1996 final results for the Swiss packaging group Vetropack were marked by the strategy of concentration on glass packaging. This was reflected in the disposal of the plastics division in March 1996, f…
1996 final results for the Swiss packaging group Vetropack were marked by the strategy of concentration on glass packaging. This was reflected in the disposal of the plastics division in March 1996, followed by the acquisition of the Croatian glass manufacturer Straza, which was consolidated from last October. Consequently, group turnover fell by 7.4% to SFr 379.4 million last year. Due to extraordinary costs connected with the strategic realignment and downward pressure on prices, group net profits dropped to SFr 0.5 million (1995: SFr 9.6 million) and group cash flow to SFr 44 million (1995: SFr 63.9 million). Capital investments amounted to SFr 44.3 million (1995: SFr 44.1 million). The parent company, Vetropack Holding AG, nevertheless reported virtually unchanged net profit of SFr 7.5 million in 1996 and is recommending an unchanged dividend pay-out of 28%. The annual general meeting on 14 May will also be asked to approve changes to the company“s capital structure. Vetropack is proposing a ten-for-one stock split involving both the registered and bearer shares, followed by the conversion of the participation certificate (PC) capital into bearer shares. The share capital will subsequently be increased by means of a one-for-ten rights issue. The share capital, which will total SFr 19.4 million nominal following the conversion of the PCs, will thus rise to SFr 21.4 million nominal. Vetropack bearer shares, which are currently traded on the over-the-counter market of the Zurich Stock Exchange, will obtain a full listing before the end of June 1997. The Vetropack group, in which the Cornaz family controls an 80% stake, sees growth potential primarily on East European markets.