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01.09.2006
Vetropack: Growth in Turnover – Pressure on Margin
During the first half of 2006 the Vetropack Group generated a consolidated turnover of CHF 283.7 million. This represents a 10.3% increase over last year's figure of CHF 257.3 million. At CHF 23.2 million the consolidated EBIT fell by 18.3% compared to last year (1st half 2005: CHF 28.4 million). This was due to sharp price increases for energy and raw materials, exceptional costs for the acquisition of OJSC Vetropack Gostomel Glass factory, and production losses while replacing the furnace in St-Prex.
Consequently consolidated profits for the half year fell by 32.2% to CHF 15.6 million (1st half 2005: CHF 23.0 million), and cash flow fell by 25.5% to CHF 34.2 million (1st half 2005: CHF 45.9 million). The cash flow margin was therefore 12.1% of gross turnover (1st half 2005: 17.8%). This margin is expected to improve during the second half of the year.
During the first half of 2006 the Vetropack Group generated a consolidated turnover of CHF 283.7 million, representing year-on-year growth of 10.3% (8.3% after currency adjustments). CHF 21.5 million (8.4%) of this amount is attributable to our acquisition in Ukraine, which has been consolidated since 1st March 2006. The total number of glass packaging units sold rose by 11.5% to 1.91 billion (1st half 2005: 1.79 billion). The proportion of sales attributable to exports was 36.4% (2005: 44.7%). Vetropack sold more units of glass packaging in its domestic markets than in the same period last year, with the exception of Switzerland where production was halted for three months to enable the construction of a new furnace. Production capacity was fully utilised.
Despite the rise in gross turnover, financial results are down on last year due to the massive rise in energy prices, the exceptional acquisition related costs, and the temporary loss of production connected with the replacement of the furnace in St-Prex, Switzerland. Consolidated EBIT was CHF 23.2 million (1st half 2005: CHF 28.4 million), equivalent to 8.2% of gross turnover. Consolidated profits for the half year fell by 32.2% to CHF 15.6 million (1st half 2005: CHF 23.0 million), while cash flow fell by 25.5% to CHF 34.2 million (1st half 2005: CHF 45.9 million). Cash flow margin was 12.1% of gross turnover (1st half 2005: 17.8%).
Outlook for the Second Half of the Year
The additional production capacity gained from the acquisition will have a positive impact on the operating margin during the second half of the year. Therefore, Vetropack expects operating profits for 2006 to be broadly in line with those of last year, provided that energy and raw material costs do not continue to rise. In contrast, consolidated profits may not quite match last year's levels. Not only will there be less exceptional non-operating income, but also higher expenditure associated with the reuse of the grounds of the former glassworks in Bülach.
Based on projected earnings, Vetropack Holding Ltd expects results to be broadly in line with those of last year.
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27.08.2010
Vetropack: Increased Sales, Stable Revenues, Solid Financing
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29.06.2010
Vetropack Group: Johann Reiter assumes responsibility for Business Division Switzerland / Austria
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