2025 first quarter results: Volume recovery confirmed in a difficult market environment Update of 2025 outlook

HIGHLIGHTS

• Acceleration of the organic volume growth initiated in Q3 2024 and positive impact of the acquisition of Corsico in Italy
• Quarterly revenue of €818 million, down -2.2% compared to Q1 2024 (-3.6% at constant scope and exchange rates[1]), due to lower prices
• Adjusted EBITDA[2] at €147 million (18.0% margin) compared to €204 million in Q1 2024 (24.4% margin), affected by a strongly negative inflation spread and a temporary negative inventory variation impact
• Net debt ratio at 2.3x last 12-month adjusted EBITDA (2.1x at the end of December 2024) despite a significant improvement in free cash-flow over the quarter compared to Q1 2024; robust liquidity[3] of €928 million at March 31, 2025
• 2025 adjusted EBITDA now expected around €800 million (from a level close to that of 2024 i.e. €842.5 million initially) in a context where geopolitical and trade tensions weigh on market conditions
• 2025 free cash-flow generation target raised and now expected to exceed €200 million (from around €200 million initially), in line with the Group’s commitment to focus its efforts on cash generation in 2025

Patrice Lucas, Group Chief Executive Officer, said: “In the first quarter, Verallia was able to take advantage of the gradual normalization in the market environment to return to volume growth. Our margin contracted due to the combined impact of an unfavorable inflation spread and a temporary negative finished good inventory variation effect. In this context, the Group maintained tight control over its expenses and the Performance Action Plan (PAP) once again proved to be effective. Even though market conditions lead us to update our 2025 adjusted EBITDA target, we remain fully committed to continue to adapt to the evolution of the environment with agility and we raise our 2025 free cash-flow generation target.”

[1] Revenue growth at constant scope and exchange rates. Revenue growth at constant exchange rates is calculated by applying the same exchange rates to the financial indicators presented for the two periods being compared (by applying the exchange rates of the previous period to the financial indicators for the current period). Growth in revenue at constant scope and exchange rates excluding Argentina was -4.3% in Q1 2025 compared with Q1 2024.

[2] Adjusted EBITDA is calculated based on operating profit adjusted for depreciation, amortization and impairment, restructuring costs, acquisition and M&A costs, hyperinflationary effects, management share ownership plan costs, disposal-related effects and subsidiary contingencies, site closure costs, and other items.

[3] Calculated as available cash + undrawn revolving credit facilities – outstanding commercial paper (Neu CP).

24.04.2025, Verallia