Increased sales in South America helped boost Verallia’s annual sales last year.

The world’s third largest container glass manufacturer reported a 28.3% increase in revenue from the region in a recent financial note.

This contrasted in a 3% decline in sales in northern and eastern Europe and a 5% increase in sales in southern and western Europe.

Reporting its 2021 financial results, it said the the group reaped the benefits of having increased capacity in 2020 in Latin America.

Revenue in the region grew in all categories except food jars. In addition, previous increases in selling prices in the region – particularly in Argentina in response to local hyperinflation – also contributed to the strong growth in revenue.

Sales volumes, on the other hand, fell slightly in Argentina in the second half of the year, impacted by a fire at its Mendoza facility in September which disrupted customer supply over the six-month period.

The company has glass manufacturing facilities in Brazil, Argentina and Chile in South America.

Overall, the company reported a 5.4% increase in revenue for 2021. All product categories recorded increased sales over the year, with the exception of non-alcoholic beverages and food jars.

Forecasting its 2022 results, it said: “Provided that the situation linked to the COVID-19 pandemic does stabilise, that the inflation in costs and the geopolitical context do not deteriorate further, Verallia is expecting a sharp growth in its annual revenue.

“In the current environment of accelerating inflation since the second half of 2021, Verallia anticipates a significant increase in its production costs in 2022, of which energy is a major factor