Vetropack in 2014: sales and revenue up in local currencies

Vetropack Group has reported an increase in both sales and revenue for 2014 despite the challenging economic environment. Consolidated gross revenue was, however, significantly lower (-2.8%) due to negative currency effects.

In spite of the challenging economic environment, Vetropack Group increased its sales by 4.5%, while revenue in local currencies was 4.2% up on the previous year. However, consolidated gross revenue was significantly lower (-2.8%) due to negative currency effects. Net liquidity reached an all-time high and all Vetropack plants operated at essentially full capacity.
Key financial figures for 2014:
•    Gross revenue: CHF 603.7 million (2013: CHF 621.0 million)
•    EBIT: CHF 49.1 million (2013: CHF 60.0 million)
•    EBIT margin: 8.1% (2013: 9.7%)
•    Annual profit: CHF 49.2 million (2013: CHF 56.4 million)
•    Net liquidity: CHF 54.5 million (2013: CHF 23.8 million)
•    Cash flow: CHF 107.2 million (2013: CHF 110.4 million)
•    Cash flow margin: 17.8% (2013: 17.8%)
•    Equity ratio: 79.9% (2013: 80.9%)
Vetropack Group generated consolidated gross revenue of CHF 603.7 million in the 2014 fiscal year (2013: CHF 621.0 million). After adjustment for currency effects, this equates to a 4.2% increase in revenue. In nominal terms, however, revenue fell by 2.8% due to negative currency effects.
Overall, Vetropack Group sold 4.55 billion units of glass packaging (2013: 4.36 billion units), 4.5% more than in the previous year. The domestic markets accounted for 56.5% of unit sales (2013: 61.9%). The Group produced a total of 1,236,000 tons of glass packaging, 3.5% less than in the previous year (2013: 1,281,000 tons). This decrease was due to planned stoppages in production for repair work and strategic destocking. At the Czech Vetropack plant, a furnace was replaced as scheduled with a more energy-efficient regenerative model and the supporting infrastructure was upgraded. Meanwhile, the regenerative chambers at the Swiss Vetropack plant in St-Prex underwent repairs earlier than planned. In addition, the political and economic crisis in Ukraine prompted JSC Vetropack Gostomel to take the decision to cut down on production in favour of selling off existing stock instead.
Consolidated EBIT decreased to CHF 49.1 million (2013: CHF 60.0 million). Aside from currency effects, value adjustments for equipment, finished goods, spare parts and stock had a significant impact on EBIT. The EBIT margin came to 8.1% (2013: 9.7%).
Consolidated annual profit amounted to CHF 49.2 million (2013: CHF 56.4 million). At CHF 107.2 million, cash flow was 2.9% down on the previous year’s figure of CHF 110.4 million, but the cash flow margin remained unchanged at 17.8% (2013: 17.8%). Net liquidity more than doubled compared to the previous year, reaching an all-time high of CHF 54.5 million (2013: CHF 23.8 million).
Vetropack Group invested a total of CHF 74.3 million in 2014 (2013: CHF 56.3 million). The focus of these investments was on refurbishments and upgrading production infrastructure, as a result of which all Vetropack Group furnaces now meet the latest technological standard.
Vetropack Group includes subsidiaries in Switzerland, Austria, the Czech Republic, Slovakia, Croatia and Ukraine.
The Board of Directors will propose to the Annual General Assembly the payment of a gross dividend of CHF 38.50 (2014: CHF 37.50) per bearer share and of CHF 7.70 (2014: CHF 7.50) per registered share.
The Annual General Assembly of Vetropack Holding Ltd will take place at 11.15 a.m. on Wednesday, 6 May 2015 in St-Prex.