Portuguese glass packaging giant BA Glass saw its profits plummet by almost 60% in 2024 to €157.2 million, down from €389 million the previous year, as it grappled with weak global demand and challenges integrating recent acquisitions in Mexico, Poland, and the UK. The downturn prompted the closure of its factory in Egaleo, Greece — the last remaining glass packaging facility in the country — and the shutdown of several production lines across its network.
The company, headquartered in Vila Nova de Gaia, reported a steep decline in EBITDA to €402 million with a margin of 26.4%, down from €533 million and 35.7% in 2023. The weaker margins were driven by the underperformance of newly acquired units, higher amortization costs, and increased impairments, which dragged the operating margin down to 15.9%.
The new CEO Tiago Moreira da Silva, who replaced Sandra Santos in February 2024, described the financial year as one where “most factories faced difficulties”, with macroeconomic and market challenges complicating operations. Chairman Paulo Azevedo admitted that, despite intensive cost-cutting and operational adjustments, the group “was not able to achieve the necessary sales volumes or the desired profitability levels.”
In total, BA Glass reported €1.53 billion in sales — a marginal year-on-year increase of 0.6% — supported by growth in the food, beer, and spirits packaging segments, especially in Poland and Mexico. However, demand in the tequila market lagged, while high stock levels and sluggish recovery in the glass packaging sector forced the company to reduce production capacity by 4.5% for the second year running.
The closure of the Egaleo facility, acquired in 2017 as part of a €500 million deal for the Yioula Group, resulted in the loss of 140 permanent jobs and dozens of temporary and contract positions. The group cited structural limitations and high modernization costs as reasons for shutting down the aging plant.
Despite the setback, BA Glass highlighted efforts to increase sustainability, reporting that the acquisition of UK-based Recresco raised its use of recycled glass to 40.6%. The company invested €178 million in 2024 — mostly in furnace upgrades in Portugal and Bulgaria — down from a record €203 million in the previous year.
With 4,869 employees across seven countries, BA Glass produced over 11 billion bottles and jars in 2024. Food jars now make up 34% of sales, followed by beer (26%), wine (13%), soft drinks (13%), and spirits (13%).
Looking ahead, CEO Tiago Moreira da Silva emphasized a need for frugality and resilience, warning of risks from geopolitical instability and tariff pressures. He concluded:
“It is important to be conservative, but bold; patient, but reactive — and consistent in our efforts to improve every day.”
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