Clearly increased earnings and improved position in Eastern Europe
n the financial year just ended the Vetropack Group achieved consolidated revenues of CHF 428.5 million (previous year: CHF 431.6 million). Earnings before interest and tax (EBIT) rose by 51.1% to CHF 38.5 million, equivalent to 9.0% of gross revenues. Consolidated net profit rose by 119.6% from CHF 11.6 million to CHF 25.6 million and cash flow to CHF 65.1 million (previous year: CHF 56.6 million). With the acquisition of a glassworks in Slovakia during the year under review Vetropack has taken an important step which will better enable it to meet rapidly growing market demand in Eastern Europe and develop its market position in a strategically interesting region.
The Swiss Vetropack Group is one of Europe's leading manufacturers of packaging glass. Through its subsidiaries Vetropack is the market leader in Switzerland, Austria, the Czech Republic, Croatia and Slovakia. In the year under review the company achieved consolidated revenues of CHF 428.5 million. This result is just 0.7% under the figure for last year (adjusted for currency effects: -0.3 %). On a unit basis the Vetropack Group increased its sales by 1.5% to 3.0 billion units of glass packaging. At 36.1% (previous year: 33.2%), the proportion of exports to total Group sales (in unit terms) showed a slight increase.
The fact that all of Vetropack's production facilities were working at full capacity had a positive impact on operating profits. The EBIT improved to CHF 38.5 million (previous year: CHF 25.5 million), resulting in an EBIT margin of 9.0 %. Group net profit was CHF 25.6 million, 119.6% up on last year's figure of CHF 11.6 million, whereby the increase in profits essentially corresponds to the exceptional provisions made in the previous year for the closure of the Bülach glassworks, a step which has since been completed. The cash flow of CHF 65.1 million (previous year: CHF 56.6 million) covered 84% of investments made in financial year 2002 in the amount of CHF 77.6 million. At the end of 2002 Vetropack had 2,806 employees (previous year: 2,358).
Growth in Eastern Europe
The companies in the Czech Republic and Croatia enjoyed a marked upturn in demand not only from their domestic markets but also from neighboring countries. The strongest growth was experienced by the Croatian subsidiary company where the decision to commission a state-of-the-art furnace to replace two smaller melting furnaces was clearly well justified. In view of the trends in Eastern European markets, we availed of an opportunity in the second half of the year to take over a further glassworks located in Nemšová, Slovakia. In taking this step the Vetropack Group is consistently following its strategy of expansion into Eastern Europe.
Vetropack Holding Ltd
Vetropack Holding Ltd, which holds direct or indirect participation in the subsidiaries companies, generated a net profit of CHF 7.7 million (previous year: CHF 7.0 million). The Board of Directors proposes to the Annual General Meeting of shareholders that a dividend amounting to 20% of the nominal value should be distributed.
