Verallia confirmed at BUY, TP EUR 34 - Recap of ESG strategy presentation and model update
Verallias ESG strategy rest on three pillars: 1) maximising the cullet use, 2) cutting CO2 emissions and 3) employee-centred measuresThe clarity of the targets was comforting, but we did not identify a shorter-term catalyst from the presentation
The management indicated to feel comfortable with the FY 20 targets of slight organic top-line growth and adjusted EBITDA of ca. EUR 590 mn
The prospects beyond the lockdowns remain promising and valuation appears compelling
We confirm the BUY recommendation with a raised target price of EUR 34 (EUR 32)
Verallia Deutschland AG, formerly Saint Gobain Oberland AG, is a Germany-based producer of glass containers and packages. It focuses on the production of glass bottles and jars for food and and drinks, including for beer, wine, sparkling wine, liquor, water, soft drinks, baby food and canned food. The Company's product range includes bottles and jars in various shapes, sizes and colors. The Company operates as subsidiary of Saint-Gobain Emballage SA, and has production sites in Essen, Wirges, Neuburg and Bad Wurzach in Germany, in Zorya in the Ukraine, as well as in Kamyshin and Kavminsteklo in the Russian Federation. Its subsidiaries are Black Sea Glass Packaging llc, GPS OBerland GmbH, Private JSC Consumers-Sklo-Zorya, JSC Kavminsteklo, ZAO Kamyshinsky Steklotarny Zawod and YAO STI.
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