Earnings call transcript: Vidrala Q2 2025 sees revenue dip, stock slides

Vidrala SA reported its second-quarter 2025 earnings, revealing a decrease in revenues amid challenging market conditions. The company’s stock experienced a 2.4% decline following the announcement, reflecting investor concerns over soft demand and price reductions across its markets. According to InvestingPro data, the stock is currently trading near its 52-week low, with a year-to-date return of -72.6%. Despite these challenges, Vidrala maintained a strong EBITDA margin and outlined a strategic focus on operational optimization and cost competitiveness. The company’s Financial Health Score stands at 0.58, indicating some areas for improvement.

Key Takeaways

• Vidrala’s Q2 revenues reached €750 million, with a like-for-like sales decline of 6.7%.
• EBITDA margin improved by 171 basis points to 28.8%.
• The company reported a net income of €3.22 per share.
• Vidrala’s stock fell by 2.4% due to soft demand and price reductions.
• The company hedged 75% of its 2025 energy exposure.

Company Performance

Vidrala’s performance in Q2 2025 was marked by a decline in revenues, attributed to soft demand across its core markets and price reductions ranging from 3% to 5%. Despite these headwinds, the company achieved an EBITDA margin of 28.8%, showing resilience through strategic cost management and operational efficiency. The company’s diversified presence in the UK, Iberia, and Brazil helped mitigate some of the volume declines, with Brazil showing a positive volume performance of 4%.

Financial Highlights

• Revenue: €750 million, down 6.7% like-for-like.
• EBITDA: €216.1 million, with a margin of 28.8%.
• Net Income (EPS): €3.22.
• Net Debt: €214.8 million.
• Free Cash Flow: 12.6% of sales.

Market Reaction

Following the earnings release, Vidrala’s stock dropped by 2.4% to €85.3, close to its 52-week low of €85.1. The decline reflects investor concerns over the company’s volume performance and price reductions. Based on InvestingPro’s Fair Value analysis, the stock appears to be undervalued at current levels. The broader market trend has been challenging for the glass supply industry, with Vidrala’s stock movement aligning with sector pressures. The company maintains a moderate debt level with a debt-to-equity ratio of 3.25, and a current ratio of 1.61 indicating adequate liquidity.

Outlook & Guidance

Vidrala has set a full-year EBITDA guidance of €450 million, with potential FX-related variations of 1-2%. The company expects a volume recovery of 3-4% in the second half of the year. Vidrala remains focused on maintaining its cost competitiveness and exploring strategic acquisitions to bolster its market position. For detailed analysis of Vidrala’s growth prospects and comprehensive valuation metrics, investors can access the full Pro Research Report available exclusively on InvestingPro, which covers over 1,400 stocks with in-depth analysis and actionable insights.

Executive Commentary

Raúl Gómez, CEO of Vidrala, emphasized the company’s proactive approach to preparing for future challenges, stating, "We are proactively preparing the business for the challenges ahead." He highlighted the importance of cost competitiveness in sustaining margins, saying, "Our margins are today mostly based on our cost competitiveness." Gómez also expressed interest in exploring strategic acquisitions to enhance Vidrala’s market presence.

Risks and Challenges

• Continued soft demand across key markets could pressure revenues.
• Price reductions may impact profitability if not offset by cost management.
• Energy and currency fluctuations pose potential risks, despite hedging strategies.
• Market share recovery efforts may face obstacles in a competitive landscape.
• Regulatory changes, such as the UK Packaging Tax, could affect operational costs.

Q&A

During the Q&A session, analysts inquired about the impact of the UK Packaging Tax, set at £192 per ton, on Vidrala’s operations. The company addressed concerns about margin sustainability, emphasizing its focus on cost management. Analysts also questioned potential M&A opportunities, to which the company expressed a strategic interest in acquisitions to drive growth.

Full transcript - Vidrala SA (VID) Q2 2025:

Conference Moderator, Vidrala: Good morning and welcome to the conference call organized by Vidrala to present its 2025 first half results. Vidrala will be represented in this meeting by Raúl Gómez, CEO, Iñigo Mendieta, Corporate Finance Director, and Unai Alvarez Garaizabal, Investor Relations. The presentation will be held in English and in the Q and A session, questions will be also answered in Spanish. Nevertheless, it is strongly recommended to post questions in English in order to facilitate understanding of everyone. In the company website www.vidrala.com, you will find available a presentation that will be used as supporting material to cover this call as well as a link to access the webcast. Mr. Alvarez, you now have the floor. Thank you.

Unai Alvarez Garaizabal, Investor Relations, Vidrala: Good morning everyone and thank you for joining this call. As announced, Vidrala published its 2025 first half results this morning. We also shared a presentation to support today’s call. We will start by quickly explaining the main numbers in the presentation. After that, we will spend time answering your questions about the business. Now Iñigo will explain the key financial performance for the first half.

Iñigo Mendieta, Corporate Finance Director, Vidrala: Thanks, Vinay. Let’s begin with a quick overview of the main financial figures. For the first half of 2025, Vidrala delivered revenues of €750 million, an EBITDA of €216 million, and a net income equivalent to an EPS of €3.22. At the end of June, net debt stood at almost €215 million, which translates to a leverage ratio of 0.5 times over the last 12 months’ EBITDA. Just a quick reminder at this stage, Italy contributed to revenue and EBITDA in the first two months of 2024 but was reclassified as discontinued from March onwards. This impacts year-on-year comparisons, and we will try to focus on like-for-like trends as we take a closer look at revenue. Sales for the first half of 2025 came in at €250.1 million on a like-for-like basis and at constant exchange rates. This represents a year-on-year decline of 6.7%.

The reduction reflects the expected price adjustments of around -4% and ongoing soft volumes. Scope change due to the exclusion of the Italian business had a negative impact of 2%. Moving on to EBITDA, first half 2025 EBITDA amounted to €216.1 million, showing a stable performance at constant currency and like-for-like scope. This highlights the benefits of diversification and ongoing footprint optimization to drive competitiveness. This operational performance translated into a robust EBITDA margin of 28.8%, reflecting an improvement of 171 basis points compared to the same period last year, underlying our ability to safeguard profitability despite challenging market conditions. Now we break down revenue and EBITDA by region based on the current scope, with Italy fully excluded from the previous year’s figures. As already mentioned, price reductions are visible across all our markets.

Volumes are performing better in Brazil compared to other regions, although Brazil is again affected by adverse currency fluctuations. Margins remain solid across regions thanks to our internal measures regarding free cash flow generation. We examine this chart that traces cash conversion over the 12 months ending in June 2025. Beginning with an EBITDA margin of 29.5%, we’ve directed 12.8% of sales towards CapEx and allocated an additional 4.1% to working capital, financials, and taxes. Consequently, free cash flow amounts to approximately 12.6% of sales. Finally, let’s take a quick look at the balance sheet. Net debt stood at €214.8 million at the end of June, maintaining a low leverage ratio of 0.5 times EBITDA. With this healthy balance sheet, we’ll keep investing in the business and finding ways to improve competitiveness.

Now, before we open the floor to questions, Raúl will summarize the main points and offer some additional insights.

Raúl Gómez, CEO, Vidrala: Thank you, Unai. And thank you, Iñigo. Good morning you all. Thank you very much for attending our conference today. It’s a real privilege to receive your attention and we today feel particularly proud of seeing how many of you are connected from different places attending this call today. The results we are making public now are under our view and evidence of what we are today, the foundations of the business profile that we are creating. That means that we are a more diversified business, more agile, well invested. We are becoming a modern packaging supplier of choice with a strategic commercial positioning in three core regions of activity. We remain supported by a particularly strong financial position. As a result of this, our second quarter results are broadly in line with our expectations three months ago.

This is despite the demand context remains evidently soft, in fact, actually persistently weaker than initially expected. My conclusion we want to share with you today is that our numbers and our profitability levels that we are making public today obtain under challenging conditions are the result of internal actions. These levels of profitability should be sustainable as a result. In consequence, we are today reiterating our guidance for a full year EBITDA of €450 million, with some risk of, in any case, limited negative deviations, basically due to the impact of potential FX fluctuations and a free cash flow of €200 million in the year. In any case, looking beyond the guidance and looking beyond the next quarter, please let me share with you. Please be sure that we are proactively preparing the business for the challenges ahead.

We are managing cost and operations to stay competitive and we are investing more and better with our customer in mind. Our solid financial position today is only a motivation to remain ambitious. We feel really confident that our future belongs to us today more than ever. Thank you very much.

Unai Alvarez Garaizabal, Investor Relations, Vidrala: With that, we finish our introduction and start the Q&A session.

Conference Moderator, Vidrala: Ladies and gentlemen, the Q&A session starts now. Questions by telephone will be answered first. If you wish to ask a question, please dial 5 on your telephone keypad. Our first question comes from the line of Francisco Ruiz from Exane BNP Paribas. Please go ahead.

Francisco Ruiz, Analyst, Exane BNP Paribas: Hello, good morning and thank you for your time and for your.

I have.

Three questions if I may. The first one is if you could give more detail on Q2 numbers in volumes for by divisions and what’s your view on the current weakness in the UK market? Theoretically lower volumes than initially expected and also with the tax on packaging coming in the coming quarters. The second question is more on what you have said Raúl, on your EBITDA margin is sustainable from here. I mean with a weaker demand than initially expected at the end of the year, you reiterate your guidance. What is the level of margin that you are targeting in 2025 in order to reach this 450. Last, I will give the proof to other questions, is quick modeling questions on if you have an explanation for the lower financial cost, what your estimate for the full year and also the working capital.

Thank you.

Iñigo Mendieta, Corporate Finance Director, Vidrala: Paco, could you repeat, sorry, the third question.

Francisco Ruiz, Analyst, Exane BNP Paribas: Yeah, the third question is just on modeling. I mean, financial cost has declined significantly versus last year. What is the best estimate that you could give us for financial costs at the end of the year and the best estimate for working capital?

Unai Alvarez Garaizabal, Investor Relations, Vidrala: Thank you very much for your question, Paco. If we look for volumes in our three regions in the second quarter of the year, we got in Iberia a -1%, in the UK and Ireland a -7%. If we go to Brazil, we got a +4%. If we look at prices in other regions, you are evolving in a -3% or -5%.

Iñigo Mendieta, Corporate Finance Director, Vidrala: Just to add on that, in terms of the UK market conditions, also consider, Paco, that the comparison basis for the first half was quite high, showing in the first half of 2024 an increase in volumes of 12%, mainly affected still by second round effects of the PARC.

Raúl Gómez, CEO, Vidrala: Regarding the specific situation of our sales in the UK market, it’s very evident that this is a point of attention for us and under our view we know the market well. Vidrala is a very solid supplier of glass in this market with our market share. We have the opinion that our sales performance in the first half of the year reflects classically real trading conditions in this region. This is probably where consumption is so far. At the same time, let me insist with you that our margins in the UK, you will agree with me, remain solid despite this weak top line performance. That gives me the confidence that we can recover volumes and recover market share.

To make our guidance, the guidance that we officially regulated today, possible, that means that we will end this year in better conditions and that should be a solid starting point for the next year. Vidrala, our UK business, is a great business, different, and we are very proud of this as it needs to become more competitive so we are able to attract new market share.

Iñigo Mendieta, Corporate Finance Director, Vidrala: Finally, Paco, regarding your third question, more related to modeling, you should consider that our financials—I assume you’re talking about cash flow—should be below €20 million for 2025. Let’s consider the range of €18 million, and working capital best estimate as of today should be flattish or slightly positive for the full year, depending basically on stock evolution.

Raúl Gómez, CEO, Vidrala: The final comment. The most interesting part of your question, Paco, is we are very conscious, we are aware of the fact that for us to achieve our full year guidance on EBITDA, our margins should remain solid at similar or slightly higher levels than today. If you are considering dice, you are right.

Francisco Ruiz, Analyst, Exane BNP Paribas: Just a clarification. I didn’t keep an eye on the volumes on UK and Brazil and also on the packaging taxes in the UK. What’s your view? I mean, how it’s going to be affected specifically Vidrala and more particularly yourself.

Iñigo Mendieta, Corporate Finance Director, Vidrala: Thank you, Paco. Maybe just as a recap for everyone. I assume you’re asking about the EPR. Under this UK Extended Producer Responsibility scheme, the second cost will shift from local authorities to beverage producers. You know that DEFRA gave initial guidance back in December 2024 suggesting a level of £240 per ton. The final fee was below that. That’s £192 per ton, which is a slight improvement. Theoretically, looking ahead, those fees should be adjusted depending on how recyclable packaging is, obviously with higher cost for those materials that are harder to recycle. The reality is that it is probably too early to assess potential impact on volumes, but we are not seeing any significant changes in customer behavior. In any case, it is relevant to understand that if this regulation means that the UK is less competitive, this should mean also that other regions are more competitive.

Please remind that Vidrala is the group composed by three different regions: Iberia and others, the UK, and Brazil. Finally, if we take a look at the very final impact, the impact on the price of the final product for a consumer should be no more than 2.3% of the selling price of a standard product. These are not good news, but probably are not dramatic.

Thank you.

Conference Moderator, Vidrala: The next question comes from the line of Enrique Jaguar from Berenberg. Please go ahead.

I have two questions. First of all, regarding the expected recovery of demand in the second half of the year, I would like to know what kind of recovery you expect among business areas and in which specific sectors, and what is the feedback that you are getting from the wineries, taking into consideration that it has passed some time since the U.S. tariffs were announced. Secondly, I would like to have a more clear picture of what is driving the significant improvement in margins, which is much stronger than was expected, taking into consideration that prices are falling and volumes are not performing well. You mentioned internal action. What kind of internal action, and what is the environment of raw materials and energy? Because honestly, I don’t understand well how margins are performing so, so well. Thank you very much.

Iñigo Mendieta, Corporate Finance Director, Vidrala: Thank you, Kike. On your first question, recovery of demand and potential impact on tariffs. We are reiterating today the full year guidance we gave back in April. The reality is that we are expecting more than a significant recovery on end demand. We’re expecting just a progressive contribution of volumes in the second half. Probably the third quarter will be key in that sense. Let’s consider that for the full year we expect it to be slightly positive in terms of volumes, something between 0 to +1%. This means that in the second half we should be slightly up, let’s say in the range of 3-4% overall in all regions. Obviously, we’re expecting better performance in Brazil than in the rest of mature regions. Regarding tariffs, probably those products that are potentially more affected by them.

I think about wine, I think about olive oil, and I think about specific regions of Spain, France, and Portugal, considering our exposure to that segment, considering that the relevant portion of that segment is already sent to the U.S. in bulk, so probably won’t have an impact on.

Our.

On demand on glass containers for us, we are thinking that the potential impact of those tariffs could be something in the range of 1.5% to 2.5% of our group sales. Again, I would say as the case of the EPR in the UK, not good news, but nothing dramatic.

Raúl Gómez, CEO, Vidrala: Your second question regarding how sustainable our margins are means that we do consider our margins today in each of our three different divisions as structural and sustainable, at least in the midterm.

Why?

Answering your question, because our margins are today mostly based in our cost competitiveness, we are improving cost in every place of the business. We are investing more and this is in a payback. We are managing costs with care in all the structure of our cost base. That makes us feel confident that we are becoming a really competitive player. The market is soft, softer than initially expected. We need to keep on improving our cost beyond the current levels. As long as we are doing this, I insist our margins are today sustainable.

Okay, thank you.

Conference Moderator, Vidrala: Our next question comes from the line of Iñigo Egusquiza from Kepler. Please go ahead.

Good morning, Raúl. Iñigo, Unai, thanks for the presentation and for taking my questions. I have three questions, if I may. The first one is on the utilization capacity by regions. If you can share with us, what is the level in each of the regions? This is the first one. The second one, in Europe, considering the volumes recovery that you expect for the second part of 2025, if you can share with us, how is July volumes evolving? I mean, we have seen a nice recovery in Brazil, but what has been the performance of volumes in July by regions? If you can share with us some color. A final question, Raúl, would be on the M&A. You have reduced the leverage substantially. You are again below 0.5 times net debt to EBITDA.

I don’t know if you can share with us how is the M&A scenario these days? I mean, last call, if I remember well, you were mentioning that it was quite active and a lot of opportunities are around the table. If you can give us an update on that point.

Thank you.

Iñigo Mendieta, Corporate Finance Director, Vidrala: Perfect. Thank you very much for your question. On the first one on capacity utilization during the first half of the year, the group’s capacity utilization was still slightly above 90% levels, with all those adjustments mainly concentrated in neighboring division, both Brazil and the UK almost at full capacity, both of them. While market dynamics may still call for some degree of adaptation across the broader industry, at this stage, we do not anticipate any further closures within our footprint. In any case, we will remain obviously attentive to demand trends and continue to manage inventories with discipline.

Raúl Gómez, CEO, Vidrala: Let me insist in this point that probably our capacity utilization rates today are slightly below the industry average. In a new evidence that we are taking care of our inventories, protecting our margins with a long term view. As long as we remain competitive, it will be our intention to keep on capturing market share in regions or in places where we have lost our market share in the past. Following your question regarding the trading update in July, it’s only July, it’s one month in the year. We can share with you the message that our July sales performance, our profitability in this month are basically aligned with the guidance that we are today reiterating. Nothing more to say, but to understand that the industry, the business and the marketplaces today are more volatile than it has been in the past.

We need to update these figures and this message during the third quarter results conference call regarding M&A in EOM. I will say that our narrative remains basically the same. We are, as we have always been, continuously analyzing potential opportunities. This is part of our spirit.

We want.

We have the aim to grow the business. We want to explore strategic acquisitions. We aim to enter or create solid partnerships with customers in regions where we can add value to the business. This remains the same, but we are not distracted. Let me say this, we remain very focused on the business as it is today on our current perimeter. At the end, let me make an effort to remain being a predictable company whatever happens in the future. In terms of M&A, you shouldn’t be significantly surprised and our financial position shouldn’t be a stress significantly. Do they in any case remain strong? It’s true that we dedicate them sometime long time to our analysis.

Our decisions are always the result of deep process of analysis because we have the aim to be sure that the sellers consider us a good buyer in each of the opportunities that we analyze and to be sure that we pay what is worth for any potential opportunity that we analyze and enter into business where we really can add value, grow the future, vital, out foreseen and are welcomed by customers. It’s time to keep calm today under my view.

Thank you. Gracias.

Conference Moderator, Vidrala: Our next question comes from the line of Natasha Brilliant from UBS. Please go ahead.

Natasha Brilliant, Analyst, UBS: Thank you very much for taking my question. I’ve just got one which is to clarify on the full year guidance. You’ve said today, €450 million of EBITDA. I think previously when I look back at the Q1 slides it said more than €450 million of EBITDA. Is that just being a little bit more conservative? Is it maybe just some deviations from FX? To clarify on that and also on the FX as currency stands today, just to confirm that €450 million number is fine. It’s just if there’s any further moves on FX that there could be some changes, is that correct?

Iñigo Mendieta, Corporate Finance Director, Vidrala: Thanks, Natasha. You’re absolutely right. As you were mentioning, we’re reiterating this figure of 450, no more than as it was the case in April. Basically, this is as you were identifying, perfectly identifying, an exercise of prudence. Mainly this is related to, as we published in the specific light, mainly due to FX movements. Let’s consider that the guidance we issued back in April was done with FX for the British pound of 0.84 and for the Brazilian real of 6.2. Both of them are worse today. In any case, what we guess it’s important to clarify is that we expected limited variations, which means variations in the range of 1-2%. At the end.

Thank you.

Raúl Gómez, CEO, Vidrala: At the end, let me say that, or let me add that if we exclude the effect of FX fluctuations, it is very evident and we are very aware of this, that our full year guidance that we are reiterating today means that mathematically our second half results will be slightly higher than the first half. We are aware of this.

Conference Moderator, Vidrala: Our next question comes from the line of Luis de Toledo from Oddo Securities. Please go ahead.

Good morning. Three small questions from my side. First one, if there was any effect on the blackout, if you, after analyzing, I assume you have not taken any provision, and if it’s something that it’s definitive with regards to the energy hedging levels, if you could provide some information ahead of the release of the audited information. Finally, with regards to these higher volatility in FX and if you’re projecting any additional measure, hedging or the like. Thank you.

Raúl Gómez, CEO, Vidrala: Thank you, Luis. Regarding the first question, the blackout that we suffered in Spain three months ago, yes, there is an impact in our cost that is fully captured in our results in the second quarter. Beyond this impact, that is not small, it is a big concern for any Spanish intensive industries because the circumstances that we suffered this day were difficult to manage, dangerous to manage, and it’s sad for us to see that no significant corrective action has been taken so far in Spain. My final message is if you consider how serious this blackout was in Spain and you analyze what is the modest impact that this has had in our global group numbers for the second quarter, that makes me reiterate that we are becoming a more diversified multinational company, stronger than in the past.

Iñigo Mendieta, Corporate Finance Director, Vidrala: On your second point, please, on energy hedging, you know that our energy hedging policy tries to balance protection against price volatility, also still having some flexibility by using a mix of derivatives and options to manage risk. As a result of that, approximately 75% and 60% of the group’s NFD exposure are hedged through derivative instruments in 2025 and 2026, respectively, which is obviously in addition to the protection provided by our long-term price adjustment formulas. Finally, regarding hedging on the side of currencies, you know that we, our policy usually tries to hedge the expected free cash flow generation in the UK in British pounds. This continues to be like that. Brazil is a specific case where the biggest part of our debt, the biggest part of our free cash flow is denominated in Brazilian real. We have a kind of natural hedge in that sense.

Thank you very much.

Conference Moderator, Vidrala: We have a follow-up question from the line of Francisco Ruiz from Exane BNP Paribas. Please go ahead.

Francisco Ruiz, Analyst, Exane BNP Paribas: Hi again, this is a question on the use of cash. As you commented that your focus is on the day value business and M&A will come opportunistically, you are reaching practically net cash position. Are you thinking on a different way to remunerate shareholder or to pay special dividends taking into account your solid balance sheet position?

Raúl Gómez, CEO, Vidrala: Hi Paco, good morning. As you know, our debt levels is not our target in itself. We always basically say the same. Our target is to obtain a structural, solid, sustainable level of free cash flow. After having secured that we are growing the business, that we are remaining competitive, that we are protecting our margins and that we are for this to remain possible stricter in the future, investing more, more than ever with our customers, our cost competitiveness in mind. If as a result of this achievement of our long term cash profile, we are continuously reducing our debt levels and reach to a point of being in a net cash position, that won’t be a problem. We be prepared to return cash to our shareholders who deserve it in every potential way that is more efficient.

We have been in the past using cash dividends where we always try to create a solid sustainable level of cash cash dividends, trying to avoid any distortion in the future, trying to create a predictable dividend policy in this point. We are combining the past share buybacks, something that we still consider as an attractive tool and maybe in the future, why not? We do explore other extraordinary ideas. Let me insist that some months ago we paid an extraordinary dividend after exiting from Italy. We won’t disappoint you in our shareholder remuneration if the business keeps on improving as we end.

Conference Moderator, Vidrala: Our next question comes from the line of Manuel Lorente from Banco Santander. Please go ahead.

Manuel Lorente, Analyst, Banco Santander: Yes. Hi, good morning. My first question is regarding the, let’s say, volume recovery in the second half of the year. I might see four possible explanations for that volume recovery. The first one is, let’s say, an improving macro because of fewer disturbances from tariffs. The second one is potential market share gain, given the massive restructuring that we have seen, especially in Europe in the last quarters. The third one might be some volume recovery associated with the narrowing of the glass to can gap because of the tariffs on aluminum. The final might be a more, let’s say, straightforward explanation regarding easier comparables versus the first half of this year. Does it make any sense? Do you see any of these four more biased towards reality, or is there any other issue that you want to add to these potential levers?

Raúl Gómez, CEO, Vidrala: Thank you, Manuel. Thank you for the question and answer. Let me add to this that Vidrala is comprised of three different regions that creates a good combination of demand context. In some cases where demand is softer in Europe, it could be stronger in Brazil. That makes me think that Vidrala is becoming a real powerful combination of businesses. One thing is this, our diversification, another reason to understand our sales volumes recovery expected for the second half. Another one is, insisting in your comments, it is true that we have suffered a number of excessive noise distortions during the first half of the year that should progressively moderate, not disappear. Moderate. We are not considering a specific level of optimizing at this point. Just to secure that you consider us as a conservative company in terms of our guidance.

The third point is, as you can see, our margins remain more or less solid and they’re significantly weaker than expected sales or top line performance. This is a proof that we are competitive in each of our regions of activity. That will help us to progressively, with our mind in the long term, capture sales and recover some of the market share that has been lost in the places where it has been lost.

Manuel Lorente, Analyst, Banco Santander: Okay, again on the margin side or in the EBITDA side for the second half of the year, apart from the, let’s say, larger benefits from a greater operational leverage from the top line, the energy savings in terms of hedging are going to help a little bit versus the first half?

Raúl Gómez, CEO, Vidrala: No, not significantly, because as you probably know, most of our energy, 4.25, is fixed so far. Our energy prices in the second half should be similar to the first half, and probably actually the market prices are not significantly different by that. The reason for our cost improvements expected in the second half, because we are foreseeing some cost improvements, is again the same: our continuous investment ambition, our internal actions, and the reality that I don’t want to see us excessively optimistic in this message, but the reality that the first half of this year has been distorted by an excessive amount of noise across our business, externally and internally. The comparison basis will be in terms of cost. The comparison basis should be easy to prove.

Manuel Lorente, Analyst, Banco Santander: Okay, thank you guys.

Conference Moderator, Vidrala: There are no further questions by telephone. I now hand it back to the Vidrala team who will address questions submitted via webcast. Thank you.

Unai Alvarez Garaizabal, Investor Relations, Vidrala: Okay, there are no further questions through the webcast. If you have more questions or need more details, please feel free to contact us anytime. That’s all for today. Thank you very much for joining and listening.

Raúl Gómez, CEO, Vidrala: Thank you very much, you all. Hope you living in Europe particularly enjoy a very well-deserved holidays drinking and eating in glass. Best for you. Thanks for your interest.

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