By Helena Smolak
Vidrala shares rose after the company said it plans to control its capacity-utilization rates to adapt inventories in response to demand weakness.
Shares at 0851 GMT were up 3% at EUR78, having earlier risen as much as 5.4%.
The Spanish bottle manufacturer said its capacity measures, which don’t affect its full-year guidance, follow recent weakness in demand that reflects macroeconomic factors, temporary destocking effects and tough comparisons from the previous year.
For the first nine months, Vidrala said it made a net profit of 184.6 million euros ($195.2 million). Last year, it reported a net profit of EUR78.2 million for the same period.
Revenue rose 17% to EUR1.19 billion, while earnings before interest, taxes, depreciation and amortization nearly doubled to EUR315.6 million, the company said.
Vidrala said its results show the benefits of its recent deal making, particularly in a less buoyant economic context.
Vidrala’s comments about demand weakness shouldn’t come as a surprise for the market given share falls over recent weeks, and its results point to a third-quarter performance broadly aligned with expectations, Citi analysts James Perry and Ephrem Ravi said in a note.
After Wednesday’s early-trade gains, Vidrala shares were still down 14% over the last three months.
Write to Helena Smolak at [email protected]
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