Bülach, 28 August 2009 – Vetropack Group succeeded in maintaining its earning margin at practically the same high level as last year. Consolidated gross revenue for the first half of 2009 was CHF 334.0 million (Half Year 2008: CHF 380.1 million). Consolidated EBIT reached CHF 51.5 million (Half Year 2008: CHF 61.0 million), whilst consolidated profit for the half year fell by 10.7% to CHF 45.8 million (Half Year 2008: CHF 51.3 million). Vetropack Group’s cash flow margin remained healthy at 20.7% (Half Year 2008: 21.7%).
During the first half of 2009, Vetropack Group generated consolidated gross revenues of CHF 334.0 million (Half Year 2008: CHF 380.1 million). However, 8.4% of this decrease in revenue was due to foreign exchange differentials resulting primarily from the devaluation of the Ukrainian hryvnia towards the end of 2008. In real terms, revenues merely fell by 3.7%.
During the first half of 2009, the ramifications of the global economic crisis were clearly noticed by the glass packaging industry. Consequently, reductions in production capacity were required throughout Europe. In turn, Vetropack Group also temporarily suspended production lines at all its locations. Decrease in demand primarily affected domestic markets. Overall, sales fell by 11.1% to 1.98 billion units of glass packaging (Half Year 2008: 2.23 billion). Exports accounted for 37.0% (Half Year 2008: 32.7%).
Consolidated EBIT reached CHF 51.5 million, thus 15.6% below last year’s result of CHF 61.0 million. Thanks to targeted economisation measures and stringent cost management, Vetropack Group’s EBIT margin remained solid at 15.4%, despite less than optimal production capacity utilisation (Half Year 2008: 16.0%).
Consolidated profit for the first half of the year decreased by 10.7% to CHF 45.8 million (Half Year 2008: CHF 51.3 million). Cash flow was reduced by 16.4% to CHF 68.8 million (Half Year 2008: CHF 82.3 million). The cash flow margin remained relatively stable at 20.6% of gross revenue (Half Year 2008: 21.7%).
Expectations for the Second Half of 2009
The decline in demand that was a key during the first half of 2009 was less marked in May and June. The coming months will tell whether this recovery persists. The question of whether the recession will strongly alter consumer behaviour, and in what way, also remains unanswered. This makes forecasting extremely difficult.
Vetropack Group expects revenue developments in the second half of 2009 to be in line with the first half year. In other words, 2009 fiscal year end revenues are likely to be lower than last year’s, because full capacity utilisation is unlikely in the near future. Moreover, our competitors’ increasingly aggressive market and pricing strategies will put pressure on margins.
For further information, please contact:
Vetropack Holding AG
David Zak, CFO
CH-8180 Bülach
Tel. +41 (44) 863 32 25
Fax +41 (44) 863 31 33
www.vetropack.com
