Recently, the Verallia Group produced nearly 16 billion glass bottles and jars each year.

It is also interesting to know the geographic distribution of Verallia's revenues and sales. Verallia generates 68.8% of its sales in Southern and Western Europe, 21.9% in Northern and Eastern Europe and 9.3% in Latin America.

Analysis before buying or selling Verallia shares
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The major competitors of Verallia

Let's find out what type of competition the Verallia Group faces. In Europe, there are three major competitors of the group and we propose that you discover here a summary of their presentation and their activities.

Vidrala SA

This Spanish company is specialized in the glass industry. It is active in two sectors

Vetropack Holding SA

This other competitor of Verallia is a holding company based in Switzerland that produces glass packaging for the food and beverage industry. The group offers services including the design, production and delivery of custom-made glass and consulting and support services in the field of packaging analysis, bottling, packaging, closure technology, decorative refinement and labeling. Vetropack also operates 7 production sites and 16 melting furnaces with a total daily production capacity of 4,000 tons. It operates collection centres at its production site to recycle used glass. The group operates in Canada, Austria, Czech Republic, Slovakia, Croatia and Ukraine and employs approximately 3,882 people.

Zignago Vetro

Finally, this Italian company is also specialized in the production of glass. Its business sectors are divided into 5 main operating units with the Zignago Vetro unit producing glass containers for food and beverages and for cosmetics and perfumery, Verreries Brosse SAS producing glass containers for perfumes and Vetri Speciali producing special containers for wine, vinegar and olive oil. Finally, the HSC SA unit is dedicated to the production of customised products for cosmetic and perfumery containers and for the niche food and beverage markets. Another unit, Vetreco Srl, is engaged in the transformation of raw glass into finished material ready for use by glassmakers. The group currently employs around 1,691 people.

The major partners of Verallia

While the Verallia Group has major rivals in its industry, it also relies on strategic partnerships with other companies to boost its growth and competitiveness. Here are two concrete examples of this type of strategic alliance:

Fleury Michon

First of all, in 2021, the Group signed a partnership with Fleury Michon, which wants to continue its commitment to reducing the impact of its packaging by favoring recyclable and reusable materials. It has launched a new alternative to stoneware dishes with the glass dish, an innovation from Verallia. Based on the success of its wooden trays, Fleury Michon wants to offer new alternatives to its customers and has therefore set up this collaboration with Verallia to offer recyclable glass packaging.

PUR Project

Another recent partnership was signed between Verallia and PUR Project to strengthen the group's environmental strategy. This is a carbon offset program to plant more than 500,000 trees. As Verallia has been committed to reducing its environmental footprint for many years, the contract signed with PUR Project focuses on two different programs

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Positive factors for Verallia shares
The factors in favour of a rise in the Verallia share price:

Let's now discover Verallia's main strengths and weaknesses in its sector, starting with its major advantages:

  • First of all, the group enjoys a leading position in Europe and is number three worldwide in its sector.
  • The balance of its end-customer portfolio is another asset that allows it to limit the risks of exposure to a single segment.
  • The group's balance sheet is another strong point for Verallia, as it currently shows more than €1 billion in cash and a debt leverage that has been reduced to 2.2.
Negative factors for Verallia shares
The factors in favour of a drop in the Verallia share price:

In return for these advantages, the Verallia Group also has a few weaknesses that you should be aware of, the main ones being

  • First of all, currency exchange rates often have a negative impact on sales in terms of profitability.
  • It is also regrettable that the company's stock market valuation has been impacted by successive entries and exits of this company from the SBF 120 index.
  • Lastly, the group has lost the quality of its brand image recently due to the reorganization of its French production sites with job cuts.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What are the different subsidiaries owned and operated by the Verallia Group?

The Verallia Group operates throughout Europe and elsewhere in the world through its various subsidiaries. Among the companies that are part of the Verallia group are Accuramech, Everglass, Saga Decor, SAR, Vetreco, La Société Charentaise de Décor, Les établissements Salomon, TBE, VOA, Ecoglass, Silver, Verallia Polska and Tecnomoldes.

When and how was Verallia created?

Verallia became independent at the end of 2007. The Saint Gobain group, of which it was a part, reorganized itself by separating the hollow glass business from the other glass activities. The group sold its bottle-making activities and renamed the packaging division Verallia in 2010. In 2011, Saint-Gobain sold the North American part of Verallia to Ardagh and the rest in 2015 to the Apollo Global Management fund and BPI.

How is the Verallia Group's shareholder base distributed?

Currently, the capital of the Verallia group is divided among several major private shareholders, including Horizon Parent Holdings with 55.3% of the shares, BW Gestao de Investimentos with 8.60%, BpiFrance Participations with 7.48%, Amundi Asset Management with 2.55%, MainFirst Bank with 2.09%, Norges Bank Investment Management with 1.45%, JPMorgan Asset Management with 0.80%, T-Rowe Price Associates with 1% and Oddo BHF Asset Management with 0.12%.

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