Verallia Valuation and Q1 Performance: Share Price Rebound, Revenue Trends, and 2026 Outlook Assessed

Verallia has reported first-quarter 2026 revenue of €798 million, a 2.4% decrease from the same period in 2025, while confirming its full-year outlook despite ongoing market pressures.

The decline in revenue was primarily driven by lower average selling prices, which fell compared to the prior year period, according to the company’s earnings release. At constant scope and exchange rates, the revenue decrease was 1.2%, indicating that currency and perimeter effects contributed to the wider gap in reported figures.

Despite the top-line pressure, Verallia improved its profitability during the quarter. Adjusted EBITDA rose 8% year-on-year to €159 million, lifting the margin to 19.9% from 18.0% in the first quarter of 2025. This gain reflects a 197 basis point improvement in operational efficiency, even as revenue declined.

The company attributed the margin expansion to cost discipline and favourable product mix shifts in certain regions. In Southern and Western Europe, volumes increased, supported by strong performance in beer and food jars, particularly in Italy following the startup of a new furnace in Pescia. Sparkling wine demand remained weaker in the region, though other segments contributed positively to results.

In Northern and Eastern Europe, volumes declined, mainly due to softness in Germany, although spirits recorded growth across the region and the UK returned to growth after several challenging quarters. Beer and soft drinks continued to underperform in line with recent trends.

Latin America saw flat volumes with strong spirits activity in Brazil — bolstered by the new furnace in Campo Bom — offsetting declines in beer and wine. In Argentina, business levels stabilised despite ongoing macroeconomic volatility, which the company described as still uncertain.

Net financial debt increased slightly to €1.89 billion at the end of March 2026, up from €1.82 billion a year earlier. However, the net debt ratio remained stable at 2.7 times adjusted EBITDA over the last 12 months, unchanged from the end of December 2025 and consistent with the company’s leverage profile.

Verallia confirmed that it maintains its 2026 outlook, citing resilience in core markets and progress on decarbonisation initiatives. The company noted, however, that uncertainty remains elevated due to the ongoing conflict in the Middle East, which could affect energy costs and supply chains.

The results reflect a mixed performance across geographies, with pricing pressures offset by volume gains in key markets and operational improvements. While revenue contraction persists due to softer selling prices, the company’s ability to expand margins and stabilise debt levels underscores ongoing efforts to strengthen its financial position amid a challenging macroeconomic environment.