Vetropack Holding: 2006 net profit down 15%

Swiss glass packaging company Vetropack Holding AG said 21 March 2007 that its 2006 net profit fell 15% to CHF 43.2 million because of special factors and announced an unchanged dividend.
In the 2006…

Swiss glass packaging company Vetropack Holding AG said 21 March 2007 that its 2006 net profit fell 15% to CHF 43.2 million because of special factors and announced an unchanged dividend. In the 2006 fiscal year the Vetropack Group achieved consolidated revenue of CHF 594.7 million, up 14.4% from 2005. Earnings before interest and tax, or EBIT, were 9.1% higher at CHF 67.4 million. Net profit decreased 15.1% to CHF 43.2 million owing to higher capital costs and non-operating expenditure. The acquisition of a 75% majority share holding of the Ukrainian glass manufacturer OJSC Gostomel Glass Factory was of key importance in 2006. The business was successfully integrated into the Vetropack Group and made a contribution of 8.1% to revenue growth in the year. The 1H of 2006 was also characterized by rising energy and raw material prices. However, it proved possible to offset these to some extent because of higher demand for glass packaging. Thanks to this development and rigorous cost management, the ebit margin remained stable at 11.3%. In order to meet demand from the steadily growing Eastern European markets, the Vetropack Group took action to increase production capacity and replaced four old melting furnaces with new energy efficient ones. The additional infrastructure costs, in addition to the non-operating expenditure associated with the redevelopment of the old manufacturing site in Buelach had an effect on annual profit. The board of directors has proposed an unchanged dividend of CHF 16.00 per bearer share and CHF 3.20 per registered share. The general meeting of Vetropack Holding Ltd. will take place 9 May 2007 in St-Prex.