Vidrala (AO) | Buy | Expands the size of its share buyback programme to 3% (vs. 2%)

Research evidence excerpt

Vidrala (AO) | Buy | Expands the size of its share buyback programme to 3% (vs. 2%)

Vidrala Buy | Target Price: EUR100.50

Company description Management

Vidrala has become almost the largest producer of hollow-glass packaging on the Carlos Delcalux£pv£ Chairman

Iberian Peninsula (33% share vs. Verallia 34%) and has become the third-largest Raul Gomez; CEO

in Europe (with Encirc and Santos Barosa), with market shares of 33% and 15%,

respectively, and output of 2.4m tonnes in 2022. It acquired the filing company Key shareholders

The Park and it closed the full acquisition of the Brazilian hollow-glass player Free float 55.00%

Vidroporto, entering LatAm. Back in December, It has announced another Delclaux Family and other core shareholders 40.00% Advalia Capital 5.00%

acquisition in Chile (Toro).

Investment case Valuation methodology

Vidrala makes glass containers for a wide variety of products in Our DCF-based valuation is EUR100.5 (WACC of c. 8.5%, g of

the beverage and food industries. It is the cost leader in Europe 1.5%).

and the third-largest player with a 15% market share in an Applying 9-10x EBITDA (historical multiple) to our 2030E figures

oligopolistic industry with high barriers to entry. (>EUR60m), and assuming 5% annual growth, we obtain an

After the acquisition of Brazilian Vidroporto, it controls a 20% equity value of >EUR5.5bn (c. EUR150).

market share in the country (number three). Back in December Vidrala is slightly more expensive than Verallia, which was

2025, it acquired Chilean Cristalerias Toro, c. 20% share in Chile justified in the past since the IPO. Vidrala now looks better

(number two). LatAm represents 20% of group EBITDA. prepared to weather tougher times.

The industry will consolidate after this crisis, given different Risks to our rating