Bülach, 31 August 2007 - During the first half of 2007 the Vetropack Group generated consolidated revenues of CHF 346.1 million. This represents a 22% increase compared with last year's sum of CHF 283.7 million.
Consolidated EBIT rose to CHF 58.5 million, representing a 152.2% increase on the previous year's total of CHF 23.2 million. The latter was impacted by the rising costs of energy and raw materials, as well as maintenance and acquisition costs.
Consolidated profits for the half year climbed 181.4% to CHF 43.9 million (first half 2006: CHF 15.6 million). Cash flow margin was 23% of gross revenues (first half 2006: 12.1%).
During the first half of 2007, the Vetropack Group generated consolidated revenues of CHF 346.1 million, representing a year-on-year increase of 22%, whereby currency adjustment plays a central role and corresponds to 17.6%. CHF 35.2 million or 10.2% of the consolidated revenues was generated by Vetropack Gostomel, Ukraine, which has been included in the consolidated financial statements since 1 March 2006. Unit sales rose by 13.1%, with 2.16 billion glass packaging units sold in total, (first half 2006: 1.91 billion). This increase is attributed to a general rise in demand in both domestic and foreign markets. In order to fully meet domestic demand, all production facilities worked to full capacity, and exports were reduced. Exports currently account for 33% of total sales (first half 2006: 36.4%).
Full capacity utilisation and optimum deployment of last year’s newly built and refurbished melting furnaces led to efficiency improvements, and subsequently created a marked increase in added value. Consolidated EBIT rose to CHF 58.5 million, a 152.2% increase on the previous year's figure of CHF 23.2 million, which was impacted by the rising cost of energy and raw materials. EBIT margin stood at 16.9% (2006: 8.2%). Consolidated profits for the half year climbed 181.4% to CHF 43.9 million (first half 2006: CHF 15.6 million), while cash flow increased 133% to CHF 79.7 million (first half 2006: 34.2%). Cash flow margin amounted to 23% of gross revenues (first half 2006: 12.1%).
Expectations for the Second Half of 2007
The new 380 tonne green glass furnace at the Gostomel production facility in Ukraine will be completed during the second half of 2007. Despite the additional capacity it will provide, it is foreseeable that the excess demand in the second half of the year will no longer be fully accommodated. Given the existing low inventory levels, Vetropack will be unable to counteract this development via additional sales from stock. Although all facilities will be working to full capacity in the second half of the year, Vetropack will be unable to achieve further revenue increases, or maintain similar margins as in the first half of the year.
Based on projected earnings for 2007, Vetropack Holding Ltd expects results to surpass those of the previous year.
For additional information, please contact:
Vetropack Holding Ltd
David Zak, CFO
CH-8180 Bülach
Tel.: +41 (44) 863 32 25
Fax: +41 (44) 863 31 33
Semi-Annual Report 2007 (.pdf, 328 kB)
