Shares of Vidrala, the Spanish bottle manufacturer, have seen a notable increase after the company announced its plans to adjust its capacity-utilization rates in response to weakened demand. The shares were up 3% at EUR78 as of 0851 GMT, with a peak increase of 5.4% earlier in the day.
Vidrala attributes the need for capacity measures to recent weakness in demand, which is influenced by macroeconomic factors, temporary destocking effects, and challenging comparisons to the previous year. These adjustments, however, do not impact the company’s full-year guidance.
In the first nine months, Vidrala reported a net profit of EUR184.6 million, a significant rise from EUR78.2 million in the same period last year. Additionally, revenue increased by 17% to reach EUR1.19 billion, while earnings before interest, taxes, depreciation, and amortization nearly doubled to EUR315.6 million.
These results demonstrate the positive outcomes of Vidrala’s recent deal making activities, particularly amidst a less favorable economic context. While the company’s comments regarding demand weakness align with recent market expectations, analysts from Citi, James Perry and Ephrem Ravi, note that Vidrala’s third-quarter performance remains consistent with projections.
Despite the early trade gains on Wednesday, Vidrala shares still reflect a 14% decrease over the past three months.