Vetropack Holding AG
In 2021, the consolidated net revenue of the Vetropack Group increased by 23.2 percent to CHF 816.5 million (2020: CHF 662.6 million). The subsidiary acquired in December 2020 in the Republic of Moldova contributed 6.9 percent to the increase in net revenue. Consolidated EBIT increased by 7.2 percent to CHF 81.6 million (2020: CHF 76.1 million).
The 2021 financial year was marked throughout Europe by strong demand for glass packaging. The Vetropack Group once again strengthened its market position and increased its production capacity. Vetropack’s markets and its own production were also little affected by the negative impact of the global pandemic. The Vetropack Group sold most of the additional capacity on the domestic markets and achieved consolidated net revenues of around CHF 816.5 million. Compared to the previous year, this record corresponds to an increase of 23.2 percent (2020: CHF 662.6 million). The subsidiary acquired in December 2020 in the Republic of Moldova contributed 6.9 percent to the increase in net revenue.
Financial figures 2021:
- Net revenue: CHF 816.5 million (2020: CHF 662.6 million).
- EBIT: CHF 81.6 million (2020: CHF 76.1 million)
- EBIT margin: 10.0 percent (2020: 11.5 percent)
- Consolidated profit: CHF 63.8 million (2020: CHF 81.2 million)
- Net cash: CHF 88.7 million (2020: CHF 59.7 million)
- Cash-flow: CHF 154,1 millions (2020: CHF 141,2 millions)
- Cash flow margin: 18.9 percent (2020: 21.3 percent)
- Equity ratio: 73.9 percent (2020: 77.0 percent)
The Vetropack Group achieved a consolidated EBIT of CHF 81.6 million, which is 7.2 percent more than the previous year (2020: CHF 76.1 million). From the second half, the exceptional increase in means of production such as energy, packaging and transport had a negative impact on the group’s results. During the financial year, the rapid and massive increase in production costs could only be partially passed on to the market. Consequently, the EBIT margin decreased by 11.5 percent compared to the previous year, standing at 10.0 percent in 2021.
The consolidated annual profit of CHF 63.8 million (2020: CHF 81.2 million) benefited from the positive impact of the sale of a non-operating asset for an amount of approximately CHF 9.1 million. The profit margin is 7.8 percent (2020: 12.3 percent). The very strong Swiss franc at the end of 2021 generated an exchange rate loss of CHF 5.8 million on the Vetropack Group’s euro assets. The sale of a property not necessary for operations for an amount of approximately CHF 9.1 million had a positive impact on the good result of the previous year.
In the reporting year, cash flow increased to CHF 154.1 million (2020: CHF 141.2 million), or 18.9 percent (2020: 21.3 percent) of net turnover. The Vetropack Group spent 119.2 million (2020: CHF 73.7 million) on tangible and intangible fixed assets. The main investments were dedicated to the new glass factory located in Boffalora sopra Ticino, Italy. The start of work was given on October 25, 2021. Investments for the expansion of recycling facilities were also made at the plants in the Czech Republic and Austria. Cash flows from operating activities amounted to CHF 182.7 million (2020: CHF 136.9 million), or 22.4 percent of net sales. The group’s net liquid assets increased to CHF 88.7 million (2020: CHF 59.7 million).
Equity amounted to CHF 774.5 million (2020: CHF 763.6 million). The equity ratio decreased to 73.9 percent (2020: 77.0 percent).
At the end of the financial year, the Vetropack Group employed 3,896 people (31 December 2020: 3,882 people).
Outlook for fiscal year 2022
Glass packaging remains in trend, as shown by the increase in demand for glass containers across Europe.
In recent years, the Vetropack Group has continuously increased its production capacities in order to meet the high demand and to further expand its market position.
Irrespective of this positive development, the costs of the means of production such as energy, raw materials, packaging and transport have recorded a very strong increase in recent months. Galloping inflation will also lead to higher personnel costs. In view of these cost developments, the Vetropack group will have to adjust its prices during the course of the year.
Due to the escalation of the armed conflict in Ukraine, and in order to protect employees, the Vetropack group suspended the activity of the Gostomel glassworks, near kyiv, on February 24, 2022.
Given the rapid and uncertain evolution of the situation, it is currently impossible to quantify the consequences for our group of companies for the 2022 financial year. The shutdown of production in our Ukrainian glassworks until the end of the year will lead to a drop in the group’s net sales of around 10 percent. The positive trend in turnover is thus overshadowed by the events in Ukraine. Consequently, the consolidated operating result and the net profit for the previous year cannot be achieved.
Vetropack Holding SA
The Board of Directors invites the General Meeting to pay a dividend of CHF 1.30 gross (2020: CHF 1.30) per registered share A and of CHF 0.26 gross (2020: CHF 0.26) per registered share B.
The General Meeting of Vetropack Holding SA will be held on Wednesday April 20, 2022, without shareholder participation.
The 2021 report is only available online with a download function.
John Rider, CEO
Vetropack Holding SA
Phone. +41 44 863 33 30
David Zak, CFO
Vetropack Holding SA
Phone. +41 44 863 32 25