Vetropack: Demand and turnover on the increase – margin under pressure

Date: 3 September 2012

Bülach, 29th August 2012 – The Vetropack Group generated consolidated gross turnover of CHF 308.6 million during the first half of 2012 (first half of 2011: CHF 306.7 million).

Consolidated EBIT totalled CHF 32.5 million (first half of 2011: CHF 42.8 million). The sale of an area not required for operations boosted consolidated semiannual profit by 126.1 per cent to CHF 58,1 million (first half of 2011: CHF 25.7 million). The cash flow margin amounted to 19.0 per cent (first half of 2011: 21.0 per cent) of gross turnover. All plants were at full capacity.



In a difficult economic environment, the Vetropack Group displayed slight growth and generated consolidated gross turnover of CHF 308.6 million (first half year of 2011: CHF 306.7 million) during the first half of the current financial year, a 0.6 per cent increase year-on-year. After currency adjustments, however, the increase was a pleasing 4.5 per cent. Since 2011, the demand for glass packaging has risen slightly in all countries in which the Vetropack Group operates with the exception of Switzerland. The European currency crisis is continuing to dominate the macroeconomic environment. Uncertainty and fears of a downturn are dampening the consumer sentiment.



During the first six months, the Vetropack Group has expanded its domestic market sales volume without neglecting its strategically important export markets. 62.4 per cent of sales (first half of 2011: 58.6 per cent) were to domestic markets. The overall sales volume was 2.21 billion units of glass packaging (first half of 2011: 2.16 billion units).



Higher energy and maintenance costs cut consolidated EBIT by 24.1 per cent to CHF 32.5 million (first half of 2011: CHF 42.8 million). The EBIT margin therefore decreased from 14.0 per cent in the previous year to 10.5 per cent of gross turnover.



Consolidated semi-annual profit was up 126.1 per cent to CHF 58.1 million (first half of 2011: CHF 25.7 million). The extraordinary increase was achieved as a result of the sale of over 40,000 m2 of land at the Bülach site. The non-recurring effect on pre-tax profit amounted to some CHF 36 million.



Cash flow was 8.6 per cent below the previous year’s level, at CHF 58.8 million (first half of 2011: CHF 64.3 million). The cash flow margin was 19.0 per cent of gross turnover (first half of 2011: 21.0 per cent).



Outlook for the second half of 2012



We are not expecting to see any changes in the market situation in the second half of the year. Capacity at the Vetropack Group remains fully utilised. The planned refurbishment of a bassin at the Pöchlarn plant in Austria will prevent an increase in output capacity. The high energy and maintenance costs mentioned above mean that the EBIT margin should remain at around the same level at the end of the year as in the first half.



Semi-Annual Report 2012   (.pdf, 1188 kB)



For further information, please contact:



Vetropack Holding Ltd

David Zak, CFO

CH-8180 Bülach

Tel. +41 (0)44/863 32 25

Fax +41 (0)44/863 31 33

600450 Vetropack: Demand and turnover on the increase – margin under pressure glassonweb.com

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