Vidrala is a consumer packaging company. Our aim is to make glass containers, the ultimate fully recyclable material, and to serve packaging services as efficiently, profitably, and sustainably as possible, whilst ensuring the safety and wellbeing of our people and meeting the expectations of our customers.
2022 was a year in which Vidrala overcame adversity to reaffirm the strength of our company.
Carlos Delclaux
Chairman, Vidrala
Carlos Delclaux
Chairman, Vidrala
Dear shareholders,
The year 2022 turned abnormal since the very beginning, affected by unprecedented inflationary pressures. These cost tensions were the culmination of a period of accumulation of unforeseen external events. Since the pandemic, with all its consequent difficulties, going through the distortions in supply chains, which led to the start of the highest inflationary period for the industry in decades and which has had its maximum expression on energy prices in Europe after the conflict between Russia and Ukraine.
Vidrala’s results throughout this entire period are a good example of the strength of our business model. Thus, throughout 2022, our initially deteriorated operational margins gradually recovered as a result of internal energy cost mitigation actions, a sustained solid manufacturing performance, the first effects of our ambitious investment plan and a progressive adaptation of our sales prices.
It is remarkable that, during all this time, demand for glass packaging showed certainly favourable conditions, grounded on the strong underlying fundamentals for consumption of food and beverages and the continuous support from packagers, brand owners, on-trade & off-trade channels and consumers to glass, as the ultimate sustainable packaging material. Today, glass has a brighter future than ever.
Looking forward, we have recently announced two important corporate operations. On the one hand, since January 31, 2023, our subsidiary in the UK owns the beverages filling facilities and the logistic infrastructure previously operated by Accolade Wines in Bristol, known as ‘The Park’. The business purchased will reinforce Encirc’s unparalleled characteristics as the only player to offer a full 360 approach to the beverage supply chain.
Besides, in early February 2023, Vidrala announced the acquisition of a stake of 29.36% in the Brazilian company Vidroporto, S.A. This acquisition, although it is a minority stake, evidences Vidrala’s long-term strategy towards diversifying the business, creating platforms for future growth in regions that will offer interesting opportunities, and strengthening long-term partnerships with strategic customers.
We continue working to grow our project and make our products in the most competitive and sustainable way. And we will do it securing a strict capital discipline and an attractive remuneration to our shareholders.
Thank you for your trust.
With a vocation for sustainability and a long-term vision, Vidrala’s priorities have been focused on strategic growth, geographical diversification and profitability optimisation , through the execution of internal actions in favour of production efficiency, sustainability, reinforcement of competitiveness and customer service.
1965
Vidrala begins operations in Alava (Spain)
1985
IPO Madrid and Bilbao stock exchanges
1989
Vidrala builds its second greenfield in Albacete (Spain)
2003-2007
Acquisition of four plants in Portugal, Barcelona (Spain), Italy and Belgium
2015-2017
Acquisition of Encirc (UK and Ireland) and Santos Barosa (Portugal)
2019
Sale of our manufacturing activity in Belgium
2023
Acquisition of ‘The Park’ filling & logistics business (UK) and a non-controlling stake in Vidroporto (Brazil).
the four pillars that lay the foundations of our sustainability strategy.
People
We put
everyone first
Place
We are responsible
for our surroundings
Planet
We are making
glass cleaner
and greener
Prosperity
We have a brighter
outlook
Watch Video
The Sustainable Development Goals (SDG) complement our 4 Ps strategy, ensuring its alignment with the United Nations plan to achieve a better, fairer and more sustainable future. See below the most relevant SDGs to our strategy:
The Sustainable Development Goals (SDG) complement our 4 Ps strategy, ensuring its alignment with the United Nations plan to achieve a better, fairer and more sustainable future. See below the most relevant SDGs to our strategy:
SDG9 Industry, Innovation, and Infrastructure
To meet future challenges, and ensure we have resilient infrastructure for the future, we have invested to bring innovative manufacturing equipment as well as alternative energy solutions into our business. Developing sustainable industrial processes and incorporating clean technologies, such as electrostatic precipitators, will help to ensure our long-term sustainability.
SDG7 Affordable and Clean Energy
Accelerating the use of renewable energy is essential to tackling the climate crisis, especially in energy intensive industries like glass manufacturing. Therefore, we are committed to incorporating renewable energy in our industrial processes and improving our energy efficiency as well. Demonstrating this, we have recently begun investing in solar sites to start generating our own renewable energy, and are looking to continue this investment over the coming years.
SDG13 Climate Action
The impacts of climate change are already visible and will worsen without proper action. Reducing our carbon footprint and minimising our climate impact is vital for us. To do so, we have been investing in more energy efficient furnaces, as well as switching to renewable sources of energy to reduce reliance on fossil fuels. We also have a Near-Term Science-Based Target (SBT), in line with 1.5ºC approved by the Science-Based Target initiative (SBTi). In December 2022, we submitted our Long-Term SBT, in line with 1.5ºC, for validation by the SBTi.
SDG5 Gender Equality
Maximising the opportunities for gender equality within the manufacturing sector is an important goal. We are committed to supporting the recruitment, training, development, and careers of both women and men in manufacturing roles and we believe by doing so makes us a stronger, more resilient organisation.
SDG12 Responsible Consumption and Production
The efficient use of natural resources and investing in new technologies to improve our 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, minimises waste and helps contribute towards 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 providing employees with full-time satisfying jobs, with a suite of employee benefits and take care to promote a healthy work-life balance.
SDG15 Life on Land
Protecting our planet is one of our core business values. We are dedicated to conserving resources, where possible, as well as helping to develop and promote biodiversity.
SDG4 Quality Education
Providing quality education for all is fundamental to creating a peaceful and prosperous world. Education gives people the knowledge and skills they need to stay healthy, get jobs and foster tolerance.
Glass is a material that comes from mixing various natural minerals, in furnaces that reach temperatures of 1,600°C where these elements fuse together. Once the melted glass is created, it can be moulded into whatever shape is needed, whether it is a jar or a bottle.
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.
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’. There are two methods of forming: the ‘Press & Blow’ method and ‘Blow & Blow’ method.
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.
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.
ANNEALING LEHR
Loaded into the annealing lehr, the bottles are heated again and then cooled to room temperature, relieving internal stress and improving durability.
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.
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.
COLLECTION
INFINITE
CYCLE
PACKAGING
use of recycled glass
(out of total raw materials)
+0.9%
water consumption vs. 2021
+0.4%
consumption of raw materials vs. 2021
-1.7%
energy consumption vs. 2021
+2.2%
CO2 emissions vs. 2021
Total Scope 1 and 2 / Market
Main figures
SALES
1,345.6 M€
+24.1% vs. previous year
EBITDA
270.4 M€
+1.0% vs. previous year
NET DEBT
167.2 M€
0.6x leverage ratio
EBITDA MARGIN
20.1%
-460 bps
vs. previous year
NET PROFIT
4.97€ per share
+6.9%
vs. previous year
2022 CASH DIVIDENDS AND AGM ATTENDANCE BONUSES
1.2039€ per share
+5% vs. previous year*
PROPOSED 2023 DIVIDEND PAYMENTS
With charge to FY 2022 results
Interim dividend
(Februrary 2023)
0.8852€ per share
Complementary dividend
(July 2023)
0.3369€ per share
AGM attendance bonus
0.0400€ per share
2023 total remuneration
1.2621€ per share
+10% vs. previous year*
Share Price Performance
Comparative performance in percentage terms, base 2013
*Considering the effect of the bonus share issue completed in 2022.
In November 2022, the Vidrala Group made a deal with Accolade Wines to acquire ‘The Park’, a bottling and warehousing facility in Bristol, UK. This new deal hopes to be a step towards a new sustainable future in the UK beverage industry. This acquisition is expected to close early 2023.
We will acquire ‘The Park’ facility, including all associated equipment. This includes the use of all rail distribution infrastructure between sites, supply services and retail sites. This ensures we can continue to provide a ultra-efficient service, creating a sustainable supply chain across the UK beverage market. The acquisition includes the transferral of 400 employees from Accolade to Encirc, whom we are very excited to welcome into the team.
Accolade Wines is highly committed to providing excellence across its global supply chain in terms of innovation, quality, efficiency and sustainability. ‘The Park’ is a technologically and sustainably advanced manufacturing facility that has won awards for its innovative and modern facilities. The manufacturing facility is currently zero waste and carbon neutral. In 2019, wind turbines were installed at site to help contribute to the site being a 100% renewable electricity facility.
Together, Vidrala Group and Accolade Wines are showing their ambition to be organisations that put the planet and sustainability at the centre of their vision for the future.
In April 2022, we announced the validation of our Near-Term Science-Based Target (SBT). The Science-Based Targets initiative (SBTi) has created a framework for companies to ensure emissions targets are in line with climate science. The targets determine how much and how quickly we need to reduce emissions to limit global warming to 1.5°C above pre-industrial levels.
The news represents the next step in our journey to create a sustainable future and make the first Net-Zero carbon glass containers. This is a pivotal moment for the organisation as we become one of the first in the industry to have our SBT approved.
Our Near-Term SBT commits us to:
- Reduce absolute Scope 1 and 2 GHG emissions 47% by 2030 from a 2019 base year.
- Reduce absolute Scope 3 GHG emissions 28% by 2030 from a 2019 base year.
Extending this, we have been working on our SBTi Net-Zero target, and have recently submitted this for validation to the SBTi. Committing to a Long-Term target will require us to reduce our Scope 1, 2 and 3 emissions by 90%. Our targets will help prevent the worst effects of climate change, whilst future proofing our operations. At Vidrala, we have the ambition to become the most sustainable glass business in the world by 2030, and it is hoped that the emission-reducing activity being rolled out across the Group will help enable this.
Waste generation is one of the most important environmental challenges facing society today, the volume of waste generation on a global scale is continuously increasing. The inadequate management of waste has significant impacts on the environment and leads to pollution of water, soil and air, contributing significantly to climate change and ecosystem loss. However, when waste is properly managed, it can be converted into resources that have a positive effect on the conservation of natural resources and ecosystems. The Zero Waste strategy is an essential goal for Vidrala to work towards as it closes the material cycle, reduces the environmental impact associated with waste disposal, and encourages innovation in product design.
In 2022, we began processes at our plants Aiala Vidrio and Castellar Vidrio to become a certified member of the "Towards Zero Waste" management system, promoting continuous improvement in waste management with the aim to achieve up to 90% diversion of waste from landfill, incineration, and the environment.
In 2022, Vidrala was awarded the ‘Value Creation Award’ by elEconomista - one of Spain's daily newspapers which focuses on economic, financial and business affairs. These awards were part of the 8th edition of the ‘elEconomista Fund Investment Awards’. Carlos Delclaux, chairman at Vidrala, attended the awards ceremony to collect the award from Joaquín Gómez, deputy director of elEconomista. Rodrigo Buenaventura, chairman of the Spanish Securities and Exchange Commission (SEC), was also present at the awards ceremony.
These annual awards recognise those companies, products or values that are innovative and cutting edge, highlighting the effort and originality of the initiatives. Carlos Delclaux said: “It is an honour to receive an award that values the work and effort behind the group. In recent years, the company has focused on dealing with disruptions, to adapt to each circumstance and continue generating value for our clients and investors, and for society.”
At our plant SB Vidros in Marinha Grande, we officially launched our Be Healthy programme in October 2022. Throughout 2022, we have already implemented a number of initiatives, however we wanted to carry out a retrospective launch with the aim of making the program known to both our workers and their families… and we did this running! On a sunny morning we organized non-competitive races for adults and children at the plant. Over 200 people attended the launch, including the authorities of Marinha Grande, highlighting the commitment of Vidrala to the health and well-being of our employees
In 2022, more than a hundred Basque secondary students participated in a meeting held at the University of Deusto in Bilbao, to promote scientific-technological vocations among students (STEAM - Science, Technology, Engineering, Arts and Mathematics). Over twenty science and technology professionals from the top companies in the Basque Country, including Vidrala, presented to the students and provided advice regarding career options.
The meeting adopted the original and dynamic speed dating format. Thus, the students were divided into groups of four people per table and next to them, in fifteen-minute shifts, the invited professionals sat down to share their experiences.
The ‘STEAM Sare’ project, ran by Innobasque, shows Basque youth what research, science and innovation professionals are like and what they work on in order to drive interest in STEAM careers and encourage them to get involved in a range of technical studies.
