Verallia is considering closing a furnace at its Essen, Germany site after a drop in glass demand.
The French container glass manufacturer reported a revenue drop of 17.6% compared to the same period last year.
The group said demand continued to increase but at a slower rate than first anticipated.
CEO Patrice Lucas told analysts that the destocking period, which had begun in early 2022 after the invasion of Ukraine, was lasting longer than expected.
In its latest financial note the group reported revenue of €1,765 million in H1 2024, 17.6% lower compared to H1 2023.
In Northern and Eastern Europe, half-year volumes were considerably lower than last year, impacted in particular by the strong decline in Q1 and more generally by the weakness of beer and non-alcoholic beverages activity in Germany and the spirits sector in the UK.
As a result it may close one of three furnaces at its Essen glassworks in Germany and started discussions with the works council there earlier this year.
In Southern and Western Europe, volumes saw a slight sequential improvement during the half-year.
However, they remained down compared to H1 2023, with a sharp decline in non-alcoholic beverages, affected by unfavourable weather conditions (carbonated soft drinks, fruit juices).
In its outlook for the rest of the year it said: “After 2024 started in line with our expectations, recovery in demand was confirmed in the second quarter in most markets in which Verallia operates.
“This recovery is however slower than anticipated and we estimate that activity in the second half should continue to improve at a slower pace than we initially expected.”
01.08.2024, Verallia
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