O-I Glass, Inc. has released its Fourth Quarter 2024 Capital Markets Presentation, outlining the company's financial performance and its roadmap for future growth. Here are the key highlights from the report:
Financial Performance: Adjusted Earnings Per Share (aEPS) has seen a declining trend over the past four years. In 2020, aEPS stood at $1.22, and it increased to $3.09 in 2023. However, there has been a significant drop in aEPS to $2.30 in 2024. Net Sales have fluctuated over the years. In 2020, net sales were $6,091 million, which increased to $7,105 million in 2023. However, there was a substantial decline in 2024 with net sales plummeting to $6,856 million. Free Cash Flow (FCF) and Capital Expenditure (CapEx) have followed a decreasing trend. FCF has dropped from 5.5 in 2020 to 2.9 in 2023. The Financial Leverage ratio has been on a declining trend over the past four years, dropping from 5.5x in 2020 to 2.9x in 2023.
Strategic Initiatives and Targets: The company is focused on implementing the "Fit to Win" program, which is expected to drive higher earnings and cash flow in 2025. O-I Glass aims to achieve sustainability goals, including increasing recycled content to 50% average by 2030 and reducing global water usage by 25% by 2030. The company has set a target to reduce greenhouse gas (GHG) emissions by 25% by 2030, with an interim target of 10% by 2025. O-I Glass is committed to diversity, equity, and inclusion and aims to increase all aspects of diversity across its team.
Future Outlook: * O-I Glass is cautious about commercial factors and is awaiting clear signs of improved consumption. The company anticipates approximately $175 million of favorable Fit to Win benefits and higher production as internal inventory actions abate.
The market has reacted to these announcements by moving the company's shares -1.8% to a price of $12.31. If you want to know more, read the company's complete 8-K report here.
