During the 2006 fiscal year the Vetropack Group achieved consolidated revenues of CHF 594.7 million, exceeding last year's results by 14.4%. Earnings Before Interest and Tax (EBIT) were up by 9.1% to CHF 67.4 million.
Consolidated profit of CHF 43.2 million was 15.1% down on the previous year. This reduction is due to higher capital costs and non-operating expenditure. The Vetropack Group undertook a significant investment program during 2006 in order to provide the basis for strengthening its current and future market position.
The acquisition of a 75% majority share holding of the Ukrainian glass manufacturer OJSC Gostomel Glass Factory was of key importance in 2006. The business was successfully integrated into the Vetropack Group and made a crucial contribution of 8.1% to revenue growth last year.
The first half of the year was also characterised by rising energy and raw material prices. However, it proved possible to offset these to some extent because of the increased demand for glass packaging. Thanks to this development and stringent cost management, the EBIT margin remained stable at 11.3%. EBIT was up by 9.1% to CHF 67.4 million (2005: CHF 61.8 million).
With the exception of Switzerland, where production was interrupted for three months to allow the construction of a new furnace in the St-Prex facility, all subsidiaries substantially increased their domestic sales compared to the previous year. This was especially true of sales in the domestic markets; exports as a proportion of total sales fell accordingly to 34.6% (2005: 41.7%).
2006 was an exceptional year for investment. In order to meet demand from the steadily growing markets of Eastern Europe, the Vetropack Group took action to increase its production capacity and replaced four old melting furnaces with new energy efficient ones. The associated additional infrastructure costs, in addition to the non-operating expenditure associated with the redevelopment of the old manufacturing site in Bülach were reflected in a reduced annual profit of CHF 43.2 million (2005: CHF 50.9 million).
Vetropack Holding Ltd
Vetropack Holding Ltd has reported a net profit of CHF 12.9 million during the year under review (2005: CHF 11.6 million).
The board of directors proposes a dividend distribution of 32% of the nominal value (2005: 32%) to the Annual General Assembly. This represents an unchanged dividend of CHF 16.00 per bearer share and CHF 3.20 per registered share.
The General Assembly for Vetropack Holding Ltd will take place on Wednesday, 9 May 2007 at 11.15 a.m. in St-Prex.
